Question to County Auditors - If a new School Levy is passed, how is the money from a TIF property divided?

Question to the Montgomery County Auditor:
 

Could you please provide information on how the collection of newly approved school levy funds from properties already located in a TIF district would be distributed?

 

An example would be the Miejer property in Huber Heights.  If the school district were to be successful getting a levy passed this November would the entire increase in payment due in 2016 go to the schools or would some of this go to the city as TIF payments?


The Montgomery County auditor's office responded:
 
It would depend upon your agreement with the school district concerning TIF reimbursement.
A new levy would increase the tax rate, which would increase the TIF payment.  We then send the TIF payment to the City of Huber Heights at settlement.  The city then reimburses the school district per whatever agreement the city and the district have in place for that particular TIF.   

Question to the Miami County auditor's office:
 

Could you please provide information on how the collection of the newly approved school levy funds from properties already located in a TIF district will be distributed?

 

An example would be the Trimble property in Huber Heights.  Since the school district was successful in getting a levy passed, will the entire increase in payment due in 2016 go to the schools or will some of this go to the city as TIF payments?



The Miami County auditor's office responded:
 
Distribution of TIF monies is allocated according to the Agreement between the City (Your City of Huber Heights) and Bethel School.  Currently all of the parcels in Carriage Trails follow the TIF agreement passed on August 22, 2005.  That agreement states on Page 4, Section 5, that the school district, namely Bethel LSD is to receive the amount that they would normally receive as real property tax payments, including reimbursements derived from the IMPRovements related to each parcel absent the passage of this Ordinance, with all other remaining amounts being distributed to the city.
 
In other words, Bethel LSD is receiving all of their funding at 100% with all other political units, namely, COUNTY LEVY FUNDS, JVS, LIBRARY, HEALTH DISTRICT funds are being distributed to the City of Huber Heights.
 
The TRIMBLE property in Huber Heights will be handled a little differently.  We have just received approval from the Dept of Taxation time stamped in our office February 6, 2014.  Previously Spectra Physics, now Trimble 6 parcels were approved under a new TIF agreement on 12/21/12, Ordinance No. 2012-0-2008.
 
1)      This TIF agreement commencing on the effective date for the first 10 years only allocates 30% of the school districts Real Estate payments and reimbursements to the school with the other 70% being allocated to the city.  After 10 years the school will go back to their 100% allocation including reimbursements.
2)      This TIF agreement commencing on the effective date for the first 10 years only allocates 30% of the Miami Valley CTC’s Real Estate payments and reimbursements to them with the other 70% being allocated to the city.  After 10 years the CTC will go back to their 100% allocation including reimbursements.
3)      In all cases during the TIF agreement the political units noted will forfeit their real estate monies.  Namely, CONTY LEVY FUNDS, LIBRARY, HEALTH DISTRICT.
 
The 6 TIF parcels will be re-platted into 1 parcel effective with TY’14. 
 
I have not had a chance to sit down and review the agreement totally with Matt.  However, we have discussed the agreement and he has been involved with discussions on this TIF agreement.  Since the Ordinance was approved on 12/21/12 the first date effective for TIF should have been TY’12.  As a result since these parcels will first be reported on the TY’14 duplicate refunds will be due for TY’12 and TY’13.  I need to verify this information with Matt before we move into the next tax year however.
 
I hope this helps answer your questions regarding the real estate taxes with reference to the school district taxes.  Basically the bottom line with the new levy will mean additional tax dollars being paid starting in TY’14 which means additional allocations to the City of Huber Heights.