Old, Shenigo reduce county's debt to lowest amount since 2002

PERKINS TWP. — In Washington, D.C., Democrats and Republicans can't stop bickering, a contributing factor as to why the nation's debt eclipsed $21 trillion with no signs of declining anytime soon.But in Erie County, cooperation exists across party lines, an underlying reason why the area's long-term financial obligations plummeted to a near two-decade low.When registered voters elected Republican Matt Old as a county commissioner in fall 2016, he quickly formed a union with incumbent Pat Shenigo, a Democrat.They decided to not let red-and-blue politics divide them.Both agreed to focus only on one color: green, in the sense of money. They promised to only spend taxpayer dollars on cost-effective projects that are fully researched, deemed necessary and ordered up to benefit the greater good.Fast-forward to today, and here's the result of their bipartisan bond: Erie County's debt should shrink to about $63 million entering 2020, according to local financial data.It's the lowest amount owed since 2002 and marks a 46 percent decrease compared to when county debt peaked at $116 million in 2008. Shenigo took office in 2009, and Old first began serving in 2017.Old's No. 1 priority during his campaign revolved around financial accountability."Paying off debt is an absolute priority," Old said. "When I ran, I promised a new way of government conducting business and doing things in Erie County. This is just one example of that because we, Pat and myself, respect the taxpayers' dollars."Shenigo appreciates Old's vision to start treating government finances carefully and considerately."We continue to live by the rule of common sense, spending only when necessary, paying off debt as soon as possible and doing more work with greater efficiency," Shenigo said. "We are always trying to do the right thing and treat the taxpayers' money as if it were our own, unlike what some politicians do for their own benefit. That doesn't happen under our watch."Source: Erie County finance departmentDrowning in debtCritics contend negligent financial planning and foolish decisions involving infrastructure initiatives greatly contributed to Erie County's debt soaring years before Old or Shenigo took office.Those questionable projects resulted in the debt skyrocketing from a paltry $22 million, relatively speaking, in 1990.Past commissioners — namely Tom Ferrell, who ended his 28-year elected reign in January 2017 — also burned through $10 million in savings from 1998 to 2008, draining almost all of the funds kept in a reserve account necessary for emergency situations. A robust savings account can help officials borrow money at lower interest rates.Among the head-scratchers to occur during Ferrell's tenure, he and past commissioners:• Approved a $21 million, 30-acre expansion at the landfill in the mid-2000s; Many said the mammoth pit is too large for areas 10 times the size of Erie County.• Building a $21 million water line project to serve rural residents in the mid-2000s; Only a fraction of residents tapped into the new line, far fewer than expected. It's also the subject of an ongoing taxpayers' lawsuit, contending how shoddy construction practices and lackadaisical supervision resulted in a compromised water line system, prone to breaking, cracking and fracturing.A 2017 Register investigation linked Ferrell to wastefully spending $81 million on problematic construction projects and incomplete studies. Those decisions — in which he voted on or directly oversaw — cost local taxpayers dearly, evident by Erie County's debt ballooning $94 million, or more than 400 percent, within a 20-year period under Ferrell's watch.Old replaced Ferrell on commission."If we would have continued borrowing money at the rate the county was, we would have been on a collision course with major tax increases, reduction in services and significant layoffs to prevent bankruptcy," Old said. "The sad part is we would have had very little to show for it — except for expensive, over-engineered projects."Despite their differing political allegiances, Erie County commissioners — left, Pat Shenigo, a Democrat; and Matt Old, a Republican — have worked together on many local projects. Most notably, they've teamed up to decrease the county's debt to $63 million entering 2020. It marks a 46 percent decrease compared to when county debt peaked at $116 million in 2008.A new era of businessUpon starting his term in 2009, the No. 1 priority for Shenigo: stabilize the government's erratic finances. He often spoke up, and spoke out, about projects he deemed hasty and unnecessary.Shenigo, a successful businessman in the home building industry, helped steady Erie County's finances. He closed the checkbook on expensive projects in which, he believed, the cost outweighed the need."Before I got involved in politics, if someone would have told me this is how government functions, I would have never believed it," Shenigo said. "The reckless spending practices undertaken by Tom (were) irresponsible, and I have tried, in my years in office, to put a stop to it."Since Shenigo's arrival, Erie County's debt has incrementally shrunk. Meanwhile, he led a charge to replenish the county's reserve account, growing back to $8 million.Both Shenigo and Old intend on running for re-election. Their terms end Dec. 31, 2020."I'm looking forward to continuing to work with Matt on the many projects we have in the pipeline," Shenigo said. "We will continue to work to lower costs and, never again, waste money on engineers and studies for projects that shouldn't be built in the first place. We both share the same philosophy: Erie County never had a revenue problem. It has had a spending problem."The third county commissioner, Steve Shoffner, took office in January. Shoffner, a Republican, did support legislation to pay off debt, which reduced from $71 million entering 2019 to an estimated $63 million come 2020.Despite their differing political allegiances, Erie County commissioners — left, Matt Old, a Republican; and Pat Shenigo, a Democrat— have worked together on many local projects. Most notably, they've teamed up to decrease the county's debt to $63 million entering 2020. It marks a 46 percent decrease compared to when county debt peaked at $116 million in 2008.They do still spend moneyOld and Shenigo managed to lower the debt while still pursuing many new projects over the past three years.Most notably, commissioners committed funding to:• Resurrecting a pair of long-dormant water lines, once owned by NASA. Work at a plant near Sheldon Marsh State Nature Preserve:— Ensures Sandusky water customers have a safe and reliable backup water system— Offers endless marketing opportunities, as raw water is a crucial ingredient to lure manufacturing companies into the regionErie County's in-house utilities team performed the work at a cost of $350,000. It came in at a fraction of the cost as compared to estimates collected by Sandusky officials, ranging between $8 million and $20 million.• Backing the $21 million taxpayers' lawsuit on the faulty water line system• Supporting various programs and initiatives related to the area's addiction recovery movement; Most notably, commissioners financially supported the region's first detox unit and Becky's House, a women's sober-living facility. Both entities exist at the Erie County Health Department's campus in Sandusky.• Overhauling The Meadows at Osborn Park, the Erie County-owned nursing home near Osborn MetroPark, with modern facilities to attract more residents• Implementing many changes at the Erie County landfill, which included installing a new scale to improve weight accuracy and creating an eco-friendly system to convert methane gas into electricity• Pursuing a process, which includes receiving public input, to enhance the county's sewer system"Through our new way of doing business, we have been able to fund these projects while still paying down substantial amounts of debt," Old said. "Just as importantly, we have done this without laying off people or raising taxes."Despite their differing political allegiances, Erie County commissioners — left, Pat Shenigo, a Democrat; and Matt Old, a Republican — have worked together on many local projects. This would include several improvements at the Erie County landfill. Their efforts have resulted in the county's debt totaling $63 million entering 2020, marking a 46 percent decrease compared to when county debt peaked at $116 million in 2008.Reach reporter Andy Ouriel at ouriel@sanduskyregister.com and follow him on Twitter @AndyOuriel.