Madison Township receives positive update on fiscal caution status

2022-11-10 17:25:59 By : Mr. Frank Fang

Madison Township is making progress on its attempt to get out of a state fiscal caution designation but still needs to do some things to be a “normal” township again. 

During its regular meeting Monday, the board heard a report from Fiscal Officer Leanna Rhodes about an Oct. 25 conference call that she, trustee Tom Craft and township Fire Chief Ken Justus had with representatives of the State Auditor’s Office of Local Government Services.

“We presented them with a new (fiscal) forecast after we modified the capital plan and some other expenses for the road and fire as well as the general fund,” Rhodes said. “They were pleased with our progress, but we need to add another column for 2025 (projections) and to keep the goal to not deficit spend in any account.”

Rhodes said state officials gave the township until Dec. 20 to submit a modified recovery plan because she will be preparing a new budget for 2023 which will be more accurate in the actual forecast itself. She also said they gave her some suggestions on something they had seen in the process of developing the recovery plan.

Craft said auditors were generally impressed that the township cut spending in the road department for new equipment by saving $110,000 on a boom tractor and almost $60,000 on a new excavator. 

“They said saving like that is how you get out of fiscal caution,” he added. “They said keep it up and, hopefully, we can be a normal township.”

Trustees Chairwoman Cathy Swank read a followup letter from Justus in which the chief said his plan for the future finances of the Madison Township Fire Department is to ask trustees to put on the May 2023 ballot replacements for a 5.5-mill fire levy that was first approved in 2000 and a 4-mill issue that is set to expire in 2024.

Justus said the 5.5-mill levy is being collected at a rate of 4.1 mills and generates around $680,000 per year. The 4-mill levy is based on property values in 2005, and is being collected at a 3.25-mill rate and generates around $525,000 each year.

“Replacement of both levies could give us future funding to pursue the construction of a fire station on Expressview Drive. The additional monies will also allow us to continue to grow as a department and meet the needs of the community,” Swank read from Justus’ letter.

The board also received criticism from two former trustees over action by Swank and Trustee Jim Houser at a special meeting Oct. 24 to accept pay increases allowed this year under state law and to use some of the township’s $1.1 million in federal American Rescue Plan Act funds to cover the increases.

Ohio law sets township trustee salaries based on the size of a township’s budget. Madison trustees were allowed a higher annual salary after the township budget went over a $6 million threshold because of the receipt of ARPA funds.

All three trustees turned down the raise in January to save the township general fund money, but Swank and Houser accepted them last month after learning that ARPA funds could be used.

Fiscal Officer Leanna Rhodes read a letter from former trustee Dan Fletcher, who criticized the two for accepting the increase for “personal” reasons. He pointed out that while he was a trustee, the board turned down a request to pay Madison firefighters some of the ARPA funds for working during the COVID crisis, saying the money should be used to benefit township residents.

During one of the public comment periods, former trustee Miles Hoehn questioned the timing of the increases and whether Swank and Houser granted themselves pay raises.

Swank pointed out the increases were “automatic” because of provisions in the Ohio Revised Code. 

“The increase was there. We voted whether to take it or not,” she said.

Houser said he accepted the raise after learning ARPA regulations were relaxed and the money could be used for salaries. 

“That money did not come from the taxpayers. It came from the federal government,” he added.

During administrative reports, Justus noted that he presented a letter asking trustees to use ARPA funds to provide a COVID bonus for fire department personnel who were employed with the department between March 2020 and March 2022. He said the department was considered essential during the pandemic did not have the luxury of “enjoying” the stay-at-home orders issued by the governor, and reported to work despite the “dangers and risks” to themselves and their families.

Justus suggested that full-time employees receive $2,500 for each year that they worked and part time employees receive $1,500 for each year. The total cost would be $79,500.

Swank said the board would have to receive a legal opinion and wording for a resolution from its consulting attorneys before taking any action.

Justus also reported that Engine 71 sold on GovDeals for $32,500 and is being shipped to Canada and that the heating system in the vehicle bays in the main fire station is not working and needs repairs. He also told the board that Reladyne/Sensmier Oil has resolved and canceled a $5,638 fuel bill the department received in error last month.