The Riverside Local School District is part of the Lake County School Financing District Renewal Levy that will appear on the November 5, 2024, General Election ballot (Issue 4). Because this is a renewal levy, there will not be a tax increase for taxpayers.
The Lake County School Financing District – which is made up of the Madison, Painesville City, Perry, and Riverside school districts - was created in 1990 for the purpose of levying taxes for the provision of specified educational programs and services by the school districts that are part of the financing district. More specifically, the funds are used for the 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. The ESC of the Western Reserve is the taxing authority - which collects the tax proceeds and distributes them to each of the four school districts based on an agreed upon formula.
This is a five-year renewal of a 4.9-Mill levy that was initially approved in 1990. Renewals were previously approved in 1995, 2000, 2005, 2010, 2015 and 2020. The current effective rate for residential taxpayers is approximately 1.93 mills and costs a residential taxpayer approximately $59.02 per year per $100,000 of valuation. Renewal of this levy preserves the 10% non-business credit and 2.5% owner occupied credit that were eliminated for new and replacement levies by the State of Ohio in 2013, which reduces the cost to homeowners by 12.5%. The levy generates more than $3.2 million per year for Riverside Local Schools.
Proceeds from this levy are currently used for instructional expenses related to English, Math, Science and Social Studies at the Riverside Campus.
Lake County School Financing District Renewal Levy FAQs
Q. What is a county school financing district?
A county school financing district is a group of independent local school districts that agree to pool their valuation and request a levy to support specified educational programs across the entire group of districts.
Q. Which districts participate in the Lake County School Financing District?
The Lake County School Financing District is made up of the Madison, Painesville City, Perry, and Riverside school districts (member districts). The ESC of the Western Reserve is the taxing authority, which collects the tax proceeds and distributes them to each of the four school districts based on an agreed upon formula.
Q. How do member districts use the money from the Lake County School Financing District levy?
Funds are used for 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.
Q. Is this levy a renewal?
Yes, the Lake County School Financing District levy was first approved by voters in 1990 and renewed in 1995, 2000, 2005, 2010, 2015 and 2020.
Q. As a homeowner, will this renewal increase my tax rate?
No, the levy was first approved at 4.9 mills and is currently collecting at 1.93 mills.
Q. Is this renewal levy permanent (continuous)?
No, the renewal is for a 5-year period.
Q. How Is the money from the levy distributed?
The proceeds are distributed based on each member district’s proportionate share of tax valuation.
Q. How are the funds generated by the Lake County School Financing District levy used by Riverside Local Schools?
Riverside Local Schools receives more than $3.2 million each year from the levy which is used for instructional expenses related to English, Math, Science and Social Studies at the Riverside Campus.
Q. What happens if the levy is not renewed?
The Riverside Local School District would no longer receive any proceeds from this levy after calendar year 2025 and would result in budget cuts in excess of $3.2 million dollars per year starting in calendar year 2026.
Q. Does this levy qualify for the “rollbacks” from the State of Ohio?
Yes. Since this is a renewal levy that originated before 2013, the levy qualifies for the rollbacks from the State of Ohio. This includes the 10% non-business credit and 2.5% owner occupied credit. If this was a new levy or replacement levy at the same millage rate, it would no longer qualify for the rollbacks and would cost a homeowner 12.5% more than the current proposed renewal.
Q. How are the levy proceeds accounted for to ensure they are used for the specified purpose?
Each member district accounts for the levy proceeds in a separate fund to ensure the proceeds are used appropriately. Riverside includes this fund in its five-year forecast, which is filed twice annually with the Ohio Department of Education and Workforce, as the levy proceeds are a critical part of Riverside’s operations.
Q. Why doesn’t Riverside leave the financing district and place its own levy on the ballot?
There are several reasons why Riverside continues to participate in the financing district. First, the current effective millage rate for residential taxpayers is 1.93 mills. The effective millage for commercial taxpayers and public utility taxpayers is 4.86 mills and 4.90 mills respectively. If Riverside placed its own levy on the ballot, all three classes of taxpayers would be set at the same millage rate. Therefore, this would shift the tax burden from commercial and public utility taxpayers to the residential taxpayers. Second, a new levy would no longer qualify for the state rollbacks and would cost a homeowner 12.5% more than the current renewal levy if it were at the same effective millage rate.
Q. What happens if the value of the Perry Nuclear Power Plant is lowered or the plant closes?
The levy proceeds are now distributed based on each member district’s proportionate share of tax valuation going forward. Therefore, Riverside would be protected and not see any direct loss of revenue from a devaluation or closure of the power plant.