Board hears potential $1.1M local hit from Ohio property‑tax reform; reimbursement resolution proposed
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Summary
Treasurer and finance staff told trustees that House Bill 186 could reduce district revenue by roughly $1.1 million under one scenario; administrators proposed a reimbursement resolution (up to $3 million) to preserve capital cashflow and discussed reissuing an 8‑year COPS to reimburse renovation costs.
Board finance staff used the Nov. 10 meeting to outline how proposed state property‑tax changes could affect Goshen Local.
Treasurer and administration summarized House Bill 186 proposals and uncertainties in the Senate, saying the district — at its 20‑mill floor — could see an approximate revenue reduction of $1,100,000 in the scenarios presented. Finance staff explained that the state has proposed to backfill some of the difference for districts but that final legislative language and fiscal impacts remain uncertain.
District staff also described capital financing options in response to the uncertainty. Administration proposed a reimbursement resolution (not the same as issuing debt immediately) that would allow up to $3,000,000 in capital costs for projects completed in fiscal year 2026 to be reimbursed from a later Certificates of Participation (COPS) issuance. Staff explained that an 8‑year COPS timed to match a maturing payment could preserve the district's monthly debt payment profile and free operating cash to weather possible state funding changes.
During the finance consent vote the board approved Financials 1–9, which administrators said include:
- Resolution 7: declaring student transportation impractical (authorizes exceptions/resolution language used by the district); - Resolution 8: the reimbursement resolution allowing future debt reimbursement for capital projects up to $3,000,000; - Resolution 9: advertisement to bid for the Patricia Boulevard project.
Board members asked about amortization schedules, interest rates (roughly 4% was cited), pay‑off flexibility and how potential state actions would change district forecasts. Staff said they retained $8,000,000 in projected year‑end cash under current assumptions and will return with amortization tables on request.
Trustees moved and seconded the financials motion on the consent agenda and the roll-call vote recorded the trustees present voting yes; administration stated the reimbursement resolution is intended to be budget‑neutral relative to current planned debt payments.
