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.
Emergency action is requested in order to expedite payment to the four school districts to compensate them for property tax revenues forgone due to tax abatements.
FISCAL IMPACT: For tax year 2006, the City of Columbus has a total of thirty-eight (38) projects requiring revenue sharing and the total amount of revenue to be shared is $2,263,575. The thirty-eight projects are located in four different school districts with the revenue share subtotals as follows: $1,805,738 to Columbus City School District for 31 projects; $107,003 to Hilliard City School District for 3 projects; $84,588 to the South-Western City School District for 2 projects; and $266,246 to the Olentangy Local School District for 2 projects. The 2007 General Fund Budget included $3,320,514 for payments to school districts. To date, we have expended $633,383.92. This ordinance will bring the total expenditures to $2,896,958.92.
Title
To authorize and direct the payment of $1,805,738 to the Columbus City School District, $107,003 to the Hilliard City School District, $84,588 to the South-Western City School District and $266,246 to the Olentangy Local School District for income tax revenue sharing totaling $2,263,575; to authorize the expenditure of $2,263,575 from the General Fund; and to declare an emergency. ($2,263,575).
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