Ohio § 5705.51

§ 5705.51.

(A) As used in this section: (1) “ Indirect debt limit ” means such limitation, in effect at the time of issuance, upon the issuance of unvoted

general obligation bonds, notes, or certificates of indebtedness by a subdivision

as results from a restriction on the amount of unvoted taxes which may be levied annually

upon the general tax lists and duplicates. (2) “ Direct debt limit ” means those respective limitations on the principal amount of net indebtedness which

may be created or incurred by a municipal corporation, school district, county, or

township, imposed by sections 133.05 , 133.06 , 133.07 , and 133.09 of the Revised Code . (3) “ Ten-mill limit ” means unvoted taxes of ten mills annually on each dollar of tax valuation of property

on the general tax lists and duplicates. (4) “ One per cent limit ” means unvoted taxes at such rates upon the tax value as amounts to one per cent

annually of the true value in money of property that is listed on the general tax

lists and duplicates. (5) “ Exempt obligations ” means unvoted general obligation bonds, notes, and certificates of indebtedness

of a municipal corporation, school district, county, or township that are excluded,

exempted, or not considered in calculating or ascertaining the direct debt limit of

such a subdivision;  and also includes unvoted general obligation bonds, notes, and

certificates of indebtedness of a municipal corporation if the ordinance authorizing

their issuance provides that the debt charges thereon, or, in the case of bond anticipation

notes, the debt charges on the bonds in anticipation of which they are issued, shall

be paid from lawfully available municipal income taxes to the extent needed to meet

such debt charges, and contains a covenant, hereby authorized, to appropriate annually

from such municipal income taxes such amount as is necessary to meet such annual debt

charges, and further makes provision that any ad valorem property taxes which are

provided for pursuant to section 133.22 or 133.23 of the Revised Code shall, in addition to any other reduction permitted by those sections, be reduced

by the amount of such municipal income taxes to be applied to such debt charges in

compliance with such covenant. (B) For the purposes of calculating the indirect debt limit, the debt charges on outstanding

or proposed exempt obligations required to be taken into consideration in determining

the indirect debt limit shall first be allocated to the computed amount of taxes in

excess of the ten-mill limit that would result if ad valorem property taxes were levied

to the full extent of the one per cent limit, and any balance of such debt charges

shall be allocated to the ten-mill limit.  This section does not enlarge the direct debt limits. (C) Upon request of the bond issuing authority or the fiscal officer of a subdivision,

the appropriate county auditor or county auditors shall promptly certify all data

necessary to make the determinations under division (B) of this section and to ascertain

the indirect debt limits, including, for each overlapping subdivision, the tax value

and the true value in money of property on the general tax lists and duplicates of

the subdivision, stated separately for each classification of property the tax value

of which is determined by applying a different percentage to true value, the applicable

debt charges, and such other data as is necessary for the purpose.  For such purpose, the aggregate true value in money of each such classification

of property may be determined by application of the appropriate mathematical factor

to the aggregate tax value of such classification of property on the general tax lists

and duplicates.  The fiscal officer of each overlapping subdivision and the tax commissioner shall

promptly provide to the county auditor such additional information as is needed by

the county auditor to make the certification required by this division, including

certification to the county auditor by each such fiscal officer as to the then exempt

obligations of the subdivision.  The certificate of the county auditor shall be conclusive as to the data therein

set forth for the purposes of determining the indirect debt limit.  The calculations and certifications provided for in this section relating to the

one per cent limit need not be made or provided where the annual debt charges required

to be taken into consideration in ascertaining the indirect debt limit will not exceed

the ten-mill limit. (D) A municipal corporation which has outstanding exempt obligations supported by municipal

income taxes as provided in division (A)(5) of this section shall, to the extent necessary

therefor, levy and continue to levy such income tax and apply the proceeds thereof

in accordance with its covenants made in the issuance of such obligations, and to

such extent such tax shall not be subject to diminution by initiative or referendum,

or diminution by statute unless provision is made therein for an adequate substitute

therefor, other than unvoted taxes on the general tax lists and duplicates, assigned

