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1 MINUTES OF THE FINANCE COMMITTEE OCTOBER 27, 2025 COUNCIL CHAMBERS Present: Councilmembers Bullock, Baker, Strebig Also Present: Councilmembers Marx, Evans, and Steiner; Law Director Vargo, Finance Director Mahoney, Asst. Finance Director Eddy, Planning Director Byington, Assistant Planning Director Baas, Council staff Call to Order: 6:04 p.m. Approval of the minutes of the July 21, 2025 Finance Committee. Motion was made and seconded to approve the minutes of the July 21, 2025 Finance Committee. All members voted in favor. Motion passed. Minutes approved. Communication from Councilmember Bullock responding to high housing costs in Lakewood by urging state government to provide new tools to local governments to implement targeted property tax relief programs via residential stability zones. ( referred to Finance 9/15/25) Chair Bullock introduced the communication and invited Finance Director Mahoney to speak about the topic of property taxes as they pertain to the residents of Lakewood. Finance Director Mahoney introduced a document that included pertinent property tax formulas and information ( see attached). Dir. Mahoney spoke about the existing Homestead Exemption program which offers property tax reductions to certain income- eligible populations such as seniors, disabled veterans, and others. She explained that those reductions are reimbursed to the City of Lakewood by the State of Ohio. She also spoke about the importance of property tax revenue to the City’ s core services. Councilmember Strebig suggested ways to potentially reach out to those who may be eligible for the Homestead Exemption. Councilmember Baker and Dir. Mahoney discussed tax levies and property values, as well as the complexities involved in property tax calculations. Chair Bullock and Dir. Mahoney discussed potential savings to homeowners who qualify for the Homestead Exemption, as well as ways to reach residents who may qualify but do not yet have the information to claim the exemption. Chair Bullock acknowledged the residents who are advocating for the abolition of property taxes and the experiences of small business owners and homeowners who feel the pressure of rising property taxes. He emphasized the importance of continuing to discuss and educate ourselves about this issue. Councilmember Baker spoke about potential tools at the City’ s disposal to help with property tax relief. Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE 2 A motion was made and seconded to enter Dir. Mahoney’ s informational document into the record. Motion passed. Communication from President Kepple regarding Council Budget Priorities. referred to Finance 10/6/25) Chair Bullock introduced Council’ s list of budget priorities for 2026 and invited Dir. Mahoney to respond with the Administration’ s corresponding budget allocations. Dir. Mahoney addressed each item on Council’ s list of budget priorities individually and spoke about the ways in which the Administration has allocated money to those causes. She gave specific budget numbers for many items and noted several items that needed more clarification. Chair Bullock directed Council members to follow up with additional information on those items. Chair Bullock and Dir. Mahoney discussed the current expectations of the City’s budget expenditures as well as expectations for communication around future bargaining unit negotiations and capital expenditures. They also discussed the budget amount allotted for the upcoming City Hall renovation or building purchase and its possible impact on the overall budget. Councilmember Baker provided additional context regarding two of Council’ s budget priorities, Complete & Active Streets Education & Advisory Board ( CASE) and the Large Tree Preservation policy. Chair Bullock explained Council’ s process for determining its budget priorities for 2026 and invited councilmembers to provide clarifying details in an effort to better communicate their goals. Councilmember Strebig, Councilmember Hamilton Steiner and Chair Bullock discussed the benefits of adding more information to bolster the communication around specific budget priority items. Councilmembers Strebig and Bullock provided more detailed information about several specific items on Council’ s budget priority list. Councilmember Evans provided additional explanation for three of his top budget priorities, clarifying what he intended those priorities to accomplish. Chair Bullock set November 17, 2026 as the deadline for Councilmembers to submit documents with additional information about each budget item. Councilmember Hamilton Steiner spoke about a program that could offer citywide composting and how that service could benefit taxpayers and community members. Public Comment: Harry Lader, Ward 2 Mr. Lader spoke in support of incorporating a free citywide composting program into the city budget. He spoke about the successes of similar programs in other communities and in city schools, and acknowledged existing public support, funding and infrastructure for such a program. He advocated for the many ways in which a citywide composting program would be beneficial to Lakewood’ s residents and requested that a citywide composting program be added to Lakewood’ s 2026 budget. Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE 3 Chair Bullock and Councilmembers Steiner and Baker added supporting ideas and commentary on the utility and benefits of a citywide composting program and the ways in which it could be undertaken. S. RESOLUTION 2025- 47 - A RESOLUTION to respond to high housing costs in Lakewood by urging state government to provide new tools to local governments to implement targeted property tax relief programs via residential stability zones. referred to Finance 9/15/25) No action taken. Communication from Finance Director Mahoney, President Kepple, and Councilmember Bullock regarding Audit Committee. ( referred to Finance 9/2/25) No action taken. ORDINANCE 27-2025 - AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect and be in force at the earliest period allowed by law, repealing Chapter 160, Audit Committee of the Codified Ordinances of the City of Lakewood. ( 1st read and referred to Finance 9/2/25; 2nd reading 9/15/25) No action taken. Finance Committee adjourned at 7:16pm. Approved: Tom Bullock, Chair Finance Committee Maureen M. Bach, Clerk of Council 11/24/25 Docusign Envelope ID: 326E336F- 0FAF- 4994- 8926- 67C73528E9DE Property Taxes Property Tax The County Treasurer collects property taxes on behalf of all taxing districts in the County. Property taxes include amounts levied against all real, public utility and tangible personal property located in the City. Cuyahoga County is responsible for determining the valuation of every property in the County. This is completed through a reappraisal every six years, an update every three years and updates annually based on improvements made through building permits issued. The last triennial update was in 2024 (collection year 2025). The City saw an increase in property tax receipts of about 26% from this update. Property Tax Usage The percentages below show how the City’ s property taxes are utilized. Property Tax Allocation Schools 52.55% County 13.57 City 24.35 Library 1.67 Metroparks 2.95 Cuyahoga Community College 4.81 Cuyahoga Port Authority . 1 Homestead Exemption A State- funded program that reduces real estate taxes based on age of 65 and disability eligibility. The tax reduction is reimbursed to local governments by the State. The rules are as follows: 1. Must meet at least one of these requirements: At least 65 years old Permanently and totally disabled A veteran with a service disability of 100% A surviving spouse of a first responder killed in the line of duty A surviving spouse of a Homestead Exemption recipient. 2. Property must be your primary residence, and you must own it as of January 1 of the year you apply. 3. 2025 income limit is modified adjusted gross income must be $40,000 or less to qualify for the standard exemption. Disabled veterans and surviving spouses of first responders killed in the line of duty may qualify regardless of income. Benefits: 1. Tax reduction: the exemption reduces the taxable value of your home by $28,000. So, for example if your home is valued at $100,000 the taxable value would be $72,000. 10% Rollback The county is required to reduce all residential property taxes by 10% (ORC 319.302). The state reimburses the city for these deductions. Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE 2.5% Rollback This is an Owner-Occupied tax reduction ( ORC 323.152(B)). Every property owner that resides in their own property is due a reduction on their property tax bill. A homeowner and spouse are entitled to this homestead tax reduction on only one home in Ohio. The State reimburses the city for these amounts. Receipts from the State for Reductions 2025 Income Homestead Exemption 276,670 Rollbacks $ 3,116,020 Total $ 3,392,690 Property Tax Millage Fund Millage Inside or Outside Non-Charter or Charter 2025 Income General 8.65 Outside Charter $ 13,458,716 Sewer 2.00 Outside Charter $ 3,111,817 Bond Retirement 3.47 Inside Non-Charter 5,399,017 Police Pension 1.60 Outside Charter $ 2,489,475 Fire Pension 1.68 Outside Charter $ 2,613,947 Total 17.4 $ 27,072,972 Inside Millage ( Non-Charter) Inside millage ( non-charter) is capped at 10 mills. This is authorized in the Ohio Constitution ( Article XII Section 2) and ORC 5705.02. Property may not be taxed in excess of 1% of its assessed value without a vote of the people. County 1.45 Metroparks . 