Maple Heights Town Hall Meeting Reveals Shocking News

While Southgate in Maple Heights quietly slipped from receivership (2009) into foreclosure a few days ago (potentially taking a major source of revenue from Maple Heights), allegations of voter suppression, voter intimidation, and [perhaps] financial nonfeasance were revealed. 

The Town Hall Meeting at the Maple Heights Library last night (held by the endorsed Democrats in Maple Hts) revealed such shocking news, that even we were not fully aware of, but had sensed for some time (check previous posts).

So that there is little guess work ... the targets of the voter suppression and voter intimidation are Mrs. Mitchell's supporters.  There have also been allegations that white males in camouflage attire have been following the endorsed Democratic female African American candidates; and Mrs. Mitchell has complained that quite a few of the  (vote for Neomia Mitchell) yard signs have been removed by people driving around in trucks (she also states that when she ran against the mayor previously, a lot of her yard signs were missing).  Mrs. Mitchell has also complained that there were voter registration applications she turned in to the Board of Elections that could not be found at the Board of Elections.  The stuff we've heard about or seen for our very own eyes is shocking.

Here is something interesting:
In an early piece of campaign literature put out by the mayor, it shows a picture of a bunch of Mrs. Mitchell's yard signs in a big heap in front of former Mayor Ciaravino's yard signs.  Where did he get that picture?  Better still ... how was he able to get a picture of Mrs. Mitchell's yard signs conveniently placed  in a pile in front of a pile of Ciaravino's yard signs?

The Democratic Party (given the problems that confronted them in Cuyahoga County) we believe, would not endorse a candidate that they felt had any real and substantial and highly incriminating evidence  linking her to any crimes or scandal.   That's why, we think, they chose Mrs. Mitchell.  It seems the mayor wants people to think otherwise (maybe trying to have her investigated).  We feel this is unbecoming of a mayor of any city (see Mayor Lansky's pictorial characterization of his African American female opponent) . 

We also learned that some of the salary raises that were given over the last few years, may not have gone thru city council as they should have (correct us if we're wrong).   Why the council president did not take a stand when it happened (if it happened), is a mystery to us.

Please remember (Maple Hts statistics):
[Percentage of residents living in poverty in 2009: 13.2%(8.7% for White Non-Hispanic residents, 15.7% for Black residents, 13.3% for Hispanic or Latino residents, 0.0% for American Indian residents, 0.0% for other race residents, 24.1% for two or more races residents)]

The job growth rate in Maple Heights is in the negative figures (around -10%).  Most of the people who work in Maple Heights (esp. those who draw high salaries with fantastic benefits), do not live in Maple Heights.

Where has television and print media been in investigating what appears to have been going on in Maple Heights?  Where are they now?

While the scandal unfolds, we expect public officials to continue to deflect attention away from them unto what they'll state as "politics as usual" (and we think the nasty smear campaign against Mrs. Mitchell will continue ... and probably will get worse); however, this is not "politics as usual" and the people who are suffering, and will continue to suffer (esp. from the repercussions of all this), are the residents (esp. property owners) of Maple Heights. 

We'll update .. as we gather more information.

Information on the Maple Heights financial state audit that was recently completed (which includes information on the 2009, 9.95 million dollar note (debt) which now puts Maple Heights over 18 million in debt) ... www.auditor.state.oh.us 

[By the way, Mrs. Mitchell, the mayor's opponent,  was not a member of council in 2009.  We also just learned that Maple Heights general fund may be in the red. Bond interest payments, (and salaries if we're correct) come from property taxes.]

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Several residents complained that a "Re-Elect Lansky" yard  sign was placed on their lawn without their permission and the letter below was left at their house (we have permission from them to post it).  We leave it up to you if you consider this "voter intimidation".  (Click on the image to enlarge it.)

That Damn Tax Levy and Those Pesky Municipal Bonds

City government administrations and city council ask residents to approve levies every now and then (usually dealing with schools and safety departments); and  they will also take out loans (for big projects) by issuing bonds.

Did You Know?

"A levy gives a local government a claim on a specific property; and if the taxpayer does not repay the levy, the government can foreclose on the taxpayer's house and sell it to pay off the levy. If the taxpayer sells his house, the new home owner will have to make the future levy payments. Existing levies can make properties in an area more difficult to sell."(1)

Scary ... right?

There can be sound reasons for levies and sound reasons for issuing bonds; however, I ask you ... why do they always come to the property owner for help in times of fiscal trouble?  And further, how do you justify asking property owners and other tax payers to fix past mistakes, or fund things, when residents are losing their homes and their jobs, sometimes because of those past mistakes? 

What to think about before issuing a bond: What's the bond for?  Is the community stable? Can the project wait til the community is financially stable before issuing a bond? What kind of bond will it be? Is the bond insured (if it is, by whom, and who is responsible for the insurance payments?)  Who will be the bondholders? With what are the bonds secured?  What happens if your city defaults? (Think back to 2008)

Note: "GO bonds are secured by the full faith and credit of the issuer, meaning that the borrower is committing to raise taxes and other revenues sufficient to cover the amount owed".

If you're going to say "yes" on some tax levy your city administration and school system ask for, ask them (mayor/city council/school superintendent/ whoever is asking) to take a cut in salary and/or benefits first.(2)

Also consider: 
Are property values stable?  Is the community stable, and the population and number of homes stable and growing?  What are the projections for property values?

Whatever the city administration and city council (or superintendent of a school via mayor) ask you (tax payers) to do, ... as stated before, ... those levies will usually be paid on the backs of property owners. And with bonds, tax payers will pay the interest until the bond matures.  When it does mature, and if you can't pay, you may be able to refund; however, you can't refinance the loan forever.  

(1)Bonds and Levies

(2)MHSD

(2)Superintendent Keenan in 2011

This post is not meant to give investment advice, it just points out risks to bond issuers.