Grove City Council discussed financing options for a proposed community center after the finance committee presented its capital and operating recommendations. The committee recommended a 15-year extension of the Pinnacle tax-increment financing (TIF) district to cover construction debt service and proposed placing a 0.5 percentage-point increase in the city income tax on the November 2026 ballot to address operating subsidies.

Committee members estimated annual operating costs at about $5 million and recommended a 75% cost-recovery target for operations, which would require an annual subsidy equal to roughly 25% of operating costs or about $1.25 million. To offset the revenue shortfall for operations, the committee proposed an income tax increase of one-half of 1 percentage point (from 2.0% to 2.5%) on the November 2026 ballot for voters to decide.

On capital funding, the committee favored extending the Pinnacle TIF for 15 years. Council members and staff said extending the TIF would not generate additional immediate tax bills for current property owners within the district but would divert incremental tax growth to debt service for the project rather than other taxing authorities. The committee also proposed that the Parks Foundation lead a community fundraising campaign with a target of $1.5 million and noted potential revenue from a tenant paying rent if space is leased inside the center; staff cautioned that tenant revenue might require larger building size and more acreage.

Council members raised concerns about using TIF extensions as recurring revenue and about the potential ripple effects on school and other taxing districts. Members asked staff for analyses of traffic, operations and the city’s debt capacity; staff said general obligation bonding capacity is about $50 million but additional mechanisms exist to pledge income-tax revenue for debt service. Several councilmembers said the city’s income tax is lower than many neighbors and that raising to 2.5% would align Grove City with other municipalities that fund similar amenities. Staff and council agreed further legal and budget analysis and community education would be necessary before placing a question on the ballot.

No ordinance to implement the TIF extension or to place the tax increase on the ballot was adopted at the meeting; council asked for additional legal review and to schedule follow-up caucus and public engagement.