Burton Land Use Plan - Public Finance and Economic Development

CHAPTER III

PUBLIC FINANCE AND ECONOMIC DEVELOPMENT

This chapter provides an overview and comparison of total assessed values for Burton Township and the other townships within the county. A historical perspective on township revenues and expenses is included along with a synopsis of various economic development programs and options available to the township. Census data are provided describing the township work force and income level.

Tax Base

The township's tax base is divided into three basic components: real property (land and buildings), tangible personal property (machinery, equipment, and inventory used in business), and public utility property. Since 1990, the total assessed value of taxable property in Burton has increased by almost 79%. Table 8 provides a comparison with the other townships in the county. Burton, along with the other townships, has the majority of its tax base in real property. The 2001 tax valuation for Burton revealed that 90.0% of its tax base is in real property, 6.1% in tangible personal property, and 3.9% in public utility property. Since 1990 the township's taxable real property has increased by 106%, tangible personal property has risen by 7%, and public utility property has decreased by almost 40%.

The assessed real property value figures for residential, agricultural, commercial and industrial land for the years 1990, 1995 and 2001 are outlined in Table 7. Since 1990 the average annual increase for residential property in Burton Township was 9.8%. The average annual increase for agricultural land was 7%, industrial 37%, and commercial 23%. The value for all classes of land in Burton increased by 101% between 1990 and 2001. In a comparison to the other townships, Burton is ranked ninth with regard to the total assessed value ($53,599,730) for all classifications (land and buildings) in the year 2001 (see Map 9).

Figure 5
Assessed Value Of Taxable Property
Burton Township
Source: The Geauga County Auditor's Office

Map 9
Total Assessed Real Property Values By Township For 2001

Tax Exempt Land Uses

According to the County Auditor's land use classification system 16.4% or 2,453.5 acres within the township are exempt from property tax (Map 10). Table 9 provides a complete list of the parcels and entities that are tax exempt. The City of Akron has the highest percentage (12.1% or 1,821 acres) of land classified as exempt (see Table 10).

Map 10
Burton Township Tax Exempt Properties

Revenues and Expenditures

Available sources of revenue for the township include real estate taxes, personal property taxes, various receipts from the state, and interest. Generally around 90% of the township revenue is generated through real estate taxes and state receipts. Since 1995, the total revenue for the township has increased by approximately 36%. Table 11 outlines the total revenue and expenditures for the township from 1995 through 2001.

Labor Force

In 1980 and 1990 the highest percentage of the labor force in the township was classified in "managerial and professional" followed by positions in "technical sales and support" (see Figure 6). According to the 2000 Census data, this trend remained intact as 30% of the labor force were classified in "management, professional and related" positions followed by "sales and office" occupations at 24% (see Figure 7).

Figure 6
Labor Force: 1980 and 1990
Burton Township
Source: U.S. Census Bureau

Figure 7
Labor Force: 2000
Burton Township
Source: U.S. Census Bureau

Household Income

The figures in Table 12 suggest that household income has been increasing. In 1980 only 37 (or 5%) of the households had an income greater than $50,000. In 1990, this figure rose to 203 (or 31%) and by 2000, 49% of the households had an income above $50,000. In comparison to the county, from 1990 to 2000 the average income for Burton increased 32% while county income rose 51% (see Figure 8). Median household income rose significantly (52%) in the township, from $34,492 in 1990 to $52,288 in the year 2000.

Figure 8
Median Household Income: 1980, 1990, and 2000
Burton Township and Geauga County
Source: U.S. Census Bureau

Economic Development Programs

There are a multitude of economic development programs available to the local communities, individual landowners, local businesses and industries generally administered through the Geauga County Department of Community and Economic Development. Assistance is provided for purchase, repair and rehabilitation of existing homes, infrastructure loans, and capital improvement grants to individual business and industries focusing on job creation and the advancement of the economic viability within the community. The following is a summary of the programs available.

Revolving Loan Fund (RLF)

This program offers gap financing to qualified businesses providing loans at below prime interest rates in order for companies to acquire conventional financing on the remainder of the project. The creation of jobs is the primary motive of this program. For every $25,000 loaned one job must be created for a Geauga County resident within two years of completion of the project. Individuals with low to moderate income must be placed in the majority of the positions created.

Community Development Block Grant Program (CDBG)

CDBG is an annual countywide grant program geared toward the creation of vibrant communities by providing decent housing, a suitable living environment, and promoting economic opportunities primarily for individual with low to moderate income. In order to be eligible for funding, the activity must qualify as meeting one of the following objectives of the program:

• Benefiting persons with low to moderate income.
• Aiding in the prevention or elimination of slums or blight.
• Meeting other community needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community and other financial resources are not available to meet such needs.

Community Improvement Corporation of Geauga County (CIC)

The CIC is an organization of business, professional, government, and community leaders dedicated to the development Geauga County business and industry. A primary objective includes helping businesses in securing loans and financial incentives using local, state and federal funds.

