Gates Mills Prepares to Go Live with Controversial Revenue Stream
NORTHEAST OHIO – If you live or commute near I-271, it is likely that you have passed through State Route 322 to get there. Within the next 30 days, the village of Gates Mills will plan to go live with a controversial speed camera system which could have massive ramifications for both the village and the thousands of commuters simply attempting to go about their business.
The winding hills on 322 that traverse through Chesterland and the Mayfield Heights gateway, also called Mayfield Road, are separated by the village of Gates Mills in Cuyahoga County. The village’s location on the route is smack at the bottom of an east and westbound hill featuring an 8 percent decline. An Ohio State Highway Patrol study recently conducted on the stretch of road indicated that 18,000 cars average their commutes through this valley and average around 55-65 mph going down either side of the four-lane divided highway, with a posted speed limit of 45 mph.
In January of 2022, the Village voted to approve the use of unmanned speed cameras at the highly traversed section of the State Route, citing safety concerns. At that time the village approved a five-year contract with Gatso, the firm which will be operating the cameras. However, the rollout of these cameras was delayed by over a year due to an ongoing battle within the Ohio Supreme Court, specifically pertaining to funding, or lack thereof, from usage of the cameras.
In 2015 the State of Ohio passed legislation banning the use of unmanned traffic cameras, stating that law enforcement must be present at any location utilizing unmanned cameras in order to issue fines. The City of Dayton contested this law on the grounds that it violated ‘Home Rule,’ essentially that any municipality has the right to exercise police practices how they see fit, within the confines of the law. The Ohio Supreme court sided with the city of Dayton in 2017, which resulted in the State of Ohio signing legislation stating that any use of unmanned cameras without an officer present would result in said municipalities losing a dollar-for-dollar match in Local Government Funding from fines issued. In essence, the amount on the ticket is how much each city sacrifices from their LGF. These are funds used for infrastructure projects, emergency management services and more. This follow-up was also challenged in the courts, resulting in municipalities like Gates Mills delaying their speed camera rollout until the courts gave their ruling in May of 2022.
Inquiry into the camera’s delay or erection project in general, with Gates Mill’s Chief of Police and many council members, often results in a similar statement. According to proponents of the initiative, the cameras are all about safety.
“Without question, a byproduct of this program is money for the Village; however, that is not our goal,” Chief Gregg Minichello said. “That is not why this program will launch, it is to target the most egregious speeding violators with the goal of changing driving behavior.”
One would be hard-pressed to not ask the most obvious question from these sorts of statements, specifically, ‘Then why wait on the courts to rule on the revenue generated?’ If truly municipalities erect these structures for the purpose of safety, why would it matter what the Ohio courts ruled?
Ultimately the courts ruled that sacrificing dollar-for-dollar from the LGF did not violate a city’s ‘Home Rule’ as they were still free to police as they saw fit, just not eligible for LGF funding based on their actions. Essentially, decisions have consequences.
Residents of the area know the name Gates Mills as synonymous with affluence, from the wrought iron street signs with an ornate and almost equestrian feel, to the sweeping estates that line golf course-like lawns. It would appear to the average passerby that the village itself certainly wouldn’t be in need of money. However, combing through a brief timeline of events might tell a different story.
In the village meeting from May 2020, Council member Jay AuWerter presented a financial forecast to the village council which stated that if the village were to take no action they would be facing a $500,000 deficit, which would reduce the village’s reserves by around 50%. The issue of the deficit was so significant that the village opted to delay major road construction projects and defer expenses in their police department in order to cover costs. Due to this financial forecast, the council formed a Blue Ribbon Committee to address the potential financial catastrophe the village was facing. Enter the safety debate of Mayfield Road.
