PHOTO BY JESSE DAVIS / THE VILLAGE REPORTER
DOUBLE DUTY … Samuel Chappell, seen here, was named both the police chief and village administrator for Delta during the most recent meeting of the Delta Village Council. Chappell has been police chief since 2024 and has served as interim village administrator since February.
By: Jesse Davis
THE VILLAGE REPORTER
jesse@thevillagereporter.com
A state audit of the village of Delta’s finances resulted in a more than $2.9 million transfer of misallocated funds during the most recent Delta Village Council meeting, leaving village operating funds in the red and a fiscal distress declaration on the way.
According to Finance Director Joanne Clapp, a total of $2,927,555.46 in property taxes that should have been appropriated to the water fund were instead appropriated to other funds.
While all of the money was accounted for and none missing or embezzled, auditors forced the transfer of the money into the water fund.
The mandated transfers included more than $2.4 million from the general fund, more than $88,000 from the park fund, more than $2,000 from the fire fund, and more than $7,000 from the capital projects fund.
The transfers changed the general fund cash balance at the end of 2025 to negative $622,242, compared to a 2024 ending balance of $732,293, a drop of more than $1.3 million.
Estimates for this year as reported by Clapp now reflect more than $706,000 in deficit spending with an ending balance of negative $539,418, with a 2027 estimate of $564,418 in deficit spending and an ending balance of negative $588,614.
The changes also affected the police fund, which ended 2024 with a cash balance of $65,088 and, despite the transfers, ended 2025 at $175,714.74.
However, estimates for 2026 and 2027 both include just over $400,000 in deficit spending and ending balances of negative $253,968 and negative $655,836, respectively.
The police department deficits are due to the fact that the department is funded through both a police levy as well as funds transferred out of the general fund.
Council members approved on an emergency basis Clapp’s corrections to the certificate of estimated resources for fiscal year 2026.
With regard to the police department, council members approved on an emergency basis the pursuit of a renewal levy in excess of the 10-mill limit to cover vehicles, communications, equipment, buildings, and salaries for the department.
Clapp said that once the final audit report is delivered to the village in the coming days, it will be released to the public.
She noted that she had also requested a performance audit be completed by the state auditor’s office, which would help the village find efficiencies to help it operate more effectively, and that the measure would be brought to the finance committee and the council at a future date.
Clapp also reported that the village would be labeled in “fiscal distress” as a result of the audit, but auditors had not yet determined whether they would be placed under the fiscal caution, fiscal watch, or fiscal distress designation.
A member of the public in attendance asked whether or not a recent increase in village water rates was due to the misappropriation.
Clapp said that it was possible, but noted the Rural Community Assistance Partnership is in the process of completing another water rate study which, with the information they would be provided regarding the transfer and corrected appropriations in the future could affect the rate in the opposite direction.
Information on the audit and subsequent funding changes were delivered as part of discussion and a public hearing held on a resolution approving the proposed fiscal year 2027 tax budget. Council members approved the resolution on second reading.
Council members also approved a number of measures put forward by Clapp in order to add transparency to and more easily utilize department funding.
The first items, approved on first reading, were resolutions establishing capital funds for water and sewer.
Clapp said there is currently only one fund for each utility. The new funds will allow the separation of operations funding from funding used for maintenance, new projects, and the like.
Council members approved on first reading the transfer of $2.9 million — the majority of the funds moved as a result of the audit — from the water operating fund to the new water capital fund based on discussions between Clapp and Public Utilities Superintendent Jammie Flores.
Council members also approved on first reading the transfer of the monthly industrial sewer rate increase from the sewer operating fund to the new sewer capital fund, also based on discussions between Clapp and Flores.
In order to further ease village operations, council members approved on first reading the creation of an employee earned benefits line to house funds to cover the payout of employee benefits at retirement.
The payments had previously been made from the water fund or the general fund, depending on the department at which the individual was employed.
Council members also approved on first reading the monthly transfer of five percent of earned interest to the earned benefit fund in order to build its balance.
Clapp said she set the amount at five percent instead of 100 percent because the village was currently deficit spending.
Interim Village Administrator Samuel Chappell said the council could adjust the amount up or down in the future based on the balance of the fund.
As a result of the financial situation and in order to further discuss the results of the audit and next steps, Clapp and finance committee members scheduled a committee meeting for 4:30 p.m. on July 20, immediately prior to the regular council meeting set for that date.
UNCLAIMED INCOME TAX
Council members approved on first reading a pair of resolutions regarding unclaimed income tax and utility deposits. The first resolution authorized the transfer of the funds to the village’s unclaimed funds line and the second authorized their transfer to the state unclaimed funds division.
Clapp said the three-step process for the managing of the funds would be to transfer the funds to the village line, to send a letter to the individual who had not claimed the funds, and then, if no response was received in the allotted time, to transfer the funds to the state division.
