(Letter to the Editor - Photo Illustration - MetroCreativeConnection)

On Oct. 13 I spoke at the Belpre City Council meeting, bringing up issues with the city of Belpre buying the Badger Lumber Building. My purpose is to ensure that any actions taken by this council comply fully with Ohio Revised Code and protect the city from legal and financial risk. It is important to note that the city has previously this year been non-compliant under Resolution 28-2024 regarding executive sessions and keeping proper minutes, as confirmed by the settlement with the Open Government Advocates.

Belpre City Council 3rd reading on this action was at this meeting. After passing, the council gave the mayor their consent to proceed with this purchase. Here is my concern. I have tried to find out the type of bond the city wishes to use. I have been told Huntington Bank on Oct. 27 will notify the city on which bond is being used. If the city doesn’t know the bond being used how can council vote on a 3rd reading to pass the purchase.

There are two bond types which can be used. General Obligation (GO) Bonds and Revenue Bonds. My goal is to show transparency, legal compliance, and fiscal responsibility.

1. General Obligation (GO) Bonds: Proposed 15-year loan for $975,000 to purchase Badger Lumber property.

Compliance Concern:

∫ ORC 133.08 & 133.09 limit long-term debt without voter approval.

∫ GO bonds exceeding voter-approved levy terms cannot be issued.

∫ A 15-year term cannot be legally approved solely by Council-requires a public vote.

∫ Taking action beyond legal authority can expose the City to lawsuits.

∫ If the Council votes without proper authority, any contracts or bonds may be invalid.

2. Revenue Bonds: Using Revenue Bonds to finance the purchase and renovations of Badger Lumber. City wants to move the Water Dept. and Street Dept. into Badger Lumber Building.

Financial Review:

2025 Water Fund Data:

∫ Revenue: $1,196,205.65

∫ Expenditures: $1,538,713.18

∫ Ending Balance: $768,844.35

∫ Fund already in a net deficit-risk in relying on Water Fund for debt service.

Compliance Concern:

∫ Revenue Bonds must be tied to revenue-producing projects.

∫ If Water Fund is used, only allowable if water billing office is moved into the building.

Other departments cannot be funded from Water Fund.

∫ Reference ORC 133.01-133.09: Revenue bonds cannot be issued for non-revenue-

generating purposes without proper legal authority.

Belpre City Council, in my opinion there are more cost-effective ways to accommodate the Water Department and related operations without risking long-term debt or legal non-compliance.

James Nelson

Belpre