West Geauga board hears forecast showing potential $835,000 loss if county adopts piggyback exemption; levies and state bills could reshape revenue

During the board meeting, district finance staff presented an updated October forecast and walked trustees through potential revenue changes tied to recent and pending state legislation that could affect property-tax reimbursement and levy calculations.

The treasurer said House Bill 96 includes a provision known as the piggyback tax exemption that would allow county commissioners to grant an additional homestead/homeowner rollback credit; if the county implements that double credit without state reimbursement, the district stands to lose about $835,000 annually. "That's going to be about $835,000 annually, and it will stay in place until they rescind it," the treasurer said, adding the county commissioners had until Oct. 31 to act.

Staff outlined other bills under consideration. They described a substitute bill, House Bill 186, that would apply an inflation cap that potentially would recoup two years of property tax increases and — per a simulation staff cited — could cost the district about $7,870,000 in retroactive adjustments and an additional $4,900,000 going forward if the measure passed as proposed. Staff said roughly 308 districts face similar exposure under that proposal.

The district also explained how emergency and substitute levies are affected by proposed law changes (citing a House bill discussed as HB129 and another as HB309), and how those changes would interact with the state's 20-mill floor calculation. Staff said the district is currently roughly 0.33 mills under the 20-mill floor and that the expiration of local levies will substantially affect future revenue: a $3.7 million emergency levy expires in December 2026 and a $2.35 million levy suspended for tax year 2024 is scheduled to resume in tax year 2026.

Officials described actions the district has taken in response to pressures in the forecast, including hiring four bus drivers to reduce contracted services, moving $250,000 into an employee severance fund to prepare for a wave of retirements, and planning to transfer $1.5 million into the permanent improvement (PI) fund (the board approved $1 million previously and is holding the remaining $500,000 pending the piggyback decision). Staff said the district spends approximately $3 million per month and that board policy calls for a 120-day cash reserve trigger; the forecast shows the district at about 112 days in 2026, below the 120-day policy threshold, but projected to be above 120 days in 2027 and 2028 under current assumptions.

On expenditures, staff noted expected medical insurance premium increases (projected around 6.5% for medical in 2026 and higher bids suggested earlier for dental), continued growth in purchase services, increased supply and textbook costs tied to curriculum (science-of-reading materials), and ongoing capital needs such as boiler, HVAC and roof projects across district buildings.

Trustees asked clarifying questions about the legislative timeline, the meaning of "chained" or overridden vetoes, the timing of levy collections (half-year flows across fiscal years), and how replacement substitute levies would affect tax bills. Staff said they will monitor testimony and legislative movement and that February will provide an updated view for planning.