Dear Anthony Wayne Local Schools Stakeholders,
We want to provide you with some important information regarding the potential impact of the Lucas County Auditor’s latest property revaluation. We are tracking the impact of the projected increase in property values in the District and want to share with you what we are seeing at this time.
Important Note: This information is based on the projected average Lucas County increase in property value of 29.5%. The County Auditor cannot release official numbers for the District until the property value reviews are complete and the state certifies the property value increases in December. However, we feel it is in the best interest of our District residents to know the potential impacts of this increase.
At this time, we believe the projected increase in property values will result in the District’s effective millage rate falling below the 20-mill minimum required by the state’s constitution. This is important because it means that District residents will see a property tax increase in order to bring the District’s effective millage back up to the 20-mill rate.
Please see below for more information about school funding and the 20-mill floor.
Estimated Impact Due to Property Value Increases
| Current District Total Taxable Value | $1,075,663,810 |
| Current District Effective Rate | 21.992516 mills |
The information below is a projection based on the average countywide property value increase of 29.5% and is for illustrative purposes only. We will not have official certified values until late this year.
| Projected New Total Taxable Value | ~$1,392,984,634
|
| Projected New Effective Rate | ~16.982638 |
| 20-mill Floor | 20.000000 |
| Projected Millage Difference | ~3.017362 mills
|
Based on the projection provided above, taxpayers will be required to make up the ~3.017 mills to bring the District back up to the 20-mill floor.
What About the Levy?
Unfortunately, AW residents will see property tax increases with or without the passage of the Operational Levy that is on the November 5 ballot. The state’s constitution requires a minimum of 20-mills be collected to fund school districts, and the new property values are projected to drop the District below this minimum.
This is definitely not what we would have hoped for our District stakeholders. The Board placed the levy on the ballot to give residents the opportunity to choose whether or not more tax dollars should come to the District. Frustratingly, in falling below the 20-mill floor, that choice is no longer available.
It is important to note that the levy is still important and your vote still makes an impact.
Please keep reading for two different scenarios.
The District is asking for a 5-year, 2.42 mill Operational Levy to generate $3.3 million each year to pay for day-to-day expenses.
IF THE LEVY PASSES |
- The District’s effective millage rate will increase to an estimated ~19.402638 mills.
- This voted millage will be spread across Class 1* and Class 2** property owners.
- PLUS - - The remaining ~0.597362 mills required by the state will be assessed on Class 1 properties only. This portion is permanent.
|
IF THE LEVY FAILS |
- The District’s effective millage rate will drop to an estimated 16.982638 mills
- The state will assess the remaining estimated ~3.017362 mills required to get back to the 20-mill minimum on Class 1 property owners only.
- This will be a permanent increase.
|
* Class 1 properties are residential and agricultural properties.
** Class 2 properties are commercial, industrial and utility properties.
Summary
- The projected property value increases across the county are impacting the District’s taxable value and causing the millage rate to fall below the state-required 20-mill minimum.
- The difference between the new millage rate for the District and the 20-mill floor will be assessed on District property owners regardless of the passage of the levy.
- If the levy passes, the majority of the additional tax burden will be shared between Class 1 (residential/agricultural) and Class 2 (commercial/industrial/utility) property owners. The remaining shortage will be assessed on Class 1 properties only.
- If the levy fails, the new taxes will affect Class 1 properties only.
In Closing
We acknowledge this information is difficult news to receive. Since the property value updates were mailed to residents, the District has been working hard to get more information from the Lucas County Auditor’s Office. While we still do not have official numbers from the Auditor, we wanted you to be as informed as possible about the potential impact of the property value increases.
More Information
We know that you will likely have questions. The District will be reviewing this information in more detail at the next regular Board meeting at 6:00 p.m. on Monday, Oct. 7. This meeting will be held at Fallen Timbers Middle School and will be live streamed for those who cannot attend in person.
Please know that we are monitoring this situation closely and continually seeking more information from the Lucas County Auditor and other agencies about how this will affect the District’s financial situation.
Sincerely,
Kerri Johnson, Treasurer
Kevin Herman, Interim Superintendent
Anthony Wayne Local Schools