1. Losing the American Dream… One Tax Levy at a time.
Is the American dream just an illusion?
Have we been deceived?

2. Personal Background Born in Aberdeen, Scotland 1946
Naturalized American citizen
Military Service: U.S. Army, 2 years, Rank E-5
Lake County Residency: Kirtland (20 years), Concord Township (currently 12 years)
Education: Collinwood High School, Cleveland State University, CPA Certificate
Business Owner (12yrs): Exercare Fitness (15 retail stores); sold in 2002
City of Kirtland: Ward 4 Councilman, City Council President, Interim Mayor
Currently: Semi-retired, 43 years married to Bernadette, father to 2, grandfather of 4
I am not running for office, I am not asking for money….I only offer the ‘red pill’ –the truth to those with open hearts and minds…..

3. Why do I continue WITH Community ACTIVISM?
There are two groups of individuals that I am fighting for……

4. …THOSE WHO HAVE Sacrificed for us

5. ..and Our Future Generations

6. NO BORDERS = NO SOVEREIGNTY = NO COUNTRY
Local Activism:
A Thirst for Knowledge
Land Bank
Lake County Senior Levy
Called Representatives
Neighbor to Neighbor Program
Council on Aging
Letters to News-Herald
NO BORDERS = NO SOVEREIGNTY = NO COUNTRY
Called Senators
Port Authority
Called the White House
Morley Library Title 8 Section 1324
Letters to my Catholic Church
ADAMHS Board

7. How DID I Start Down This Rabbit Hole?

8. ….I Looked At My Tax Bill
Offices I visited with questions:
Lake County Auditor
State of Ohio Tax Equalization Board
 Responsible for calculating
Tax Reduction Factor, or TRF
 Compared taxes in 2006 vs 2017:
Comparison of Taxes Paid
42%
Millions of Dollars
Realized that if the rise in taxes continues on this trajectory,
it will price me out of my own house

9. My Mission: Determine how have taxes impacted Lake County citizens
Call out what factors influence our real estate taxes
What actions can be taken to alleviate the tax burden on Lake County citizens?

10. Demographics of Lake County
In 2013 = 23% of the population are >60 yrs old (54,456)
29% still employed
47% have average income $49,690 per household
Only 49% have any retirement savings
78% receive Social Security averaging $18,488 annually
By 2030 = projected that 34% will be >60 years
Source: The Center for Community Solutions 2014 report
(They are 100+ year old think tank covering Cleveland & N.E. Ohio)

11. Housing Affordability Threshold % [HAT %]
It is generally accepted that 30% of annual income is the threshold of housing affordability
When is your home unaffordable?
If your mortgage + utilities + property taxes
(or your rent + utilities) are > 30% of your annual income
Mortgage:$ utilities: $500 + property Taxes: $500
= $2000 Total Expenses
Your annual income needs to be $80,000/ year !
($2,000 / 30% = $6,666 per month)
When voting on any Tax Levy, remember your HAT%
Tip: Divide the actual tax increase by 30% (0.3) to determine how much more $ you will need for your HAT% not to be impacted!
Source: Center for Community Solutions

12. Additional Alarming Statistics for Seniors
6.1% of > 60 year olds Live in poverty
Family of 2:
2013: $15,510 (54,456 people x 6.1% = 3,321 people)
2018: $16,400
7.6% of > 60 year olds are living Near poverty
2013: (54,456 people x 7.6% = 4,138 people)
Total of Lake County Seniors living at or near poverty line= 7,459 people
27% of Seniors who own = pay >30% of annual income on housing
55% of Seniors who rent = pay >30% of annual income on housing
Median rent for a senior is $844/month
Requires ~$33,759 in annual income or $15,271 more than average Social Security income
Sad statistic from the Lake County Council on Aging -In 2014, there were 2,360 estimated
cases of elder abuse but only 126 reported

13. Real Estate Tax Basics
What is a MILL (Millage Rate)?
A figure representing the amount per $1,000 of the assessed value of property
Home Valuation vs Assessed Value:
1972 State of Ohio set 35% as Maximum Assessed
(or taxable) Value
Home Valuation: $100,000 x 35% = $35,000 of Assessed Value
$35,000 Assessed Value x .001(1 Mil) = $35.00 Property Tax
1 Mill equals $35.00 per $100,000 of home valuation.
What does 5 mill levy on a $250,000 home cost the taxpayer?
[$35.00 x 5 x ($250,000/$1,000)] = $ per year
($250,000 x .35 x .001 x 5 mills) = $ per year

14. Exemptions & Credits Rollbacks: Homestead Exemption:
10% & 2.5% - no longer applies to new tax levies, only renewals State of Ohio reimburses local communities
Homestead Exemption:
65 years old, permanently & totally disabled,
or 59 years old & surviving spouse of deceased taxpayer who previously received the exemption.
Now subject to annual income test : $32,200 (2018)
Reduces property market (true) values by $25,000
Tax Reduction Factor (TRF):
Eliminated increased taxes due to inflationary increases in the valuation of homes (product of HB 920 )
Introduced the concept of EFFECTIVE RATE:
Concord #8: Total Millage of 97, but effective rate of 68
Concord #9: Total Millage of 108, but effective rate of 68
Concord #10 Total Millage of 112, but effective rate of 70

