Boardman to learn financial status in 3 weeks

By Denise Dick

BOARDMAN — The township can expect to know whether it’s reached fiscal-watch status in about three weeks.

In the meantime, it’s been borrowing from itself to fund operations.

A couple of months ago, the township borrowed against its restricted funds, or funds that are designated for specific purposes, to pay for operations.

“Right now, it’s $400,000, but it’s going to be closer to $900,000,” Administrator Jason Loree said of the amount used from the funds.

The increase is to allow the township to meet its payroll.

The money must be repaid to those funds.

Loree said representatives of the state auditor’s office completed their review last week to determine if a declaration of fiscal watch is warranted.

“We’re waiting for a report,” he said.

Emily Frazee, a spokeswoman for Ohio Auditor Mary Taylor’s office, said the report won’t be done for about three weeks.

Fiscal watch is declared if a community meets any in a set of criteria, such as having a significant number of past-due accounts or having a general-fund deficit at the end of the current fiscal year that will exceed one-twelfth of the general-fund revenue from the preceding fiscal year.

Last March, the township asked the state auditor’s office to conduct the analysis. The township cited the lagging economy, high foreclosure rates and reduction in personal-property tax as reasons it needed help to determine its financial status.

The borrowing from restricted funds is the latest in a slew of financial strains that have plagued the township the last few years.

Last January, the township borrowed $3 million to get through the first quarter of 2009. Though other communities have been doing that for years, it was a first for Boardman, but officials have said it likely will occur in subsequent years.

The loan has been repaid.

Last November, township voters passed a police-and-fire levy expected to generate about $2 million, but there’s a lag in the time it takes to receive those funds.

After a levy failure in November 2007, 30 full- and 12 part-time employees were laid off in February 2008.

Some of the laid-off employees have returned to work.

denise_dick@vindy.com