While residents of the Bowling Green school district will see a drop in taxes collected for the new high school, they should expect to be asked this fall to support an operational levy request.
David Conley, financial advisor with Rockmill Financial, attended Tuesday’s school board meeting to explain the savings realized with the recent sale of bonds for the new high school.
When the district’s $72.8 million bond levy passed in November, its 5.5-mill collection was based on 5.25% interest.
When the district sold its bonds in February, it secured an interest rate of 4.08%, which amounts to $18,650,000 less in interest that will have to be paid by the taxpayers, Conley said.
“That’s a huge savings to the community,” he said. “We’re really fortunate for how things turned out.”
The millage that will now be collected is 4.34, saving the owner of a $200,000 home $80 per year for the 30-year life of the bond issue, he said.
Meanwhile, the district will earn $5,750,000 from investment earnings, he said. $340,000
“That’s huge news, that’s a lot of extra money for the project,” he said.
He said 45 investors ordered more than $300 million during the bond sales and it was because of that interest the district got a lower interest rate than what was projected.
“So, less money coming out of people’s pockets,” summarized board member Ryan Myers.
Board President Tracy Hovest asked members to start considering a ballot issue in November for operating funds.
When district Treasurer Cathy Schuller presented a revised forecast in December, she explained property tax collections increased due to the reappraisals that occurred last year.
But while the district’s bottom line had improved, the need remained for new operating money in 2024. Due to the increase in property tax collection, the amount of deficit spending has decreased to $3,834,644 in fiscal year 2024.
The district has not asked for new operating money since 2010.
Myers said he would like to see an income tax rather than a property tax due to the reappraisals.
Board member Norm Geer agreed, adding that income tax collection will grow as more people move into the area.
The district currently has a 0.5% traditional income tax, which taxes wages, tips, interest, dividends, unemployment compensation, pensions and IRA distributions.
Myers asked Schuller to determine how much will be collected with a 0.25%, 0.50% and 0.75% traditional income tax.
He said he didn’t want the district to ask for too much, but also didn’t want to ask for less than what was needed to get out of the projected deficit.
Geer said he was a fan of a continuing tax because it’s always there, but Myers said he wasn’t yet convinced that was the way to go.
Board member Ardy Gonyer pointed out there also needed to be a discussion on plans for the elementary schools.
“What is our plan with the elementary schools and if we need a levy for those, how does that factor into this,” he said.
Schuller also reported the Ohio Board of Tax Appeals has ruled the state tax commissioner’s expert appraisal was the best evidence of value for the Rover pipeline.
The commission will be working with the pipeline to negotiate a settlement, she said.
The district is receiving $1.2 million annually, which is the appealed amount. If it is determined Rover owes more than that, Wood County could bill the difference, plus interest.
“Unfortunately, it’s too soon for us to know what the final value is going to be,” Schuller said. “Until that settlement is complete, we don’t know and it’s hard to estimate what revenue we’ll generate from that.”
