Trumbull commissioners discuss county’s debt level
WARREN — Trumbull County’s debt level is considered to be moderate, Christy Sostaric of the county auditor’s office told commissioners during their weekly workshop meeting on Tuesday.
The county has approximately $7.8 million in notes and $15.1 million in bonds, she said. By the end of the year, the county will have approximately $2.37 million in special assessments, short-term bonds and USDA bonds.
She said the county has about $17 million in debt.
Commissioner Denny Malloy asked Matthew A. Stuczynski, an independent financial adviser employed by the county, whether Trumbull County’s debt would be considered low, moderate or high.
“How much debt should we have?” Malloy asked.
Stuczynski said it depends on the county’s ability to repay its debts and its cash flow.
“The good news about your debt profile is much of your debt will drop off within the next 10 years,” he said. “A lot will be paid off in the next five to seven years. Your profile is weighted short. It is moderate.”
Commissioner Rick Hernandez noted he likes the position the county is in financially. However, Hernandez questioned how the county will be affected if proposed property tax reform is implemented and the tax is either reduced or eliminated in the next year.
“Counties, in general, will be in better shape than townships, if the state’s property taxes are reduced or eliminated,” Sostaric said.
She noted that many bonds and levies are backed by property taxes, so a reduction will significantly affect them. Affected agencies could include Trumbull County Senior Levy, Trumbull County Board of Developmental Disabilities, Children’s Services and the Trumbull County Mental Health and Recovery Board.
Commissioner Tony Bernard suggested the county should be very cautious about future borrowing until they have an idea what the state will do with property taxes.
Malloy asked if it would be irresponsible if commissioners decide to take out $3 million in bonds for a special project, such as a new dog pound.
Stuczynski responded that $3 million more in debt is not an unreasonable amount depending on the project and the county’s cash flow because of the amount being repaid over the next five years.
Commissioner Tony Bernard previously stated he would be against the county adding new taxes without voter approval.