Village looks at measure for tax incentive

FORT RECOVERY — The village may enact legislation to allow local property owners tax exemptions for renovating existing buildings or constructing new ones.

Fort Recovery Village Council heard more about the benefits to enacting a Community Reinvestment Area program at its meeting Monday. Council also discussed drafting legislation for an income tax levy.

According to Ohio Department of Development's website, the Community Reinvestment Area program is “an economic development tool administered by municipal and county government that provides real property tax exemptions for property owners who renovate existing or construct new buildings.”

Fort Recovery officials have discussed including the entire incorporated area of the village into the Community Reinvestment Area’s reach.

Tax exemptions from the program could be at 75% or 100% — the latter would require consent from Fort Recovery Local Schools — for different projects, including residential home remodels, new home construction, commercial and industrial facility remodels and new commercial and industrial facility construction. 

The length of the exemption could depend on the type of work completed.

Fort Recovery assistant village administrator Aaron Rengers said the research committee has suggested 15-year abatements for home remodels, 10-year abatements for new dwellings and eight-year abatements for commercial and industrial remodels and new construction.

He noted the village could set the limits on how much the minimum investment from the property owner would need to be in order to qualify. The process also involves creating a housing council.

“It has to be adding square footage to the residence in order to really affect your taxes, so the abatement’s only on the new money coming in,” said Rengers. “The way the abatements work, if you remodel your house, and it’s an add-on, the new assessed addition can be abated up to 75%. It’s not going to affect the school’s money that they’re currently collecting.”

Rengers explained he and village administrator Randy Diller met with Fort Recovery Local Schools superintendent Tony Stahl recently to discuss the potential for such a program. He noted Stahl planned to discuss the program with school board members Tuesday.

 He said the village could annually review its Community Reinvestment Area program and decide whether to continue. 

Mayor Dave Kaup asked how long it would take in order to enact the program. Rengers noted it’ll involve publishing a notice in the newspaper before council approves an ordinance, which will require three readings. It’ll take effect as soon as required paperwork is submitted to Ohio Department of Development. He suggested launching the program Jan. 1.

“It’d be a nice, clean start date that way,” he said. “You know, people start construction in the spring typically.”

Diller noted he and Rengers would start drafting legislation for the program, with hopes for council to have its first reading on the related ordinance by August.

Also Monday, council members talked about creating an income tax levy. (If the income tax levy is approved by voters in the November election, the village would cease to collect on the village’s existing four real estate tax levies until they expire.)

The village’s 2.5 mill — In Ohio, property taxes are charged as millage, with one mill equal to one-tenth of a cent — five-year general expense tax levy is up for renewal in the fall. Fort Recovery currently has four real estate tax levies, with three at 2.5 mill and one at 2.3 mill.

Current levies generate about $286,000 annually for the village in different areas, including the general, storm, wastewater and street funds.

Diller brought up earlier this month discussion about potentially rolling over to an increased income tax and doing away with real estate tax levies.

Fort Recovery has a 1% income tax currently. He provided additional information Monday, saying the only communities near Fort Recovery also at a 1% income tax are Ansonia, Ohio, and Rockford, Ohio. Most of the other surrounding areas, including St. Henry, Coldwater, Celina, Minster, New Bremen, New Knoxville, Versailles, have a 1.5% income tax.

He noted approximately 62% of Fort Recovery’s income taxes come from village residents, with the remaining percentage coming from non-residents.

Returning to a question posed earlier this month, Diller said the village wouldn’t be able to repeal the other levies. However, it could choose not to collect on those levies and continue to do so until they expire.

“I think that’s important, if we’re going to look at a half percent, I think we want to be able to tell the people that we’re going to eliminate those four tax levies,” Diller said.

He noted the village’s annual budget must be submitted next month, meaning it wouldn’t be able to account for the levy decision in November. He noted he’s looking into whether the village can amend its budget at that time. If not, he suggested not starting to collect with the new levy until 2027.

Council member Cliff Wendel said he was in favor of moving forward with the new levy. He also talked about doing away with the real estate tax levies when they expire.

Diller suggested hosting a work session for the public to meet with officials and share their thoughts on the matter. 

“We don’t want to spring it on anybody,” Diller said. “We’re not trying to surprise anybody. We’re not trying to get rich here. We’re just trying to collect what we need to collect and make sure we can keep on doing what we’re doing.”

In other business, council members Lucas Knapke, Scott Pearson, Greg Schmitz, Al Post and Wendel, absent Erik Fiely:

•Passed a resolution formally opposing Ohio House Bill 335, which Diller said would eliminate inside millage. The village receives approximately $72,000 annually from inside millage. Diller said the bill would largely impact school districts.

•Approved an ordinance levying assessments on properties abutting the 100 west block of Butler Street and 100 to 200 east block of Butler Street — the portion of road recently reconstructed — for the installation of sidewalks and curbs.

•Agreed to pay a $386.75 bill to environmental consultant Eagon & Associates. Diller noted plans to begin test drilling July 7, a part of the process for determining where to put a third well in the village.

•Learned seeding work completed at the location of the new water tower will need to be redone. Plans are still in motion to disinfect the water tank June 24, allowing the village to take bacteria samples as per required for testing prior to putting the new tower in service by July.

•Were informed the village’s renewal policy for property and liability insurance came in at $600 higher than previously, with the total amount at $39,719. It now includes new vehicles and the second water tower, noted Diller.

•Heard Kaup praise community members involved in organizing Fort Recovery Harvest Jubilee, which ran from Thursday through Sunday.