Three Rivers treasurer warns of $1.3 million tax-collection shortfall tied to Duke Energy valuation dispute

Treasurer Lisa Rezenberg told the Three Rivers Local School District board on May 12 that April's financial reports revealed an unexpected drop of about $1.3 million in tax collections, despite an apparent $2 million increase in valuations.

Rezenberg said a single taxpayer, Duke Energy, accounts for roughly $1.299 million of the shortfall and is contesting valuations at the state level. She said some disputes and the resulting negotiations are handled at the state level and can be confidential and prolonged.

"We are down about $1.3 million in collections," Rezenberg said, adding that she called Hamilton County and state lawmakers to seek clarification and assistance. Hamilton County informed the district that just over $300,000'$350,000 in payments made after the county's settlement cutoff would be sent to the district, which Rezenberg said will help but not eliminate the shortfall.

Why it matters: the treasurer said the timing and size of the shortfall affect cash flow planning late in the fiscal year. Rezenberg reported the district's "true days cash" at 118 and a current cash-flow position of $386,000; she asked administration to freeze nonemergency spending for the remainder of the fiscal year to preserve reserves.

Board members and staff discussed next steps. Rezenberg said she had reached out to state legislators, including Senator Blessing and Representative Oddioso, and that Hamilton County's office had provided contact information for state-level decision-makers. She urged the board to find which state office reviews and negotiates utility valuations and to consider coalition-building with other districts if necessary.

Rezenberg described the mechanics she was told: utilities often dispute valuations at the state level, and some of those proceedings are confidential. She said county collections received after the settlement cutoff are sometimes held until the county processes them and that Hamilton County planned to forward a portion of late payments to the district this week.

The treasurer framed the outreach as a practical measure to protect the district's near-term finances. "I reached out to Senator Blessing and Representative Oddioso," she said, and reported that the senator's office had been responsive in contacting Duke Energy. Rezenberg also said she consulted the district attorney about legal recourse but was told many negotiations occur behind closed doors and can be lengthy.

What the board did: Rezenberg asked the administration to hold nonessential spending and to continue outreach to county and state officials. Trustees recorded a separate motion that approved the treasurer's routine financial items later in the meeting.

Next steps: the district will receive the partial county payment and continue monitoring settlement outcomes; the treasurer recommended identifying who at the state level oversees utility valuation disputes and exploring coalition options with other affected districts.