Monday, February 19, 2018 Medina 47°
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Local Medina County News

Wadsworth property owners to pay less tax

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WADSWORTH — Wadsworth Schools’ residents’ real estate taxes will be reduced by $38.50 per $100,000 of valuation for 2018, Treasurer Douglas Beeman said.

Beeman said the reduction was made possible through a combination of issuing bonds at lower interest rates and refunding a portion of outstanding debt.

“The process is really working with the county auditor’s office, but it is the result of many bond (refunders) that we have done over the years,” Beeman said.

He said the district has done seven or eight bond refunders, dating back to 2006.

“The bond refunders that we have done have lowered the interest costs for the school district,” said Beeman. “If our costs are less to retire that debt, then obviously we need to collect less from our constituents.”

Bond refunding, called refunders, is a process that allows state and local governments to save on interest costs when rates are reduced by restructuring the debt.

Bonds refinanced at lower interest rates include the construction of Lincoln Elementary, Franklin Elementary and Wadsworth Middle schools from 1997. Bonds from 2008 that allocated the building of Wadsworth High and Overlook Elementary were also refinanced. Debt from 2008 related to the Wadsworth Public Library was also refinanced, Beeman said.

He said it is not unusual for property taxes to be reduced in this way.

“I think when it comes to bond issues, it is normal for districts to do this, depending on values going up in the district and interest costs going down,” Beeman said. “(With) an operating levy, you would never see that happen but with debt issues it’s common.”

According to a five-year financial forecast the Wadsworth Board of Education approved Oct. 9, the district will receive an estimated $21,570,488 in general property taxes in fiscal year 2018. This is an increase of $862,317 from fiscal year 2017, which ended June 30 with a total of $20,708,171 collected.

“To put it other terms it is just like refinancing your house,” Beeman said. “People go out and borrow money for their house and then the rates drop and they micro-refinance their home.

“That is exactly what we for our bonds that were outstanding. The rates dropped, so it made sense for us to go out and refinance those at a lower interest cost and save all those financing costs.”

Contact reporter Nathan Havenner at (330) 721-4050 or nhavenner@medina-gazette.com.



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