WHAT IS AN OLDHAM TAXPAYER'S FAIR SHARE?

By: Dewey Wotring

Recently, four developers – Bob Jones, Walt Schumm, Joe Pusateri and Jay Hall decided to appeal the assessments of many vacant lots and homes they own. They have every right to do that as does every other resident of the county.

However, the overall process certainly could leave the perception that some people have an advantage over everyone else. The appeals board is made up of three members, all of whom are involved in the real estate industry. One is appointed by the mayor of La Grange, one by Judge-Executive Duane Murner and the other by the fiscal court over which Murner exercises considerable influence.

Two of the developers, Schumm and Jones, gave the maximum contribution allowable under law to Judge Murner when he was seeking his party’s nomination. Further, Bob Jones played an integral part in having a memorandum created by the state which was to be used as guidance by PVAs. As previously stated, all of these actions appear to have been legal but they certainly present the perception that the playing field is not level.

The developers received a reduction of about 25 percent in the assessments of several vacant lots and about 10 percent of the assessments on spec homes and condominiums/patio homes. It is certain that most people in Oldham County would like to see a 25 percent reduction in the assessment of their home –particularly in light of the fact that essentially everyone’s home has seen an increase in assessed value within the last four years. However, not everyone has the time, wherewithal or knowledge to appeal the assessment of the PVA. Of those who have appealed their assessments, very few have been successful in receiving any reduction.

Due to House Bill 44, the amount of any person’s assessment does not change the amount of money received by the county government, school system or any other taxing district subject to HB 44. You might say that the assessment determines your “fair share” of taxes. Thus, the lower your assessment, the less your “fair share” will be.

Developer Walt Schumm received a reduction of more than $600,000 in assessments of property owned by him. By his own admission, that was not as much of a reduction as he thought he deserved. Further, he claims that he is paying more than his fair share. This is the same person who, as a member of the school board, frequently votes to raise the amount of tax that you pay for schools in this county.

Mr. Schumm believes his lots should only be assessed at an amount equal to his investment in the lots. According to testimony from Bob Jones, he also subscribes to that theory as does some other developers. Jones’ assessments were reduced in excess of $3 million. Wouldn’t it be nice if you could have your property assessed at the amount which you had in it – particularly if you have owned your property for several years? It just doesn’t work that way for everyone else and it shouldn’t work that way for developers.

Developers Jones and Schumm have both stated that vacant lots do not use police protection, fire protection or ambulance service, insinuating that could be a justification for lowering the assessments of those lots. There are thousands of people in Oldham County who do not have children in the school system but pay the majority of their taxes to the school system.

Following the arguments made by Mr. Jones and Mr. Schumm, people who have no children in school should not be paying any property taxes to the school system. Obviously the school system would quickly go broke. What would happen to the value of homes and property in Oldham County then? The PVA, in making his assessments throughout the county, followed section 172 of the Kentucky Constitution which states that all property is to be assessed at its fair cash market value. It does not differentiate between vacant lots owned by developers or vacant lots owned by other residents or homes developed by other residents.

Fortunately for the residents of Oldham County, the PVA has appealed most of the decisions made by the Board of Assessment Appeals. He is trying to get an accurate decision on just what is every person’s “fair share.” After watching several hours of the hearings before the appeals board a few thoughts came to mind. The appeals board is supposed to have a chairman.

However, I was never able to determine if there was a chairman of the board. Second, it was my belief the county attorney was supposed to represent the PVA. This certainly did not appear to be the case.

Finally, the board seemed to discuss many of the vacant lots separately but a review of the final decisions reflects more of an across the board 25 percent reduction than a reduction based on individual lots. The board certainly had a lot of appeals to consider but there are provisions in the law to create temporary boards when the workload is excessive. This should have been considered in this instance.

There will probably be some fallout from this action by the Board of Assessment Appeals and there should be. The board did not appear to be well organized regarding procedures and, as stated before, if there was a chairman, he could not be distinguished from the other members of the board. Nor did the board appear to have the same idea of what methodology should be used to determine the fair cash market value of property – especially vacant lots.

Finally a review of the final decisions did not reflect what, if any, evidence was presented by the appellees to support their claims and the final decisions did not reflect the basis for changing the decisions of the PVA. The final decisions contained the bare minimum of information which leaves the PVA with a more difficult task when preparing his appeals. Should the PVA lose the appeals his job will be much more difficult next year as many people will appeal their assessments.

OLDHAM COUNTY NEEDS TO GAIN CONTROL OF DEVELOPMENT

By:  Dewey R. Wotring

For years developers have had their way in Oldham County. Oldham County development really began to flourish in the '70s after school busing was ordered in Jefferson County. The people who moved to Oldham County from Jefferson County were very interested in the education that their children received. Therefore, they demanded better schools than they had left.

Realtors really began to sell the Oldham County schools to clients – especially those who were coming from outside the metro Louisville area.  Soon there was more demand for housing in Oldham County than there was housing. The developers were ready and willing to provide that housing while making huge profits. All of this growth brought about the need for more schools and other infrastructure such as fire protection, sewers, police protection and ambulance service.  

