LEETONIA SCHOOLS Officials talk of a tax break

The 23-year levy costs the owner of a $100,000 home about $90 a year.
By NANCY TULLIS
VINDICATOR SALEM BUREAU
LEETONIA -- Leetonia school officials want to give taxpayers a break by cutting the amount of tax they are paying toward the new school that houses the district's nearly 900 pupils.
Treasurer Larry Syverson said, however, that taxpayers might see a greater reduction in a year or two.
Voters approved the tax issue in 1998 and bonds were first sold in 1999 to help fund the $17 million school.
The levy revenue is paying back a $1.6 million loan through the sale of bonds. The Ohio School Facilities commission is paying about $15 million.
Syverson said about $135,000 is needed each year to pay off the 23-year loan. Because of increased property values, the levy generates about $160,000 per year.
The levy revenue can be used only to pay for the new school, Syverson said. The board can opt to apply the surplus to the debt, or reduce the millage.
Applying the surplus would pay off the loan sooner, perhaps in about 18 years rather than 23, Syverson said.
Board's preference
Board members said, however, they would prefer to cut taxes now and continue to apply the $135,000 annually. They said a tax cut now would benefit people who are paying property taxes now -- the people who voted for the levy.
Syverson said the district could probably reduce the millage by at least 0.5 mill or possibly 1 mill and still have enough to make adequate loan payments each year.
He said, however, that a 0.5- or 1-mill reduction might not make that much difference to individual taxpayers.
The owner of a $100,000 home in the district now pays about $90 per year to pay off the school loan. A 0.5- or 1-mill reduction might reduce that $90 only by about $2 or $3 per year, he said.
He said individual taxpayers might see a greater reduction in a year or two because as property values increase, the levy will generate more revenue.
Syverson said the board will discuss a possible tax cut at the December meeting. If the board wants a tax cut, members must vote for it before the end of the year so the county budget commission knows how to plan 2003 tax collections.