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City of Westerville Tax Abatements and the Westerville
City School District
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A Tax Incentive Agreement between the City and the School District was entered into on
August 24, 1998.
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The agreement was created to ensure that tax abatements had no negative effect on Westerville
City School District funding. In actuality, the
agreement slightly increases funding to the District when there is a tax abatement.
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Currently, there are nine properties with abatements in effect in the Westerville
School District (as of Jan. 1, 2003
for tax collection in 2004).
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The estimated payment to Westerville City Schools in 2004 will be $47,614.
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Had there been no abatements, the School district would have received a net increase of $37,524 due to the projects.
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The City is obligated make 33% payments in lieu of taxes for all tax abatements to the Westerville
School District. The payments in lieu of taxes are 27% higher than the District
would receive had there been no abatement granted.
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In some cases, the City will pay a percentage even higher than 33% to the District, such as the St.
Anns Office Building
recently approved by City Council.
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The reason that the 33% payment in lieu of taxes from the City to the District is higher than if no abatement
is given is because the State of Ohio reduces its funding to the Schools as new buildings are built in the School District.
Abatements keep the new buildings off the rolls, therefore the state does not decrease its funding to the schools. No state
reduction, plus the payment by the City to the Schools, causes the project to net more than if no abatement given.
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Although tax abatements do not negatively affect the schools, the revenue created by the projects is just a
small fraction of the millions of dollars in funding needed to operate the school district.
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The City of Westerville will continue to assist the School
District with positive office and commercial developments and keep residential developments to a minimum.
| Comparison
of revenue to Westerville School District generated by development project - Abated VS. No Abatement |
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| Actual Medical office building
in the Westar Center of Business |
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| Amount School District
would receive if no abatement were granted |
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Actual Taxes |
Less reduction in |
Add |
Payment |
Net Increase |
| Building cost |
Valuation |
WCSD mils |
WCSD Taxes |
Rollback |
Collected |
State funding^ |
Rollback |
from City |
to WCSD |
| 4,415,284 |
1,545,349 |
35.204663 |
54,404 |
5,440 |
48,963 |
35,543 |
5,440 |
0 |
18,860 |
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| Amount School District
will receive with a 12-year 65% tax abatement granted to building owner |
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Actual Taxes |
Reduction in |
Add |
Payment |
Net Increase |
| Building Cost |
Valuation |
Total mils |
Total Taxes |
Rollback |
Abated |
State Funding |
Rollback |
from City* |
to WCSD |
| 4,415,284 |
1,545,349 |
52.141082 |
80,576 |
8,058 |
72,519 |
0 |
0 |
23,931 |
23,931 |
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Difference |
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5,071 |
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27% |
| ^State of Ohio reduces funding
to schools by 23 mils for new construction projects |
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| *City of Westerville
makes a 'payment in lieu of taxes' for 33% of ALL abated taxes
(school, county, city) |
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| 2003 tax abated properties in Westerville School District (taxes collected in
2004) |
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| Difference Between
District's Net Increase With Tax Abatement vs. No Tax Abatement |
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Revenue to WCSD |
Revenue to WCSD |
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| Project |
if no tax abatement |
with tax abatement |
Difference |
% |
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| 1. Medical office - Westar |
$18,860 |
$23,931 |
$5,071 |
27% |
| 2. Office - McCorkle Blvd. |
6,674 |
8,469 |
1,795 |
27% |
| 3. Tech co. - N.W. Office |
2,990 |
3,794 |
804 |
27% |
| 4. Industrial Bldg. - Westdale |
2,179 |
2,764 |
585 |
27% |
| 5. Small office - N.W. Office |
1,922 |
2,439 |
517 |
27% |
| 6. Medical office - N.W. Office |
1,922 |
2,439 |
517 |
27% |
| 7. 2nd Medical office - N.W. Office |
1,666 |
2,114 |
448 |
27% |
| 8. Organization office - N.W. Office |
1,076 |
1,366 |
290 |
27% |
| 9. Rehab - Uptown |
235 |
298 |
63 |
27% |
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| TOTALS |
$37,524 |
$47,614 |
$10,090 |
27% |
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