OML UPDATE AT-A-GLANCE
Here are the top things you need to know from this past week:
· The League would like to congratulate the new officers for the 2022 OML Board of Trustees. The new leadership team will be led by Troy City Director of Public Service and Safety Patrick Titterington who will serve as the League’s Board President. City of Bryan Mayor Carrie Schlade will serve as the League’s First Vice President, while City of Centerville Councilperson Belinda Kenley will serve as the Second Vice President. Kettering City Manager Mark Schwieterman is serving as immediate Past President, and Cambridge Clerk of Council Sharon Cassler is serving as Past President. We want to thank Manager Schwieterman for his leadership during this year and congratulate our 2022 Board officers and thank them for their leadership as well.
· The League is excited to announce the addition of four new board members who will serve on the OML Board of Trustees. The new members are City of Athens Mayor Steve Patterson, City of Zanesville Mayor Donald Mason, Village of Georgetown Village Administrator Arthur Owens and Village of New Lexington Finance Director Heidi Milner. We welcome our new board members and look forward to working alongside them to advocate on behalf of Ohio’s cities and villages, and we appreciate their service to the League.
· The Ohio General Assembly has adjourned for the remainder of 2021. You can find the legislature’s tentative schedule for 2022 HERE. The League will be sending a final “Year in Review” bulletin next week.
· This week, Rep. Abrams (R – Harrison) and Rep. Baldrige (R – Winchester) introduced HB 512, the Public Safety Pension Modernization Act, which would increase the required employer contribution rates to the Ohio Police and Firefighter Fund, potentially costing Ohio’s cities and villages hundreds of millions of dollars. You can read the bill language HERE. Read more in the article below.
· This week, the Ohio Senate passed SB 102, which is sponsored by Sen. Roegner (R – Hudson) and would exempt homebrewers and home fermenters from liquor law. The bill impacts municipalities by making it significantly easier to place questions on the ballot about whether an establishment can sell liquor on Sunday and would allow cities with at least 50,000 people to have six designated outdoor refreshment areas where open containers of alcohol are allowed, rather than four as allowed by current law. Read the bill analysis HERE. The bill now heads to the Governor’s desk for his signature
· Applications are now available for the Brownfield Remediation Program, which was created in HB 110, the state operating budget, and officially launched last week. Nearly $350 million in funds are available and a $1 million set-aside per county will be available until June 30, 2022. Remaining funds will be available on a first-come, first-served basis. Applications are open through January 31, 2022. You can apply HERE. Questions can be sent to redevelopment@development.ohio.gov.
· This week, the U.S. Treasury released the Treasury Portal that Non-entitlement units of local government (NEUs) that have requested funding from their state will use for reporting and compliance. NEUs will use this portal to confirm accounts, designate reporting roles, and submit the required agreements and supporting documentation to Treasury for reporting and compliance. The Treasure sent a notification to all (NEUs) with information about how to use Treasury's Portal to submit compliance and reporting information, which you can find HERE.
· Also this week, the U.S. Treasury released an update on the Coronavirus Relief Fund (CRF) created under the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. CRF, funds were provided to cover costs that were incurred during the period from March 1, 2020 to December 31, 2021. However, due to circumstances that delayed local governments from receiving their funds in a timely manner, Treasury has revised the guidance on incurred costs to provide that a cost associated with a necessary expenditure incurred due to the public health emergency shall be considered to have been incurred by December 31, 2021, if the recipient has incurred an obligation with respect to such cost by December 31, 2021. Treasury defines obligation for this purpose consistently with the Uniform Guidance definition in 2 C.F.R. 200.1 as an order placed for property and services and entry into contracts, subawards, and similar transactions that require payment. Read the updated FAQ HERE for more on the new guidance.
· The deadline for submission requests from local governments and community partners for the next capital budget is March 18, 2021. According to a memo release by Senate Finance Committee Chair Sen Dolan (R – Chagrin Falls), the capital re-appropriations budget is set to be enacted before March 31, 2022 while the timeline for the capital budget will be determined later. Members of the Ohio legislature must submit all requests by April 1, 2021. All local governments seeking capital funds should submit their request to their state legislators.
