North Ridgeville Finance Director proposes changes to refuse fund ordinance amidst forecasted deficits

The City of North Ridgeville's Utilities Committee convened on July 21, 2025, to discuss critical financial matters concerning the refuse fund and potential changes to senior citizen credits. The meeting highlighted the city's ongoing efforts to manage its utility services amid growing demands and budgetary constraints.

A significant focus of the meeting was the refuse fund, which operates separately from other utility funds such as water and sewer. The finance director presented a detailed fund summary, revealing that the refuse fund's revenues are generated solely from refuse collection charges. According to the current ordinance, the fund must maintain a carry-forward balance equivalent to two months of refuse collection costs. For 2025, the fund is projected to end with a balance of $33,303, which is insufficient to support a proposed one-month rate holiday for residents. The finance director indicated that a rate holiday might be feasible by 2029, contingent on an increase in the fund balance.

The committee also discussed proposed changes to senior citizen credits. Currently, seniors aged 62 and older receive a $2 monthly credit, which is set to be replaced by a new $4 credit if the homestead credit is eliminated. This change is expected to decrease annual revenues by approximately $133,968, leading to concerns about potential deficits in the refuse fund by 2029 and 2030. The mayor expressed apprehension regarding the implications of a negative fund balance, emphasizing that rate increases may be necessary to address any deficits.

The discussion also touched on the need for legislative amendments to allow the finance director greater flexibility in adjusting rates to prevent deficits. Currently, the ordinance restricts rate increases to match only the rise in refuse collection costs, which may not be sufficient to cover potential shortfalls.

In conclusion, the meeting underscored the financial challenges facing North Ridgeville's refuse fund and the implications of proposed changes to senior credits. As the city continues to grow, the committee's decisions will be crucial in ensuring sustainable utility services while balancing the needs of its residents. The committee plans to revisit these issues in future meetings, as they seek solutions to maintain financial stability in the refuse fund.