New Dog License Measure to Address Overpopulation

By Karl Keith,  Montgomery County  Auditor

The consequences associated with pet overpopulation have been described by animal rescue groups as a national tragedy.  Indeed, the statistics are heart-rending.

An estimated 50,000 puppies and kittens are born daily in theUnited States, more than 18 million a year.  For every dog and cat with a home, there are four others that are likely to be homeless, neglected and abused. 

The number of stray dogs and cats living out on the streets inAmericatoday cannot be accurately determined, but the ASPCA estimates the number of cats alone could be as high as 70 million.

And, between 4 and 6 million dogs and cats are put down each year because no one wants them; that’s about one animal destroyed every eight seconds.

Pet overpopulation is a very real problem with dreadful results.

Encouraging pet owners to spay or neuter their pets is more than just a catch-phrase for some game show host.  It is considered to be the easiest and most effective solution to the overpopulation problem.

MontgomeryCounty’s decision to implement a fee differential this year for licensing dogs that have been spayed or neutered is a constructive measure to address this problem in our own community.  In fact, one official at the county’sAnimalResourceCenterdescribed it as the most pro-active step we have ever taken to deal with local animal control issues.

With the implementation of this fee differential, owners whose dogs have been spayed or neutered will continue to pay the $20 annual licensing fee as they have in the past, but owners whose dogs have not been altered will pay $24 per license.

There are exceptions to the additional fee for unaltered dogs.  If the owner’s dog is under 9 months of age or too advanced in age to be spayed or neutered, it can be excluded from the higher fee.  Dogs used for breeding, show, or hunting may be excluded as well.

But, encouraging owners to spay or neuter their pets whenever possible by use of a fee differential is a meaningful and progressive step with strong support throughout the community.  In an online survey of licensed dog owners conducted by the Auditor’s Office, over 90 percent of those who responded indicated backing for an increased fee for unaltered dogs.

TheMontgomeryCountyAnimalResourceCentershelters approximately 10,000 dogs and cats each year.  If you ask the staff at the Center, they will be quick to tell you that unaltered dogs comprise the majority of the animals impounded as well as those involved in bites and injuries.

This year’s new fee differential demonstrates the county’s desire to find a long term solution to some of these issues.  Over time, the additional fee for unaltered dogs is intended to have a positive impact on both the cost and the tragic consequences related to pet overpopulation in our community.

arguments to cut the homestead exemption are misleading and misplaced

It was the “Summer of Love.” 

That’s how we refer to the summer of 2007 in the Montgomery County Auditor’s Office.  Some 30,000 property owners in Montgomery County were enrolled in the Homestead Exemption Program that summer when eligibility was extended to any homeowner age 65 or older, regardless of income.

Today, more than 45,000 Montgomery County homeowners benefit from this tax break, reducing their annual property tax bills by an average of $560.

Despite its immense popularity, the expansion of this program has critics.  Indeed, some believe the program should be trimmed back or eliminated entirely as part of “redesigning” state government and tackling the state’s budget crisis. 

However, the arguments in support of this position are, for the most part, misleading and misplaced.

The advocates for cutting back the Homestead Exemption Program propose doing so through some sort of means-testing.  They contend that this break should only be provided to homeowners based upon their ability to pay, giving the impression that wealthy homeowners now benefit from the program.

An analysis of the recipients conveys a considerably different impression. 

If property value is any indication of a taxpayer’s ability to pay, then the overwhelming majority of homeowners on the Homestead Exemption Program in Montgomery County appear to be of low to moderate means. 

More than 75 percent of the current recipients own homes valued at $150,000 or less.  Approximately 65 percent own homes valued at $125,000 or less. 

Additionally, more than 4,200 recipients — almost 10 percent of those enrolled in the program in Montgomery County — are permanently and totally disabled.  And fewer than 10 percent own homes valued at more than $200,000.

The recipients of the Homestead Exemption are predominately senior citizens of moderate means, living on fixed incomes, many drawing Social Security benefits (with no cost-of-living increase for the past two years), and in all likelihood struggling to maintain their quality of life.  They simply cannot afford a huge jump in their annual property tax bills.

Furthermore, the manner in which this tax break is calculated and applied already has an “ability to pay” mechanism built in. 

The amount of the annual tax reduction is determined by exempting from taxation the first $25,000 of the homeowner’s property value.  This works to apply a cap on the amount of the credit reducing the tax burden for those with lower property values by a higher percentage than those with higher values.

