The Salem Community High School Board was torn Monday night on supporting a 12-year extension of the city’s number two tax increment financing district, but eventually gave it a 7-0 approval.
The issue was the school district will not get any of the increased assessed valuation created within the TIF until it ends. Superintendent Dr. Brad Detering says that also means the city’s tax rate will increase just over a penny to cover the shortfall in the annual property tax levy.
“It is a difficult issue, but ultimately the board decided that they feel our partnership with the city, it is a situation that we have not been used to receiving those funds for the last 23 years and felt like in order to continue the partnership with the city and try to help the city to be able to offer incentives we were going to go ahead and approve the letter for the extension of TIF Two.”
Any taxing body rejecting the 12-year extension would kill the project.
Board President Eric Bandy noted if the city is going to turn around its population decline they need for existing businesses to improve and new businesses and industries to be attracted.
Salem Economic Development Director Leah Dellicarpini understands the tax concerns but told the board that TIF is one of the few tools in her toolbox in a state with unfriendly laws towards economic development.
Both the Selmaville Grade School Board and Salem Grade School Board still need to approve the extension before it goes to the state for final approval.
In other action Monday night, the board gave first reading to a proposal that would allow Salem Community High School teachers to have their children attend the high school if they live outside the district. While many school districts have a similar policy, SCHS never has. Detering feels it could be important as a tool during the current teacher shortage.
The board also approved former SCHS head track coach Mike Hargis to serve as a volunteer coach. While Hargis has moved out of town, he still wants to help with the program as time allows.
