Reynoldsburg City Council approved the appropriation Monday of $28,913.69 to be given to the Reynoldsburg school district -- additional funds coming to the district from the Taylor Square tax increment financing (TIF) agreement with the city.

Reynoldsburg City Council approved the appropriation Monday of $28,913.69 to be given to the Reynoldsburg school district -- additional funds coming to the district from the Taylor Square tax increment financing (TIF) agreement with the city.

City Auditor Richard Harris said the city originally appropriated $575,000 for its estimated 2009 budget on what the TIF payout would be, but the actual figure showed $603,913.69, a difference of $28,913.69.

As a result, council approved the additional appropriation of money to be given to the school district.

Harris said the amount of money from real estate tax collections was higher than estimated this year from the Taylor Road TIF fund.

He said money from the TIF agreement with the schools, signed in 1995, comes from real estate taxes collected throughout the year that are not used to pay the city's debt service that paid for the infrastructure improvements for the Taylor Road Square shopping area.

"So that's basically the school's money and any money that comes in that is not needed to pay the debt service goes to the schools," he said.

Harris said the additional taxes from the TIF likely are the result of real estate property in the Taylor Road area being reappraised.

"In 2008, we paid the schools out of that fund $573,789.55 and we appropriated $575,000 for this year, but the tax collections came in at $603,913.69, which is why I needed an additional appropriation of $28,913.69," he told council.

Reynoldsburg school treasurer Tammy Miller said the money the district gets from the TIF is put into the district's general fund. The additional amount this year is obviously not a bad thing, she said.

"We need all the help we can get because our forecast is looking bleak," Miller said. "Based on the current five-year forecast, we are estimating that we will end this fiscal year with a cash balance of about $750,000. This is the equivalent of five days of operating cash.

"Without additional operating revenues or additional cuts, we are estimating that we will end fiscal year 2011 with a negative cash balance of over $2-million.

"We either need to have additional revenues or we'll have to make additional cuts," Miller said.

dowen@thisweeknews.com