Butler County commissioners agreed last summer to take 1 percent of delinquent tax and assessment collection funds (DTAC) to bolster the land bank and open up services for the entire county. DTAC funds are late payment penalties on real estate taxes. The blight eradication agency is expected to collect about $155,000 from it’s first annual installment of DTAC funds.
Acton asked if they shouldn’t explore asking the commissioners to raise the percentage given the growing number of jurisdictions — Fairfield, Hanover, Liberty and Ross townships and the city of Trenton — that have joined since the the economic development tool was opened up countywide.
“Perhaps down the road with the other participating communities, not to take it up to the five, but see how this goes, obviously the interest and the need is there,” Acton said. “It doesn’t appear as though any more large chunks (of funding) are coming in anytime soon, so perhaps we should have that chat at some point, about going up just a little bit, maybe to two (percent).”
County Treasurer Nancy Nix, who chairs the land bank board, said Butler County is one of few, if the not the only land bank to only take 1 percent, the rest in the state get 5 percent. A jump to 5 percent would garner about $775,584, and 2 percent would just about double current DTAC revenues.
Up until now the county’s two largest cities have been the sole beneficiaries of $4.6 million in outside funding, but Hamilton and Middletown also chipped in $1.2 million apiece in matching money to get the $2.6 million Moving Ohio Forward funds. The land bank just recently awarded DTAC funds to Ross Twp. for up to $5,000 to demolish a building and up to $16,000 to Hamilton to take down a ramshackle house that is sandwiched between two commercial buildings on Main Street.
Executive Director Mike McNamara recommended the board wait on asking for more money until it sees the results of a Miami University study being conducted on the land bank program to date.
“It might give us an idea how successful we’ve been, and what we could do with increased funding,” he said.
Middletown City Manager Doug Adkins also urged patience.
“I think there is an advantage to running where we’re at just for the short term and showing some more successes just at the one percent,” Adkins said. “The time I think to make that ask is when the one percent is tapped, and we still have more need and requests we can’t fulfill.”
Nix said depending on when they might ask and the commissioners might grant an increase, there could be about a year delay before they would receive new funding.
County Administrator Charlie Young said the commissioners are always keeping “a close eye” on the land bank because their foremost concern is whether the expenditure benefits the taxpayers.
“It’s got to prove that it’s worth the investment,” Young said.
The entity most impacted by the diverted DTAC funds are the Lakota Schools. They took a $28,000 hit with the 1 percent, and a 2-percent hike would take their revenue reduction to almost $56,000. The statewide norm of five percent would suck almost $140,000 out of Lakota’s budget.
Lakota spokesman Randy Oppenheimer said there is more than one way of looking at the diverted funds.
“The amount of money is what the amount of money is, if it’s another $28,000 that’s $28,000,” he said. “We understand that the county commissioners are trying to support needs throughout the county, and often times those needs benefit the schools in another way. Good economic development is good for schools.”
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