Pickerington Area Taxpayers Alliance

TIF's

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The Southeast Messenger reported this week on the TIF?’s that Pickerington voted for and passed under emergency legislation in Pickerington. Here again they had their three readings and passed these measures without the public?’s input. I receive the agendas from the city twice a month. The day before the council meeting I received my agenda and a copy of the two ordinances. Last night I was able to read them and I have come to the follow conclusions. This was grand standing on the part of the Pickerington City Council. They are just paying back their political debt that they received from the Majority School members during the CEDA debate. They mentioned Lori Sanders more than once and Mr. Sigman was present to thank the council for their wonderful efforts.

Now let?’s factualize this as Mr. Parker might say (spell checker doesn?’t like the word factualize). The $200,000 gifted to the school is over a ten-year period. These are TIF?’s for the most part on retail type businesses. Why do we use TIF?’s for retail businesses that come here because of all the population growth in the area? The answer is we are broke and we can?’t afford to build a new road or put up a traffic signal. In fact, the largest TIF calls for another 4 way stop just south of the current Diley Road and Hill Road intersection. We fix one problem and create two more with this plan. They just do not listen to the public. They didn?’t want to give the Pickerington voters a chance to look at this plan and comment on it. It is their baby now so they must live with it along with the rest of us.

They say it will create $7 Million dollars worth of new taxes. That is over a ten-year period that they forgot to mention. Mean time the schools will be denied about $5.6 million in real estate taxes because the TIF is going to build roads and outer infrastructure that the city can?’t build with their capital improvement budget. That is $5.6 million from property that is not producing children into our school system. That would have been a net gain for the schools without the TIF.

Now ask your self why do we need these road improvements? Simply stated there are more people coming to our community. The city is trying to pull one over on the public this time around. They want those that vote for school board members to vote for their chosen ones because they (Sanders and Sigman and Carlier) fought hard and got the city to give them back about $200,000 from the $5.6 million they just took from the schools. Now if these restaurants and office buildings don?’t materiel in the next ten years then the Pickerington Tax Payers must make the payments on these TIF loans. Does anyone out there ever see empty office space located within the City of Pickerington? Do you see any empty restaurants? The retail real estate business is a very risky business. It comes and goes with the wind. Yet our city is placing its bets on this retail type businesses.


These new business will be paying a full real estate tax load for their buildings. Unfortunately the normal 80% of that tax that would have gone to the schools will now go to the city for road improvements.
''fibberdy-jib''... Is it Just Me?

Joyce Bushman, ah-hem, excuse me; Pickerington City Manager Joyce Bushman is like a shop-oholic on her last dime of credit. She?’s nearly overdrawn and like a true credit card addicted, she is scrambling for money every way she can, including taking money from all of Pickerington Local School District?’s (PLSD?’s) taxpaying citizens (yes, that means you too Violet Township residents). The money-trail?… rather, credit-trail?… is not difficult to follow.

Instead of a retail businesses coming into the city of Pickerington, paying to make infrastructure improvements and then setting up his or her retail shop, Pickerington pays for the improvements. These infrastructure improvements run into the millions of dollars!

You may ask, ?“If the Pickerington?’s city manager is in a financial pinch, how can she afford to do that??”

Answer: She doesn?’t; our schools pay for all of it instead.

Once a piece of property is developed, the value of that property increases and therefore the taxes on that property increase. That translates to more money for the city and more money for the schools, which develop a good part of the school?’s money.

Here?’s where our schools get short-changed. Instead of having the retails stores pay for the necessary improvements to the property, the city gets a loan and does it for them.

You may ask, ?“How do they get a loan, if they are financially strapped??”

Answer: They get it by diverting the school?’s portion of the increased tax revenue that would have initially went to the schools had the retail owner paid for the improvements and use that money to pay for their loan. So the money that PLSD should be getting because of the increased property value due to the improvements is diverted to pay on the City of Pickerington?’s loan. All the legal speak you hear and read about in city council meetings such as, ?“the issuance of bonds?…?” etc. and so forth is ?“fibberdy-jib?” for, ?“getting a loan!?”

Now here?’s the snow job. It may be a little difficult to follow, but please try (It seems many residents get confused in the details and lose interest, throwing down the local newspaper and choosing the remote control instead): Pickerington city council cooked up a formula they proclaim rebates the schools for the lost revenue. There?’s only one problem: their math does not add up. If the city were like the majority of cities in the state of Ohio, the retail owner would have made the improvements. Historically, retail stores flourish in residential areas such as Pickerington?’s because of the huge market. The more residents within a given area, the more business retail owners can expect.

The formula short changes the schools millions of dollars over the life of the loan as PLSD tries to recoup the costs associated with making up these funds and beat inflation. That $200,000.00 in reimbursements is costing PLSD millions of dollars in the long run, yet our board?’s majority says nothing. Actually, one member of the majority even praised the city for their effort. This goes to show you how these complex issues are too much for our own school board members to fully understand. Continued?….


By u.v.t.r.
?“fibberdy-jib?” Part II

You may ask, ?“If the retail store owner is more than willing to pay for the infrastructure improvements to accommodate their business, why give them a break? Why does the city pay for it??”

Answer: Do you remember the credit card lady who needed money fast? We?’ll what this does is get money into the city coffers immediately. The city gets a loan for the improvements and the school pays the loan payments. No charge to the city?’s budget. Raising taxes would simply take too long and would alert too many resident to her doings.

Meanwhile the city gets to keep their share of the property tax revenue and, as an added bonus, they get the new income tax receipts from the workers who operate the retail stores. This grand scheme or shell game is called ?“Tax Increment Financing?” or T.I.F.?’s

I?’m sure you?’ve all heard about T.I.F.?’s and now I sincerely hope that you now know we are ALL paying for the city?’s ineptitude. The short on the long is the shop-oholic credit card fiend has just increased her credit line. Anyone who?’s been duped by an increased credit line knows that eventually, the bill must be paid. Unfortunately for city residents, when the bill does become due, the shop-oholic can simply change jobs and move on, leaving the residents holding the bill. By then the damage is done. Taxes and fees will go up and frustration will also.

I have sat repeatedly on SR256 during the morning rush hour wondering, ?‘How many residents feel the way I do about all of this??… Do we really believe that this growth is sustainable??… Can we really stand another 1,700 homes and 3,400 cars??’

I continue to wonder, ?‘...or is it just me??’






By u.v.t.r
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