Budget Commission Lowers School Millage Tax Rates
County Budget Commission Lowers School Millage Tax Rates
Jefferson- The Ashtabula County Budget Commission has reduced the property tax millage of two Ashtabula County school districts this past week during their final meeting of the year. Ashtabula Area City Schools’ Bond Levy will decrease by 1 Mill and the Grand Valley Local Schools’ Bond Levy will decrease by .5 Mill for next year’s tax charges.
“Each year we look at revenue from every Bond Levy and how that revenue compares with the need for each taxing district to make loan payments,” explained Auditor Thomas. “These two schools are at the point in their bond payments where we can decrease the tax charge to the property owner and the schools can still make payments.”
The Budget Commission is made up of the County Auditor, County Treasurer, and County Prosecutor who review local government budgets for revenues, expenditures, and tax rates. The Commission’s role is to ensure taxing districts show a need for the revenue they receive from property owners each year.
Thomas met with Ashtabula Area City Schools’ Treasurer Mark Astorino along with the school’s Bond Counsel Monday to discuss options for lowering the tax rate to property owners. The district has nine years left on their now $21 million bond balance. Based on current payments and cash balance in the fund, Thomas and Astorino agreed that the Millage charged to property owners could be decreased in the coming year.
“When removing the cash balance the school already has in their fund to pay the Bond back, they’re looking at a roughly $1.4 million annual payment moving forward,” said Auditor Thomas. “Ashtabula’s previous Millage rate applied to property owners would have brought in more money than needed to pay back the bond.”
The decrease in Millage applied to property owners is $35 per $100,000 of value according to Thomas.
Grand Valley Local Schools also saw a decrease occur from the Budget Commission for their bond levy for next year. Three years remains on the bond levy approved by voters currently at 2.8 Mills of taxed value. The school has a balance of $2.6 million with a remaining collection needed after removing the cash balance in the fund of $440,000.
Thomas’ office spoke with Grand Valley Local Schools Treasurer Lisa Moodt about the remaining payments and balance and agreed with a .5 Mill decrease in the levy taxed on the property owners for next year. The property owners in the district will see 2.3 Mills assessed on their 2022 tax bills.
“This .5 Mill decrease will mean $17 in savings per $100,000 of property value in the school district,” stated Auditor Thomas. “We will evaluate for the remaining three years of the bond and continue to see what the need is for payments and if we can decrease the tax rate again before the loan is up.”
The Budget Commission examined 12 local government bond and emergency levies to ensure a need for the charged amount on property owners to make loan payments for next year. Thomas explained that while Grand Valley and Ashtabula City Schools were the only two entities to see a decrease, other localities are being monitored and will likely see changes in the future.
This year was the final collection for the North Kingsville Village Fire Truck Bond of .5 Mills and 2022 will be the final taxable year for the Harpersfield Township Fire Truck Bond of .6 Mills.
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