Supposed Town Hall Meeting Turns into a Slow played Admission of Water Fund Mismanagement

Citizens Plea for Accountability and Transparency in Local Government

by Logan Andrew | Freewire

A recent town hall meeting in Bucyrus, held on February 11, rapidly devolved from a routine public forum into an extended debate over the city’s chronic water fund mismanagement — a problem with roots stretching back nearly five decades. What was intended as a discussion on safety forces and the out-of-town tax credit instead exposed troubling discrepancies in the city’s financial planning, particularly regarding the Enterprise Water Fund.

A Troubling Timeline of Fiscal Oversight

FreeWire spoke to members of Council and the administration to better understand the timeline of events that took place and who knew what/when. At the meeting, Fankhauser claimed that the Auditor’s report from December 17th didn’t raise the alarm bells enough, that he “assumed it was, I don’t know, 10,000 [dollars] in the red or something and now I’m hearing it’s over a million dollars potentially in the red?”

President Pro-tempore and Senior member Kevin Myers referred us to the president’s comments, also saying in part, “We assumed that if it were a big deal, they would have made it a bigger deal about it.” 

We spoke with Auditor Kali Lewis in order to get the relevant timeline together:

Executive Session (November 19th):
According to members of Council, in a closed-door executive session, the city’s auditor Kali Lewis was asked directly whether sufficient funds were available to cover a proposed $4.25 per hour raise for city workers. At that time, officials in the administration assured the council that the necessary funds were available — a claim that would later be categorized as “misleading”.

December 5:
A few weeks after the session, Lewis claims she discovered a major discrepency; evidence emerged of a budget shortfall in the Enterprise Water Fund that could be as high as $1.7 million — though some estimates suggest the gap may be closer to $923,000. Regardless, this discrepancy far exceeds what the city can afford.

December 6:
In response to this finding, the state auditor’s office — via Local Government Services — sent an auditor to Bucyrus. The auditor advised that all projects be halted and spending be drastically cut until the full extent of the deficit could be determined. Despite this, during the subsequent budget debate, council members were led to believe that the discrepancy was minimal — reported as only a $5,000 to $10,000 error.

December 17:
Lewis reveals during her audit report that she met with the member of the Local Government Services in the state auditor’s office. During the budget vote, Council member Chris Mauritz asked, “Is the money to support the AFSCME raises in the budget?” Kali Lewis promptly responded that the funds were indeed available. Nevertheless, the budget — including the $4.25 raises — was approved without full acknowledgment of the underlying financial crisis.

Town Hall Meeting, February 11:
At the town hall, what began as a discussion on safety forces and out-of-town tax credits quickly shifted focus as long-standing concerns about the water fund mismanagement came to light. Fankhauser’s remarks urged the council to convene dedicated off-week meetings to address the water fund deficit. Critics argued that the issue had been deliberately downplayed for political reasons, allowing the true scale of the shortfall to be concealed from both council and the public.

Shared Responsibility and a Legacy of Mismanagement

The controversy highlights a systemic failure that spans multiple administrations rather than pinpointing the fault of any single individual. The fiscal mismanagement appears to be the result of decisions made over decades, under a “kick the can down the road” mentality. Past administrations oversaw water projects that promised long-term revenue through infrastructure investments — starting with the 1977 reservoir project aimed at selling water to neighboring communities like Sulfur Springs. Over the last 50 years, Bucyrus has spent well over $100 million on these projects, yet they have failed to generate the promised profit, continually selling us this bill of goods.

Critics also point to decisions from previous administrations that, in an effort to avoid appearing unsympathetic, resulted in the use of COVID relief funds to cover short-term needs instead of implementing gradual rate increases. Such measures have contributed to the current unsustainable situation, as water bills have already increased this year and are slated to rise further in the coming years.

Candidate for City Council at large Clarissa Slater spoke at the town hall, offering potential solutions. She obtained water usage data from the utility department through a public records request. After analyzing the numbers, she believes to have discovered what was described by Lewis as a “fairer way to charge customers based on usage which she believes could potentially bring in an additional $599,000.” Upon speaking with Service Director Tommy Starner and Water Distribution Foreman Jon Ernsberger, it was determined that this stems from Bucyrus’s reverse-tiered usage system.

According to Slater, Bucyrus might be the only city in Ohio using a reverse tier. Under this structure, the more water a household or business consumes, the less they pay per unit. A typical household ends up paying about 250% more than a large user, like manufacturing plants and other big businesses.

The system operates similarly to a tax bracket but in reverse:

• The first 10 units of water (1 unit = 100 cubic feet or 748 gallons) cost the standard rate.
• Subsequent thresholds of units become progressively cheaper.
• At the highest tier, utilized mainly by larger companies, the charge is roughly $4 per unit — while a normal household pays around $11 per unit.

