Utilizing Capital, Reserved Balance and Accumulative Benefit Accounts. Agenda, January 29, 2015

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1 Utilizing Capital, Reserved Balance and Accumulative Benefit Accounts Agenda, January 29, Purpose for Establishing Funds; Fiscal Officer, Randy Gonzalez A. Capital Reserve: Purchase of capital items such as building, vehicles and major equipment. B. Reserve Balance Fund: Placing money into this fund during beginning years of levies that can be drawn on at final years of levies. C. Accumulated Benefits Fund: Saving money for payouts such as unused vacation, sick time or other benefits that may be paid employees upon retirement/ separation. Also can be used for early buyout programs. D. Levy preparation: Use of funds when calculating mills and length of levies. 2. Two Different Statutes for Capital Funds. Randy and Mike A /6 or 16.67% of specific fund expenditures from preceding fiscal year. B % of Total of the entire Township s revenue from all sources for preceding fiscal year. 3. Statutory requirements for establishing funds, resolutions and time limitation. Law Director, Mike Vaccaro. 4. Q&A Randy and Mike 1 1

2 Randy Gonzalez, Jackson Township Fiscal Officer Stark County, Ohio Retired 2014: From a 30 years Chief Deputy Clerk of the Canton Municipal Court. Project Manager, (CJIS) Stark County Criminal Justice Information System. Chairman, Stark County Democratic Party. Chairman, 911/ Centralized Dispatch Governance Committee Served as: Jackson Township Trustee 8 years, 1988 thru Chairman, Stark County Board of Elections Vice President, Jackson YMCA Board. Former President of : Founding President of (CLOUT) Coalition of Large Ohio Urban Townships. (SCOG) Stark County Council of Governments Currently serving as: Jackson Township Fiscal Officer, 2000 to Present. Accomplishments as Fiscal Officer: Published transcribed meeting minutes and agendas to the Clerk s web site he designed. Established the Townships first 5-year Capital Improvement Budget using inheritance taxes. Established the Townships first Revenue Balancing, Capital and Retirements accounts. Implemented a networked payroll/ time and attendance system though all township departments. Waived over $35,000 in personal fees formerly paid to the Fiscal Officer for the street lighting of neighborhoods. Invested Jackson s tax dollars that have yielded over $5 million since Helped author, negotiate and execute the Canton (MEDA) mutual Economic Development and JEDD agreements. Worked with representative Kirk Schuring on many pieces of legislation to help Jackson Township. Currently evolved in several economic development projects. 2 2

3 MICHAEL B. VACCARO Jackson Township Fiscal Officer Stark County, Ohio B.A., The Ohio State University: J.D., Capital University Law School. Upon admittance to the Ohio Bar, Mr. Vaccaro joined the Legal Department of the Stark County Department of Job and Family Services, Children Services Division, in 1995, as a staff attorney. From 2000 to 2013, Mr. Vaccaro served as the Supervising Attorney of the Children Services Division Legal Department, where he supervised five staff attorneys, five support staff, and approximately 400 active dependency, neglect and abuse cases. Previously: Judicial Externship with the Magistrates of the Franklin County Court of Common Pleas and subsequently served as a Judicial Law Clerk for the Franklin County Municipal Court from 1994 to From 1986 to 1991, Mr. Vaccaro served in the Ohio Army National Guard as combat medic assigned to the 2/107th Armored Cavalry Regiment. Currently, Mr. Vaccaro is the Law Director for Jackson Township and maintains a part-time private practice. On 11/10/2015 the Jackson Township Board of Trustees announced Mr. Vaccaro will become the Township Administrator/ Law Director beginning 1/1/

