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Here are a couple of articles that may be good to review.
Pickerington wrangles with proposal for paper township
August 14, 2006
By Katelyn Sattler
Staff Writer
Pickerington City Councilman Ted Hackworth is exploring the idea of pulling the city out of Violet Township and forming a paper township.
Hackworth first started thinking about the city of Pickerington conforming its borders and creating its own township when Violet Township Trustee Harry Myers came to the June 20 city council meeting to voice a complaint about a recent school-friendly Tax Increment Financing District (TIF) approved by council.
Myers commended the city for thinking about the Pickerington Local School District, but would also like the fire department to be considered in the future. Myers stated money is lost to the fire department as a result of TIFs.
Hackworth thinks he may have found a way to protect the fire department?’s interests and possibly lower taxes for some Pickerington residents. He wants the city to act as its own township, independent of Violet Township, and be responsible for fire service.
Hackworth said he is not looking to create a new fire department for Pickerington.
?“If we create a paper township, we would be responsible for our own fire service. We could contract with Violet Township or Columbus or whoever,?” said Hackworth.
Hackworth feels it would make good sense to take the tax burden off seniors, since retirement income isn?’t taxed, as well as residents of Pickerington who work some place else. He would like to see people who live outside Pickerington, but work in the city, pay more in taxes. While Hackworth admits that, as a retiree, his proposal would help lower his own property tax burden, he quickly points out that the rental income he receives would be taxed if his idea pans out.
The idea of Pickerington forming a paper township is in the beginning stages, Hackworth stressed. ?“I haven?’t got any figures other than from the public record. I?’m not sure what the process would be. It may be long and involved,?” he stated.
Hackworth also believes shifting the tax burden away from property taxes could help the Pickerington school district pass bond issues and levies.
Hackworth hasn?’t talked to any residents about the possibility of forming a paper township yet. Voters would have to approve any proposal he would put forth.
However, he believes ?“most would rather have income tax than property tax for services.?”
He said once he has everything in order, he will approach Violet Township officials.
Currently, the Pickerington police department is also funded through property taxes.
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Continued
About paper townships
According to Ed Laramee, the Fairfield County Auditor?’s office chief deputy, ordinarily the city council would only have to pass a resolution asking the Fairfield County Commissioners to conform Pickerington?’s boundaries to form a paper township. In this case, since Violet Township is a ?“home rule?” township, Laramee is unsure if citizens would have to vote on the proposal. If they do, he is unsure if all Violet Township residents would vote or only those whose boundaries would be conformed. He believes the commissioners would follow the will of council or the voters.
Once a paper township forms, all levies of the old township no longer apply. Fire services for Pickerington would then need to be contracted, or the city could form its own fire department. The auditor?’s office would then be responsible for allocating the assets.
?“It may be difficult, like Solomon trying to split the baby,?” observed Laramee.
Columbus annexed into Violet Township in the 1970s. At that time, Columbus didn?’t have a fire station nearby. However, for many years the Columbus residents were paying income tax to Columbus and property tax to Violet Township for fire services. Once Columbus opened the fire station on Gender Road, the Columbus area conformed into a paper township, known as Montgomery Township, in the late 1990s, which then eliminated the property tax to Violet Township for Columbus residents.
Violet Township Director of Operations Bill Yaple explained that, under the new state law, the last few annexations of property to Pickerington will never be able to be conformed into a paper township. In addition, according to the annexation agreement, the 316 acres, located south of Busey Road and west of Pickerington Road, that are pending annexation action before city council won?’t be able to be taken out of Violet Township.
Violet Township Trustee Gary Weltlich said forming a paper township is not a new idea.
?“Under (former city manager Joyce) Bushman it was found to be not cost-effective,?” said Weltlich. ?“Since, under the new state law, some boundaries cannot be conformed, what happens to the non-paper township residents? It?’s an administrative nightmare. Questions will come up at the polling places: who can vote on Violet Township issues??”
If the plan to create a paper township becomes a reality, it may then be necessary for the Fairfield County Board of Elections to create new voting precincts.
The numbers
Yaple stated, ?“The statistics show we run more (fire department runs) in the city of Pickerington than Violet Township.?”
According to Chris Schornack of the city of Pickerington finance department, in 2005, Pickerington collected $3.6 million in income tax. The Pickerington Police Department collected $1.1 million from property tax, and $1.4 million was transferred to the police department from Pickerington?’s general fund to cover operating expenses.
For 2006, the Violet Township Fire Department will collect $2.5 million, or 39.4 percent of the total levy, from Pickerington city property taxes and $209,000, or 39.6 percent of the total levy, will go to the Violet Township general fund from Pickerington property taxes, according to Laramee.
The Violet Township Fire Department?’s estimated collection for 2006 is $6.3 million.