15. Inside & Outside Millage
Inside Millage :
State Law / No vote allowed / Not subject to TRF
Maximum is 10 mills - $ for $100,000 home valuation ($35 x 10 mills)
Currently, we are charged 8.9 mills - $ for $100,000 home valuation
Outside Millage - Voted on by the taxpayers…..
Political Sub-Division
Millage
County General Fund
1.00
Lake Metroparks
0.10
Concord Twp
3.00
Riverside Schools
4.80

16. Levy Ballot Language
Asked Commissioners to ensure transparency to the voters
Asked for consistency in expressing cost to taxpayers
Example: .4 mill levy = $14.00 per $100,000 of home valuation ($35 x .4)
They said that is already being done!!!
Here is the ballot language on the May ballot for the Crime Lab Levy:
“ ….at a rate not exceeding four-tenths of one mill (.4 of 1 mill) for each one dollar of valuation, which amounts to $0.04 for each one hundred dollars of valuation, for a continuing period of time, commencing in 2018, first due in calendar year 2019.” [($100,000 x .35 /100) x .04 = $14.00]
Sent to Commissioners calling out deception
Coulson responded by saying it is required language in the Ohio Revised Code.

17. DeRolph vs State of Ohio
1991: The Ohio Coalition for Equity & Adequacy of School Funding sued the State of Ohio for failing to provide adequate funding to educate the state’s students
(Nathan DeRolph, Sheridan High School, Perry County)
States failed to provide “efficient” educational system as required by 1851 Ohio Constitution...relying too heavily on property taxes for funding
1994: Judge Linton Lewis, Jr. agreed with DeRolph & told the state to provide better method of funding
1997: Ohio Supreme Court agreed the current funding was unconstitutional
However, no suggestions on how to change it
State legislature merely added more funding, but since there was a good faith effort to change, the Court let the legislators off the hook
2004 photo of Nathan DeRolph

18. Government Financing Model for a Public School
Levy #3
Levy #1
Expenditures
Source: Ohio School Finance Blue Book..Robert G. Stabile, Ph.D.

19. Impact on Homeowner’s HAT%
HAT % Exceeded

20. Past Election Results Debatable
Ohio Department of Education maintains school election result records
Demonstrates what TYPES of issues have BEST passing % over the last 5 years
This data aids in selecting the type of funding, and also the TIMING of the levy
Without a doubt, there is a strategy used to ensure better chance of passing
Taxpayers are owed honesty and transparency by government
Source: Ohio School Finance Blue Book

21. 2018 vs 2008 Real Estate Taxes for Lake County
+34%
2018 Total= $53,234,702
12% of Total Taxes
-$8.1
+17%
2008 Total= $50,876,072
14% of Total Taxes
+74%
+5.1%
+5.1%
+4.9%
General Fund Millage Reduced From
2.1 to 1.0 due to Sales Tax Increase

22. 2018 vs 2008 Real Estate Taxes for Lake County Schools
+16%
+38%
2018 Total= $296,125,461
68% of Total Taxes
+36%
+95%
+35%
+16%
+20%
-12%
+11%
+9%
2008 Total= $235,194,545
66% of Total Taxes
-10%
Simply not sustainable!

23. 2018 vs 2008 Real Estate Taxes for Lake County Municipalities
2018 Total= $60,873,187
14% of Total Taxes
+12%
+39%
+87%
+29%
+6%
-4%
+42%
-3%
+53%
2008 Total= $49,460,608
14% of Total Taxes
Concord Township #1 in Residential Real Estate Taxes Collected
Overall increase 23%

24. 2018 vs 2008 Real Estate Taxes for Lake County Metroparks
2018 Total= $16,221,075
3.7% of Total Taxes
21%
2008 Total= $13,423,522
3.7% of Total Taxes
9,100 Acres – Well run, but flush
with money – Independent of County Commissioners

25. 2018 vs 2008 Real Estate Taxes for Lake County Libraries
2018 Total= $11,455,762
3% of Total Taxes
+300%
+73%
+10%
2008 Total= $6,765,836
2% of Total Taxes
+154%
+55%
Hope you are using the libraries –
Overall 69% increase

26. 2018 vs 2008 Real Estate Taxes for Lake County Total Taxes Billed
23%
Excluding General Fund Decrease the
Overall Increase is 26%.
Even if the CPI has increased 16%,
to those on fixed incomes it is still a
26% increase.