4 ORC Reserve balance accounts - special revenue fund - capital projects fund. (A) A taxing authority of a subdivision, by resolution or ordinance, may establish reserve balance accounts to accumulate currently available resources for the following purposes: (1) To stabilize subdivision budgets against cyclical changes in revenues and expenditures; (2) Except as otherwise provided by this section, to provide for the payment of claims and deductibles under an individual or joint selfinsurance program for the subdivision, if the subdivision is permitted by law to establish such a program; (3) To provide for the payment of claims, assessments, and deductibles under a self-insurance program, individual retrospective ratings plan, group rating plan, group retrospective rating plan, medical only program, deductible plan, or large deductible plan for workers' compensation. The ordinance or resolution establishing a reserve balance account shall state the purpose for which the account is established, the fund in which the account is to be established, and the total amount of money to be reserved in the account. Not more than one reserve balance account may be established for each of the purposes permitted under divisions (A)(2) and (3) of this section. Money to the credit of a reserve balance account may be expended only for the purpose for which the account was established. A reserve balance account established for the purpose described in division (A)(1) of this section may be established in the general fund or in one or more special funds for operating purposes of the subdivision. The amount of money to be reserved in such an account in any fiscal year shall not exceed five per cent of the revenue credited in the preceding fiscal year to the fund in which the account is established, or, in the case of a reserve balance account of a county or of a township, the greater of that amount or one-sixth of the expenditures during the preceding fiscal year from the fund in which the account is established. Subject to division (G) of section of the Revised Code, any reserve balance in an account established under division (A)(1) of this section shall not be considered part of the unencumbered balance or revenue of the subdivision under division (A) of section or division (A)(1) of section of the Revised Code. At any time, a taxing authority of a subdivision, by resolution or ordinance, may reduce or eliminate the reserve balance in a reserve balance account established for the purpose described in division (A)(1) of this section. A reserve balance account established for the purpose described in division (A)(2) or (3) of this section shall be established in the general fund of the subdivision or by the establishment of a separate internal service fund established to account for the operation of an individual or joint self-insurance program described in division (A)(2) of this section or a workers' compensation program or plan described in division (A)(3) of this section, and shall be based on sound actuarial principles. The total amount of money in a reserve balance account for self-insurance may be expressed in dollars or as the amount determined to represent an adequate reserve according to sound actuarial principles. A taxing authority of a subdivision, by resolution or ordinance, may rescind a reserve balance account established under this division. If a reserve balance account is rescinded, money that has accumulated in the account shall be transferred to the fund or funds from 4 which the money originally was transferred. 4

5 (B) A taxing authority of a subdivision, by resolution or ordinance, may establish a special revenue fund for the purpose of accumulating resources for the payment of accumulated sick leave and vacation leave, and for payments in lieu of taking compensatory time off, upon the termination of employment or the retirement of officers and employees of the subdivision The special revenue fund may also accumulate resources for payment of salaries during any fiscal year when the number of pay periods exceeds the usual and customary number of pay periods. Notwithstanding sections , , and of the Revised Code, the taxing authority, by resolution or ordinance, may transfer money to the special revenue fund from any other fund of the subdivision from which such payments may lawfully be made. The taxing authority, by resolution or ordinance, may rescind a special revenue fund established under this division. If a special revenue fund is rescinded, money that has accumulated in the fund shall be transferred to the fund or funds from which the money originally was transferred. (C) A taxing authority of a subdivision, by resolution or ordinance, may establish a capital projects fund for the purpose of accumulating resources for the acquisition, construction, or improvement of fixed assets of the subdivision. For the purposes of this section, "fixed assets" includes motor vehicles. More than one capital projects fund may be established and may exist at any time. The ordinance or resolution shall identify the source of the money to be used to acquire, construct, or improve the fixed assets identified in the resolution or ordinance, the amount of money to be accumulated for that purpose, the period of time over which that amount is to be accumulated, and the fixed assets that the taxing authority intends to acquire, construct, or improve with the money to be accumulated in the fund. A taxing authority of a subdivision shall not accumulate money in a capital projects fund for more than ten years after the resolution or ordinance establishing the fund is adopted. If the subdivision has not entered into a contract for the acquisition, construction, or improvement of fixed assets for which money was accumulated in such a fund before the end of that ten-year period, the fiscal officer of the subdivision shall transfer all money in the fund to the fund or funds from which that money originally was transferred or the fund that originally was intended to receive the money. A taxing authority of a subdivision, by resolution or ordinance, may rescind a capital projects fund. If a capital projects fundis rescinded, money that has accumulated in the fund shall be transferred to the fund or funds from which the money originally was transferred. Notwithstanding sections , , and of the Revised Code, the taxing authority of a subdivision, by resolution or ordinance, may transfer money to the capital projects fund from any other fund of the subdivision that may lawfully be used for the purpose of acquiring, constructing, or improving the fixed assets identified in the resolution or ordinance. Amended by 129th General Assembly File No.64, HB 225, 1, eff. 3/22/2012. Effective Date:

