Health District defends $5.1M reserve

TIFFIN — The Seneca County General Health District is asking voters to approve a five-year levy renewal in Tuesday's election, a request that comes as the District carries a total cash reserve of over $5.1 million, according to the State Auditor's Office regular audit for the year ended Dec. 31, 2024. While the district has significant total savings, the State Auditor's audit shows the vast majority of this cash is legally restricted, which the District clarified. The renewal request comes as the District seeks to protect its primary stream of operating income. Levy renewal vs. operating income According to the Seneca County Board of Elections, the request is for a five-year renewal tax set at 0.3 mill for current operating expenses. This is not a new tax but a continuation of the existing one, estimated to collect $467,913 annually, commencing in 2026. Financial reports from the 2024 State Auditor's audit break down the District's savings, known as the Net Position: • Restricted Funds: $4,008,190 of the total reserve is classified as "restricted net position." These funds are typically earmarked for specific future purposes, such as construction or specific programs and are not available for general payroll or daily services.• Unrestricted Operating Cash: Only $945,922 is listed as unrestricted. Based on the District's total annual operating expenses of over $5.7 million in 2024, the unrestricted cash covers approximately two months of operations. The District stated it "works to maintain a minimum of three to five months of operating reserves" to cover expenses during grant funding delays and unpredicted emergencies. The District's core argument is that the levy revenue is a critical stable income stream. If the renewal fails, the district stated it "will conduct an internal audit/assessment... to determine what programs will be affected and what cuts will need to be made." Health District justifies reserves and spending Purpose of the restricted $4 million The District explained that the $4.0 million is not for a single project but represents the year-end cash balance for all Environmental Health special revenue funds, including over $3.4 million in the Construction and Demolition Debris (C&DD) fund. This $3.4 million is restricted by state law, as the C&DD fees must be used "solely for the purpose of assisting boards of health... in administering and enforcing" the relevant solid waste regulations, as defined by the Ohio Revised Code. State law explicitly dictates that the money retained by the Board of Health must be used for purposes including: • Administer and enforce solid waste rules.• Abate abandoned accumulations of debris.• Mitigate any impacts to public health, safety, and welfare, including ensuring appropriate inspection of any such facility. Transparency on administrative and COVID spending The State Auditor's audit showed Administration disbursements totaled $1,460,469 in 2024. In response to a query about its administrative spending, the Health District stated that salaries and fringes make up 56% of its administrative costs, with legal fees accounting for 4%. Based on the audit's line items, the Health District's disbursements for COVID-19-related operations and vaccination totaled $28,134 in 2024. The District confirmed the funds were used for ongoing eligible public health activities, including infection prevention education, working with nursing homes, funding professional development and purchasing necessary supplies. The District confirmed that "all state and federal rules for the use of these funds were followed." The voter's decision The Health District's clarifications frame the $5.1 million reserve as both a legal necessity for managing restricted funds and a prudent measure to ensure operational cash flow. Voters on Tuesday will ultimately decide whether this justification warrants the renewal of the $467,913 annual tax for another five years.