Willoughby-Eastlake board approves temporary appropriations, transportation amendment and bank switch; orders bus fleet appraisal

At its June 9 meeting the Willoughby-Eastlake Board of Education approved a suite of financial and operational items the treasurer said are meant to preserve flexibility and reduce recurring costs.

Treasurer Nick Charnello asked the board to approve temporary appropriations for fiscal year 2026 so the district can begin spending on July 1; he cited Ohio Revised Code §5705.38 as the statutory requirement that permanent appropriations be adopted later in the summer.

The board unanimously approved (4-0) the temporary appropriations motion.

Amendment to transportation agreement: Charnello described a negotiated amendment with Peterman under which Peterman will hire five mechanics and one foreman previously employed by the district’s mechanics unit. In exchange the district will provide a $410,000 annual credit to the vendor; those mechanics will be hired for the final two years of the current contract. "We're getting a good value, you know, for a dollar," Charnello said, arguing outsourcing the mechanics will reduce emergency outside-hire costs.

Board members noted the move allowed the district to avoid approximately $60,000 a month in outside-mechanic costs they had been incurring and approved the transportation amendment 4-0.

Bank depository: After a competitive process, the district selected Huntington Bank as its depository. Charnello said the change will reduce fees and provide excess-earnings credit in the form of hybrid interest; he estimated savings and credits of roughly $100,000 per year. The board approved the Huntington depository agreement 4-0.

Bus fleet appraisal: The board approved a service agreement for an independent appraisal of the vendor-owned bus fleet. Charnello said the district currently operates about 71 route buses, 65 of which are owned by Peterman; he estimated the district pays about $1,000,000 more per year to use routed buses than if they owned the fleet. With $18,000,000 allocated in a recent capital plan transfer to reacquire buses, the appraisal will determine a fair buyout value; Charnello said he expected an appraiser's fee and travel to run perhaps $13,000, and that Peterman agreed to accept the appraiser’s valuation.

All motions for the transportation amendment, Huntington depository agreement and bus appraisal passed by a 4-0 vote as part of the consent and finance items.

Ending: The treasurer said staff will continue work on permanent appropriations, finalize contracts and return to the board with implementation details and timelines.