6 ORC Reserve balance accounts for other purposes In addition to any reserve balance account established under section of the Revised Code, a board of township trustees, by resolution, may establish a reserve balance account to accumulate currently available resources for any purpose for which the board may lawfully expend money of the township other than for the purposes for which a reserve balance account may be established under section of the Revised Code. Money may be transferred to the reserve balance account from another fund or account of the township only if money in that fund or account may lawfully be expended for the purpose for which the reserve balance account is created. A reserve balance account created under this section may exist for not more than five fiscal years beginning with the first fiscal year in which money is credited to the account. The total amount of money to the credit of all reserve balance accounts established under this section at any time in any fiscal year shall not exceed five per cent of the total of the township's revenue from all sources for the preceding fiscal year and any unencumbered balances carried over to the current fiscal year from the preceding fiscal year. Money in a reserve balance account shall be expended only for the purpose for which the account is established. More than one reserve balance account may be established under this section. The resolution establishing a reserve balance account shall state the specific purpose for which the account is established, the fund within which the account is established, the fund or account from which money shall be transferred to the account, and the number of years the account will exist. The resolution shall specify the maximum total amount of money that may be credited to the account during its existence and the maximum amount of money to be credited to the account each fiscal year the account exists. The board, by subsequent resolution, may change the amount to be credited and the source from which money is transferred, subject to the limitations of this section. The board, by resolution, may rescind a reserve balance account established under this section before the expiration of the account. The board, by resolution, may extend the life of a reserve balance account, provided that the total number of years the fund exists shall not exceed five fiscal years beginning with the first fiscal year in which money is credited to the account. Upon the expiration or rescission of a reserve balance account established under this section, any unexpended balance in the account shall be transferred to the fund or account from which money in the account was originally transferred. If money in the account originally was transferred from more than one fund or account, a pro rata share of the unexpended balance shall be transferred to each such fund or account proportionate to the amount originally transferred from that fund or account. The balance to the credit of a reserve balance account shall not be considered part of the unencumbered balance or revenue of the township under division (A) of section or division (A)(1) of section of the Revised Code. Effective Date:

7 2015 FIRE/EMS LEVY INFORMATION RENEWAL and (1.5 MILLs New) 5 Years Reserve Budget All Projected Income Capital Projects Fund Balancing Funds Accumulated Benefits Fund Balance or Shortfall With 1.5 Mills = $1,920, $9,376,293 $535,600 $330,753 $549,448 After Squad To/From Capital $9,376,293 $535,600 To/From Reserve $9,376,293 $330,753 To/From Accum. $9,376,293 $476,448 After Swonger Ret. Levy/WCO $8,511,565 $435,272 EMS Fund/WCO $1,300,000 Total $9,811,565 $435,272 Add 3 FF &2 Insp 2016 $9,853,461 $1,920,787 To Capital $200,000 $10,053,461 $735,600 From Capital/ Bal $605,000 $130,600 To/From Reserve $400,000 $10,453,461 $730,753 To/From Accum. $200,000 $10,653,461 $676,448 Levy/WCO $8,011,074 $1,342,387 $7,575,802 levy proj. EMS Fund/WCO $1,300,000 Total $9,311,074 $578, $9,978,149 $1,920,787 To Capital $500,000 $10,478,149 $630,600 From Capital/ Bal $605,000 $25,600 To/From Reserve $270,000 $10,748,149 $1,000,753 To/From Accum. $100,000 $10,848,149 $776,448 Levy/WCO $8,154,202 $1,393,947 $7,575,802 levy proj. EMS Fund/WCO $1,300,000 Total $9,454,202 $526, $10,250,817 $1,920,787 To Capital $605,000 $10,855,817 $630,600 From Capital/ Bal $605,000 $25,600 To/From Reserve $10,855,817 $1,000,753 To/From Accum. $10,855,817 $776,448 Levy/WCO $8,102,642 $1,453,175 $7,575,802 levy proj. EMS Fund/WCO $1,300,000 Total $9,402,642 $467, $10,455,833 $1,920, To Capital $600,000 $11,055,833 $625,600 From Capital/ Bal $605,000 $20,600 To/From Reserve $11,055,833 $1,000,753 To/From Accum. $11,055,833 $776,448 Levy/WCO $8,043,414 $1,712,419 $7,575,802 levy proj. EMS Fund/WCO $1,300,000 Total $9,343,414 $208, $10,664,949 $1,920, To Capital $200,000 $10,864,949 $220,600 From Capital/ Bal $220,600 No capital spent To/From Reserve $200,000 $10,664,949 $800,753 To/From Accum. $10,664,949 $776,448 trans from reserve Levy/WCO $7,784,170 $1,580,779 EMS Fund/WCO $1,300,000 Total $9,084,170 $340,008 $1,920,787 per 1.5 mill $605,000 per year average for capital = $ 2,420,000. first 4 years, 0 in fifth 7 7

