Riverside Local School District Treasurer Update Lake County

Riverside Local School District Treasurer Update – Lake County School Financing District October 2019 Presented by: Gary A. Platko Educating Excellence!

Levy Purpose and Background ● A resolution adopted February 6, 1990 created the county school financing district known as the Lake County School Financing District for the purpose of levying taxes for the provision of the following specified educational programs and services by the school districts that are part of the district. ●The provision of necessary personnel, materials, supplies and transportation for instruction in language arts, social studies, mathematics, fine and practical arts, health and physical education, science and business education. Educating Excellence!

Current Districts ● Madison Local School District ● Painesville City Local School District ● Perry Local School District ● Riverside Local School District Educating Excellence!

Vote / Passage History Educating Excellence!

Riverside – Use of Funds ● Funds accounted for in separate fund (Fund 030) ● Funds are included in Riverside’s Five Year Forecast ●Line 1. 060 – All Other Operating Revenues ●Not included in the forecasts for the other three districts ● Riverside currently uses the funds for teacher salaries ●Riverside Campus Only ●Total of approximately 32 teachers ●English, Math, Science and Social Studies ● No benefits, materials, supplies, or transportation expenses charged to fund Educating Excellence!

Current Tax Rate ● Tax year 2018 / Collection year 2019 ● Gross Voted Tax Rate: 4. 90 mills ● Class I – Residential / Agricultural: 2. 28 mills (2. 277721) ●Annual cost per home valued at $100, 000: $69. 76 ●Reflects 10% state rollback and 2. 5% owner occupied credit ● Class II – Commercial / Industrial: 4. 90 mills ● Class III – Public Utility Tangible: 4. 90 mills Educating Excellence!

Schedule A Valuation History Educating Excellence!

Riverside Annual Revenue History Figures based on Fiscal Year (Jul – Jun), not Calendar Year (Jan – Dec) Educating Excellence!

Current Allocation ●Class I and Class II revenue is distributed based on each district’s proportion of enrollment (ADM) ●Class III revenue is distributed based on: ● 2/3 – Each District’s proportion of enrollment ● 1/3 – Each District’s Class III valuation Educating Excellence!

New Allocation / Revenue ● For tax year 2020 / collection year 2021, the allocation will be based on the funds generated by each district ●Each district’s proportionate share of valuation by class ● Riverside will see a significant increase in revenue ●Example: Tax Year 2017 / Collection Year 2018 ●Estimated $2, 746, 386. 77 vs. $2, 138, 221. 92 actually received ● Protects Riverside, Painesville, and Madison from future Perry Nuclear Power Plant devaluations ● Protects all districts from disproportionate changes in enrollment that resulted in varying changes in allocations under previous method Educating Excellence!

Why Not Own Riverside Levy? ● A new levy would not receive the 10% rollback where the state pays 10% of the property tax (eliminated in 2013 on new and replacement levies) ● A new levy would not receive the 2. 5% owner occupied credit where the state pays an additional 2. 5% of the property tax (also eliminated in 2013) ● A new levy would result in the same tax rate for all three classes (residential/agricultural, commercial/industrial, and public utility) ●This would shift the tax burden from commercial and public utility to the residential taxpayers Educating Excellence!

Why Not Own Riverside Levy? ● To replace the 2018 calendar year revenue of $2, 138, 221. 92 based on current valuations, Riverside would need to pass approximately at 1. 945 mill levy (Current residential rate is 2. 277721 mills) ●Cost per $100, 000 home would be $68. 08 vs. $69. 76 now ●No 10% rollback and no 2. 5% owner occupied credit ●Annual homeowner cost would only decrease $1. 68 per year ●Riverside would not realize any increased revenue from the new allocation Educating Excellence!

Frequently Asked Questions ● Will this be a renewal levy? ●Yes, it was first approved in 1990 and renewed in 1995, 2000 2005, 2010, and 2015. ● Will approval of this renewal levy increase my taxes? ●No, the levy was first approved at 4. 9 mills and is currently collecting at 2. 28 mills (2. 277721) for residential taxpayers. ● Will this renewal levy be permanent (continuous)? ●No, the renewal is for a 5 year period. Educating Excellence!