The village of Groveport continues to share its income tax wealth with Groveport Madison Local Schools.
At Groveport Village Council’s Dec. 17 meeting, village officials presented Groveport Madison Schools Superintendent Scott McKenzie and board member-elect Nathan Slonaker with a $419,794 income tax revenue sharing check.
"This money allows more of our general fund expenditures to go into areas of instruction, which directly benefits our students," said McKenzie. "Our partnership with you (the village) and your continued support will allow our district to forge ahead. We will work to live within our means and invest in what matters most, our children."
According to Groveport Finance Director Ken Salak, in the past nine years the village has presented income tax revenue sharing checks totaling more than $3.6 million to the school district, including a check for $434,674 last April.
The village presents the income tax revenue sharing checks twice a year to the school district. Groveport began sending the income tax revenue sharing checks to Groveport Madison in 1999. Here is the breakdown of the amounts over the years:
•1999: $14,993 and $55,170
•2000: $44,800 and $55,843
•2001: $58,547 and $164,668
•2002: $296,770 and $252,623
•2003: $197,102 and $506,818
•2004: $204,511 and $257,849
•2005: $203,547 and $241,648
•2006: $277,487 and $363,832
According to village officials, "This payment is made to the school district as a result of the Community Reinvestment Area (CRA) tax exemptions that are granted by the village. In a municipality, with an income tax, any project in a CRA which will generate a new annual payroll of $1 million or more, the income tax revenues generated by the new employees is split 50/50 between the municipality and the board of education."
McKenzie stated 100 percent of the income tax revenue sharing funds the district receives are placed in the school district’s permanent improvement fund to be used for capital projects.
"This fund pays for work on our existing facilities including their renovation, repair or maintenance," said McKenzie.
He noted the district used these funds in 2007 to: replace two school building roofs, replace refrigeration parts, purchase lawn mowers, buy used kindergarten furniture, purchase security cameras, and replace a fire alarm system.
He said in 2008 the school board will consider another roof replacement, roof repairs at the high school, resurfacing tennis courts, resurfacing the high school parking lot, and replacing crumbling curbs.
In addition to the income tax revenue sharing checks, Salak said the school district also benefits from commercial development in the village in other ways.
"The only tax abatements are on buildings, not on the increased value of the land," said Salak.
He explained that when the land was open farm land its tax value was lower than after it was developed. After development occurs, the tax value rises and the school district receives its share of increased tax revenue from the increased value of the land. Additionally, the school district gets its share of personal property tax generated from equipment and inventory in the commercial development area.
