What’s the Future for Mariemont Finances?
“Mayor Policastro said he has never seen such a strong budget as this one over the last 20 years. It is amazing how well we have done in the adversary (sic) climate that we have been up against. Most small municipalities except for Blue Ash and Evendale are having huge problems and we are not.”
Mariemont Budget Hearing Minutes – July 8, 2013
The financial picture for small communities in Ohio has been greatly impacted by state cut-backs, elimination of the estate tax and elimination of personal property tax. Mariemont is no exception and the picture is not as rosy as portrayed by Village leaders.
Over the last ten years, Mariemont spent more money than it received in the General Fund (which pays for Village services) in years 2003, 2004, 2007, 2008 and 2009. The Village Clerk was projecting 2013 to be a deficit year also but the mayor announced a future estate tax receipt of $318,000. If not for estate tax infusions of $1,219,200 in 2005 and $378,668 in 2010, these years and 2013 would have been deficit years as well. The following chart reflects actual figures published by the Village in its annual reports:
| Year | Receipts | Disbursements | Net Change to General Fund |
General Fund Reserve |
| 2003 | 2,855,086 | 2,954,912 | (99,826) | 1,632,500 |
| 2004 | 2,672,499 | 3,160,566 | (488,067) | 1,144,433 |
| 2005 | 3,673,446 | 2,973,182 | 700,594 | 1,845,028 |
| 2006 | 3,199,006 | 3,174,256 | 24,750 | 1,869,780 |
| 2007 | 3,249,331 | 3,453,861 | (204,530) | 1,665,249 |
| 2008 | 2,995,250 | 3,392,499 | (397,249) | 1,268,001 |
| 2009 | 3,053,116 | 3,311,239 | (258,123) | 1,009,877 |
| 2010 | 3,117,917 | 3,101,268 | 16,649 | 1,026,525 |
| 2011 | 3,091,361 | 3,013,484 | 77,877 | 1,104,000 |
| 2012 | 3,267,644 | 3,055,981 | 211,663 | 1,316,104 |
Fortunately, General Fund reserves, two years of unusually high estate tax receipts and the temporary infusion of construction worker wages from the Greiwe condominium developments compensated for the deficit spending. However, with the continued revenue cut-backs by the State and the elimination of the estate tax this year, there will be no “white knight” to march in and financially save the Village from deficit spending. Reserves will continue to decline. If the spending is left unaddressed or there are no new revenue streams coming on-board, the Village could face “fiscal emergency” status by the State Auditor in several years.
Over the past ten years, the Village collected $3,370,347 in estate taxes. If there had been no estate tax, the Village would be $2,054,243 in debt at the end of 2012 rather than having $1,316,104 in reserve. This provides a magnitude of the problem and the level of revenue needed to offset the deficit spending coming. So what is going to happen in Mariemont over the next ten years with no estate tax? The income from a Joint Economic Development Zone (JEDZ) partnership with Columbia Township would have been a great start toward a solution. Shared services might also be a way to help reduce costs.
Communities have known for five years the cut-backs were coming and had ample time to plan for adjustments. Although it is late in the game, Village leaders need to start working on how to address the anticipated shortfall. They can no longer ignore the “train barreling down the tracks.”
Mike Lemon
Mike’s hit the nail on the head, which may sound strange coming from a sitting Council person. I have to bear some the responsibility, but Mike’s right – despite good work from the Finance Committee and our Treasurer/Clerk, we are sinking (ever so slowly). This trend suggests either eventual fiscal emergency or an “ask” in the coming years for more money via a new Levy. We must make cost cutting part of our DNA, not just episodic when economic conditions get tough. We must remain vigilant, even in times of plenty.
Cortney
Scheeser.blogspot.com
Mike may be right and past/current council(s) bear the responsibility, but what isn’t stated is that until there is a complete turnover of council and the mayor’s office, nothing is going to change.
Several weeks ago I, along with 85 percent of those voting, voted for the renewal of a Mariemont operating bond levy that is projected to raise $76,276 a year for the Village of Mariemont, but several months ago Mayor Dan Policastro blocked the formation of a Joint Economic Development Zone (JEDZ) with Columbia Township that would have provided over $200,000 dollars a year for over fifty years in unrestricted revenue to the Village of Mariemont. What was the Mayor thinking? Columbia Township now has a JEDZ with Fairfax and this passed with 82 percent of the vote in the recent election.
[…] shrink the revenue streams of all local governments in Ohio. As was pointed out in a November editorial on the Mariemont.com blog, the Village of Mariemont during the past ten years collected $3,370,347 […]
Suggesting that Mariemont is on a path to ‘fiscal emergency’ under the auspices of the State Auditor is vivid hyperbole.
A flyer to this effect landed on my porch awhile back with no name on it, just a reference to this site. Anyone want to claim authorship?