Background and Details

• Village public safety services are high performing and highly valued by our residents, who have stated consistently their appreciation for our police officers and firefighters

• The Police & Fire Levy increase will maintain the high level of safety services that is a top priority for residents; this levy is a separate funding mechanism for Police, Fire, EMS and Dispatch operations only

• The annual Safety Services budget is $2.2 million; the current 3-mill levy generates $774,000 annually

• The current Police & Fire Levy generates just 35% of safety services budget

• Village expenses exceeded revenue by an average of about $392,000 in three of the four years between 2014 and 2017

• The State of Ohio has drastically reduced its spending on local safety in our communities.

  • The state eliminated estate taxes which reduced Village revenues by an average of about $263,000 per year

  • The state reduced Local Government Fund revenues paid to the Village by 75% over a 13-year period

• The Village can no longer afford to make up the difference between Safety revenues and expenses with monies from the general fund because of drastic reductions from the state

• The Village has relied on its reserves to make up the difference; these reserves are now at or below fiscally prudent levels

• This is a revenue problem not a spending problem; the Village has engaged in many cost-saving programs and staff and equipment sharing opportunities over the past decade; we can no longer cut expenses without cutting services

• The Village is fiscally responsible and has a Bond rating of Aa1, the only Village in the state with a population under 5000 to have this high rating

• Village government had policy discussions and decided to raise the safety levy, which is funded through real estate taxes, as opposed to income taxes for the following reasons:

  • Everyone uses safety services and everyone pays real estate taxes

  • The current Police and Fire Levy covers only 35% of safety expenses; revenue should be more in line with expenses

• About 60% of the real estate taxes you currently pay goes to the schools; a little over 30% goes to the County, Library and Metroparks; slightly less than 10% comes back to the Village to cover the costs of our Police, Fire and Dispatch services

• Elected officials, with input from the Treasurer, will continue to evaluate Village finances and will update residents on a regular basis 

Proposed Increase Household Cost

• Each one mill would cost a homeowner $35 per $100,000 of property valuation, thus the proposed three-mill levy would cost homeowners an additional $105 per $100,000 of property valuation

• The average home valuation in Moreland Hills is about $500,000; thus the average increase would be approximately $525 per year