What is on the ballot on Tuesday, May 5th?
Issue 4 ballot language is vaguely worded and essentially authorizes the city to issue $27 million in bonds to be used for “site acquisition, new construction, improvements, renovations and additions to municipal facilities, and providing equipment, furnishings, and site improvements.”
New construction would be conditioned on a yet-to-be-negotiated “deal” between the city and the school district that would transfer the central property to the city for construction of a free-standing fire house and a free-standing city administration building to house 6–7 positions in exchange for $6–7 million of improvements to the city-owned Veterans Memorial Stadium.
It has been reported there is no formal “deal,” just this roughly described “gentlemen’s agreement.” Under this non-existent “deal,” the district would assume full operational control and cover maintenance for ten years until some new, unspecified terms would give them ownership.
There are some pretty pictures and rosy claims about “expanding recreation opportunities,” but nothing that inspires confidence that what is promised is what will be delivered. Caution advises against committing to such expenditures with so many unknowns. We urge your No vote and ask that you demand the process start over with full transparency, public engagement, and greater specificity.
If passed, what would this levy cost me?
The proposed bond issue (Issue 4) would impose a sizeable 6-mil tax against the assessed value of all real property within the city’s corporate limits.
This equates to a yearly cost of $206 per $100,000 of market value. The annual obligation to retire the debt is approximately $1.62 million (5.89 mils × $275 million in assessed valuation).
It should be noted that the city has granted very favorable tax abatement on the large Givaudan project—thus, when it comes “online,” do not expect a reduction in the effective rate.
I’ve heard that Ohio may eliminate property taxes—how might that affect this effort?
A citizens’ initiative petition is being circulated in the State of Ohio that, if passed, would alter the Ohio Constitution and prohibit property taxes.
If such an amendment passes, new funding methods would be needed for any governmental activity currently relying on property taxes. Increases in state income tax, sales taxes, and local earnings taxes would all be on the table. Some speculate that new rates in the high teens may be required. It has also been suggested that school district consolidations could be considered.
Caution is urged regarding new property taxes until this matter is resolved.