8 Jackson Township Trustees ORC Reference Sheet for RESERVE FUNDS ORC Reserve Balance Accounts; Special Revenue Fund; Capital Projects Fund A Establish Reserve Balance Accounts for the following 3 purposes: A 1 Stabilize budgets against cyclical changes in revenue & expenditures Maximum Balance = 5% of prior year's revenue (includes unencumbered carryover) OR 1/6 (16.67%) of expenditures during preceding fiscal Funds: year Not considered as unencumbered balance or revenue for the annual budget review by County Budget Commission OR for the purpose of apportioning County's undivided Loc. Govt. funds Exclude from the "Certificate of Total Amt from All Sources Available for Expenditure" until transferring back to the fund from which the money originally was transferred May reduce or eliminate the reserve balance at any time by resolution A 2 Fund for Self-insurance program claims payments A 3 Fund for Workers Comp retrospective rating plan claims payment B Establish Special Revenue Fund for Terminal payments & 27 paydates: Funds: Rescind by resolution first & then transfer accumulated money to the fund(s) from which the money originally was transferred C Establish Capital Projects Fund for fixed assets: Funds: Resolution should identify: 1. Source of money 2. Amount of money to be accumulated 3. Period of time over which money is to be accumulated 4. Fixed assets to be acquired, contructed, or improved Shall not accumulate money for more than 10 years after resolution establishing the fund is adopted. Rescind by resolution first & then transfer accumulated money to the fund(s) from which the money originally was transferred. ORC Additional Reserve Balance Accounts Funds: For any purpose other than the 3 reserve balance accounts of (A) purposes. Can exist for not more than 5 fiscal years beginning with the first fiscal year in which money is credited to the account. Maximum Balance of all these reserve bal accts at any time in any fiscal yr, '= 5% of total Township revenue for the preceding fiscal year & any unencumbered balances carried over from the preceding fiscal year. Trustees may rescind or extend the life of a reserve bal acct subject to the 5 yr ceiling. Rescind by resolution first & then transfer accumulated money to the fund(s) from which the money originally was transferred. Not considered as unencumbered balance or revenue for the annual budget review by County Budget Commission OR for the purpose of apportioning County's undivided Loc. Govt. funds 8 8

9 JACKSON TOWNSHIP BOARD OF TRUSTEES, STARK COUNTY, OHIO RESOLUTION RESOLUTION NO. 15- ADOPTED: SUBJECT: Police Levy Fund Reserve Balance Account #430 The Board of Trustees of Jackson Township, Stark County, Ohio, met in regular session on the 8th day of December, 2015 with the following members present: James N. Walters John E. Pizzino Todd J. Hawke Trustee moved for the adoption of the following resolution: BE IT RESOLVED THAT, pursuant to attached ORC Section (A)(1), we hereby amend attached Resolution to now read as follows: 1. Establish a Reserve Balance Account to accumulate currently available resources in the Police Levy Fund for the purpose of stabilizing the Police Department Budget against cyclical changes in revenues and expenditures. 2. Authorize the transfer of $250,000.00, per attached Exhibit A, from Account to be deposited in a special fund for Police Department operating purposes named Police Levy Reserve Balance Account Fund #430 and shall be established, maintained and the monies therein to be invested by the Township Fiscal Officer.. 3. Authorize the establishment of the following new codes in the accounting system: Fund #430 Police Reserve Balance Fund, Receipt # transfers in from Police Fund, and Expense code # Police Reserve Balance fund, Police operations cost center, transfer to #209 Police fund object code. Trustee seconded the motion and upon roll call the vote resulted as follows: Mr. Walters Mr. Pizzino Mr. Hawke The foregoing is a true and correct counterpart of Resolution Number 15-, duly adopted on December 8, 2015 and filed with me as the Township Fiscal Officer on December 9, Randy Gonzalez, Fiscal Officer The foregoing resolution is approved as to form: Michael B. Vaccaro, Law Director 9 9

