Pickerington Area Taxpayers Alliance

In my opinion, the proposed Master Economic Development Agreement between the city and the township has generated more heat than light. However, I believe that Councilmen Wisniewski and Fix have stated the arguments, pro and con, quite well. Thanks to this web site, we can read both presentations, as well as the agreement itself (which, in its current version, is just four pages long).

What I'd like to do here is to begin isolating the areas of agreement, and the areas of disagreement, in all of this. Please feel free to take issue with anything I say, but please be specific.

Here, I think, are the areas of agreement, looking at this matter strictly from the city's perspective:

1. The city has a pressing need for more tax revenue. At present, the city cannot afford to hire the number of police personnel it needs, to resurface the city's roads at a reasonable rate, or even to pay down the outstanding principal balance of its indebtedness.

2. The city's tax revenue, as a general matter, equals its tax base times its tax rate. There certainly is no interest, now, in increasing tax rates. Thus the only way to generate more tax revenues is to expand the city's tax base.

3. Adding residential property, and even some forms of retail commercial property, to the tax base, however, will generally increase the city's expenses more than its revenues. The real need, therefore, is to add non-retail commercial property, such as hospitals, office buildings, warehouses, and even factories, to the city's tax base.

4. Unfortunately, there is little, if any, land available within the city's current boundaries for such development. Most of the land in our area that is suited to such development is located in Violet Township, or in other adjoining townships, along the SR 33 corridor.

5. The issue before us, therefore, is how
the city can best add such land to its tax base. As I see it, the city has three alternatives:

First, the city can go it alone, and try to annex the requisite land. Much of this land, however, is not contiguous to the city. Thus the city must first annex its way to the land in question.

This was the policy of our three former mayors, and of our former city council. It led the city to actively encourage residential development along Diley Road, and contributed substantially to the problems our community now faces. Our current mayor, and all members of our current city council save one, have actively opposed this policy.

Second, the city can enter into a joint economic development agreement of some sort with Violet Township and, possibly, with other adjoining townships. The agreement could, I suppose, differ somewhat from what is now being proposed. But by agreeing to throw in its lot with the township, the city would necessarily be giving up some of its autonomy. That's what a joint economic development agreement does.

Third, the city can merge with Violet Township.

I believe that these are the city's only choices. Please let me know if you can see another alternative. Which would you prefer? Or have I missed something along the way.

By Yosemite Pam

What problems are in the townhip

Pam

I believe before you can find a solution to any problem you need to understand the REAL problems facing the City. I noticed that you listed the City's problems but failed to mention the Township's problems.

Pam, I have also read the Growth Management plan that was published on the City's web site. It does mention regional alliances however it also suggests studies and no where in the study does it recommend or even mention what the Township whats the City to give up in rights. So I guess my first request is that you and others not take the word of a rookie in urban planning like Mr. Fix. Clearly I get the impression that he was over selling his agreement to inspire someone not well connected with the process to buy into his thoughts.

The second issue is taxation. The City has a 1% income tax with a 50% credit on income earned in another city that charges income taxes. Many suburban cities around central Ohio charge 2% income tax. However I suspect to get the voters to agree to that the city would need to add some candy to the proposal.

One solution for the city may very well be to form a paper township and to reclaim some of the taxes the City tax payers currently send to the township. I know there was an effort some months ago to look into that.

The fact that Violet Township would try to hamstring the city with its demands has made me furious with them and I doubt I would ever agree to a merger. The fact that we have a rookie doing the City's biding in this deal is also a concern. The trustees are eating him alive.
In fact in his comments he complains that the City Manager proposed an agreement that favored the City. THe fact here is he didn't have the B--LS to take it to Gary. Giving city tax payer money away to the township is not going to solve the problem.
Mr. Fix also says that he does expect that this agreement will NOT produce any results until the second 10 year period. Is that year 12 or year 18. He didn't provide any information to support his theory.

If a merger ever were to get to the talking stage we can't have someone like Fix capitulating before he walks through the front door.

I have been contacted to help circulate a referendum against this agreement. I will not carry it by myself. I understand that there is growing concern in the community over this deal.

One of the first steps that would help lower the anxiety of the City officials and her residents is if the township would get off their collective butts and actually go out and get signed affidavits from the property owners that have viable properties for a JEDD. These affidavits can be filed for future JEDD projects and it would NOT just be the word of a French Fry salesman.

I don't see the connection

Could you tell me how the city's formation of a paper township could possibly help it acquire the land needed to add significant non-retail commercial property to its tax base?

Remember, this is the only kind of property that would clearly generate more revenue than expenses for the city, and the land needed for such development is now almost all located in Violet township.

Remember, too, that the only alternative to enlarging the city's tax base is increasing its tax rates. Do you favor an increase in the city's tax rates?

If not, the city, it seems to me, has just three choices: annex the land it needs, enter into a joint economic development agreement with the township, or merge with the township. Please tell me which of these you favor, and why.

By Yosemite Pam

Paper Township

Pam,

You need to look at the history and the progression of Cities in not only central Ohio but cities in general. Cities in central Ohio have protected themselves and their taxpayers in the past by stopping the flow of money to the surrounding townships and formed not only City Townships but City School systems.

If you look at cities like Upper Arlington, Grandview Heights, Whitehall and Bexley they have their own school system and they provide for the fire services. Cities in transition like Groveport are in the process of forming their own school system and I would expect them to break away from the Madison Township Fire Department one day soon.

Pickerington is no different than these other cities. With pressures from its neighbors Reynoldsburg, Columbus, Canal Winchester, and Violet Township the city sees itself BLOCKED from further expansion on three and a half sides.

I believe you have taken the Jeff Fix bait and ran with it, in that we must develop an industrial tax base down along US 33 to survive. I have not heard one quote from anyone on the Pickerington City Council or the staff that says we must annex our way to US 33 like what came out of the previous administration. Mr. Fix infers that in his message. Mr. Fix?’s reasoning is very flawed and misguided.

The City of Pickerington has an A-1 Credit rating which was recently upgraded from an A-2. The City?’s debt is being paid down and there has been yearly increases in revenue. Mr. Fix misquoted the Police Chief in his comments. When asked if he needed anything in the Police Department the Chief replied that most suburban cities our size have one sworn officer per 500 citizens. Using that same logic then Violet Township should have over 40 sworn officers in their police force.

I believe you recall that the city has been getting itself back on financial track with the recent increase of utility rates. The city had been living off of growth and tap fees for years now. That has ended.

So to answer your question of what do I favor. From a financial stand point I believe the best solution for the COMMUNITY and the school district would be a MERGER. However that is not possible in my opinion because of the resistance that it would receive from the Trustees especially Terry Dunlap. Clearly Mr. Dunlap wants to protect his family farm. I believe there could be some financial solutions to the problems raise by Mr. Dunlap in the past. However I believe he has and will continue to play his hand too long and it will end up hurting the township residents.

As a city resident, I would favor a tax reform of how we support our city services including the fire department. If those in office could present a tax package that shifted the taxation to those that use the services the most and if that plan were to lower my property taxes significantly then I would support that. I gather that at least two or three on council have toyed with the idea. Depending on your perspective it would either be good or bad. If Mr. Hackworth?’s survey was any indication the vast majority of the city residents would support a City Fire Department. Since this proposal would be voter driven then there may very well be support for this opinion from city tax payers. I guess it would all depend on the numbers and how it affected each individual voter.