The 2007 budget for the Violet Township Fire Department is $7 million, according to Yaple. It takes more money to run a fire department than, for instance, a police department, because the vehicles are more expensive.
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More on Paper townships
?“An emergency squad costs around $160,000. A fire engine costs $500,000-$750,000, and a ladder truck is closer to $1 million,?” said Yaple.
Yaple added it wouldn?’t be as simple as taking the same pot of money and changing where the money comes from.
?“We?’d have to cover our bases,?” said Yaple.
If Pickerington were to form its own paper township and contracts with Violet Township Fire Department for 20 years, Yaple stated, ?“Say, for instance, we spend $1 million for a ladder truck to cover Pickerington runs. After 20 years we?’re stuck with it.?”
Plus, a 20-year-old fire truck changes the Insurance Service Organization (ISO) rating.
?“Most of Violet Township has a rating of 3, equal to Columbus,?” Yaple said.
The ISO rating determines how much an insurance company will charge customers, and the number is based on risk to the company.
Violet Township actually has a split ISO rating of 3/9. The lower the number the more favorable for lower homeowner?’s insurance rates. The rating of 9 is in areas where there are no hydrants within 1,000 feet of a structure, according to Dave Dasgupta, ISO spokesperson. As a comparison, Columbus, Pickerington and Canal Winchester have a rating of 3; Reynoldsburg has a rating of 4.
The hypothetical situation of Pickerington forming a paper township and contracting for fire services was presented to Dasgupta, who said the situation ?“is complicated, not as simple as it sounds.?”
?“The impact cannot be known before the fact. Once there?’s a plan, it is sent to ISO. ISO needs to know what the plan and jurisdictional issues are. We can then work with the community,?” stated Dasgupta. ?“A new field inspection will be required to determine the protection class information. If fire protection is provided through a new entity, the information is then communicated to the insurance companies. They decide whether or not to raise rates.?”
Violet Township Trustee Terry Dunlap commented, ?“If the township trustees agreed to contract fire services to Pickerington, it could change their ISO rating. Pickerington residents could watch their fire insurance (rates) double, in some cases.?”
Violet Township Fire Chief Kenn Taylor stated, ?“The one thing that is different about funding fire services through property tax is that it is voted on by all voters and the millage is the same across the board. That money can be used for nothing but the fire department, as opposed to an income tax which goes into the general fund with everyone vying for a piece of the pie. For the last 20 years, we?’ve had a permanent levy because we wanted to assure employees of a guaranteed revenue stream. The down side to this is that as the community fills in, the funding doesn?’t increase as the community increases.?”
Unknowns
It is unknown whether Violet Township would agree to contract fire department services to Pickerington.
If Violet Township does contract fire services to Pickerington, it is unknown how the fees to the new paper township would be calculated.
Since it could be perceived as changing social policy to use taxation as the vehicle to shift funding for services used by all citizens from property tax to earned income tax, it is unknown if the city charter would need to be changed.
As to who would retain the name ?“Violet Township,?” the existing township or the paper township, that is undetermined at this point.
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Debate
Pickerington debates economic development plan
August 14, 2006
By Rick Palsgrove
Southeast Editor
Pickerington City Council?’s finance committee discussed a proposed economic development agreement with Violet Township with several council members questioning both the proposal and the process being used to create it.
At the committee?’s special Aug. 9 meeting, Council President Brian Wisniewski stated a discussion of the proposed agreement was necessary because, ?“I feel like we?’re running when we should be walking.?”
Draft of the proposal
A draft of the proposed economic develop agreement between the city of Pickerington and Violet Township, put together by the law firm of Schottenstein, Zox, & Dunn and dated July 21, lays out these potential agreements:
?•Violet Township and Pickerington would agree to cooperate on commercial development within the township. The city and township would meet to discuss any new commercial development within the corporate boundaries of the township to determine whether the property should be annexed to the city or made subject to a joint economic development district (JEDD) agreement between the city and township. If a JEDD is created, the city and township would agree to equally share all income tax revenues remaining after the JEDD expenses are paid. If the commercial development is annexed to the city, Pickerington would make service payments to the township equal to 50 percent of any income tax collected.
?•The city would not actively encourage annexation for 10 years and will not accept any approved annexation in this period. Annexations would be allowed if the city and township agree that an annexation is in the best interests of both political subdivisions.
?•The city would make service payments to the township on future annexations for a 10 year period.
Questioning the proposal
On his Web site blog, www.oraclebrian.com, Wisniewski laid out these criticisms of the proposal: it ties the hands of the city regarding annexations and makes future annexations impossible with township approval; no other city is bound by the agreement; there are no specifics regarding the financial risks, costs and benefits associated with the agreement; it would not allow the city to form its own township even if such an action was a benefit to the residents; and requires service payments to the township.
?“Under the proposal half of the income tax revenue goes to the township,?” said Wisniewski at the committee meeting.
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