LFC Comments by Brian Massie, Concord School District taxpayer for 16 years ($80K and counting paid in)

We were interested in reviewing the increasing property values and property taxes for the Riverside School District and then comparing them to the number of students and the per pupil cost to educate the children.

Here is a schedule that compares the collection year 2011 versus 2020. Although overall property values increased only 9.46% in those nine years, residential values increased 11.37% while commercial property decreased 28.73%, and the public utility values increased 160.06%.

Overall annual property taxes for the Riverside School District increased $10,390,993 (35.5%).

Residential value in 2011 represented 81.80% of the total property tax value, but in in 2020 it increased to 83.23%.

We then decided to see what the statistics show for the collection year 2022. In 2021, there was the State mandated triennial update. The residential value of the property tax base has now increased to 85.01% of the tax base with a 19.50% increase in the two year period. There was an overall 17.2% in residential values because of the triennial update, with the balance 2.3% presumably being new residential construction.

The annual Riverside school district annual property taxes has increased to $41,334,858, which represents a $1,714,103 (4.33%) since 2020.

When we compare 2022 to 2011, we see an annual increase of $12,105,096 (41.4%) in annual revenue.

Let’s take a look at the number of students and the per pupil cost to educate the students. Here is a schedule we prepared from the Ohio Department of Education website. In 2011, there was an “Average daily membership” total of 5,185 students in the Riverside School District. There were 195.00 full time equivalent (FTE) number of regular education classroom teachers compared to 192.10 in similar districts in the State.

The average spend per pupil was $8,192.39 [see page 2].

Salaries and fringe benefits as a percentage of operating expenses are in line with similar districts in the State.

Here are the district profiles for all Lake County School Districts for 2021.

We can see that Riverside’s “Total Average Daily Membership” has dropped to 4,422 students. This is a decrease of 763 (14.7%) in student enrollment.

The cost per student was $13,019.12 in 2021. This is an increase of $4,726.73 (58.91%) per student since 2011.

What has this increase in per student expenditure done for the proficiency scores as reported by the State of Ohio Board of Education? Here is a previous article that we wrote that details the proficiency scores for Riverside and all other Lake County schools.

We noticed a deception by the State of Ohio Board of Education. Please note that the FTE (full-time equivalent) number of school teachers is no longer reported. One has to wonder why the need to deceive the taxpayers?

Let us recap what the statistics are telling us:

1. The number of students in the Riverside School District has declined since 2011. [5,186 in 2011 versus 4,422 in 2021] This is a decrease of 763 (14.7%)
   
2. The cost to educate students has increased from $8,192.39 in 2011 to $13,019.12 in 2021. This is an increase of $4,826.73 (58.9%).
   
3. Riverside’s residential property tax value as a percentage of total property tax values has increased from 81.80% in 2011 to 85.01% in 2022.
   
4. In the school year 2018 -2019, the Riverside School District was rated a “F” when they met only 9 of 24 State standards.
   
5. Their overall proficiency scores in 2018 – 2019 for all grades and subjects was a 75.0% – a solid “C”.
   
6. Their overall high school proficiency scores for the school year 2020 – 2021 was 61% – barely a “D”.

And finally……

What will the new schools really cost?

Here are the questions we asked Mr. Gary Platko and his answers: [LFC thanks Mr. Platko for his complete and timely responses. He is an excellent school Treasurer / CFO.]

1. What will be the estimated interest to be paid on the $147,725,000 over 37 years?

The total initial interest expense over a 37-year term is estimated between $100 and $130 million. However, this is preliminary and contingent on the actual interest rate once bonds are issued in the weeks following the election. Keep in mind that the bonds can be refinanced at a later time to reduce the estimated interest cost as market conditions warrant. [LFC add: This means we are looking at the two new schools costing taxpayers between $247,725,000 and $277,725,000!]

For example, Riverside refinanced $13,720,000 of its 2017 bonds in December 2019 realizing approximately $1.3 million in savings. Upon refinancing, the county auditor will reduce the millage so we only collect enough to cover the debt service payments.

2. Is the $147,725,000 an estimate or firm price?

The $147,725,000 is based on an estimate from our architects as the project will be formally bid at a later time once specifications are finalized.

3. If the $147,725,000 is not a firm price, what are the estimates of the increase due to inflationary or supply chain pressures?

The architects recently increased their project cost estimate from $135,994,870 this past Summer 2021 to $147,725,000 based on market conditions and review of cost estimates of similar school projects in terms of size and nature in northern Ohio. The district will also realize interest earnings once the $147,725,000 of bonds are issued that will be used towards the project as well. [LFC Add: This is an 8.6% increase from the $135 million, another 8.6% increase with inflationary pressures will raise the cost to $160 million]

I also wanted to let you know the district will be hosting informational meetings in March and April. Details will be coming out soon once the dates and locations are finalized.

Thanks,

Gary A. Platko, CPA
Treasurer/CFO
Riverside Local School District
585 Riverside Drive
Painesville, OH 44077
www.riversidelocalschools.com

*****

Categories: Riverside S.D.

Tags: Education, FT