City taking more School & less county money than we thought
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Posted 12th May 2024, 2:22 pm
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News: City taking more School & less county money than we thought
City to take $1.7 million dollars of the school's money from just one TIF property.
Updated - I re-read section (F) of ORC5709.40 and believe I misinterpreted the exemptions for the library, park and Human Services levies. This edit changed the calculation to reflect library, park and Human Services exemptions from TIF.
Monday night during the City Council meeting the Assistant City Manager…
Ask Council to explain the Alcore TIF
Dear Council Members,
Monday, I asked you to amend the Ordinances NO 2012-0-2009 and NO 2012-0-2010 Section 4 (a) (i) and (ii) so that the schools will receive an amount equal to one hundred percent (100%) of the amount they would otherwise have received as real property tax payments. Assistant City Manager, Donnie Jones' response provided further confirmation that this is the right course of action.
Knowing that council is always poised to jump on any misstatement I was pleased that Mr. Jones affirmed the city's total TIF obligation to the Alcore property is no more than $300,000. His statement that the city choosing to create the TIF resulted in a jump in revenue from $2,000 to $76,000 from the Alcore property to the Huber Heights City School allows me to state with confidence that if the city hadn't chosen to create the TIF the revenue to Huber Heights City Schools would have gone from $2,000 to $250,000 a year. Furthermore his statement helped refine my estimate of the tax assessment of the Alcore property from $8.5 million dollars to about $14.1 million dollars. Knowing the $14.1 million dollar assessment value allowed me to update the figures I used for the council meeting.
Looking at the figures we see that in the first year alone the city will collect $238,458.49 and could easily pay off the entire $300,000 city TIF commitment for this property in two years.
More importantly is to look at the result if the city restores the school's revenue. Subtracting the Huber Heights City School and the Miami Valley CTC we see the city will still be collecting $52,252.69 a year. This results in a 30 year total of $1,567,580.70. This is an excellent return on a $300,000 investment.
ORC 5709.40 tells us that for TIF funds that result in the schools receiving 100% of what they are normally due, council can draft the resolution and approve the amendments without the need to coordinate with the schools. I ask council to make this amendment during the Oct 28, 2013 council meeting.
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Post Script; I intend to invited everyone I believe would be remotely interested in this issue to check my math. Obviously, some of the reason my numbers are evolving in public is because I was too patient in waiting for these kinds of discussions to happen during committee meetings and now must rush to take advantage of election day interest. Most of the reason is because I believe it is helpful to everyone's understanding and will result in more public interest when the nuances of an issue of this importance are fully talked through. My understanding of this issue is evolving just like most of the community's. I've included an excel worksheet to show my current calculations of TIF collection. It shows the background I used for the numbers above. Besides the adjustment of the assessment value, this worksheet differs from the calculations I used when I spoke at the council meeting because I've re-read Section (F) of ORC 5709.40. I now believe there are more agencies exempted from having their revenues appropriated by the city. Specifically it looks like the Library funds, Parks and Human Services that were approved after 2006 are exempt . These additional exemptions call into question why everyone wants to highlight all the non-school related TIF revenue and the call out about how happy the County is to give up the County money. These updated calculations show an even a higher percentage of the TIF money the city collects comes from the Huber Heights City School 's voter approved property tax levies and inside millage than originally computed.
Thank you for taking the time to examine my request to return the school's revenue to 100% of the property tax rate for the Alcore and Family Dollar properties and for all publically presented clarifications of TIF collections and distributions.
Last edit: by Thomas McMasters
There were conflicting indications about what the response would look like. At the beginning of the conversation on this subject they tried to talk around the fact that I was there and the source of the information. This made straight forward questions of staff difficult to compose. First a council member asked if it looked like my assertions looked right and the staff member indicated they were close. Later that staff member talked about misinformation that was being put out to the public.
After we established that it was alright to establish that I was the reason for the discussion we established that staff should have their analysis done within two weeks. Council will be briefed first but after that I should know at the same time when or if anyone else is given that information.