Homebuyers Assistance Program (HAP)

HAP is designed to assist moderate income families in making the transition from rental to home ownership. Qualified homebuyers are provided with down payment and closing costs required for private mortgage financing.

Housing Rehabilitation Program

This program is specifically designed to assist homeowners residing in substandard dwellings. Rehabilitation assistance may be provided through a deferred loan, low interest loan, or a combination of deferred and low interest loans. The source of funding is the State of Ohio through the Small Cities Community Development Block Grant Program.

Emergency Home Repair Program

Funded through the Ohio Small Cities Community Development Block Grant and Home Program, this initiative supplies money to homeowners of families and individuals needing emergency repairs. Such assistance enables qualified homeowners to make repairs to one or two deficiencies that present a threat to the health and safety of the occupants.

Infrastructure Loan Program

Low to moderate income homeowners are offered 0% interest loans to upgrade a well or on-site sewage system that has been mandated by the General Health District.

Joint Economic Development Districts (JEDD)

The purpose of a JEDD is to facilitate economic development, create jobs, enhance employment opportunities, and improve the overall economic welfare of adjoining communities. General provisions governing the formation of a JEDD include the following:

• The JEDD must be located in the territory of one or more of the contracting parties and may include all or a portion of that territory, but may not contain residential or residentially zoned property.
• All JEDD contracts must set forth the amount or nature of contribution of each municipality and township to the development and operation of the JEDD. New, expanded or additional services, facilities, or improvements, including expanded additional capacity or enhancement of existing services must be determined.
• A Board of Directors must be established to operate the JEDD and collect any income tax.
• JEDD agreements allow a municipality and a township to contract regarding the substance and administration of zoning and other land use regulations, including building codes, public improvements, and other regulatory matters.
• The JEDD is a binding contract for a mutually agreed upon time frame.
• A contract is negotiated setting forth the duties and responsibilities of each party. A copy of the contract must be forwarded to the board of county commissioners.
• The JEDD Board has the authority to adopt a resolution to levy an income tax within the designated area. It can tax income earned by individuals working within the JEDD and net profits of businesses within the JEDD.
• Reciprocity is mandated for the persons who work in a JEDD.
• The JEDD is allowed to grant tax exemptions under the Enterprise Law.
• Once a contract is agreed upon, public hearings must be held by the board of trustees and the municipal council. The contract must be made available for public inspection.
• A majority of the electors of the township must vote in favor of the contract before it can go into effect. No similar election is required among municipal voters.

Cooperative Economic Development Agreements (CEDA)

As a means to resolve conflicts over annexation issues, the legislative authorities of a municipality and the board of township trustees may enter into a cooperative economic development agreement. Under the requirements of a CEDA, residential uses may be annexed and an election is not necessary. A public hearing plus thirty days notice must precede the adoption of the agreement and must be made available for public inspection during this time period. Such an agreement should address or include the following:

• A description of the area.
• Provisions for joint services such as police, fire, and permanent improvements within the incorporated and unincorporated areas. Improvements may include sewers, water lines, roads, public utilities, and the acquisition of land.
• The issuance of industrial development notes, bonds and debt obligations by the municipality to finance projects in territory outside the municipal limits but within the area covered by the CEDA.
• Provisions regarding taxes that may be implemented.
• Payment of service fees to the municipality by the township.
• The agreed upon area to be annexed by the municipality.
• Identified periods in which annexation will not occur.
• The application of tax abatement statutes within the area covered by the agreement.

Rural Enterprise Zones

The intent of this program is to retain existing (or create new) employment opportunities without transferring employment from one political subdivision to another. A county or municipality may create these zones, however, county zones require the consent of the affected municipal legislative body or board of township trustees.

• Approval of the Ohio Department of Development is required before a county may have a zone designated. The board of county commissioners is limited to no more than one area within a township or adjacent townships.
• Once an enterprise zone is created, an agreement is prepared that includes language stating the affected entity will establish, expand, renovate, or occupy a facility in the zone and hire new employees, or preserve employment opportunities for existing employees, in return for substantial tangible personal and real property tax exemptions.
• Incentives are granted each year on the condition that the enterprise in the zone demonstrates that it has established, expanded, renovated, or occupied a facility.
• If the zone is located in an unincorporated area, the county (with the consent of the affected township) may offer tax incentives, except that the exemption must not exceed sixty percent of the tangible personal and real property. In unincorporated areas, the exemption may exceed sixty percent if the local board of education approves it.
• Additional state corporate tax incentives are available on new investment by the state when the enterprise reimburses new employees for day care or pays for or reimburses new employees for job training.
• The board of county commissioners may delegate the authority to a township to negotiate and administer agreements with enterprises upon receipt of the legislative approval from the township in which the zone is certified.