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McDonald looks to address village finances

McDONALD — Village officials are looking at ways to generate more revenue, possibly including a safety forces levy, billing residents for trash collection for the first time or having a new business locate at the former McDonald Steel property.

Mayor Ray Lewis and members of village council addressed more than 80 people at the State of the Village forum Wednesday at McDonald High School.

Councilman Don Smith, chairman of the finance committee, said there has been discussion on a possible safety forces levy with the earliest ask being on the November ballot. Smith said there continues to be increased expenses for village services, and the village will run out of funds without additional revenue. There could be cutbacks in services if no additional revenue is found.

Lewis said the village has sought $1.6 million in grants with assistance from KO Consulting since last fall and has secured $28,000 so far.

He said there was no cost to taxpayers to have KO Consulting work with the village because the cost is covered by a grant.

“We are seeking as many grants as possible to help soften the gap in the budget and maintain services in the village,” Lewis said.

He said before any levy is placed on the ballot, residents’ input will be sought and questions will be addressed.

The village does not charge residents for trash collection and is among very few communities in Ohio that do this. Officials said with increased costs for trash collection — 25% over five years — the village may have to start charging for the service. Right now, the village absorbs the cost for trash collection.

Lewis said the village lost income tax with the closing of McDonald Steel, and residents are asking how the property will be used.

He said the property was purchased by AP McDonald LLC last summer with the mill to be demolished and development done at the site to benefit the village for years to come. Lewis said the village welcomes any new business that wants to locate in the community, especially at that location.

The mayor said bricks from the mill will be available for residents as mementos in the spring and a list of residents wanting a brick is being compiled at the village municipal building.

Smith said the village received American Rescue Plan funds that helped cover costs for safety forces equipment.

He said the village’s revenue comes 49% from water and sewer bills, 36% from income tax, and 21% from grants, property tax, and gas and licensing tax.

He said the village has 629 delinquent property tax accounts from 2018 to 2023, which would bring in $307,129. The village plans to start cracking down on delinquent payers.

Smith said water and sewer costs to the village have been increasing, with the last rate increase to customers five years ago.

VILLAGE STATS

Lewis said the village has a population of 3,150 people, with 60% between ages 18 to 64 (the working-age population) and 40% under 18 and over 65 (the children and retired population).

He said McDonald is in the top statewide for lowest water and sewer rates.

Lewis said highlights of living in McDonald include the village paves a half mile to 2 miles of streets annually, offers a recycling program, senior citizen program and finds best aggregation rates for gas and electric for residents.

Lewis said he credits previous administrations that helped the village to have nearly $3 million in investments available if something were to go wrong and the village faced financial problems.

Council President Sean Schmidt said the village has faced challenges in getting police officers and firefighters, noting the village can’t compete with Howland and Niles in what they pay safety forces. However, the village can offer more to make the community more marketable.

Lewis said officials also have been exploring the idea of a joint fire / emergency medical service district with neighboring communities. He said the fire department is part-time with the majority of firefighters, paramedics and emergency medical technicians working outside the village.

Starting at $3.23/week.

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