Sometime between the May 2020 meeting when AuWerter presented his deficit concerns, to the creation of the Blue-Ribbon Committee to solve their financial crisis, Mayfield Road became a top priority for the village, despite the stretch of road only yielding two significant accidents in 16 years, a 2-car accident at dawn in 2018 and a 3-car accident in daylight in 2010. What that road does have, according to a study conducted by the State Highway Patrol, is over 18,000 cars and semi-trucks traversing through local villages. These vehicles travers on and off the I-271 highway up and down an elevated, 4-lane divided highway where the average speed is 55 mph. At the same meeting that the speed cameras were approved, Council member AuWerter was voted in as President pro temp.
Since their approval, all discussion regarding possible deficits have vanished. Financial projections subsequent to their approval from the village’s current treasurer, Steve Siemborski, indicate that the village will be running balanced budgets for the next ten years. Many critics of Siemborski’s assessments have stated that his projections are based on several uncertain predictions, including inflation rates, levies passing and other metrics holding positively in favor of the village over the next five years. Should any number of Siemborski’s predictions falter, the village would be facing deficits again. One thing that is going to be holding steady for the village is revenue from the cameras. According to that same report, Siemborski predicts in 2023 the cameras will generate $25,000 per month for eight months, $30,000 per month in 2024 and increase 3% thereafter. According to Siemborski’s report, the speed cameras are a growing financial buttress for the village.
Despite the village opting to lose the funding from the LGF in lieu of ticket fines issued, the village only received $70,703.40 from the LGF in 2022 and has only received $28,647.29 as of June 1 of this year, according to finance administrator Janet Mulh. In previous comments, it was noted that one day in 2018 saw 5,000 cars exceeding a 65-mph speed limit. That one day would yield each driver a $300 ticket according to their projected metrics on fine issuance. That would net the village a total revenue of $1,500,000, whose current yearly budget is somewhere around $6,000,000. Now, not all of that revenue would go towards the village. 38% of the revenue generated goes to Gatso and presumably some percentage may be allocated to Lyndhurst court which will be processing the civil fines. Though it could be easy for one to look at the numbers and see massive dollar signs going up. According to Mulh, the council is currently budgeting for $200,000 in revenue from the cameras for 2023. Meaning they are expecting a minimum revenue stream of $200,000 between when the cameras go live in August 2023 until year end.
The Gates Mills Village council has vowed that they will not be issuing fines for speeds between 45 mph and 55 mph and will exercise restraint in their processes. However, the question could be asked, ‘can one really trust in a village that only a few short years ago was facing dire financial straits, and whose budgetary destiny essentially hinges on multiple positive predictions of the economy that common sense says is unlikely? Further, knowing that the village will be sacrificing up to $70,000 in revenue and will need to pay at least 38% of anything generated by the camera to Gatso, it would behoove any financially savvy person to issue as many fines as possible to ensure budgets are balanced. Or better yet, generate a surplus.
Some members of council are currently divided on the matter, with some viewing the cameras as a potential PR nightmare for the village. It is currently unknown at this stage how any revenue will be used generated from the cameras. Drivers traversing through State Route 322 should take note of their routes. The budget of Gates Mills may soon depend on it.Cameras are expected to go live this August.
Timeline of events:
May 2020 – Council member AuWerter presents a financial report stating the village is facing a deficit and forms a Blue-Ribbon Committee to fix it.
November 2021 – First reading of Speed Cameras comes onto the council agenda.
January 2022 – Council votes to approve the use of speed cameras regarding new safety concerns on a stretch of road they only share a portion of that has only seen two major accidents in 16 years. At this same meeting, AuWerter takes over as President Protemp. The council argues safety is their highest priority and the move is not about generating revenue despite said cameras being able to generate upwards of $1,500,000.
May 2022 – Village pauses implementation of the very important safety measure because the Ohio Supreme court says they would lose dollar for dollar from the LGF. Rollout is delayed until Summer 2023.
March 2023 – Village Treasurer Steve Siemborski releases his financial outlook for 2023-2027 in which he writes that “traffic enforcement camera income is forecasted in 2023 at $25,000 per month for eight months, $30,000 per month in 2024 and increasing 3% thereafter.”
May 2023 – Siemborski announces he will be running for Mayor unopposed.
