It was four years ago when J.P. Dutton decided to run for a seat on the Belmont County Commission, and he did that because he believed a more conservative approach to the budget and the county’s debt benefited the residents in the long-term.
Dutton is running for re-election for a number of reasons, but one of them is to see through the cracker proposal in the Dilles Bottom area, a project he inherited when taking office and one which,- once again, has been delayed because of the coronavirus pandemic. Will it happen? If not, what then? Hope is high, but that answer will not arrive now for another six-to-nine months.
For now, it is about the impact COVID-19 has had on sales tax collections and county services. That is the balancing act he and the two other commissioners now must perform to preserve services for the people.
How have you and your family handled the COVID-19 pandemic?
My family and I have handled the pandemic much like many other families across the Ohio Valley. We adjusted very quickly, especially in the beginning as each daily press conference from Governor Mike DeWine seemed to bring additional responses to a rapidly changing situation. Taking extra precautions became very routine, not just for everyone in our household but for others around us as well. Showing a lot of appreciation for those working under more difficult circumstances has been important to us as well. We have been assisting within our community with local efforts targeted at addressing specific needs that have emerged. Finally, with three school-aged children, we worked through daily assignments despite challenges that exist as it relates to broadband access.
COVID-19 has really highlighted even further the challenges that rural communities face as it relates to broadband quality and the disadvantage of substandard access. This is particularly true in Appalachia. As a county, we have worked to be proactive over the past few years. In the fall of 2017, we signed an agreement with Agile Networks to utilize the county’s vertical structures (water tanks and 911 towers). Agile has similar agreements with the State of Ohio in regards to MARCS towers, which are used by the State Highway Patrol. This agreement brought increased broadband service to residents near these structures. We have also had discussions with companies like AT&T and Comcast to continue to stress the need for increased access in Belmont County and continue to search for possible innovative partnerships through the Belmont County Port Authority. As for Comcast, during this particular time, we have worked to connect them with Belmont County school districts in regards to the company’s attempt to assist during the pandemic. Specifically, we reached out to school superintendents and connected them with contacts at Comcast. We still have a long way to go, but we will continue to work to get there. The youth of the Ohio Valley need these improvements so that they can have increased access to technological improvements in education and further compete with other students across the globe.
What financial impact would the closure of the Ohio Valley Mall have on Belmont County and its offered services?
Any longterm closure of businesses is difficult for a local government, particularly one whose general fund is fueled primarily by local sales tax. With business closures like those at the Ohio Valley Mall, sales tax revenues are expected to decrease significantly during this time. However, I remain very optimistic as businesses continue to reopen and we eventually emerge completely from the pandemic. Our local economy was strong prior and hopefully will rebound quickly. As for the Ohio Valley Mall, the property owners continue to advance future development while adjusting to changes in commercial real estate. Dunham’s Sporting Goods and Chick-fil-A are a couple of recent projects that have been terrific additions to the community. We look forward to the near completion of Five Below as well as the Hampton Inn.
What is the projection for the decrease in sales tax revenue throughout the county, and what measures have the commissioners considered?
It is too early to have exact figures of the current impact. Sales tax collection numbers delivered from the state of Ohio run a couple months behind when the original transaction takes place. April’s report will be the strongest indicator, but unfortunately it is not yet finalized at the state level. State guidance points to a potential 20 percent decrease in revenue for 2020. This type of reduction would make the 2021 budget extremely challenging. Unlike the federal government, Belmont County cannot operate in a deficit. Therefore, shortfalls in funding as compared to a prior year result in a reduction of funding for operations for that fiscal year. Fortunately, we have made conservative budgetary decisions before COVID-19 ever emerged. For instance, for the past three years, the Commission has taken an aggressive approach to county budgets with numerous cuts. Our office has always taken the largest cut in each of these years. For example, our current budget is 11 percent less than last year which was nearly 10 percent less than the year before that. Most importantly, these reductions did not result in a decrease of services to the residents of Belmont County.
In addition, our Board has made great strides to further strengthen Belmont County’s debt position. In the last three years, the Commission secured two major financing packages with the U.S. Department of Agriculture to better finance existing water and sewer debt. In fact, the water package was the largest USDA package ever secured in the State of Ohio. These two packages make certain that water and sewer debt will be paid in the future by the Belmont County Sanitary Sewer District enterprise fund and not the county general fund. Unfortunately, this organization of debt has not always been the case causing a significant burden for Belmont County meaning that the general fund paid debt obligations that it should not have. Additionally, last year, the Commission expedited the total repayment of the new office building of Belmont County Senior Services as well as the 2008 expansion project of the Belmont County Jail. Both of these projects are now paid in full. This year, the Commission completely paid off a $1.6 million sewer project that was over 15 years old and was not eligible for the USDA package. This project was a perfect example of good initiative that unfortunately lacked an effective payment plan and therefore stayed in the debt portfolio without any payments taking place except interest. These recent activities place Belmont County in a very good debt position moving forward and strengthens its favorable Aa3 bond rating with Moody’s, which is in the high-quality standard.
Hopefully, these prior decisions of reducing budgets and eliminating debt obligations will lessen the financial impact of COVID-19. That being said, we will work extremely hard to work through the remainder of this fiscal year and prepare for the next. We take our budgetary responsibilities very seriously even in a typical year. All options are on the table, but we hope to limit the impact as much as possible.
With the announcement that PTT Global will not make a final financial decision on the construction of a petrochemical “cracker” plant for six-to-nine months, many residents of the Upper Ohio Valley have grown pessimistic concerning the project. How do you and the other commissioners handle the negativity? What do you say to those residents?
Honestly, there has been very little negativity to handle. The recent announcement in regards to the project timeline was not surprising. At this point, everyone can relate to the complications that COVID-19 has had on all aspects of each of our lives. In this case, it is not hard to imagine how the pandemic would complicate the environment needed to make a major financial investment that is international in nature. I would describe the community reaction that we receive in general as supportive and optimistic. There have been major milestones reached over the past several months. Most recently, Belmont County, Mead Township, and Shadyside Local School District finalized a local tax agreement with the project leaders. In general, one familiar with the project location cannot drive past the site today and not recognize the tremendous amount of excavation that has occurred since last summer. While a final decision has not been reached, tangible progress continues to occur.
Do you remain confident the project will take place? Why or why not? (please explain)
I am very confident in the individuals leading this incredible effort towards a final investment decision. The project leaders have been very open through the entire process. They have been responsive to community questions and demonstrated a real commitment to developing strong relationships throughout the Ohio Valley. Due to this emphasis on communication and community, this project has developed tremendous backing at the federal, state, and local level. It truly is a team approach that has garnered real buy in from those involved.
