Legal bills, higher insurance costs proved challenge to Dover finances in 2022
DOVER ‒ The city faced financial challenges last year, in part because it had to pay the salaries of two mayors and for outside legal counsel to handle lawsuits. But tax revenue also is rising.
Those are among the items included in Auditor Nicole Stoldt's annual report on Dover's finances. The report was released Monday during the City Council meeting.
Conviction:Former Dover Mayor Richard Homrighausen ordered to pay $17,210, avoids prison
The city paid $65,000 extra in the mayor's salary and benefits in 2022. Former Mayor Richard Homrighausen was suspended from office in May over theft in office charges, but he continued to receive his salary until he was convicted on those charges. Former Council President Shane Gunnoe was named interim mayor by Tuscarawas County Probate Judge Adam Wilgus. Both Homrighausen and Gunnoe were paid the same amount during that eight-month time period ‒ $3,867.02 every two weeks.
Dover is seeking to have Homrighausen reimburse the local government for pay and fringe benefits he received between his May 4 suspension from office and his conviction. The total requested is $77,802.06.
Dover also racked up $100,000 in attorney fees last year in defending itself against lawsuits filed by Homrighausen related to the firing of three city employees in 2021.
Legal issues:Judge to decide when three Homrighausen civil cases will be decided
Other expenses in 2022 included $275,000 in increased wages for city employees and increased health insurance costs of $150,000, Stoldt said.
The general fund ended the year with a carryover balance of a little more than $1.7 million, which is down about $650,000 from 2021.
"Despite those extra expenses, we are seeing an increase in property taxes, local government, interest earnings and lodging tax, which is a sign the economy is hopefully rebounding," she said.
Income tax revenue is also on the rise. The city received more than $9 million in income taxes last year, which is $1.1 million more than Dover received in 2021.
"Income tax is up mainly due to withholding and net profit," Stoldt told The T-R in an email. "I will state that in 2019 our total income tax was $8.3 million. So really, I would like to make it clear that we are just getting back to pre-COVID numbers."
This article originally appeared on The Times-Reporter: Legal fees, high insurance costs challenged Dover finances in 2022
