PHOTO BY JOHN FRYMAN/ THE VILLAGE REPORTER
AGAINST PROPERTY TAX ELIMINATION … Williams County Port Authority board member Bill Martin (above) explains his position in the proposed elimination of state property taxes in a regular session meeting on Monday, February 23.
By: John Fryman
THE VILLAGE REPORTER
john@thevillagereporter.com
The Williams County Port Authority took a strong stance approving a motion opposing the elimination of property taxes in Ohio at its regular meeting on Monday, February 23.
Board members in attendance were Sean Rupp, Bill Martin, Ashley Epling, Cheryl Andres, Tyson Stuckey, Dave Newcomer, Tyler Sailer, and Rachel Walz. Joe Kimball and Dawn Fitzcharles were both absent.
Regarding the ballot initiative to eliminate property taxes, Martin commented that he was very concerned about the issue when it affects the Port Authority, but also workers in Williams County.
“We’re very concerned because it would eliminate property taxes in Ohio,” said Martin. Board Chairman Dave Newcomer said that he really doesn’t know what will happen with the initiative.
“Should that happen, the economic profile will make it very difficult for us to sell lots and build houses,” added Newcomer.
Martin said that if the initiative is approved, the state would lose $24 billion in revenue without property taxes, which is about 80 percent of the state’s discretionary budget.
“You can’t just let it walk out the door and disappear,” he said. “Several state officials have quoted what the state income tax rate would have to increase. Recently, the governor said we must go from 2.75 percent to 10 percent, which is almost a quadrupling of the state income tax.”
With an average income in Williams County at $62,000, that means the average citizen would pay an additional $4,495 in income tax, according to Martin.
Martin also mentioned that for a house valued at $150,000, the property tax bill would be $1,853. He added that if the state sales tax doubles, people would pay an additional $2,480 in sales tax.
“This is the most ridiculous thing I’ve ever heard of, and I cannot believe somebody would sign up for this,” said Martin.
“If [this] goes the way the state officials are saying, the average person in Williams County would save $1,853 on their property tax, but they would have to pay an additional $4,495 in income tax and then pay an additional $2,480 in sales taxes.
“That taxpayer is going to pay well over $5,000 more in state income taxes and sales taxes. I’m not a math whiz, but that feels like a bad result to me.”
Martin then added that the proposal is going to decimate local businesses as well as reduce the demand for housing in Williams County.
“I’m deeply concerned about it because the education isn’t out there on what’s going to happen if we eliminate the property tax,” said Martin.
Rachel Walz, project manager for the authority, said this was a huge issue discussed at the State of Ohio Realtor Conference in the fall and winter.
“These numbers are being confirmed in multiple places and multiple sectors of our communities,” said Walz. Walz also gave updates on several projects involving properties in Edgerton, Bryan, and West Unity.
Board member Cheryl Andres reported that she had met with the Williams County Land Bank regarding four property lots.
She added that Todd Burkholder of Center Township will be working closely with her on it. Two of those lots are active on the market, one on John Avenue and one on Frank Street in Montpelier.
Two other lots are going to be tear downs on 523 South Pleasant Street in Montpelier and 408 North Main Street in Bryan.
She also mentioned there are four other lots that are available, but none of those have well systems installed yet. Two of those lots are located in Kunkle and the other two lots are in Alvordton.
Martin recently met with the City of Bryan Finance Committee and representatives from State Bank and F&M Bank, laying out the framework for loan agreements regarding the Greenfield addition.
He said the infrastructure costs for the addition are $2.7 million for water, sewer, and electric use. A $1 million grant from the United States Department of Agriculture was received and it goes towards the water and sewer flow.
Newcomer explained that the USDA does not distribute the grant funds upfront. Instead, the Port Authority must spend the money, submit the bill, and then receive reimbursement for 75 percent of the eligible work.
Another avenue of funding through the City of Bryan, according to Martin, is Tax Increment Financing, which provides funding to pay between $600,000 and $1 million of the 2.7-million-dollar project.
“We have batted around a lot of different ideas,” said Martin. “The city is still thinking about it and we’re waiting to hear back with them. Everybody wants to get this done.
“Most likely we’ll enter this project short of $2.7 million needed. I feel like we’ll be in the $1.6 to $2 million range, but I think the project would work at that level. It will restrict what we can probably do in the future relative to other projects.
“If we can get the full $2.7 million covered and there are other avenues that we’re exploring in the State of Ohio and if we can get it covered, that would be the best-case scenario.
“Whether proceeds that we have from this subdivision and saying that we use it in other future subdivisions.”
Board member Tyson Stuckey commented that one of the important aspects is the partnership with the City of Bryan.
“For any of these kinds of subdivisions, we want to do it in other municipalities and locations, but that partnership is important to be able to do it, because you can’t just do it on your own without someone helping with that process,” said Stuckey.
In other action, the Port Authority approved the following items:
The board approved building project extensions for Heller Creations of Edon. This will involve two duplex housing projects located on Curtis Street and Depot Street in Stryker. The Curtis Street project is nearly finished with the cabinets being trimmed, along with flooring and painting work. The Depot Street project needs to have concrete installed weather permitting.
The board approved two change order invoices with Christian Builders of Montpelier. The first change order is $5,000 for 228 Beech Street, Bryan. “There was an outbuilding on the Beech Street property that was in good condition, but they redid it to match the house.”
The second change order involved a house on 891 Bryan Street, Bryan, after the homeowners had purchased it. “With the property, there was an issue with the plumbing coming back into the house due to some tree roots through the sewer line and it was taken care of.”
The board approved an agreement with Calfee, Halter & Griswold, LLP as the Port Authority’s bond counsel retainer. This will enable the Port Authority to borrow funds in the form of bonds. Having bond counsel is important to undertake such transactions.
Two area financial institutions, F&M Bank and State Bank, will be working closely with the Port Authority to help raise funds for housing projects.
An executive session was held for the purpose of considering the purchase of real property with no action taken. The next meeting will be on Monday, March 23 at 1 p.m.