Explanation
BACKGROUND: By authority of ORC Section 5709.82, the City is required to pay affected school districts 50 percent (50%) of the municipal income tax revenue attributable to tax abated projects where the annual 'new employee' payroll for a project is one million dollars or more, in a given tax year, during the abatement. This municipal income tax revenue sharing with affected school districts applies to all property tax abatements approved by the legislative authority after July 1, 1994 and is based on the 'new employee' wages paid in a tax year, during the years of tax exemption, and also on the wages of the construction workers.
FISCAL IMPACT: For tax year 2008, the City of Columbus has a total of nineteen (19) projects requiring revenue sharing and the total amount of revenue to be shared is $1,559,603.08. The nineteen (19) projects are located in three different school districts with the revenue share subtotals as follows: $1,134,746.67 to Columbus City School District for 15 projects; $94,880.00 to Hilliard City School District for 2 projects; and $329,976.41 to the Olentangy Local School District for 2 projects.
This ordinance authorizes and directs the city auditor to transfer $389,900.77 from the special income tax fund to the General Fund. The transfer amount of $389,900.77 has been factored into the current special income tax analysis and resultant capital capacity.
Emergency action is requested in order to expedite payment to the three school districts to compensate them for property tax revenues forgone due to tax abatements.
Title
To authorize and direct the City Auditor to transfer $389,900.77 from the Special Income Tax Fund to the General Fund; to authorize and direct the payment to the Columbus City School District, the Hilliard City School District and the Olentangy Local School District for income tax revenue sharing totaling $1,559,603.08; to authorize the expenditure of $1,559,603.08 from the General Fund; and to declare an emergency. ($1,559,603.08)
Body
WHEREAS, the Ohio Revised Code Section 5709.82 requires the City to pay affected school districts fifty percent (50%) of municipal income tax revenue attributable to tax abated projects where 'new employee' payroll for a project is one million dollars or more in a tax year, during the years of tax exemption; and
WHEREAS, the City of Columbus is subject to the income tax revenue sharing provisions of Ohio Revised Code 5709.82; and
WHEREAS, the City of Columbus has a total of nineteen (19) tax abated projects subject to the income tax revenue sharing provisions and these projects are located in three school districts as follows: Fifteen (15) projects in the Columbus City School District, two (2) projects in the Hilliard City School District, and two (2) projects in the Olentangy Local School District; and
WHEREAS, it is necessary at this time to authorize payment of $1,134,746.67 to the Columbus City School District, $94,880.00 to the Hilliard City School District, and $329,976.41 to the Olentangy Local School District; and
WHEREAS, emergency action is requested in order to expedite payment to the three school districts to compensate them for property tax revenues forgone due to tax abatements; and
WHEREAS, the matter herein constitutes an emergency in that it is immediately necessary to authorize payment to the Columbus City School District, the Hilliard City School District, and the Olentangy Local School District, thereby preserving the public health, peace, prosperity, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the sum of $389,900.77 is hereby appropriated from the unappropriated balance of the special income tax fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2009 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5501.
Section 2. That the City Auditor is hereby authorized to transfer said funds (cash only) to the General Fund, Economic Development Division, Division 44-02, Object Level One 05, Object Level Three 5513, OCA 440314.
Section 3. That the City Auditor, for the purposes of income tax revenue sharing, is hereby authorized to make payment to the Columbus City School District in the amount of $1,134,746.67, to the Hilliard City School District in the amount of $94,880.00, and to the Olentangy Local School District in the amount of $329,976.41.
Section 4. That for the purpose stated in Section 3 the payments totaling $1,559,603.08 are hereby authorized from the General Fund, Fund 010, Department of Development, Economic Development Division No. 44-02, Object Level Three 5513, OCA Code 440314.
Section 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.