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Four Ordinances to Advance Monroe Schools Money
Sunday, April 08, 2012 4:43:37 PM - Monroe Ohio

by John Beagle

There are four ordinances amending TIF Compensation to Monroe Local Schools on the upcoming Monroe Council Meeting on Tuesday, April 10, 2012. During the previous council meeting there was a discussion, a presentation by School Superintendent Lolli and unanimous approval to accelerate payments to the school district.

The rationale is to get the schools enough money in their account to avoid a state takeover of Monroe Local Schools. "The time we would need to have the actual cash would be about the middle of June. We cannot show a deficit by June 30th," said Superintendent Lolli.

When I asked School Board President Brett Guido if this would be enough money to avoid the state placing the district in Fiscal Emergency, he said he couldn't say for sure.

By Monroe Charter and state law, an ordinance needs two readings to be adopted and passed into law. This coming Tuesday, council will have the second reading. If passed, the City of Monroe will advance part or all of the estimated annual TIF compensation to the school district.

Here are the ordinances as being presented to council for a second reading:

1. Ordinance No. 2012-04. An Ordinance authorizing and directing the City Manager to enter into an amended Tax Incentive Agreement by and between the City of Monroe and the Monroe Local School District to provide for an alternate schedule for payment of the TIF Compensation for commercial and industrial zoned real property.

2. Ordinance No. 2012-05. An Ordinance authorizing and directing the City Manager to enter into an Amended Tax Increment Financing District Revenue Sharing Agreement by and between the City of Monroe and the Monroe Local School District to provide for an alternate schedule for payment of the TIF Compensation for residential zoned real property.

3. Ordinance No. 2012-06. An Ordinance authorizing and directing the City Manager to enter into an amended Tax Incentive Agreement by and between the City of Monroe and the Monroe Local School District to provide for an alternate schedule for payment of the TIF Compensation for the project site containing 429.613 acres.

4. Ordinance No. 2012-07. An Ordinance authorizing and directing the City Manager to enter into an amended Tax Incentive Agreement by and between the City of Monroe and the Monroe Local School District to provide for an alternate schedule for payment of the TIF Compensation for the project site containing 117.519 acres.

Monroe City Manager Bill Brock has this to say about the four ordinances above:

"Changes have been made to the legislation as recommended by our bond counsel, Peck Shaffer and Williams, who drafted the original agreements. The legislation has to be amended to include an emergency clause. The clause will allow for adoption of the measures after passage by Council. The legislation remains the same, allowing Council to pass a motion to advance TIF/RID payments to the school prior to receiving the final settlement of property taxes from the County. I recommend that the City require the School Board to take formal action for the request for advancement of funds with a specific amount and reason for requesting the funds.

Information that we are receiving indicates that the School would still be placed in Fiscal Emergency even though they received this advancement. As a result, I have been asked that the Council consider advancing the May 2013 payment as well. This would be an additional $500,000 to the $1.6 million in payments that would represent the estimated amount for 2012. Even with the May 2013 payment, the District may still be placed in Fiscal Emergency.

The 2013 payment, if considered by Council, would need to be appropriated in 2012 and would come from existing fund balance. Since this is outside our budget year, I am concerned about the cash flow implications. If the second half 2012 payment is not sufficient to keep the District out of Fiscal Emergency, my recommendation is to not advance the payment."

There is a discussion on The Voice titled: City May Advance $1 Million to Schools The discussion has over two pages of comments from School Board and City Council members was well as many knowledgeable opinions from all sides of the issue. How do you feel about the city advancing money to the schools? 

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