2014 New Albany Annual Report by CityScene Media Group

2014 Annual Report

Expert sports medicine and orthopedic care. A stone’s throw from Eagle Stadium. The Philip Heit Center for Healthy New Albany is home to Nationwide Children’s Hospital Sports Medicine and Orthopedics. We’re the leaders in sports medicine for serious athletes, 18 and under, and we’re specially trained and fully equipped to treat concussions and rehab sports injuries – or prevent them in the first place. So your New Albany athlete can perform at the highest level.

NationwideChildrens.org/Sports-Medicine

INSIDE 4 A Look Back at 2014 6 Heit Center – Our Community Health Destination 8 Infrastructure & Leisure Trail Improvement 10 Village Center Improvements 11 Village Center – Market & Main Roundabout 12 Strategic Plan & Land Use Land Use in New Albany – A Snapshot 13 Economic Development Activity 14 Growing Our Economy – Supporting Our Schools 17 Your Taxes 18 Cash Balance 19 2014 Revenue and Expenses 20 City of New Albany/New Albany School District Map 22 Our City and Government Structure 23 City Administration and Department Directors Organizational Priorities www.newalbanyohio.org

2014 New Albany Annual Report

A Look Back at 2014 ne thing that is certain here in New Albany is we are never standing still. As leaders of an aspiring community, we are continually evaluating ideas, programs and projects to improve your quality of life. To that end, 2014 was an eventful year that included an update to our strategic plan, 1,600 new job commitments in our business park, a new health destination and expanded restaurant and retail offerings that residents have been requesting for years.

In January 2014, Mike Mott was appointed to fill a Council seat vacated in late 2013 by Chris Wolfe. Mott was chosen from a field of 14 qualified applicants in part because of his understanding of environmental, density and development issues.

New Albany International Business Park

In the Spring, we approved an updated city strategic plan, which was the result of a two-year effort by a 35-member steering committee comprised of residents and community partners. This plan guides all facets of land use, aesthetics, architecture and transportation. Speaking of land use, many probably don’t realize that New Albany’s residential density (less than 0.4 homes per acre) is by far the lowest of comparable central Ohio cities, and nearly a quarter of our total land area is dedicated to open space, right-of-way, places of worship and public buildings. Our Community Development Department staff worked collaboratively throughout the year with many partners to create more than 1,600 additional job commitments and $266 million in private investment in our New Albany International Business Park, the largest master planned office park in Ohio. Though our population is 8,800, more than 13,000 people work in our business park. Job creation within New Albany is important for every New Albany resident. Local income taxes derived from jobs within our municipal boundary accounted for 76% of the city’s 2014 general fund budget that provides police services, leaf collection, snow plowing and general road and leisure trail maintenance. (For a look at all community taxes, see page 17.)

Leisure Trails/Neighborhoods

We witnessed new development within our Village Center including the new Philip Heit Center for Healthy New Albany. This partnership between the city, The Ohio State University Wexner Medical Center, Nationwide Children’s Hospital and Healthy New Albany opened its doors in December (for more Heit Center info, see page 6). Already, more than 1,000 people have become members of the

Heit Center

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fitness facility. Thousands more will use the doctor’s offices and community health programs offered by Healthy New Albany at the center. Combined, the Heit Center and new Market & Main development constitute 80,000 square feet of new commercial development, including new restaurants, medical space, service and recreational offerings in the core of our town. With the Market Square area continuing to grow, traffic engineers envisioned an eventual need for a four- or five-lane intersection at Market & Main. After an extensive public participation process, we ultimately constructed a roundabout at this intersection to address future traffic issues and facilitate a more pedestrian – and cycling – safe area. Had we expanded the intersection, pedestrians would have been required to cross multiple lanes of traffic at one time while having to watch for vehicular traffic in both directions at higher speeds. With the roundabout, pedestrians cross only one lane at a time and only have to watch one direction of traffic, which is moving at a slower speed through the roundabout. And, for those who do not feel comfortable crossing at the roundabout for whatever reason, there are traditional crosswalks within 50 yards in all directions of the roundabout. We thank everyone for their patience through the construction phase of this project (not just the closing of the intersection but also through the completion of signage and walkway installation). (Turn to page 11 for helpful hints on utilizing this roundabout from pedestrian, cycling and vehicular perspectives.) We had a full and exciting 2014 event season culminating what what we like to call our triple crown of events in late summer with Pelotonia; our very own New Albany Walking Classic, the largest and best walking event in the United States; and the New Albany Classic and Grand Prix, recently named the best specialty equestrian event in North America. As a result of these three events in August and September, more than 40,000 people enjoyed the beautiful surroundings our community has to offer. Add our Founders Day Parade, Independence Day celebration, the Chamber’s Taste of New Albany and a host of other events, and it is easy to see that our Village Center was a busy place…for some who contacted us, maybe a little too busy and congested. To those residents and businesses expressing concern about the number of events around Market Square, we heard you. While we still place value in having community gatherings in the core of our town, we will limit the number of future events along Market Street to our community parades and a select handful of our most popular events. We appreciate the trust you have in us to be your elected leaders and we invite you to read on about our 2014 successes and where we stand financially as a city. Sincerely, New Albany City Council Nancy Ferguson, Mayor Dr. Glyde Marsh, President Pro Tempore Colleen Briscoe

