The nonprofit groups say the city may be using inflated values to determine assessments. The nonprofits also say they should have an opportunity to establish actual market values of their properties, which could lower their bills.
UD has asked the city to reconsider the program on the grounds the fees are not distributed equitably and the university must pay far more in fees than it receives in benefit from the lighting, arguments that echo many of the other objections.
“We would like to work with the city to find a more equitable and effective manner to finance how they upgrade and manage the long-term operations of the street light system,” said Ted Bucaro, UD’s director of government and regional relations.
Dayton officials say they cannot comment on active appeals, but the number of objections represent a tiny fraction of the parcels included in the program.
The city is expected to spend about $3 million out of its cash reserves this year, and many communities across Ohio charge property owners for street light systems.
Dayton city commissioners will vote July 30 whether to approve a special assessment that would charge property owners for maintaining, improving and adding to the 19,000 poles in the city’s street light system.
About 70,570 parcels are included in the assessment because they receive a benefit from street lights, city officials said.
An insert published in this newspaper notified property owners how much they will owe. Notices were also sent by certified mail to owners whose fees will exceed $250 over the six-year assessment period.
The deadline to appeal the assessments passed earlier this month, and UD and Premier Health were among the 190 objectors. UD faces an assessment of at least $845,000 over six years, while Premier Health would be charged about $1.2 million.
The assessments are based on property values. About one-third of properties in Dayton are exempt from property taxes, but that does not make them exempt from the assessment.
Property values at issue
UD and Premier Health facilities may have inaccurate valuations because they are exempt from property taxes and never needed to verify or challenge the accuracy of the auditor’s figures, representatives said.
Premier Health, which owns Miami Valley Hospital and Good Samaritan Hospital, should have an opportunity to reappraise its properties before being assessed a fee, or it should be refunded some of the money it is forced to pay if its values are lowered at a later time, said Dale Creech Jr., chief legal officer for the health care system.
“We sympathize with the city’s need to raise some revenue … we kind of feel the city’s pain,” Creech said. “But give us a chance to do that, and if it turns out the valuations were overstated, then either reduce the assessment or give us a refund.”
Creech said Premier Health does not object to the concept of the street light assessment. He said it would be unfortunate if the city were forced to cut services or felt compelled to seek a higher income tax rate.
UD, however, is urging the city to come up with a different method of paying for its street light system. UD contends the city’s street lights will not provide a benefit to the university’s properties proportionate to the fees it will pay. The university owns and operates the lights on its campus, officials said.
UD’s properties also may be overvalued, and the city has provided insufficient details about what the assessments will pay for and why downtown properties will be assessed at lower rates, according to its objection letter.
“We understand there is a need to maintain the street lights, because they are a critical part of what keeps the city safe,” Bucaro said. “Ideally, we’d like to help the city come up with what we think is a more fair and equitable way of trying to pay for this city service. … We want to be part of the solution.”
Homeowners object
Most of 190 objection letters came from homeowners and landlords.
Some objected because they say they have no street lights or no lights that work. Some claim they cannot afford a higher property tax bill. Some say they live in private developments that already have assessment programs.
“We would rather continue living in the dark than pay an extra $700,” objected James Menart, a resident on Pegram Way who says his cul-de-sac does not have a working pole.
The Greater Dayton Apartment Association said new lighting fees will reduce the incentive to move to the city, and there is inexplicable disparity in the fees.
Some churches have appealed their assessments, saying they cannot afford the payments.
“This proposal will force us to cut somewhere in order to comply,” wrote Rev. Corey Mantz, administrative pastor with Bethel Christian Assembly of God.
Dayton officials have discussed the possibility of implementing a street light assessment multiple times over the years, most recently in 2012.
A few property owners accused the city of deliberately waiting until after its income tax levy passed before announcing the new assessment program.
“Many of us who live in Dayton, have chosen to locate their businesses in Dayton, and recently voted to make permanent the city of Dayton income tax, feel ‘duped’ by this whole process,” wrote Diane Graham, executive director of Habitat for Humanity of Greater Dayton.
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