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Five‑year forecast shows mounting pressures; treasurer flags county overpayment and cash‑balance policy review
Summary
Treasurer presented the district’s May update of the five‑year forecast, noting a modest increase in projected deficit driven largely by anticipated health‑insurance cost increases and by uncertainty in the state biennial budget; the treasurer said he may return $2.19 million that the county auditor advanced to avoid exceeding a 30% cash‑balance
The district treasurer reviewed the May update to West Clermont’s five‑year forecast and highlighted financial risks, including rising health‑insurance costs and uncertainty in the state biennial budget.
Forecast highlights: The treasurer told the board the May forecast is similar to the November submission but that projected deficits increased modestly over the five‑year window, driven primarily by an anticipated health‑insurance premium increase above 10% beginning January 1, 2026. Revenues in the forecast were not adjusted for pending state budget legislation because the final biennial budget remained uncertain.
Cash‑balance concern and county advance: The treasurer informed the board that the Clermont County auditor had advanced $2,190,805 to the district and described that amount technically as an overpayment. Because proposed state legislation could require auditors to reduce local levies if cash balances exceed 30%, the treasurer said he may refund the advance before June 30 to keep the district's certified fund balance below any statutory cap; he told the board he would request an advance back from the auditor if appropriate after year‑end accounting.
Duke Energy valuation adjustment: The treasurer also warned that a pending valuation change for Duke Energy could require the district to refund approximately $2.4 million for tax years 2021–2023; staff said that liability, if confirmed, would be paid over time per standard settlement/appeal procedures.
Supplemental appropriations: At the meeting the board approved a resolution to amend and supplement annual appropriations for the current fiscal year to account for payroll deductions, program needs and use of inside millage (permanent improvement funds) to support purchases and summer work; staff said these transfers do not increase long‑term spending but move funds to allow work to proceed prior to July 1.
Five‑year forecast vote: The board adopted the five‑year forecast as presented (vote recorded at the meeting). The treasurer said he will update the forecast again after the state biennial budget is finalized and that he will present a draft cash‑balance policy for board consideration at the June 30 meeting.
Ending: Board members asked for continued transparency and requested updated scenarios once the state budget is final and as asset‑sale or program‑reduction options are analyzed.
