Consider area economy before voting on levy
By
-
To the editor:
This November the citizens of Highland, Fayette, Pike, Pickaway, and Ross counties will be given the opportunity to vote for or against a levy replacement to support the Paint Valley ADAMH (Alcohol, Drug, and Mental Health) Board.
The Paint Valley ADAMH Board receives funds paid by the property owners in the aforementioned counties and distributes them to organizations which provide assistance to those struggling with substance addictions and mental health problems.
The proposed levy will also be a 1 mill levy, but it being run this Fall as a replacement or the currently existing levy which runs out Dec. 31, 2012. The reason for this letter is to bring to light the differences between a renewal and a replacement levy and to inform the voting public ahead of the November election.
In Ohio, levies are based on the revenue generated and not by the rate at which the people are taxed. Levies are initially run based on a millage rate based on property values at the time of passage. As property values change, the millage rate of collection adjusts to ensure that the revenue collected remains the same as it was when the levy initially passed.
The renewal of a levy simply means that the levy will continue to collect at the same revenue levels as when the levy was initially passed. As property values increase, the millage rate decreases, and similarly increases when property values decrease.
The passage of a replacement levy resets the revenue guarantee based on the current property valuation. For example, a 1 mill levy passed might be set to generate $1 million annually based on current property values with a term of five years. At the end of the initial five-year period, a renewal of that levy is passed, but since the initial passage of the levy property values have fallen 10%. The renewed levy now collects at 1.1 mill, but still generates the $1 million.
At the end of the second term, property values have now rebounded and added an additional 10% so that in order to generate the $1 million dollars property owners are now taxed at 0.9 mill to meet the funding levels agreed to buy the voters. At this point, the agency funded by the levy proposes a 1 mill replacement levy, but based on current property values they will receive $1.1 million for the term of the levy.
The current Paint Valley ADAMH Board funding levy is based on a levy passed in 1982. It was originally passed as a 1 mill levy to collect $2.4 million. Due to the increase in property values since that time the levy now collects at a lower rate in order to generate the same amount of funds.
In Highland County, the Paint Valley ADAMH Levy currently collects at around 0.45 millage meaning that since the original approval of the levy property values in Highland County have increased approximately 222%. The passage of the proposed replacement 1 mill levy would mean a 222% increase in the Board’s funding next year over this, as it would bring the taxed rate on property in Highland County back up to 1 mill for this.
I would suggest that the citizens within the five-county region covered by the Paint Valley ADAMH Board consider the current economic atmosphere before voting for such a proposal.
How many of the people of Highland, Fayette, Ross, Pike, and Pickaway counties have received a 222% raise in the past year? How many of the property owners in these same counties can afford to see their property taxes significantly raised?
Don’t be fooled into believing that the 1 mill replacement levy proposed this Fall is the same as the one currently in place, because it is not.
Sincerely,
Fred Boggess
New Vienna[[In-content Ad]]
This November the citizens of Highland, Fayette, Pike, Pickaway, and Ross counties will be given the opportunity to vote for or against a levy replacement to support the Paint Valley ADAMH (Alcohol, Drug, and Mental Health) Board.
The Paint Valley ADAMH Board receives funds paid by the property owners in the aforementioned counties and distributes them to organizations which provide assistance to those struggling with substance addictions and mental health problems.
The proposed levy will also be a 1 mill levy, but it being run this Fall as a replacement or the currently existing levy which runs out Dec. 31, 2012. The reason for this letter is to bring to light the differences between a renewal and a replacement levy and to inform the voting public ahead of the November election.
In Ohio, levies are based on the revenue generated and not by the rate at which the people are taxed. Levies are initially run based on a millage rate based on property values at the time of passage. As property values change, the millage rate of collection adjusts to ensure that the revenue collected remains the same as it was when the levy initially passed.
The renewal of a levy simply means that the levy will continue to collect at the same revenue levels as when the levy was initially passed. As property values increase, the millage rate decreases, and similarly increases when property values decrease.
The passage of a replacement levy resets the revenue guarantee based on the current property valuation. For example, a 1 mill levy passed might be set to generate $1 million annually based on current property values with a term of five years. At the end of the initial five-year period, a renewal of that levy is passed, but since the initial passage of the levy property values have fallen 10%. The renewed levy now collects at 1.1 mill, but still generates the $1 million.
At the end of the second term, property values have now rebounded and added an additional 10% so that in order to generate the $1 million dollars property owners are now taxed at 0.9 mill to meet the funding levels agreed to buy the voters. At this point, the agency funded by the levy proposes a 1 mill replacement levy, but based on current property values they will receive $1.1 million for the term of the levy.
The current Paint Valley ADAMH Board funding levy is based on a levy passed in 1982. It was originally passed as a 1 mill levy to collect $2.4 million. Due to the increase in property values since that time the levy now collects at a lower rate in order to generate the same amount of funds.
In Highland County, the Paint Valley ADAMH Levy currently collects at around 0.45 millage meaning that since the original approval of the levy property values in Highland County have increased approximately 222%. The passage of the proposed replacement 1 mill levy would mean a 222% increase in the Board’s funding next year over this, as it would bring the taxed rate on property in Highland County back up to 1 mill for this.
I would suggest that the citizens within the five-county region covered by the Paint Valley ADAMH Board consider the current economic atmosphere before voting for such a proposal.
How many of the people of Highland, Fayette, Ross, Pike, and Pickaway counties have received a 222% raise in the past year? How many of the property owners in these same counties can afford to see their property taxes significantly raised?
Don’t be fooled into believing that the 1 mill replacement levy proposed this Fall is the same as the one currently in place, because it is not.
Sincerely,
Fred Boggess
New Vienna[[In-content Ad]]