Special Meeting

PUBLIC HEARING

Tuscarawas Valley Local Schools

Board of Education

10.8.18

Introductions

Mr. Larry Lindberg, Tuscarawas County Auditor

Mr. Mark Phillips, TVLSD Treasurer

Mr. Mark Murphy, TVLSD Superintendent

TVLSD Board of Education

Public Hearing Agenda

  • The Legal Notice
  • Importance of Timing
  • District Objectives
  • Explanation: County Auditor and TV Treasurer
  • Q & A
  • Commitment to TV Community

The Legal Notice

NOTICE OF PUBLIC HEARING

TUSCARAWAS VALLEY LOCAL SCHOOL DISTRICT

TUSCARAWAS AND STARK COUNTIES, OHIO (R.C. Section 5705.314)

There will be a public hearing of the Board of Education (the "Board") of the Tuscarawas Valley Local School District, Tuscarawas and Stark Counties, Ohio (the "School District") at 6:30 p.m., Monday, October 8, 2018, at the Tuscarawas Va lley Senior High School, Room 114, 2637 Tusky Valley Road NE, Zoarville, Ohio 44656. The public hearing will solely address a proposal of the Board to change its levy within the ten mill limitation to not to exceed five (5.00) mills for permanent improvements of the School District. Such proposal would commence in 2018 and/or 2019, and be first effective in calendar year 2019 and/or 2020. The change proposed by the Board may result in an increase in the amount of real property taxes levied by the Board.

Following the public hearing, the Board may pass a resolution implementing the proposal.

Published in The Times Reporter on September 21, and September 27, 2018.

Timing

Begin OFCC

Initial meeting and planning with OFCC

July 2016

Active Planning

Approve OFCC resolution for active planning process

March 2017

Approve Master Plan

Approve OFCC Master Plan and establish state & local shares

April 2018

ROVER

Learn valuation of Rover, confirm utility tax revenue, and consider millage movement to create PI fund with no tax increase

October 2018

Finance

Secure “local share” by financing the project and begin design phase

February 2019

Receive State Funds

Receive OFCC “state share” and continue design phase

July 2019

Our Objectives

  • PREPARE and ACT on once in a lifetime opportunity
    • Anticipate Rover Pipeline utility tax revenue
    • Partner with Ohio Facilities Construction Commission (OFCC)
    • Confirm Rover Pipeline valuation and utility tax revenue
    • Consider shift of small amount of ‘inside’ millage to ‘outside’ millage to create PI fund
  • CREATE state of the art learning facilities
    • Build new Middle/High School (grades 7-12)
    • Renovate/add to existing TVMS (grades PK-6)
    • Relocate bus garage to existing student parking lot
    • Renovate select portions of existing TVHS for community center and central offices
    • Update stadium and athletic/arts facilities
  • PROVIDE a premiere education for all students
  • OPERATE efficiently and effectively

A Glimpse of What CAN Be...

The Process

Explanation from Mr. Lindberg and Mr. Phillips

  • Timeline
  • Impact of Rover valuation on TVLS millage
  • Impact of proposed millage shift to residents

Millage Move Timeline

Public Ad #1

First advertisement of public hearing

Sept 21, 2018

Public Ad #2

Second advertisement of public hearing

Sept 27, 2018

Rover Value

The Ohio Department of Taxation sends PUPP values to County Auditor

Oct 1st 2018

Public Hearing

Present factual information and answer questions

Oct 8th 2018

Board Vote

Following the public hearing the Bd of Ed will decide to move millage or not

Oct 8th 2018

Tax Rates Certified

County Auditor certifies 2018 tax rates to the Ohio Department of Taxation

MId Nov 2018

Rover Value

  • Pipeline #1 taxable value = $40,000,000 (October 2018)
  • Equivalent to 750 new homes valued at $150,000 each
  • Rare occurrence
  • Pipeline #2 = ??? $40,000,000 (October 2019)???

Impact of Rover Value - Fixed Sum Levies

  • Generate a specific dollar amount of taxes for TVLSD
  • TVLSD has 4 fixed sum levies (3 emergency & 1 bond)
  • The Rover Pipeline will pay a portion of the fixed sum levies
  • EVERYONE ELSE PAYS LESS
  • TVLSD does not receive additional tax revenue
  • Emergency Mills = 14 (2, 4, 8)
  • TVMS Bond Levy = 2.1

Impact of Rover Value - Inside & Current Expense

  • Rover pays $950,000
  • EVERYONE ELSE PAYS THE SAME
  • Generates $950,000/year in additional general fund revenue

  • Inside Mills = 5 general fund
  • Current Expense Mills = 15 general fund

2019 Tax Bill Impact

School District Portion

  • $44 decrease for a $150,000 home
  • 2.3 mill total decrease to fixed sum levies
  • 1.5 inside mills moved from general fund to permanent improvement
  • 0.8 mill overall net decrease in school tax rate

Questions & Answers

If the Board approves moving 1.5 mills from “inside” to “outside” mills, will it result in a tax increase to Tusky Valley residents?