Naturally, those services demanded more resources than the county had. The demand to provide those resources was placed on the taxpayers rather than the people who were making the huge profits – the developers and realtors.  The developers should have been required to pay higher fees to augment the Planning and Zoning Commission, the schools, the sewer system and other infrastructure. They were not required to do so and still do not adequately share the responsibility of growth management in the county. The next time that you hear someone talk about expanding the capacity of the sewer system remember that the bill to do so will be funded by the taxpayers, not the developers who will benefit from the expansion. Sure, they give a little bit of land for a school, pay a little bit to have a lane added to a road or a traffic signal installed but these gifts are mere drops in the bucket when the overall cost to the county is considered. They are superfluous at best.

Developers still control the county government insofar as fees and long term planning are concerned.  Some of those developers do not even reside in the county, but have a voice.  Case in point, the Fiscal Court recently considered additional fees for Planning and Zoning as it operates in the red. Who was consulted to assist in the determination of appropriate fees – the developers?  

Were the fees raised sufficiently to allow for Planning and Zoning to operate in the black? – of course not! The taxpayers will continue to pay for the deficit. Recently Fiscal Court created a "Stormwater District" whose largest expense will be to manage storm water at new construction/development sites. Once again the taxpayers will fund this. The latest gig that developers have come up with is to have their assessments lowered, which means that the average taxpayer will have to pay more to make up for what they don’t pay.

At some point, the developers need to pay up front for the cost of development to the county. This may never happen due to the influence the developers have. This influence is achieved by giving and raising large sums of money for politicians. There are people who believe that the developers need to be coddled because they comprise the largest industry in the county.  That is pure hogwash. This county would be in a better financial situation if new housing ceased today. Enough is enough!

YOUR MAGISTRATE - DAVID VOEGELE

By: Dewey Wotring

I want to inform you that Magistrate David Voegele now wants to place more restraints and barriers on your opportunity to address the Oldham County Fiscal Court! Magistrate Voegele introduced a measure which would reduce the opportunities for residents (TAXPAYERS) to address the Fiscal Court by one-half. The current process for public comment in Fiscal Court has been in place for several years and has worked well.  

He believes that some people have been abusing the current system by requesting to address their elected officials for up to 16 minutes per month (yes, per month, not per meeting). However, Magistrate Voegele is the ONLY person that I have ever seen led from the courtroom by an Oldham County Deputy Sheriff for not abiding by the rules when HE HIMSELF was addressing the court prior to his election.   

 

Several weeks ago Magistrate Voegele made a motion before Fiscal Court which failed to receive a second from any other member. In early August, he made a motion regarding the stormwater district. After the motion was seconded (which is no certainty for Voegele’s motions) by another court member, HE HIMSELF VOTED AGAINST HIS OWN MOTION. Is it any wonder that other Magistrates are unwilling to second his motions? Maybe we should expect flip-flopping from Magistrate Voegele as he did switch his political party registration from Democrat to Republican just prior to running for political office.   

 

Are you aware that Magistrate Voegele wants to demolish the buildings in Buckner on KY 146 that have come to be known as the “Buckner Mall”. What is important to understand is that the cost of this will likely exceed $100,000 in taxpayer money - YOUR MONEY! In a time when revenue and budget issues are so prevalent within our local and state government, why does Magistrate Voegele feel that you and I (THE TAXPAYERS) should spend money to pay for his pork project which is on land that is currently PRIVATELY OWNED? Also, why is Magistrate Voegele advocating a pork project outside of his own Magisterial District?  

 

Have you also noticed that Magistrate Voegele HAS VOTED FOR NEARLY EVERY TAX AND FEE INCREASE during his time on the Fiscal Court?  Has he done this (at your expense) to gain favor with Judge-Executive Murner in order for Murner to support his pork project of removing the Buckner Mall?   Where is his mind when he casts his vote - on the issue or at the Buckner Mall?

 

If you are concerned about the actions of Magistrate Voegele, you need to let him know. You can reach him at 222-5780 or by email at davidvoegele@aol.com.

DEVELOPERS RECEIVE HUGE REDUCTIONS IN ASSESSMENTS

By: Dewey R. Wotring

Oldham county developers Bob Jones, Walt Schum, Joe Pusateri, and Jay Hall filed appeals of their property tax assessments and the appeals were heard in June of 2008. As a result of those appeals the developers received reductions amounting to an average of 25%.

The assessments were originally made by Property Valuation Administrator Ron Winters and he refused to reduce the initial assessments. The developers then appealed their assessments to the Oldham County Board of Assessment Appeals.

Bob Jones' total reduction was over $4,000,000 - yes, over 4 million.  Walt Schum, who sits on the school board and frequently votes to raise your taxes received over a $600,000 reduction in his assessment. Both gave the maximum contribution allowable to Judge Duane Murner's primary election campaign in 2005 which is $1,000.

Apparently, everyone should appeal their tax assessment. There will be more forthcoming on this site regarding this issue.