10 JACKSON TOWNSHIP BOARD OF TRUSTEES, STARK COUNTY, OHIO RESOLUTION RESOLUTION NO. 15- SUBJECT: Police Levy Additional Reserve Balance Account #433 ADOPTED: The Board of Trustees of Jackson Township, Stark County, Ohio, met in regular session on the 8th day of December, 2015 with the following members present: James N. Walters John E. Pizzino Todd J. Hawke Trustee moved for the adoption of the following resolution: BE IT RESOLVED THAT, pursuant to attached ORC Section , we hereby: 1. Establish a Reserve Balance Account used to accumulate currently available resources in the Police Levy Fund for the cost of future employee s salaries, benefits and other related costs. 2. Authorize the transfer of $667, from Account to be deposited in a special fund for Police Department future employee s salaries, benefits and other related costs named Police Levy Additional Reserve Balance Account Fund #433 which said reserve balance account will continue for five fiscal years, commencing fiscal year 2015 and the maximum total amount of money that may be credited to the account during its existence is $1,900, and the maximum amount of money to be credited to the account each fiscal year the account exists is $800, and shall be established, maintained and the monies therein to be invested by the Township Fiscal Officer. 3. Authorize the establishment of the following new codes in the accounting system: Fund #433 Police Reserve Balance Fund; receipt # transfers in from Police Fund, and expense code # Police Reserve Balance Fund, Police operations cost center, transfer to #209 Police Levy object code. Trustee seconded the motion and upon roll call the vote resulted as follows: Mr. Walters Mr. Pizzino Mr. Hawke The foregoing is a true and correct counterpart of Resolution Number 15-, duly adopted on December 8, 2015 and filed with me as the Township Fiscal Officer on December 9, Randy Gonzalez, Fiscal Officer The foregoing resolution is approved as to form: Michael B. Vaccaro, Law Director 10 10

11 ORC (A) (1) JACKSON TOWNSHIP TRUSTEES POLICE LEVY RESERVE AMOUNT - FUND #430 FOR THE YEAR OF 2015 Fund # 209 Expenditures during 2014 (no transfers) $ 6,214, multiply by 1/6, which is % 16.67% NEW HB225 CAP AMOUNT $ 1,036, PRESENT FUND BALANCE $ 569, For 2015 Additional transfer amount possible $ 466, In Dec 2015 Planned/Budgeted Transfer in Dec 2015 $ 250, ** NO Expiration Date 11 11

12 in minutes Note: This calculation is ONLY for the ADDITIONAL reserve balance funds JACKSON TOWNSHIP TRUSTEES ALL RESERVE BAL ACCTS MAX FOR THE YEAR OF 2015 From: fund report unencumbered carryover (all funds) $ 23,125, revenue report add: 2014 Total Receipts (all funds) $ 28,281, revenue report less: 2014 Inter-Fund Transfers (all funds) $ 2,106, Total Available $ 49,300, multiply by cap 5% MAXIMUM BALANCE AT ANY TIME IN 2015 $ 2,465, Distribution: Police Fund #433 $ 667, General Fund #442 (add $635,656.49) $ 1,673, Total Balance at 12/31/15 $ 2,341, *** Can exist for not more than 5 fiscal years beginning with the first fiscal year in which money is credited to the account. Police Funds General Fund These Funds exist:

13 Jackson Township Trustees Fire Dept Account Activity As of Fire Accumulated Benefits Fund #293 Fire Reserve Balance Fund #420 IN OUT BALANCE IN OUT BALANCE , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000, , , , , , , , , , , , , , , , , Fire Reserve Balance Fund #421 and #422 IN OUT BALANCE Fire Capital Fund #323 and # , , IN OUT BALANCE , , ,029, ,029, , , ,021, , , , , , , Closed #421 and opened # , , , , , , , , , , , , , , , , , , ,075, ,075, Closed Fund # , , Opened Fund # , , , ,305, , , ,189, , , , ,

14 Fire Department Budget Add Ons 1Rescue / Pumper $545, Truck One $90, Battalion Chief Vehicle (Chevy) $50, Staff Vehicle (Chevy) $30, Self Contained Breathing Apparatus $300, TOTAL: $1,015, yrs old / 15 year life span Extrication Tools $20, Burueau Vehicle $25, Ambulance $230, Fire Engine $450, TOTAL: $725, yrs old / Maint. Issue Currently short one vehicle Ambulance $230, Fire Engine $450, $680, All TOTAL: $2,420,