CONCORD TOWNSHIP – The bond counsel for Concord Township offered some remarks during a Wednesday, April 1, trustees meeting, where he stated passage of a proposed constitutional amendment abolishing property taxes in Ohio could result in a host of lawsuits from bondholders if locally-raised debt service funds are threatened.
During a presentation and panel discussion on the potential consequences of property tax abolition held at Riverside High School on Wednesday, Feb. 25, Concord Township Fiscal Officer John Patriarca said local property taxes in Ohio fund $300 million a year in debt service toward a balance of $60 billion in local and county government short-term notes and long-term bonds issued to finance projects.
Ryan Callender, Concord Township’s bond counsel and a partner at Squire Patton Boggs, said the debate over abolishing property taxes has the investor class concerned about the risk of default if local governments are not able to raise revenue to pay down bond debt.
He said he foresees “immediate” lawsuits in the event the issue is passed by voters in November.
Callender said that while a small number of local government bonds are held by what he termed “mom-and-pop” investors, the vast majority are held by large, institutional investors, such as BlackRock Inc. and Prudential Financial Inc.
After seeking a temporary restraining order to stop enforcement of the new amendment, Callender said bondholders could make an argument on federal constitutional grounds that the amendment abolishing property taxes violates existing legal contracts.
Whether the courts rule to keep existing debt service property tax levies in place until that debt is paid or the amendment is ruled unconstitutional as a whole, Callender declined to say.
With interest rates calculated based on an assessment of the default risk, Callender said the question being certified for the ballot could cause an immediate rate hike, making the issuance of debt far more expensive for local governments even if only between certification and Election Day.
In other business
Fiscal Officer John Patriarca said he is working with Township Administrator Andy Rose on the final piece of funding for Fire Station No. 2.
In legislation
• Providing for the issuance and sale of bonds in an amount not to exceed $4.25 million for the purpose constructing, furnishing and equipping fire station buildings and improving those sites, together with all necessary appurtenances.
• Approving an engagement letter with PFM Financial Advisors LLC to serve as the financial advisor to Concord Township in an amount not to exceed $35,000 and authorizing the board chair to execute on the township’s behalf.
• Approving a purchase order to Byler’s Roofing and Construction in the amount of $25,000 for the construction of a pole building for a temporary facility at Fire Station No. 2.
• Approving the appointment of part-time Fire Inspector Brien Spangenberger to full-time status, effective Monday, April 6.
• Approving the assignment of Firefighter I Dan Zdraveff to part-time regular Firefighter/Paramedic, effective Sunday, May 3.
In trustee remarks
Trustee Amy Lucci said township officials are keeping an eye on road work on State Route 44 at the intersections with Auburn and Girdled roads, and will keep residents updated on and traffic pattern changes.
Culvert replacement work on Johnnycake Ridge Road (State Route 84) near St. Gabriel Catholic Church will reduce traffic to one lane, controlled by a traffic signal, throughout April and May, according to Board Chair Carl Dondorfer.
He asked residents who use 84 to consider alternate routes or to be patient and plan for delays.
In administrative reports
Rose informed residents of an upcoming America 250 event at the Old Stone Schoolhouse on Friday, April 24, 7-8:30 p.m. Attendees will learn about the six Revolutionary War veterans buried in the township’s cemetery, followed by a brief lantern walk from the school to the cemetery.
Fire Chief Matt Sabo reported the Fire Department responded to 305 calls for service during March, including 190 emergency medical calls and 160 patient transports to local hospitals.
Firefighters responded to six fires – four of them in the township: one each of a cooking fire, forest fire, grassfire and a structure fire – as well as two structure fires outside the township.
The department rendered mutual aid 16 times and received it 17 times. There were 127 instances of overlapping calls, or about 42 percent of total call volume, according to Sabo.
Service Director Tim Brown said there were four callouts during March for snow and ice removal, during which plow crews used 127 tons of road salt.
The Ohio Public Works Commission awarded a $100,000 grant and a $150,000 zero-interest loan to the township for the first phase of resurfacing work on Cascade Drive, which will involve a two-week closure during the second and third weeks of April.
The joint road resurfacing project coordinated with Lake County will involve work on Orchard Road, North Orchard Road, Stuart Drive, Harper Drive, Marlo Drive and a second phase of work on Cascade Drive.
Lt. Samer Musleh of the Lake County Sheriff’s Office reported 900 calls for service during March, as well as 160 traffic stops, 22 traffic citations, 160 warnings, five damage accidents and eight injury accidents.
Deputies made eight arrests and investigated a hit-and-run accident on State Route 84, a drug possession complaint, an assistance call at UH TriPoint Medical Center where a patient who is mentally or developmentally disabled left the hospital alone, the unauthorized use of a motor vehicle, a theft on Prouty Road and a tow truck driver who was hurt in a rollback accident.
The next regular session meeting of the Concord Township Board of Trustees is scheduled for Wednesday, April 15, at 6 p.m. at Town Hall, 7229 Ravenna Road.