No. It would result in a tax decrease on the school district portion of residents’ tax bill.

Questions & Answers

How much revenue will the Rover Pipeline generate, and how will this money be used?

Approximately $950,000 annually. This money would be used to pay the “mortgage” of the local share (61%) of comprehensive facilities project.

Questions & Answers

If the Board shifts 1.5 mills from the General Fund to a Permanent Improvement Fund, how much extra revenue will it generate? How will this money be used?

Approximately $400,000 annually. This money will be designated to a permanent improvement fund for facilities, technology, buses, equipment, etc. It also serves as a safety net to be able to pay the “mortgage” of the 61% local share.

Questions & Answers

Could the revenue generated by Rover have a negative impact on state funding?

It is our understanding that under current law there will be no adverse effect on state funding…..

However, the legislature rewrites school funding laws every two years and no one can predict the future.

Questions & Answers

If Rover generates $950,000, why do you need to move millage on top of that?

The movement of millage will create funds which can be dedicated to paying the “mortgage” in the event the Rover revenue is offset by a state funding loss, like a “safety net.”

Questions & Answers

Will this shift of millage trigger appraisals or reappraisals, and what happens when there is a re-appraisal?

No. Reappraisals and triennial updates occur every six years and alternate with one occurring every 3 years .

Tuscarawas County: 2020 tax bill

Stark County: 2019 tax bill

Questions & Answers

What is the reason for moving millage vs. a traditional voter approved bond issue or permanent improvement levy?

The district is committed to maximizing resources, stretching dollars, and improving the quality of education.

It is important to do this without additional taxes. Our goal is to capture THIS OPPORTUNITY to shift millage, decrease taxes (for school district portion), and complete a facilities project.

Questions & Answers

What happens if the Board does not approve the movement of 1.5 mills?

The Board will need to explore other, unfavorable options:

  • Not pursue a facilities project
  • Wait to “bank” all money to pay cash for new facilities
    • Local share will increases each year

Questions & Answers

Will there be an operating levy on the ballot after the campus is built?

The Board has no intention of placing additional operating levies on the ballot. The Board does plan to renew the three existing emergency levies in 2020, 2022, and 2024. The TVMS Bond Levy expires in 2019.

Questions & Answers

Which existing bond levy will the millage be moved from for the permanent improvement levy?

The millage will be moved from the 5 inside mills currently devoted to the general fund. The movement will result in the 5 inside mills being allocated as 3.5 mills to the general fund and 1.5 mills to permanent improvement.

Questions & Answers

If approved by the Board, how many mills will be moved?

The millage move for 2018 currently being considered by the Board is 1.5 mills.

Questions & Answers

Does TVLS have enough funds under current millage and with the movement of mills to the permanent improvement fund, to support the local share of new schools without a foreseeable operating levy increase in the near future?

Yes. We anticipate line #2 of the Rover Pipeline will be valued equally to line #1 allowing for another movement of millage in October of 2019, if the Board desires.

Questions & Answers

Will this movement place TVLS below the SB920 20-mill floor?

TVLS is already at the 20 mill floor.

Our Commitment

  • PROVIDE a premiere education for all students
    • Excellence in academics, athletics, and the arts
    • Safe and positive learning environments
  • OPERATE efficiently and effectively
    • Maximize resources, spend conservatively, operate efficiently
    • No proposed bond issue or Permanent Improvement Levy
    • No proposed operating levy
    • Continue operating renewal levies: 2020, 2022, 2024

A Glimpse of What CAN Be...

Thank you!

2020 Tax Bill Impact (w/triennial update & 2018 millage move)

School Portion

  • $34 decrease for a $150,000 home
  • 1.8 mill decrease due to expiration of bond levy
  • 1.5 inside mills moved from general fund to PI
  • 2.6 mill overall net decrease in school tax rate

Assumptions:

  • 3% Increase from triennial update
  • No additional Rover value
  • No additional millage move
  • Bond Levy expires

2018 vs 2020 Tax Bill Impact (HYPOTHETICAL)

School Portion - Cumulative 2018 vs 2020

  • $58 decrease for a $150,000 home
  • 6.0 mill total decrease
  • 3.5 inside mills moved from general fund to PI
  • 2.5 mill overall net decrease in school tax rate

Assumptions:

  • 3% Increase from triennial update
  • Line 2 @ $40,000,000
  • Additional 2mills moved Oct 2019
  • Bond Levy expires

Special Meeting: Public Hearing - Google Slides