Richland County commissioners seek clarity with treasurer’s bank decisions

MANSFIELD — The Richland County Board of Commissioners was caught a bit off guard by a letter it recently received from Mechanics Bank.

In the letter, dated July 11, Nicholas Gesouras, chief banking officer and SVP at Mechanics Bank, wrote to commissioners that the bank has been in contact with the Richland County Treasurer’s Office.

Mechanics is a full-service community bank in Richland County, headquartered in Mansfield.

Gesouras wrote that it was brought to Mechanics’ attention that “a change in financial institutions may be under consideration” by the county.

“They (Mechanics) believe that the treasurer (Bart Hamilton) has taken steps to move a significant amount of taxpayer money to another financial institution,” said Commissioner Tony Vero.

“They are seeking an opportunity to continue serving Richland County and have an opportunity to be the depository for those funds,” Vero said of Mechanics.

Prior to a phone call with Mechanics a few weeks ago, Vero said he had no idea the treasurer was considering moving any county funds to a different bank.

To commissioners’ knowledge, Hamilton, an elected county official, has opened “several accounts” at Huntington Bank.

Commissioner Darrell Banks said the county has several accounts at Park National Bank, so he assumes the intent was to move monies from Park National, headquartered in Newark, to Huntington, headquartered in Columbus.

Commissioner Cliff Mears and Banks agreed that it was news to them. The commissioners’ offices are located about 50 feet apart from each other on the first floor of the county building.

Hamilton declined to comment Thursday afternoon.

Vero said Hamilton has not actually moved any monies, but described the news as “concerning.” He said he’s not aware of the amount of funds Hamilton looked to transfer.

“Something a little troubling on our end is we have discovered that he (Hamilton) has opened accounts with another bank without having the commissioners sign off on deposit slips,” Vero said.

“We are absolutely of the opinion that he is not able to do what it appears he has done,” he said.

Vero said he has requested the deposit slips for the accounts Hamilton “appears” to have opened, as well as the dates they were opened. As of Thursday morning he had not received a response from the treasurer’s office, he said.

“Granted, (his request was Wednesday) morning, but this should not take that long. I followed up again today because I knew we would be talking about it,” Vero said.

Commissioners request Hamilton attend Aug. 7 meeting

According to Ohio Revised Code Section 135.33, “the board of county commissioners, upon recommendation of the treasurer, shall designate, by resolution, one or more eligible institutions as public depositories for active moneys.”

Vero and Richland County administrator Andrew Keller worked together to draft a letter to be delivered to Hamilton, as well as Richland County Auditor Pat Dropsey.

He said regardless of Hamilton’s intention, or lack thereof, to move monies, ORC makes it clear that a competitive application process — similar to the competitive bidding process when commissioners appropriate/utilize public dollars — is required for commissioners to designate a public depository.

The letter, approved by the three-member board Thursday, invites Hamilton and Dropsey to attend commissioners’ meeting on Thursday, Aug. 7 at 10 a.m. to discuss Richland County’s depository arrangements and the “appropriate next steps.”

Vero said he planned to hand deliver the letter to Hamilton after Thursday’s meeting.

“This conversation will help ensure the county remains in full compliance with applicable legal procedures while considering all viable options for the safekeeping and management of public funds,” according to the commissioners’ letter to Hamilton and Dropsey.

“All we know that the treasurer, on his own volition, has started the process to move significant amounts of taxpayer money to another bank account without a single commissioner’s signature,” Vero said.

“I don’t think you can do that. Certainly (Hamilton) can speak for himself on that, but I think we need to follow the code,” he said.

(Below are PDF copies of the letter from Mechanics Bank to county commissioners, as well as commissioners letter to Hamilton and Dropsey.)

County must ‘tighten up’ process, says Vero

During Thursday’s discussion, commissioners admitted the last time the treasurer had come to the board regarding deposit slips was 2017.

ORC Section 135.33 outlines that commissioners should meet every four years for the purpose of designating its public depositories of active moneys for the next succeeding four-year period.

“We need to tighten up our process,” Vero said. “I’m certainly concerned that it appears our treasurer acted on his own and opened up accounts that I don’t believe you can do without a process being followed.

“But there’s a code provision and we as a county need to tighten up the procedures and it certainly appears that you can’t just move money without a competitive (application process).”

Keller said that section of ORC doesn’t discuss any “remedies or ramifications” for anyone who is not following the statute. But it does emphasize organizing the competitive application process every four years, open to all eligible institutions with at least one office in Richland County.

“Historically, I believe we’ve relied on the treasurer’s office to be a lead player in selecting a depository,” he said. “Statutorily they are required to make the recommendation (to commissioners).”

Ultimately, the treasurer is responsible for the recommendation and commissioners have the legal authority to make the decision.

Community investment made this reporting happen. Independent, local news in Shelby and Northern Richland County is brought to you in part by the generous support of Phillips Tube Group, R.S. Hanline, ArcelorMittal, Lloyd Rebar, Hess Industries, and Shelby Printing.