By CFO/Treasurer Ryan Jenkins
As home values appreciate in the district, tax rates are reduced so that the aggregate tax collections for the school do not increase. The following graphic shows an assumed 24 percent increase in district taxable value, and the impact on three different homes. The graphic is showing ONLY taxes calculated for the district.
As the chart shows, three different homes appreciate at three different rates — Home A at 15 percent, Home B at 20 percent, and Home C at 30 percent. The taxes calculated for these homes in 2022 are shown at the bottom of the chart.
Although home values are increasing, the calculated taxes are not increasing by the same amount. In fact, Home A's tax bill would fall by 1.37 percent; Home B's tax bill would only increase 2.91 percent; and Home C's tax bill would increase 11.49 percent even though Home C's value increased by 30 percent. That's because the tax rate falls from 34.769 mills (or $1,217 annually per $100,000 of market value) to 29.784 mills (or $1,042 annually per $100,000 of market value). So, while market values increase by 24 percent, tax rates will fall by 14.4 percent.
What does this mean for the Pickerington Schools 2.80 mill bond issue that is on the November 8, 2022 ballot? Even though the levy is a new levy, the existing millage for aggregate bond collections, even if the bond issue passes, is forecasted to fall by 1/2 a mill. This will make the new levy ‘feel’ like or be similar to a renewal in that tax rates won’t increase while the community continues its commitment.
Pickerington Schools Makes Building Offer Seeking to Reduce Overcrowding Concerns
The Pickerington Schools Board of Education approved a Purchase & Sale Agreement (PSA) at its August 8, 2022 regular meeting. The PSA is a contractual offer for the district to purchase the property located at 13430 Yarmouth Rd. NW in Pickerington.
The property is currently owned by West Fairfield OH, LLC, and was most recently leased to the Ohio Center for Occupational Safety and Health (OCOSH). OCOSH was a division of the Ohio Bureau of Worker’s Compensation. The district offered $3 million for the purchase of the property.
Ryan Jenkins, Treasurer and Chief Financial Officer for the district said, “The PSA is just like when a private individual writes a contract to purchase a home. The PSA is the legal offer to buy the property.”
Jenkins also noted that the PSA creates a 90-day window to conduct due diligence, which involves items like title searches, environmental testing, and other inspections to ensure the property meets the intended needs and is safe for district use. He projects the district will close on the facility sometime in mid-November. “That is assuming the due diligence doesn’t turn up any ‘deal-breakers,’ which we are not anticipating,” Jenkins said.
“Purchasing the property allows the district to accelerate its facility plan as a part of its Plan for Progress,” said Dr. Chris Briggs, Superintendent. “We will be able to renovate the building to hold preschool classes, and this will dramatically increase the space available in elementary schools. There are currently about 15 classrooms across 4 elementary schools that are used for preschool instruction.”
Briggs also mentioned that the facility may be used for other functions like professional development meetings for the Academic Services Department or other adult learning and development.
As part of its Plan for Progress (more info can be found at https://www.pickerington.k12.oh.us/p4p), the district will ask voters to approve an $89.930 million bond issue at the November 8, 2022 general election to:
Build a new junior high school that can house up to 1,300 students.
Renovate all of Ridgeview Junior High to convert it to a building holding separate Kindergarten through fourth grade elementary students and fifth and sixth grade middle school students, which will be made possible with the purchase of the Yarmouth property. This will create an eighth elementary school that will house about 450 students, and a fourth middle school that will house about 450 students.
Add 24 additional classrooms at Pickerington Central High School housing up to 650 students, upgrade the cafeteria expanding capacity by 200 additional students, and install secure entryways.
Add 18 additional classrooms to Pickerington High School North housing up to 470 additional students, and install secure entryways.
Renovate and upgrade multiple elementary schools to accommodate growth, making room for up to 375 additional students.
Vanessa Niekamp, Board President, said, “We project the purchase of the building on Yarmouth Rd. may allow us to create up to 20 additional classrooms for preschool students who are currently enrolled at Pickerington, Sycamore Creek, Tussing and Violet Elementaries. This is much needed space at these elementary schools. But perhaps more importantly, we will now not have to renovate Heritage Elementary into a preschool learning center, which will allow us to renovate Ridgeview Junior High into an eighth elementary school and a fourth middle school.”
To read the full article about the bond issue and property purchase, visit https://www.pickerington.k12.oh.us/news/yarmouth-purchase/