05 Schools 5.03 City 3.47 10.00 Charter Millage Millage approved by the voters of the city for the purpose specified by the municipality. This millage does not have an expiration date and will result in changes in revenue as assessed value of property changes. Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE What is a mill anyway? One mill means one-tenth of a cent for $1 of assessed valuation; but determining what a mill means to your tax bill is a little more complicated. A property’ s assessed value is only 35% of what the county auditor determines to be the property’ s market value. ( A property valued at $100,000 has an assessed value of $35,000). Think of market value as how much someone would pay for your house. Assessed value is a lower amount that is used to calculate tax due. Complicating matters further, all residential property tax is discounted 10 percent, and another discount of 2.5% percent is applied for the property where you live. Here is an example on how to calculate property taxes: 100,000 market value home: 1. Take 35% of Fair Market Value = $ 35,000 2. Multiply #1 by the Residential millage for Lakewood ( 165.16) 3. 35,000 x.16516= 5,780 4. Reduce by the 920 Reduction (. 567222) 5,780 *. 567222 = 3,278 5. Reduce by 12.5% if owner occupied and non-business (($ 5,780-3,278) 125) =$ 312 6. $ 5,780-3,278-312 = $ 2,190-estimate for full year. Or simply take the Market Value multiplied by the Tax as a Percentage of Market Rate (2.25%) = $ 100,000 *.0225= $2,250 to calculate for owner occupied, non- business property. Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE Finance Committee 10- 27- 25 18: 00 Agenda Name Comments Support Oppose Neutral Communication from President Kepple regarding Council Budget Priorities. ( referred to Finance 10/6/25) 2 1 0 0 Sentiments for All Agenda Items The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown. Overall Sentiment Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE Agenda Item: eComments for Communication from President Kepple regarding Council Budget Priorities. ( referred to Finance 10/6/25) Overall Sentiment Kathryn ZIEMNIK Location: Submitted At: 4:49pm 10-27-25 Subject: Written Comment for Finance Committee Meeting - Support for Composting Program Dear Finance Committee Chair Bullock, Vice President Baker, and Councilwoman Stebig, I am writing to express my strong support for including a citywide composting program in Lakewood's 2026 budget. As a Lakewood resident, I have personally collected petition signatures from residents who want access to free composting. In just four days, I gathered 34 enthusiastic signatures. We now have 56 (37 + 19) residents signed on across all four wards. Lakewood already has proven partnerships with Rust Belt Riders at Cove Community Center, Lakewood High School, and elementary schools. We simply need to extend free access to all residents. Shaker Heights, Beachwood, Cleveland Heights, and University Heights all provide this service—Lakewood should not fall behind. The Climate Action Plan that Council adopted in 2023 specifically calls for this program. We have the policy mandate, the infrastructure, the funding pathways, and growing resident support. I urge the Finance Committee to recommend funding for citywide composting in the 2026 budget. Thank you. Sincerely, Kathryn Ziemnik 1248 Elbur Avenue karozi@hotmail.com Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE Lakewood Composting Committee BONNIE SIKES Location: Submitted At: 1:42pm 10-27-25 Dear Finance Committee Chair Bullock, Vice President Baker, and Councilwoman Strebig, I am writing to urge the Finance Committee to include funding for a citywide composting program in the 2026 budget. This initiative directly implements Strategy 37 of our adopted Climate Action Plan, which mandates 95% organic waste diversion by 2030. Council President Kepple has already identified this as a 2026 budget priority, and Councilmembers Bullock and Hamilton Steiner are co-sponsoring the resolution. Four neighboring communities—Shaker Heights, Beachwood, Cleveland Heights, and University Heights—already provide free composting to their residents using Rust Belt Riders. Lakewood should not fall behind. We have 37 resident signatures across all four wards. Funding sources exist through Cuyahoga County Solid Waste District grants (Shaker Heights received $16,000) and sustainability budget reallocation. I respectfully request that the Finance Committee recommend including citywide composting in the 2026 budget. Thank you for your consideration. Sincerely, Bonnie Sikes 1673 Arthur Ave. 216-409-1584 Lakewood Composting Committee Docusign Envelope ID: 326E336F- 0FAF-4994-8926-67C73528E9DE