LEGISLATION INCREASING OP&F EMPLOYER RATE INTRODUCED
This week, Rep. Abrams (R – Harrison) and Rep. Baldrige (R – Winchester) introduced HB 512, the Public Safety Pension Modernization Act, which would increase the required employer contribution rates to the Ohio Police and Firefighter Fund, potentially costing local governments hundreds of millions of dollars.
The proposal would increase the rates that cities and villages pay for retirement contributions to the Ohio Police and Firefighter Fund to 26.5% for both police and fire, compared to the current contribution rates of 19.5% for police and 24% for firefighters. The increase would happen incrementally over five years. You can read the bill language HERE.
Municipalities are still recovering from the economic impact of the COVID-19 pandemic and many cities across the state face continued revenue losses as employers institute permanent work-from-home policies. Even as the economic recovery is ongoing, municipalities are continuing to provide Ohioans and businesses with critical local services while facing uncertain revenue projections for the future and experiencing financial challenges related to inflationary increases.
There is a misinformed narrative being advanced by those that believe Ohio local government’s fiscal issues have been resolved and that communities are free of financial challenges both currently and into the future. While municipalities have received some federal aid, those funds can only provide marginal and temporary stabilization for local budgets. Those revenues are temporary, one-time only sources of funding and include severe restrictions on their eligible use by the federal government. HB 512 would affect the financial stability of Ohio’s cities and villages and cause an increased burden on local taxpayers.
We strongly encourage our members to contact their state representatives and impress upon them that HB 512 will result in a significant increase in cost to municipalities that will very impactful to local budgets and urge them to oppose this bill.
OHIO GENERAL ASSEMBLY CONSIDERING TWO BILLS ALLOWING CONCEALED CARRY WITHOUT A LICENSE
When the Ohio General Assembly returns after the new year, the legislature will pass one of two bills that allow a person to carry a concealed firearm without a license.
One of these two bills was passed by the Ohio Senate this week. SB 215, which is sponsored by Sen. Johnson (R – McDermott), would allow people to carry a concealed handgun without a license and would no longer require an individual to notify law enforcement that they are armed during a traffic stop. The Senate passed the bill by a vote of 23-8, sending the House for consideration. You can read the bill analysis HERE.
Earlier, during its third hearing before the Senate Veterans and Public Safety Committee, the bill was amended to remove language allowing individuals accused of using force against each other to seek pretrial hearings as well as langue prohibiting the carrying of a concealed firearm prohibited by federal law. Another amendment increased the penalty for lying to law enforcement about the presence of a gun in the car from a minor misdemeanor to a second-degree misdemeanor.
Last month, the Ohio House passed similar legislation, HB 227, which allows anyone over the age of 21 to carry a concealed firearm without a license unless they are prohibited by state or federal law from possessing a firearm. You can read the bill analysis HERE. Legislators will negotiate to decide which bill to send to the Governor after they return from the holiday break.
NEW BILLS OF MUNICIPAL INTEREST
· HB 519 – Municipal Income Tax. Sponsored by Rep. Roemer (R – Richfield) and Rep. Lanese (R – Grove City), would modify the law regarding extensions for filing municipal income tax returns and to limit penalties for late filings.
BILLS PASSED BY THE OHIO SENATE
· HB 126 – Property Values. Sponsored by Rep. Merrin (R – Monclova Twp.), would require local governments that contest property values to formally pass an authorizing resolution for each contest and notify property owners. Last week, during a hearing before the Senate Ways and Means Committee, an omnibus amendment was amended to rescind and replace the original bill. The new bill includes language stating that political subdivisions can only file initial complaints for properties they own. You can read the full synopsis of changes made in the substitute bill HERE. The Senate passed the bill by a vote of 24 to 7, sending the bill to the House for concurrence on the Senate’s changes. The League is neutral on this legislation.
