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Joint tax effort eyed by village, township
(by Joseph Koziol Jr. - December 03, 2008)
Joint tax effort eyed by village, township
By JOSEPH KOZIOL JR.
Officials from Burton Village and Burton Township pulled together last week with a recommendation that the two entities seek a mutual agreement on a tax-sharing plan.
The recommendation came from a three-member committee formed in April to determine the best course of action on township properties north of the village.
The committee, consisting of village Councilwomen Linda Swaney and Judith Beaumier and township Trustee Daniel Whiting, recommended that the two communities attempt to form a joint economic development district for the properties that extend from the northern village limit to just north of Fisher Road.
A JEDD would permit the two entities to develop a compact by which both can share income taxes from the properties. Townships lack the authority to collect income taxes on their own.
The committee discussion was prompted by a move by some members of Village Council to annex the properties. After threats of legal action by Township Trustees, the two sides agreed to discuss the issue.
Ms. Swaney said the next step is to decide whether they want to proceed with the formation of a JEDD. She said council must vote by a two-thirds majority to move forward, while the three-member board of trustees must be unanimous in their support. If the trustees fail to give their unanimous vote, she said, the matter could be placed before voters.
Even if both sides vote to move forward, Ms. Swaney said, it does not automatically mean the JEDD will be formed. They still would have to reach an accord on the length of the agreement and how much each side would receive in a tax split. "Even if we agree, at any point in the negotiations, it could come to a standstill," she said.
Ms. Swaney said it makes more sense to work with the township than to fight it. "We share the same schools. Our residents are neighbors. They go to the same churches," she said. "These battles are not good battles."
Ms. Swaney said those in attendance appeared to be positive toward the idea.
Mr. Whiting agreed. Village Council, which at one time seemed intent on moving toward annexation, appears to have come around to the idea of a JEDD, he said. "We got the most positive responses from Village Council that we've had up to this point."
Mr. Whiting said it's more worthwhile to work together than against each other. He said the hard feelings that would have been created by annexation would not have been worth it from the little amount of money the village would receive in new taxes.
He said Geauga County Auditor Tracy Jemison estimated that income taxes received from the Geauga branch of Kent State University in the township would have amounted to only $21,000 annually.
With a JEDD, the communities can stay on good terms and work together to add jobs, Mr. Whiting said.
That will be especially critical as the Kent State branch looks at expansion plans, which will require a costly upgrade to the village's sewer lines, he said. The village could file a joint application with the township for Ohio Public Works Program funds, Mr. Whiting said. A joint application generally is given more weight than those from lone entities when distribution of funding is considered, he said.
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