By Brian Massie, A Watchman on the Wall
Lake County’s Riverside School District has an earned income tax levy on the November ballot to pay for building and renovation to their existing high school.
Riverside Local School District
1% Proposed Income Tax – Shall an annual income tax of 1 per cent on the earned income of individuals residing in the school district be imposed by Riverside Local School District, for a continuing period of time, beginning January 1, 2027, for the purpose of current expenses and permanent improvements?
How much revenue will this earned income tax levy generate?
Answer: Approximately $13.7 million annually.
This is the official estimate for the continuous 1% earned income tax (Issue 7) on the November 3, 2026 ballot for Riverside Local School District (Lake County, Ohio). The district asked the state tax commissioner to certify a rate needed to raise about $13.7 million a year; the rounded 1% rate was selected on that basis. District materials and local news outlets (News-Herald, Cleveland 19, Fox 8, and others) consistently cite this figure, with one district finance document listing a more precise estimate of about $13,728,011.
Key details:
- The tax would begin January 1, 2027, and apply to earned income (wages, salaries, tips, certain self-employment income) of district residents. It does not apply to Social Security, pensions, retirement income, unemployment, interest, or dividends.
- The board resolution splits the revenue roughly 80% for current expenses and 20% for permanent improvements (primarily to support a ~$120 million renovation/expansion of the Riverside Campus/high school area).
- It is continuous (no automatic sunset), though the board could later act to reduce or eliminate it.
This is a projected annual yield based on current data and certification, not a guaranteed fixed amount, as actual collections depend on residents’ earned income.
What is the current debt of the Riverside School District?
Riverside’s FY2024 audit gives the outstanding debt-service schedule very clearly.
The remaining *GO-bond principal was approximately $36.445 million*, consisting of: – Serial bonds: *$3.880 million* – Term bonds: *$32.315 million* – Capital-appreciation bonds: *$250,000* The remaining scheduled *interest was approximately $30.539 million*.
That means the scheduled future principal plus interest was approximately: *$36.445M + $30.539M = $66.984 million.* And the debt runs all the way out to *2054*.
How much debt will be accrued for the building of the proposed new school?
Answer: About $120 million in borrowing (principal), repaid over roughly 30–35 years.
District materials and local coverage describe a roughly $120 million facilities project focused on the Riverside Campus. This includes a major renovation of the existing 77-year-old high school, construction of a new academic addition primarily for grades 7–8, and demolition of the current John R. Williams building. One district finance presentation lists a hybrid model total cost of approximately $120.1 million.
Debt details
- The district plans to borrow about $120 million (likely via certificates of participation or similar long-term obligations) to fund the project and repay it with a portion of the 1% earned income tax revenue if voters approve the levy.
- A district finance document estimates the annual debt obligation at about $5.9 million over 35 years. News reports have referenced a roughly 30-year repayment period.
- Board materials allocate roughly 20% of the projected $13.7 million annual EIT revenue toward permanent improvements (to cover the debt service), with the remaining ~80% for current operating expenses. The exact split and payment schedule could adjust as the borrowing is structured in phases.
This is the estimated project/borrowing scale tied to the November 2026 levy. Actual debt realized would depend on final bids, interest rates, any phasing of the work, and whether the levy passes. The district has also pursued smaller borrowings (e.g., for elementary expansions) separately.
The current operating expenses are usually 80% for the staffs’ pay, benefits, and pensions.
When we add the existing debt and interest ($66.984 million) to the proposed new debt of $120 million, we will have debt of $186,984.000. It will be finally repaid in the year 2062!
Editorial Comments by Brian Massie, Riverside overtaxed taxpayer.
My message to the clueless Riverside school board members that voted to put the earned income tax levy on the ballot: You need to rethink you position on the school board. Superintendent Rateno and Treasurer Thompson have too much influence on you, and you are not thinking about the financial impact on your neighbors. You saddle us with almost $187 million in debt for a school district that get 3.5 stars (70%) on a sub-standard grading scale. Aren’t you even a little bit embarrassed by the performance?
In the 20 years we have lived in our house, we have paid over $100,000 to the various schools – Riverside, Lakeland, Auburn. We have never had a child utilize any of these facilities.
Are seniors just supposed to turn over our entire retirement funds to the Lake County school districts? Don’t look now but we being run by socialists / communist in Lake County. Here is State Representative Dan Troy telling the truth about public school funding.
Categories: Lake, Lake County - General, Riverside S.D., Uncategorized