When the city of Grandview Heights opened its new public-works complex in November at 1260 McKinley Ave. in Columbus, it meant employees of the service and building and zoning departments now would be based in a facility outside Grandview.

But city leaders say the loss of income-tax revenue coming from those employees is nominal, and the city will save more money than it will lose, as it no longer will have to lease space to store equipment, director of finance Bob Dvoraczky said.

One of the provisions of House Bill 5, which went into effect Jan. 1, 2016, states that income tax for an employee goes to the municipality in which he or she spends "a preponderance" of the day, Dvoraczky said.

"For most of the building and zoning and service employees, the McKinley Avenue complex is where they check in, pick up their assignments for the day and pick up the city vehicle or equipment they'll be using during the day," he said. "They then go back into our city, where they do their actual work for the day."

Twenty-four full-time employees work out of the public-works complex, Dvoraczky said.

Of those, 18 are in the maintenance, grounds or service professions, three are in the inspector or zoning professions, and three work throughout the day at the McKinley Avenue facility, he said.

The latter three are administrative employees and meet the "preponderance" criterion, so they are payrolled to Columbus for local income-tax purposes, Dvoraczky said.

The city will lose about $3,000 in annual income-tax revenue stemming from those three employees, he said. The other employees will continue to be payrolled to Grandview because they do most of their work there, he said.

Grandview has been paying about $21,000 annually to lease space to store a portion of its service and parks and recreation equipment, Dvoraczky said.

All of the departments' equipment and vehicles now are stored indoors at the McKinley Avenue facility.

"As a result, we're actually going to be having a net gain of about $18,000 in revenue each year because we won't be making the lease payments anymore," Dvoraczky said.

With the new public works facility now open, the city will be able to reprogram the site at the corner of Goodale and Grandview avenues as a new location for its other municipal offices, Mayor Ray DeGraw said.

"That, if anything, is the biggest benefit we're receiving from this arrangement," he said. "It's something that will benefit the entire community."

The $3,000 in lost income-tax revenue is a drop in the bucket of the total tax funds that come into the city, Dvoraczky said.

For 2019, the city will receive about $16.2 million in income-tax revenue from all of the jobs located within the city limits, he said.

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