by law to such purpose. (E) If the tax budget or the official certificate of estimated resources of a subdivision

shows that funds available for the purpose, including municipal income taxes under

division (D) of this section, but excluding unvoted taxes within the ten-mill limit,

will be insufficient to pay the debt charges on all outstanding obligations of the

subdivision that have been shown as exempt obligations on any certificate by the fiscal

officer delivered to the county auditor pursuant to division (C) of this section,

whether or not qualifying as such in any subsequent certificate, sections 5705.31 and 5705.32 of the Revised Code shall be specially applied as follows with respect to the debt charges on such obligations: (1) The amount of such debt charges and the debt charges on other unvoted general obligations

of the subdivision, not otherwise provided for, shall be charged against the minimum

levy of such subdivision provided pursuant to division (D) of section 5705.31 of the Revised Code to the full amount of such minimum levy, if necessary, without preserving to such

subdivision any operating levy within the ten-mill limit; (2) If the debt charges on such obligations, and on any other outstanding unvoted general

obligations of the subdivision not otherwise provided for, exceed the minimum levy

of such subdivision, there shall be levied millage upon the tax value of property

on the general tax lists and duplicates of the subdivision in excess of the ten-mill

limit, but within the one per cent limit as to any property, in such amounts as are

necessary to make up such deficiency to the extent that such deficiency does not exceed

the debt charges, not otherwise provided for, on the exempt obligations referred to

in this division; (3) Only if the debt charges on such exempt obligations of the subdivision are not fully

provided for after application of divisions (E)(1) and (2) of this section, the balance

of such debt charges shall be provided by adjustment of other minimum levies pursuant

to division (D) of section 5705.31 of the Revised Code . If the subdivision is a municipal corporation that by charter provides a tax-rate

limitation pursuant to section 5705.18 of the Revised Code , divisions (E)(1), (2), and (3) of this section shall be applied only in a manner

consistent with the applicable charter provisions.  If a levy for current operating expenses, whether or not part of a levy for other

purposes, is to be provided under such charter in lieu of a minimum levy provided

by division (D) of section 5705.31 of the Revised Code , as a first step, such charter levy shall be reduced by the amount of the levy for

debt charges on such exempt obligations only if and to the extent provided by such

charter, and if no part of such debt charges is to be paid from a levy within the

limitations imposed by the charter, the full amount of such debt charges shall be

considered the deficiency under division (E)(2) of this section.  The levy for such debt charges under such subdivision shall not exceed any applicable

charter limitation.  Any references in applicable charter provisions to the limitations provided by the

constitution or laws or to a ten-mill limitation of Section 2, Article XII, Ohio Constitution , shall be viewed by the county budget commission as meaning the one per cent limit

applicable under this section.  Division (E)(3) of this section shall not be applied to reduce any levy within a

charter tax-rate limitation. This section does not alter the right of holders of exempt obligations to share equally

in taxes levied within the ten-mill limit nor the general obligation character of

such exempt obligations, and the full faith and credit of the subdivision is pledged

thereto. (F) If any levy is made under division (E)(2) of this section, the amount of millage

to be applied to tax values on the general tax lists and duplicates shall be determined

for each classification of property the tax value of which is computed by applying

a different percentage to true value.  The millage rates applied to such classifications of property shall be calculated

to produce revenues in the aggregate amount to be provided under division (E)(2) of

this section, provided that no such millage shall be added to the taxes on property

that is already taxed to the full extent of the one per cent limit, and the millage

on each other classification of property shall not result in a tax thereon in excess

of the one per cent limit, but the millage amount levied under division (E)(2) of

this section shall be the same as to all classifications of property which may be

taxed at the same millage without exceeding the one per cent limit.  In any event, the millage amount levied under division (E)(2) of this section on

all land and improvements thereon in the subdivision shall be the same. (G) Nothing in this section shall be applied to impair the authority of a municipal corporation

under section 5705.18 of the Revised Code .  Levies which are authorized by the charter of a municipal corporation without necessity

for further vote and which are available for debt charges shall continue to be treated

as levies outside the ten-mill limit and outside the one per cent limit in determining

the indirect debt limit.