27. Additional School Funding from the State of Ohio
2017 Total= $10,424,331,259
2009 Total= $9,584,000,999
Projected:
2018: $10.5 Billion
2019: $10.6 Billion

28. State Support of Education
State constitution mandates public school system is “thorough and efficient”
DeRolph changed it to “Adequate and Equitable”
Are we spending enough and are we allocating the available funds fairly?
Basic funding amount ($6,010 / student in 2018) is adjusted by the wealth of the district (i.e. Riverside gets ~$1,265 per student)
Very complex formula to “redistribute the wealth” to each school district
Other possible financing options:
1. Replace property tax with a different kind of tax
2. Increase State Income Tax to increase State funding for schools
3. Collect all or part of local property tax and State redistributes
4. Rethink how our children are being educated
5. Sales tax on meals purchased “to go”

29. Lake County Total Student Enrollment
9.4% Decrease from 20082017
Decrease of ~3,142 students
Number of Students
Source: Cupp Report

30. Average Spend per Student
2017/2018
2008
Total Lake County Funding
(deduct Lakeland CC, Auburn, Add State and Federal Funds)
$456 Million
$356 Million
Number of Students
30,320
33,462
Avg. Spend per Student
$15,036
$10,629
Lake County spent $100 million more to educate 3,142 less students
Salaries and Benefits are
80% - 85% of Budget
Average cost per Student increase is 41%

31. Factors Impacting Real Estate Taxes
State of Ohio balancing their budget by pushing costs to local communities
Increasing inflationary costs of educating children (to those on fixed income – irrelevant)
Ever expanding government at all levels
Unfunded mandates by the federal government (i.e. Stormwater tax)
Social welfare costs of illicit drugs
Illegal immigration education and social welfare costs
Current Agricultural Use Value (CAUV) versus “Highest and Best” use value
2014 loss of $9.9 Billion in value. Residential properties to pick up loss.
Payment of college courses for 7 – 12 graders through College Credit Plus program.
There are lobbyists for farmers, businesses, teachers’ union,
colleges, “non-profits”, but who speaks for the average citizen?

32. Cost Impact of Non-English Speaking Students
2017
2016
Total number of Lake County Students
30,320
30,596
Weighted Avg. of Non-English Students
4.05%
1,228
1,240
Cost to Taxpayers
$14.6 Million
$14.2 Million
Avg % of Schools' Budget
4.10%
4.02%
I do not support open
borders or illegal aliens. U.S.
is a sovereign nation.
The social welfare and
education costs to support
Illegal aliens are helping price
Seniors out of their homes.
Source: Cupp Report

33. College Credit Plus Program
Ohio Department of Education Website for Information:
School districts required to offer students in grades 7 – 12 access to college credit plus courses.
Local school districts are required to pay for the cost of any courses students taken at ANY college/university.
If students fail, then parents pay-- Bill Wade, Superintendent of Kirtland Schools.
All textbooks are also paid for by the school districts
Cost to Riverside Schools:
$271,216
2018 to date -$176,055
Reminder: Lakeland Community College received $20 Million in 2018 versus $10 million in 2008 from Lake County Taxpayers

34. Default Tuition Rates Does anyone remember voting for this benefit?
Based on Foundation amount of $6,010 (2018) & $6,020 (2019)
2018
2019
Semesters
Quarters
Ceiling
$166.28
$110.85
$166.55
$111.04
Mid Level
$83.14
$55.43
$83.28
$55.52
Floor
$41.57
$27.71
$41.64
$27.76
Does anyone remember voting
for this benefit?
Lakeland CC will drive Seniors
out of their homes
Source: Ohio.gov / Ohio Higher Ed
Cost per credit hour at Lakeland Community College:
2018
2019
High School (HS teacher)
$41.57
$41.64
High School (Lakeland Prof.)
$70.00
Lakeland
$95.00
Class in H.S. with H.S. Teacher
Class in H.S. with Lakeland Professor
Class at Lakeland with Lakeland Professor
Source: Bill Wade, Kirtland School

35. Is this in your future?
Home measures just eight by twenty-four feet (192 sq. ft.). It has a built-in platform bed, built-in shelves, space for a narrow table and a loft that accommodates a queen-sized mattress for guests. Her tiny house’s kitchenette is outfitted with a built-in stove and oven, plus a sink and small refrigerator; in the bathroom are a tiny sink, a toilet and a shower. She heats and cools her home via a unit on the ceiling.

36. So What Do We Do Now? Continue to Educate Lake County Residents
47.7%
19.5%
12.9%
19.8%
Continue to Educate Lake County Residents
Register Lake County Residents to VOTE
Start conversations with state elected officials
Create group of “lobbyists” that will take lead
Nothing should happen in Lake County
without voting block of > 50 yrs WANTING it to happen.

37. Let us make sure that the American Dream of home ownership, and private property does not die.
If we are united rather than being divided, we can make a difference.
But first you must decide what kind of country you want to leave for the next generation – citizenship in a Constitutional Republic, or a “global citizen” in a secular, Socialist swamp like those of Europe or Venezuela.
As Benjamin Franklin said when asked what the founders have given us…
“A Republic, if you can keep it.”
Thank you for listening