For example, the owner of a $65,000 home in the City of Kettering receives an annual reduction in his or her property tax bill of $580.  That amount represents a 37 percent reduction in that homeowner’s total bill. 

The owner of a $350,000 home receives the same $580 credit, which amounts to only a 7 percent reduction in his or her tax bill.  The cap provides a progressive feature to the program.

When the legislature voted to phase-in a 21 percent across-the-board state income tax cut in 2005, where were the advocates for means testing when that tax break was being considered?

Now there is talk of eventually getting rid of Ohio’s income tax altogether, and legislation has been introduced to eliminate the estate tax.  The ability to pay principle would be better applied to deliberations about these tax reduction proposals rather than the Homestead Exemption.

The summer of 2007 may have seemed like the Summer of Love for many Ohioans, but if the Homestead Exemption Program is slashed in the next state budget — forcing senior and disabled homeowners to shoulder more of the local tax burden — this year will likely be remembered as the “Summer of Discontent.”

Don’t Put a Lot of Weight in this “Study”

During this year’s campaign, my opponent has frequently referred to a study analyzing the results of the county’s last reappraisal.  He claims this study indicates that the Montgomery County Auditor’s Office performed poorly when compared to other counties and that our results were not in compliance with professional standards.

Only recently has my opponent made available the data used to perform his analysis, and it is clear now why he was reluctant to share this information.  This so-called “study” is riddled with bad data.  Many of the property sales comparisons used in my opponent’s review are incomplete, inaccurate and invalid.  For example:

• Some of the sales involved multiple properties but his analysis included only one.
• Some of the properties have had their taxes abated by their local jurisdictions but the study failed to identify the abated value.
• And, some of the properties had been in foreclosure or had been purchased and sold multiple times in a single year.

It’s no wonder that a professor from the Department of Finance at Wright State University who examined this study was quoted in the Dayton Daily News saying “I wouldn’t put a lot weight in (these) numbers.”

The truth is every county in Ohio must submit their property values to the Ohio Department of Taxation for its review and approval whenever a reappraisal or an update is performed.  The Department of Taxation would never have approved Montgomery County’s values if the results were as my opponent claims.

When the Department of Taxation performed its most recent analysis of property values set by my office they were found to be at 97% of current market values.  This conclusion is based upon an independent review using real, reliable data.  It demonstrates that values determined by my office are well in compliance with professional standards and are, in fact, at the statewide average for counties on the same reappraisal cycle.

Establishing property values for assessment purposes is a difficult and complex process.  Nevertheless, verifiable evidence clearly shows that values set by my office fairly reflect the local real estate market in Montgomery County despite my opponent’s lack of understanding and misinformation.

County’s Strong Credit Rating Saves Taxpayers Millions

I am pleased that Montgomery County has received positive ratings from two of the leading bond rating agencies.  Moody’s Investors Service has assigned an Aa1 rating to Montgomery County’s Various Purpose General Obligation Refunding Bonds.  Standard & Poor’s Ratings Services assigned its ‘AA’ long-term rating, and stable outlook, to Montgomery County.

Bond ratings measure the financial stability of an organization.  The Aa1 and AA ratings indicate safe investment with low risk of failure.  Both agencies take into consideration a wide variety of factors including the state of the local economy, the organization’s ability to pay its debt and the organization’s fiscal policies.

These accomplishments speak volumes about our commitment to exceptional financial management.  These ratings are testimonies to the hard work and effective management practices of many county employees who strive to make sound financial decisions.  Strong credit ratings also decrease the cost of servicing the county’s debt, saving taxpayers money.

I am proud to see the efforts of my staff help the county.  We received a “Making Your Tax Dollars Count” award for excellence in financial accounting and a Certificate of Achievement from the Government Finance Officers for excellent financial reporting.  It is satisfying to see those efforts pay off in the form of a strong credit rating that will save the county an estimated $3.5 million.

Moody’s stated, “We believe the county’s financial position will remain strong. Additionally, management has demonstrated a willingness to enact expenditure reductions and is committed to maintaining a balanced budget going forward.”  Standard & Poor says  “the county’s overall financial operations remain very strong.”

Keep Residential Property Tax Rollbacks

It was just a matter of time.

Sooner or later someone was bound to throw on the table a proposal to eliminate Ohio’s tax rollbacks for residential properties in response to the state’s budget crisis.

