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Bond Accountability Commission 2 Recommendations Page 89

still well above the 85.0% collection threshold. The current total collection rate is 91.1%. This is reflected in the following chart, detailing collection rates since 1999 (represented by the blue line), as well as actual total collections, as represented by the red line. It can be seen that, despite declining collection rates, total collections are well above the assumed 85.0% level shown by the dashed line. Despite ongoing economic hardships, this practice seems prudent.

Collection Rate

While Collection Rates have Decreased, When Collected Delinquencies are Incorporated, Collection Rates are Still Over Delinquency Rate Utilized

100.0% 98.2%

Rate of collection when delinquent payments are included

97.3% 95.4%

94.9%

94.6%

95.0%

95.3%

93.8%

93.4%

93.0%

92.3% 91.1%

90.0%

91.6%

Rate of collection for currently billed tax levies

89.8%

89.1% 88.4%

88.0%

88.1%

87.2%

86.8% 86.2%

85.0%

84.3%

Collection rate of 85% used for millage rate calculation

84.0%

80.0%

75.0%

1999

2000

2001

2002

2003

2004 2005 Collection Year (Beg. Jan 1)

2006

2007

2008

2009

Based on information provided by Cuyahoga County Auditor's Office.

The District is able to determine projected tax revenue by multiplying the desired millage rate by 85% of the projected assessed value. In turn, this allows for the judicious use of tax revenue to maximize low-cost short-term borrowings, thus allowing for the expeditious repayment of principal.

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BAC2 Recomendations Final 04062010