This pricing strategy effectively rewards higher usage with lower rates, raising questions about equity, revenue distribution, and whether Bucyrus should continue this unusual billing structure.bout equity, revenue distribution, and whether Bucyrus should continue this unusual billing structure.

Political Short-Termism vs. Long-Term Needs

Many observers argue that the city’s fiscal challenges are symptomatic of a broader issue: a focus on short-term political gains at the expense of long-term fiscal health. Elected officials, whose terms last only two or four years, are often more concerned with immediate re-election than with building a sustainable future. This short-sighted approach has resulted in critical decisions being postponed and in the accumulation of debt that now threatens the city’s financial stability.

Senior council member Myers captured the prevailing sentiment, stating, “We were convinced by the administration to give the $4.25 raises, and we were assured the funds were there to support it. No alarm bells were raised.” Such remarks suggest that the decision-making process may have been influenced by a desire to avoid political fallout rather than by a commitment to sound fiscal management. 

Council president Fankhauser agrees, questioning why the administration asked for $4.25/hour pay raises at the regular December 17th council meeting when the Water Works Fund was known to be in deficit on December 5th. He also stated, “the Water fund deficit is tied to the waterline expansion to Sulpher Springs that was pushed through by previous Safety Service Director Jeff Wagner who bought a house and moved into Sulpher slightly prior to the water lines being installed there.” Members of both City Council and the administration both agree that Wagner’s deal and subsequential purchase of property in Sulphur Springs is a “bad look.”

In response to this comment, former Mayor Reser had this to say, “The ‘highly placed’ official doesn’t know what he is talking about. Water lines to Sulphur Springs were on the wish list long before Mr. Wagner moved to his hometown of Sulphur Springs. The move was made to bring quality water from Bucyrus to an area that was in need as well as blocking the expansion into Crawford County by Ohio Rural Water who was already coming down towards Bucyrus from New Washington. Also, the county commissioners initiated the water line expansion to Sulphur Springs using ARPA funds, not the city of Bucyrus. Mayor Truka was chariman of the service committee and was in favor of the expansion which is a win-win for Bucyrus and Sulphur Springs. It’s always helpful to know the facts before making comments.”

Members of the administration counter that the numbers were always there, if council only had decided to look. Lewis, for her part, cut millions of dollars in projects from not just the water fund, but all departments — even before the state auditor came in and insisted on extensive cuts. They argue that the AFSCME raises were a compartmentalized negotiation and had no bearing on the water funds. The funds from one do not influence the other — it’s not a zero sum game. 

While key administrative officials claim that the blame lies with the entire administration equally, many point to the situation they were left with as the root cause of the issues. Law Director Brandon Gobrecht summed it up thusly, “I don’t think it’s proper to speculate on whose fault it is, but ultimately we all have to bear the consequences.”

The Way Forward

As Bucyrus awaits the final figures from the ongoing “GAAP conversion” process — expected to be completed in May — the path forward remains uncertain. Key questions include:

• Will water bills have to increase further?
• Should the city seek a state loan to cover the deficit?
• What measures will restore public trust after years of mismanagement?

Critics like Fankhauser are now calling for an independent investigation into the decision-making process, seeking clarity on who knew what and when. They insist that transparency and accountability are essential to address not only the current shortfall but also the decades-long legacy of mismanagement that has left the city in its current predicament.

When asked about her first year as auditor, Lewis explained that while the previous auditor, Joyce Schifer, helped her, personal affairs forced Lewis to go to Wagner and Reser for assistance on the 2023–24 budget. She thought that by leaning on the expertise of the Safety Service Director and mayor — who are a large part of the budgeting process anyway — she could learn the whys and hows of formulating a budget for the new year.

Somewhere along the line, the Sulfur Springs waterline expansion reimbursement was earmarked as revenue to two separate funds in the water fund, giving the new (and current) administration an overestimation on what could be spent in the following fiscal year.

A Call for Transparency and Accountability

The unfolding controversy serves as a stark reminder that short-term political interests cannot come at the expense of long-term fiscal responsibility. The mismanagement of the water fund is a shared failure — a problem that has been compounded over nearly 50 years of infrastructure projects and misaligned priorities. As residents and council members demand answers, the need for a forward-thinking strategy that prioritizes the city’s future has never been more urgent.

A detailed investigative article is forthcoming, promising an in-depth examination of the water fund mismanagement and the systemic issues that have plagued Bucyrus for decades. In the meantime, citizens and local leaders are calling for transparency, accountability, and decisive action to rectify a crisis that has been decades in the making.

Stay tuned as we continue to follow this developing story and explore the necessary steps to secure a sustainable future for Bucyrus.