In a recent column, commentator Thomas Suddes listed the rollbacks as one of the big ticket programs that could be cut to help plug the projected $8 billion hole in Ohio’s budget.  Eliminating the rollbacks would save the state about $1 billion a year.

The rollbacks reduce real estate taxes on owner-occupied properties by a combined total of 12.5 percent and have been in place since the early 1970’s.  The state reimburses local jurisdictions from its general revenue fund for the loss in revenue due to the rollbacks.  That totals over $64 million annually to support local schools, libraries, human services, parks and a variety of other services in Montgomery County.

To propose the elimination of this tax break for homeowners would normally be considered “crazy talk.”  Indeed, Suddes suggested in his column that a governor who messed with the rollbacks would be committing political suicide.

Yet, in a report issued June 24, the Center for Community Solutions proposed a reduction in the state’s property tax relief programs through some sort of means testing, removing or reducing the rollbacks on properties with higher values.  The report estimated that a reduction of 10 to 20 percent would save the state between $320 million and $640 million “with no adverse impact on most homeowners.”

A 12.5 percent jump in their tax bill would be shocking to any homeowner.  Most would consider such an increase unacceptable.  Taxpayers would be wise not to ignore as “crazy talk” any proposal to wipe out the rollbacks.

In fact, we should have seen this coming.  Not long ago, all properties in Ohio received the benefit of a 10 percent tax rollback.  Then the state legislature, as part of its 2005 tax reform package, removed the rollback for commercial properties.

Overshadowed by other elements of the reform package, eliminating this break for commercial property owners didn’t result in any great public outcry at the time.  Some may see that as a precedent and hope that removing the rollbacks on residential property will be met with a similar response.

For some state officials, doing away with the rollbacks may be just too tempting to resist.  This is a way to save millions of dollars each year without reducing any programs or forcing any service cuts.  And, since property taxes are administered and collected at the local level, most of the wrath from angry taxpayers would probably be directed toward local officials.

Eliminating the rollbacks would certainly help deal with the state’s budget dilemma, but it would do so by dumping a greater tax burden on Ohio’s homeowners.  For the average Montgomery County homeowner, that burden would amount to about $350 per year in additional taxes.

There are other negative consequences as well.  Local jurisdictions would realize no additional revenues as a result of this tax increase, yet it would undoubtedly make it more difficult for schools and other agencies to raise more revenue in the future.  A number of local school districts are already struggling to pass tax levies without this added burden.

Further, an increase in property taxes resulting from abolishing the rollbacks would add another bruise to an already weakened housing market.   

The leaders of the special legislative commission formed to study ways to deal with the state’s budget woes have voiced their opposition to a tax hike.  They need to be reminded that any reduction in the state’s property tax rollbacks is just that – a tax hike – one that homeowners should not be expected to bear.

More Steps Needed to Deal with Abandoned Properties

Three vacant house fires over a recent three day period in a single Dayton neighborhood is a scary reminder of the negative consequences of abandoned property.

Vacant and abandoned properties are more than eyesores.  They often become public nuisances, threats to public safety, and dumping grounds for trash and debris.  They drain public resources, and they diminish the value of neighboring homes and businesses.

The recent enactment of land bank legislation, House Bill 313, is promising news in the fight to combat the dire effects of abandonment.  This new law grants certain counties in Ohio, including Montgomery County, authority to form land banks, entities empowered to take control of vacant and abandoned properties with the goal of returning them to productive use.

Now the work begins to structure, fund and organize a county-wide land bank, but no one believes this will be the ultimate solution to the complex problems of blight and decay.  A land bank is expected to be an effective tool in this work, but there are additional efforts that should be pursued.

One of the keys to developing successful, long-term strategies to deal with problem properties is better information.  A comprehensive, county-wide neighborhood information system should be developed to provide timely and meaningful information regarding neighborhood trends and conditions.

A system that effectively tracks neighborhood-level data on sales, property values, population trends, delinquencies, foreclosures, vacancies, housing code violations, crime statistics and more would be a powerful resource.  In the hands of decision makers and community planners, this system would aid in developing new programs and directing other resources both to deal with problem properties now and to prevent further decay.

Much of this data already exists in various formats and databases.  The challenge will be to design an integrated system that allows data to be shared and makes it readily accessible.

