Implications on Future Local Money Issues Implications on Future - PowerPoint PPT Presentation

Implications on Future Local Money Issues Implications on Future Local Money Issues

To provide Board members and those in attendance at this public meeting with a general overview of the generation of local revenue under Ohio law 2/21/2013 2

 Current combined property valuation for the Triad Local School District ◦ Includes Champaign, Logan, and Union Counties $102,034,800 $102,034,800 2/21/2013 3

 A mill is 1/1000 or .001 of a dollar .001 x $1.00 = .001 x $1.00 = $.001 $.001 Or Or 1/100 of a 1/100 of a Penny Penny 2/21/2013 4

 Since a mill is 1/1000 or .001 of a dollar  And the total property valuation of the Triad Local School District is $102,034,800 .001 x $102,034,800 = .001 x $102,034,800 = $102,034 $102,034 Each mill in our district currently Each mill in our district currently generates generates $102,034 in local revenue. $102,034 in local revenue. 2/21/2013 5

 The current effective millage in the Triad Local School District is:  15.01 mills  Originally the voters approved 20.60 mills but as property values rise, the auditor is required to reduce the amount of voted mills collected so that only the revenue originally voted comes in 2/21/2013 6

 Factors that affect your tax bill:  Property tax is collected based on all issues approved by the voters. This includes other governmental entities besides our schools.  There are voted mills, called outside mills, and non-voted mills, called inside mills  Inside mills are to be levied at 1% or 10 mills per taxing district based upon the constitution ◦ 5 mills to schools and 5 to other governmental functions 2/21/2013 7

 Between 1968 and 1974 Triad voters approved 20.6 general operating mills not requiring renewal.  At the time, the Triad Board of Education authorized going to voters to approve operating levies that generated enough revenue to meet the revenue shortfall.  The County Auditor had to figure the amount of millage needed based upon property values at the time of the levy requests. 2/21/2013 8

The County Auditor 20.6 mils voted must adjust voted originally for mills over time so schools that the amount of money collected under the original voter approval remains the same. Now 15.01 effective 2/21/2013 9

5 5 The inside mills 20.6 mils 20.6 mils mills mills voted voted authorized under originally for originally for the State schools schools Constitution are not adjusted so revenue does does increase as property values rise. 5 5 mills mills Now Now 15.01 15.01 effective effective 2/21/2013 10

 Ask voters to approv Ask voters to approve additional operating levy e additional operating levy ◦ Board determines how much revenue is needed based upon budgetary needs ◦ Local operating revenue can be used for any purpose approved by the Board in the annual appropriations ◦ Could be for a set number of years ◦ Could be for an indefinite period of time  How many mills would Triad’s Board need to ask How many mills would Triad’s Board need to ask for? for? ◦ The Board would have to determine the amount of revenue needed and then the millage rate to generate needed revenue would be set by auditor. 2/21/2013 11

 Ask voters to approve a Permanent Improvement (PI) levy. ◦ Triad does not currently have a PI levy being collected ◦ PI levy revenue would be restricted to use for district improvements that are expected to last for more than 5 years ◦ Could be for a set number of years ◦ Could be for an indefinite period of time 2/21/2013 12

 Ask voters to approve a replacement levy. ◦ Voters could be asked to replace replace the total approved mills back to the original 20. 6 mills that were voted in from the current effective mills of 15.01. ◦ This would generate an additional 5.58 mills for the district. ◦ If approved this would continue for an indefinite period of time. .00558 x $102,034,800 = $569,354 .00558 x $102,034,800 = $569,354 2/21/2013 13

20.6 mils 20.6 mils voted voted originally for originally for schools schools Now Now 20.6 mils effective mills Now if replacement 15.01 levy approved effective 2/21/2013 14

 Last option is not a levy not a levy. ◦ The Board could authorize the auditor to move a portion or all of the 5 (un-voted) inside mills from operating to permanent improvement. ◦ PI funds are not calculated in the setting of the minimum of 20 voted mills. ◦ This does not require a public vote. ◦ The auditor would be required to increase voted outside mills up to an effective rate of 20 mills instead of the15 mills we are currently collecting. .005 x $102,034,800 = $510,174 .005 x $102,034,800 = $510,174 2/21/2013 15

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Triad Taxing Districts: H26 – Rush/Triad H28 - N Lewisburg/Rush/ Triad H29 - Woodstock/Rush Triad J37 – Union/Triad L43 – Wayne/Triad 2/21/2013 18

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 This presentation will be posted on the Triad Local School District website for download or further review.  www.triad.k12.oh.us 2/21/2013 20