Controversial proposal for rate increases impacts thousands in the area: What you need to know

Credit: Nick Graham

Credit: Nick Graham

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Miami Conservancy District officials late last week announced they would consider a “pause” in a reappraisal and assessment cost increase process impacting thousands of property owners across the region after the Dayton Daily News reported on the public backlash over the proposal.

Here are five things to know about the proposed pause:

1. The need: The Miami Conservancy District in January announced it needed about $140 million to upgrade and maintain the flood protection system that has protected the region since shortly after the 1913 flood.

According to the Miami Conservancy District, the region’s flood protection system is seeing more frequent and intense rainfall now than in the system’s history. Storage events occur when heavy rainfall is held back by dams in the system — the conservancy district has seen a 228% increase in the number of storage events over the past 80 years.

2. The proposal: The Miami Conservancy District proposed a new 1% capital assessment and a 0.59% increase to the 2.19% maintenance assessment thousands of residents are already paying. The assessments would cover costs related to the upkeep and rehabilitation of the levee and dam system.

The new assessment and increased rates would be applied to updated property values. Rates are currently based on values from 12 years ago. So combined with recent, historic increases in property values, the charge increase on some properties is substantial.

3. The cost: More than 43,000 properties pay annual assessments. Conservancy district officials harped on the fact that nearly 84% of these properties would have ended up paying $250 or less under the proposed assessments.

But when the other 16% of property owners saw the upcoming bills, some had sticker shock. Reporting by Sydney Dawes and Michael D. Pitman revealed that hundreds of properties could end up paying thousands of dollars, with some assessments reaching six figures annually.

Our analysis of MCD data found the two dozen properties with the largest proposed assessment changes — more than half of which are owned by governments and nonprofits — would collectively see assessments increased more than $1.5 million under the proposed changes.

4. Lawmakers intervene: The conservancy district’s decision came after 18 state lawmakers and a U.S. Congressman sent letters advocating a pause. “Simply put, the economic impacts of these unprecedented increases in tax burdens will be substantial, and they are not reasonable nor feasible for our constituents,” the letter from state lawmakers says. Read the full letter plus one from U.S. Rep. Warren Davidson, R-Troy, here.

5. What’s next: The conservancy district board will meet on May 3 in Hamilton to vote on whether to pause the process. Our reporters will be there to bring you the latest.

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