Additionally, steps are urgently needed to revitalize the housing market in older neighborhoods where blight is most prevalent.  Weak market demand in these areas contributes significantly to the abandonment of property.

With input from critical stakeholders — realtors, home builders, developers, planners, preservation advocates and neighborhood organizations — appropriate incentives should be crafted and assistance provided to revive these markets.

Special attention must be aimed toward senior homeowners in these problem areas.  Data in the county auditor’s office indicates almost thirty percent of the residents of owner-occupied property in Montgomery County are 65 or older or permanently disabled.  In some neighborhoods where the real estate market is the weakest, the percentage of senior homeowners is probably greater.

Efforts to re-build the housing market in targeted areas must address the specific needs of these senior homeowners.  Programs that focus on housing education and counseling would benefit these homeowners as they make plans to sell or dispose of their properties in the future.

Over half the residential properties in the county decreased in value as an outcome of the last county-wide reappraisal.  There are certainly many reasons for this decline, including the bad economy and the nationwide housing crisis.  But the impact of blight and decay resulting from abandoned properties in certain neighborhoods cannot be denied.

Creating a county-wide land bank, developing an integrated neighborhood information system, and taking proactive steps to revitalize the real estate market in older neighborhoods are three strategic measures to be pursued as part of a comprehensive approach to the problem of abandonment.

Primetime Performers

“Primetime Performers” was the theme last week as the Auditor’s Office celebrated Employee Appreciation Week.  

Several employees received awards for their performance this year.  I am proud that 23 staff members were recognized for perfect attendance, nearly one quarter of the office.  Years of service pins were presented, including a 35 year pin to Patrick Duffy.  “Purple Ear” awards for outstanding customer service were presented to Pam Morris and Anita Stritenberger.  The Board of Revision Team and the Weights and Measures Field Inspectors were awarded “Shining Stars” for overall excellence and teamwork. 

Congratulations to our award winners and to all the “Primetime Performers” of the Montgomery County Auditor’s Office.

Homestead Deadline Approaching

Homeowners who turn 65 at any point in 2010 are eligible for the Homestead program and should sign up with the Auditor’s Office.  

Enrollment is open until Monday, June 7th and we are making a final push to ensure everyone eligible signs up. Applications are available in the Auditor’s office, on the web:  www.mcauditor.org or by calling 225-4341.

The Homestead exemption program brings property tax relief to homeowners age 65 and older and the permanently disabled.   There are no longer any income requirements, but newly eligible recipients (those turning 65 any time in 2010) must sign up with my office.  If you are already enrolled in Homestead, you do not need to reapply.

As Auditor, I will continue to do everything in my power to promote the Homestead tax break and to ensure every eligible applicant is taking advantage.  Last year, the average recipient saved over $500 on their tax bill, a huge savings in tough economic times.

I urge potential applicants to call 225-4341 or log on to www.mcauditor.org for more information.

Property Value Appeals Decrease

My office has accepted 3,157 Board of Revision complaints for tax year 2009, about half as many as were filed in 2008 when we had a record 6,009 cases filed. 

The 3,157 complaints are still the second most ever filed.  I’m not surprised to see so many appeals.  A struggling economy, population loss and an aging housing stock have contributed to a down real estate market.  We reduced property values on over 105,000 parcels in the last reappraisal.  That kind of decline is unprecedented.

I am pleased  that so many citizens are informed and taking advantage of the appeals process.  Filing a property value appeal is an opportunity for direct citizen participation in local government.  I will continue to strive to make this process transparent and accessible for the community.

If you filed an appeal, you will receive at least ten days notice prior to your scheduled hearing.  The hearings, open to the public, are held Monday through Friday between 8:15 AM and 3 PM and usually last around fifteen minutes.

County Awarded for Excellence in Financial Reporting

The Government Finance Officers Association (GFOA) has recognized Montgomery County with a Certificate of Achievement for Excellence in Financial Reporting.  I am proud to accept this honor on behalf of the county and am proud that Montgomery County has been recognized 25 years in a row. 

An impartial panel of judges reviews financial reports from around the nation and chooses those meeting the highest standards and the “spirit of full disclosure” for the award.  It is the GFOA’s highest honor in governmental accounting and financial reporting.

To win this honor 25 years in a row really speaks to my accounting  staff’s knowledge and ability.  I’m proud to lead a team of professionals with such a high level of commitment to excellence and transparency.