ODNR GRANT FUNDING
Council members authorized, on an emergency basis, the village administrator to apply for an Ohio Department of Natural Resources NatureWorks grant which would provide a 75 percent match on a planned project to re-epoxy floors in the bathrooms at Delta Park as well as to install three new ADA-approved, stainless steel drinking fountains with bottle refill functionality.
Chappell reported that, if the grant application was denied, the village could use what would have been its 25 percent portion to do at least part of the project.
Councilman Chad Johnson reported that, during its most recent meeting, the park board voted unanimously to provide the 25 percent match from park levy funds.
Council members supported their decision by approving on an emergency basis the obligation of said funds for the project.
WATER PUMPS
Council members approved the purchase of a new pump for the Jackson Street lift station — the second largest in the village — at a cost of $32,000.
Flores reported the old pump, which had been overheating and requiring sometimes round-the-clock, on-site management by employees, will be removed and repaired in house in order to serve as a backup in case of any issues with the new pump.
Upon questioning by council members, Flores said all of the lift station pumps are different sizes with different drives and cannot be swapped out with one another.
Flores said she is also seeking quotes on a complete pump station upgrade for one of the other six lift stations in the village.
WATER TOWER REPAIRS
Council members approved on an emergency basis a $14,000 change order to the contract for painting of one of the village’s water towers after it was determined that the intake pipe had rusted out and needed to be replaced.
The measure drew questions from Councilman Anthony Dawson as to the necessity of the replacement or the painting.
Flores said the painting was required by the Ohio Environmental Protection Agency and noted a 15-foot pipe on the tower had to be replaced in 2022 — also at a cost of $14,000 — and that both pipes sustained damage because the tower hadn’t been painted in 22 years.
CHAPPELL NAMED ADMINISTRATOR
Council members approved on an emergency basis the official hiring of Chappell in the dual role of police chief and village administrator.
Chappell was originally hired as police chief in December of 2024, and had been serving as interim village administrator since February of this year.
OTHER BUSINESS
Council members approved on an emergency basis the adoption of a cybersecurity and information security policy in order to bring the village in line with the requirements of a bill passed last year by the state legislature.
According to Chappell, the main item in the mandatory policy is that the village will not pay off any ransomware attack without first obtaining input from the public.
Council members approved on an emergency basis the renewal of the village’s property and liability insurance policy with the Ohio Plan, which the village has held since 1994.
Council members approved on final reading a resolution authorizing the village administrator to provide written approval to the Fulton County Regional Planning Commission for land split requests.
Council members approved on second reading the transferring of $80,314.25 in unused money from the defunct swimming pool fund to the parks and recreation fund.
Upon questioning by a resident at the end of the meeting, Chappell reported the decision was made to seek the funds’ transfer to the park fund because it was the most similar purpose to the reason for the original pool levy from which the funds were raised.
Upon final approval by the council, the transfer will then require the approval of the state tax commissioner.
Councilwoman Rachel Adams cast the sole dissenting vote after also confirming with Law Director Kevin Heban that, per a state attorney general opinion, the money could not be returned to taxpayers.
Council members approved on first reading the identification as surplus and sale of unneeded village property.
Council members approved the refunding of $11,000 in income taxes which were paid twice, both by a resident as well as by their tax preparer.
Council members approved returning to a resident a $35,000 insurance payment. The payment had been held on escrow by the village until the home was repaired after it had been damaged.
The money was held by the village to ensure they weren’t left to deal with a derelict property.
Chappell sought council members’ opinion on zoning regulations regarding data centers as part of ongoing efforts to revise the village’s zoning code.
Specifically, he asked whether they wanted the data center regulations to be on the stricter or more lenient side.
Council members overwhelmingly stated they would like to see the regulations be as strict and extensive as legally possible.
Chappell reported the village website has been updated with information on dirt bikes, e-bikes, mopeds, motorized bikes, and scooters following a spate of complaints on dangerous behavior by operators in the village.
He said officers were set to begin citing people for violations of the rules rather than giving warnings.
A representative for the owner as well as for the prospective buyer of a pair of trailer parks in and adjacent to the village asked for the council’s opinion on annexing Maplewood Park into the village, which council members generally supported.
The representative said the prospective owner plans on improving the roads and water lines as well as providing better management as a personal investment for himself and his children.
Clapp reported a community shred day is scheduled for July 18 to be held at the village offices from 8 a.m. to noon.
Chappell reported mosquito spraying would begin in the near future.
Chappell reported a “Popcorn with Police” outdoor movie night will be held at Delta Park on June 26 at 9 p.m.
The next regular meeting of the Delta Village Council will be held at 5:30 p.m. on Monday, July 6 at 401 Main Street in Delta.
