maintaining those facilities. Mr. Ringle then described the types of
community facilities that qualified under the statute. He identified
public buildings, public spaces, recreational facilities, parks, open
spaces, cultural facilities, streets, lighting, pedestrian access, bicycle
systems, water supply, and sewer infrastructure as examples. He
noted that the definition of community facilities exceeded the scope of
public improvements typically eligible under tax increment financing.
He stated that the broader definition allowed greater flexibility in both
the types of charges imposed and the range of projects funded, as
well as the geographic area in which funds could be used.
Advantages of NCAs
Mr. Bell outlined several advantages of New Community Authorities.
He stated that they functioned as separate governmental entities with
different rules than municipalities, which allowed for more efficient
processes, such as expedited project implementation when working
with developers on infrastructure like sewer installation. He explained
that one significant advantage involved property taxation, noting that
municipalities in Ohio could abate, redirect, or add taxes, and that
adding millage through a community authority avoided conflicts with
schools, counties, or municipal budgets. He stated that this approach
augmented revenue without creating competition for existing tax
resources. Mr. Bell explained that NCAs could operate for extended
periods and noted that some defined terms, such as 20 years, while
others operated for longer durations. He encouraged municipalities to
consider defined terms based on community needs and market
factors, including the marketability of lots. He stated that in Delaware
County, numerous authorities existed, some with millage rates
exceeding 10 mills per lot, and he noted that such charges had not
negatively affected development demand. He stated that the use of
community authority charges was common in central Ohio and that
new development effectively contributed to the cost of existing
community infrastructure.
Mr. Ringle added that the structure included due process through a
recorded declaration that disclosed the charges to prospective
property owners. He stated that buyers received notice of these
charges before purchasing property. He also noted that the presence
of an NCA could enhance competitiveness by enabling additional
amenities, and he stated that communities without such tools could
face disadvantages in attracting development. Mr. Ringle explained
that, because an NCA functioned as a separate political entity, it could