The City of Grandview Heights has a property tax levy renewal (Issue 5) on the ballot for the March 19, 2024, primary election. This levy is a renewal of the current 7.5 Mill operations levy last approved by voters in November 2020, which generates $1,985,000 per year and expires at the end of 2024.
1. Why is the City asking for a levy renewal?
A: The renewal of the property tax levy is needed to fund services, operations, and public safety in Grandview Heights. The City’s two main revenue sources for operations are municipal income tax and property tax. Property tax is a more stable source of revenue than income tax. During the pandemic, many employees started working from home outside the city instead of coming to work in Grandview Heights commercial districts. This unexpectedly caused a $2.5 Million reduction in annual withholding tax revenue for the City. Due to the volatility of income tax revenue and the persistence of work-from-home, the revenue collected from property tax is an important stabilizing force in our budget and has become a more important component of the City’s financial solvency by diversifying revenue sources.
2. Would my property taxes increase as a result of voters approving this levy?
A: Your taxes would not go up because of this levy renewal. It is a renewal of the current levy rather than a new tax, so even with changes in property values (from outside factors such as the County Auditor’s Revaluation or tax levies from other agencies), it would result in the same amount for the City.
For more information on your property’s tax implications, visit https://audr-apps.franklincountyohio.gov/LevyEstimator
3. How much would the levy renewal generate financially?
A: The property tax renewal is expected to generate $1,985,000 per year and $7,940,000 over the next four years. Though operations costs have increased, the amount generated annually by this levy has not increased since the levy was first passed in 2012.
4. What would the impact be if the levy is not renewed?
A: The amount collected by the levy represents 9% of the City’s operating budget. The City has experienced a precipitous decline in income tax revenue since the pandemic and is not projecting that revenues will rebound quickly due to the persistence of work-from-home and hybrid models of employment. Thus, if the property tax levy is not renewed, a reduction in services will be required.
5. Didn’t voters just approve a new property tax in 2022?
A. The voters approved a $25 Million bond issue in 2022 to raise the capital needed for the City to replace its functionally obsolete 1924 Fire/EMS, Police, and Administrative Services building with a modern facility. This capital project is separate from our operations levy up for renewal and the funds generated by the 2022 bond issuance cannot be legally used to fund City operations.