Bratenahl officials consider short-term note after $838,000 refund and delayed tax receipts create cash crunch

Fiscal Officer Cooks warned Village Council members at their June 30 Committee of the Whole meeting that Bratenahl faces a near-term cash squeeze after a large taxpayer refund and late tax disbursements.

"In March of this year...to the tune of $838,000," Fiscal Officer Cooks said, describing a multi-year refund the village must repay under state law that forced the village to reduce its Certificate of Estimated Resources and appropriations. She told council the village's immediate cash position includes roughly $234,000 from residual receipts, about $74,000 in a UBS money-market account and expected—but delayed—income- and property-tax receipts that likely will not arrive in typical July/August timing.

The shortfall, Councilmember Joyce Burke-Jones and others noted, represents a substantial portion of the village's annual resources. "More like 30," Cooks said when asked to quantify the budget reduction attributable to the refund.

Why it matters: the village must meet near-term mandatory payments—payroll, retirement and benefit withholding, a DOPWIC loan payment and monthly dispatch costs—while receipts that normally refresh the operating account are delayed. Cooks listed immediate obligations including Ohio Deferred Comp (~$14,000), OPERS (~$16,000) and Ohio Police & Fire (~$53,000) and said that, without additional receipts, the village would have limited carryover to cover July.

Options discussed and a contingency plan

Council and staff reviewed several ways to bridge the gap. Legal counsel David J. Matty, Esq., and Mayor Keith Benjamin said Ohio law limits avenues such as conventional lines of credit for non-charter municipalities, leaving a short-term note (a one-year municipal note) as the principal formal borrowing option. Councilmember Jim Puffenberger and others agreed there is value in preparing legislation so the village can issue a note quickly if needed.

Cooks estimated the borrowing need at roughly $320,000–$350,000 to carry the village until regular receipts resume; council discussed asking bond counsel to draft legislation authorizing issuance. Officials noted costs: bond counsel and issuance fees (Cooks estimated bond counsel commonly about $5,000–$7,000), Raymond James sale/placement fees, and a market interest rate that council members expected could be in the mid-single digits.

Council directed staff to pursue three parallel actions: press the county for an $88,000 reimbursement tied to a County Public Works grant, follow up with RITA to explore spreading or timing disbursements to smooth cash flow, and prepare draft legislation to authorize issuance of a short-term note as a contingency. Mayor Benjamin said he will contact the County Executive's Office to expedite the $88,000 and asked Matty to contact RITA.

Operational controls and next steps

Cooks said she has asked department heads to curtail discretionary spending and has paused or held payments to some professionals and vendors (including outside attorneys and certain contractors) to preserve operating cash, and she emphasized auditors are on site to complete the 2024 audit so the village can provide audited financials to potential purchasers or lenders. On operational tradeoffs, Cooks said she would prioritize payroll and essential services and that some nonessential invoices may be delayed up to vendor payment terms.

Public input and other revenue ideas

Members of the public at the meeting suggested revenue measures such as automated enforcement/camera fines, revisiting the earned-income tax credit/rollback, and stricter property-maintenance enforcement. Council and staff responded that camera programs require operational oversight and that raising or changing income-tax credits would take voter or legislative action and not provide an immediate fix.

Formal actions and outcome

Council voted to enter executive session to discuss imminent litigation (motion by Councilmember David Dews; second by Councilmember Joyce Burke-Jones). The roll-call vote was unanimous and council entered executive session at 5:42 p.m.; council returned to open session at 6:33 p.m. and reported no action was taken in executive session. Council also later moved, seconded and carried to adjourn.

What happens next: staff will report back at the next council meeting with updates on RITA discussions, county reimbursements and the drafted legislation to authorize a short-term note if needed. The immediate focus is preserving cash while pursuing reimbursements and timing changes to avoid borrowing if possible.