City taking more School & less county money than we thought
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 told us that because of the TIF, the Schools would receive $76,000 a year of the Alcore Assisted Living Center’s tax payment. His statement allows us to calculate that if the city hadn't created the TIF, the schools would get $253,000. This means that for this one property the city is taking $177,000/year of the School’s money. Our original computation was $107,000.
As you recall from the original computations we did not know the taxed assessed value of the property so in our original computations we used half of the construction costs ($8.5 million dollars). Using the information given by the Assistant City Manager we can compute that the actual assessed value will be about $14.1 million dollars. With this information we can see the impact of the creation of the ALCORE TIF for all property tax recipients.
Bottom line for this one property over the next 10 years the city will take a total of at least $1,775,092.30 of the school’s money. Another interesting fact; the city will expend no more than $300,000 in TIF infrastructure improvements for this property. The way the TIF is set up now they will collect $238,458 a year and could easily pay off the debt in two years.
I’ve asked city council to change the TIF legislation so that the school’s get to collect 100% of what they would normally get. If council does this, even without the school’s money, council will get more than $1.6 million dollars to pay off the $300,000 infrastructure investment. (UPDATE: At the Feb 18, 2014 Administration Committee meeting we learned that the city will not be paying any of the $300,000 in infrastucture improvements. Instead Alcore will be making special payments in addition to their regular tax to pay this debt. So the city is collecting all the school's money and using it to pay for things like the Music Center).
Chart was updated to show Library keeping all their funds and the Montgomery county portion was also adjusted.
Of course I wish an update wouldn't have been needed but keep in mind the school is in the process of paying the city $283,000 because the county figured out a couple years ago that the county made a calculation error and gave the schools more than their agreement with the city allowed.
You can check my work by looking at the Excel file I'm using for these calculations. I appreciate your looking and letting me know if you find an error.
Ask council to explain the Alcore TIF at the next Administration Committee.