New Philadelphia schools seek income tax after bond defeats

The New Philadelphia City School district has gone to the voters four times with a bond issue in recent years to build new schools and has come up short every time. 

But now, the district is trying a new approach — a 1.5% earned income tax that will appear on the May 5 primary ballot.

The board of education voted to place the issue on the ballot during a special meeting Monday.

If approved by voters, it would raise about $7.2 million per year from a tax on income earned by district residents. It would run for a continuing period of time. 

New Philadelphia is slated to receive $80 million from the state to help pay for the project. The district’s share will be about $89 million. 

That money will pay for demolition and abatement of all existing buildings. The property will then be sold. However, the district will keep the 1958 wing of the high school and the gymnasium, which will provide additional space for the music department. 

District Treasurer Julie Erwin said the district would make payment on two new buildings for 30 years. At the end of the 30 years, the board at that time would have to decide whether to continue the income tax or not. 

“We tried to do a bond issue four times, and the voters have consistently turned it down, about 60 (percent) to 40 (percent),” she said in explaining why the district is going for an income tax this time. “So, one of the issues was that senior citizens can't afford it. Farmers don't want the property tax, and we just felt like it was time to take a different route. So, we're doing the earned income tax.”

She noted that senior citizens will not have to pay the income tax, and that farmers should pay less because the tax will only be on earnings from their farm.

She added that because the income tax raises more than needed for the payment on the buildings, the district will be able to reduce property taxes by 0.5 mills. 

Originally, the district had planned to build a new elementary school at the site of South Elementary and a new middle school/high school at the site of the current middle school and high school. But that plan may change.

“We have the opportunity to buy some property that we haven't had in the past, and so we're in negotiations with that owner to try to buy the property,” Erwin said. “If we can purchase that property, we'll go back to a single-campus option, with one elementary and one middle school-high school building.”

The district started negotiations with the property owner last week and will make an offer this week.

The new plan increases the cost of the project, which was originally $72 million. Additional money will be needed to purchase the property, extend utilities to the site and construct a preschool area.

Erwin is optimistic that voters will approve the issue in May.

“Senior citizens don't pay anything plus they get back a half mill,” she said. “They're actually going to get money back, and those are the people that are really struggling right now. It's a really great option for our senior citizens.

“I think it has a chance. We're hoping this new plan is really what people want to see.”