Pelotonia

New Albany Walking Classic

New Albany Classic and Grand Prix

Chip Fellows Mike Mott Stephen Pleasnick Sloan Spalding A&F Challenge

Taste of New Albany

(l to r) Sloan Spalding, Dr. Glyde Marsh, Chip Fellows, Mayor Nancy Ferguson, Colleen Briscoe, Stephen Pleasnick, Mike Mott www.newalbanyohio.org

2014 New Albany Annual Report

Heit Center – Our Community Health Destination Heit Center latest example of aspirational community built through planning, collaboration DID YOU KNOW? Although the city owns the Heit Center, the New Albany Company donated land so the center could be built, and bonds are being paid by the long-term leases signed by The Ohio State University Wexner Medical Center and Nationwide Children’s Hospital.

ere in New Albany, life centers on core values of environmental sustainability, lifelong learning, the arts and health and wellness, all working holistically to create an inspired lifestyle, fun destinations and memorable experiences for our residents and visitors.

Like the McCoy Center and Rocky Fork Metro Park (scheduled to open in 2015), the Philip Heit Center for Healthy New Albany would not have been possible without the collaborative efforts of many partners. The planning for the Heit Center began in 2009, when City Council members commissioned a strategic guide to development in the Village Center, New Albany’s core and community gathering spot. At that time, Council’s focus was to increase foot traffic, which would lead to more retail and restaurant opportunities in the center of town – something residents have desired for quite some time. The Village Center Strategy, completed in 2011, considered nine possible projects that could have a transformational effect on our community core. From the start, the Heit Center had the most traction. After the New Albany Company donated the land for the project and our health care partners (The Ohio State University Wexner Medical Center and Nationwide Children’s Hospital) came into focus, Healthy New Albany offered to manage the community space within the building. With all the partners ideologically and financially invested, Council members moved forward to make the Heit Center a reality. Fast forward to today. For the first time ever, the Heit Center combines health care, individual fitness and community wellness activities all under one roof. Like the community lifestyle itself, the level of rustic elegance and comfort of the Heit Center is something that needs to be experienced to be fully appreciated. The entire focus of the center begins with your health needs and goals, including a personal health assessment to make sure you are ready for your personal health journey. From prevention to nutrition to exercise, you can find inspiration in the Heit Center’s surroundings and the partners’ balanced approach to health and wellness.

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The Heit Center is also a place to simply relax. You donâ&#x20AC;&#x2122;t need to use the health care offices or the fitness center to enjoy the building. Like the library next door, the community space in the Heit Center is free and open to the public. Are you looking for a new place to read the paper or scan your iPad? Now, you can do so in front of a beautiful fireplace in the center of town. Aside from building a better you, the Heit Center is helping to build a more vibrant community by serving as a catalyst for the new restaurants and services so many wanted. Like the walking trails leading to the Heit Center, the farmers market that will take place on the lawn and the community garden located across the street, this project is part of a holistic commitment to individual and community health and wellness. You are cordially invited to be a part of it.

www.newalbanyohio.org

There is rental space, including a gourmet kitchen, inside the Heit Center for meetings and events.

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2014 New Albany Annual Report

Infrastructure & Leisure Trail Improvement any basic infrastructure improvements either occurred or were budgeted in 2014, some seen (like road improvements and construction of a new water tower) and some unseen (like underground water, sewer and electric utility upgrades). Our leisure trail system continued to grow, with completion of the Central College Trail all the way from the Tidewater east subdivision to New Albany Road west of SR 605. Some of our key 2014 improvements included:

M General street maintenance

Infrastructure n Rocky Fork Metro Park land acquisition in collaboration with the City of Columbus and the Metro Parks n Rocky

Fork Metro Park Dog Park funding (expected to open in 2015)

n Market

& Main Roundabout

n More

than $1 million in general street maintenance improvements

n High

Street streetscape improvements

n Lambton

ADA compliant curb ramps

Park Road repaving

n New

Albany Road East repaving from Central College Road to State Route 605

n ADA

compliant curb ramps installed throughout many neighborhoods

n Rose

Run Stream realignment and restoration

n New

pavement and ADA accessible ramps at the New Albany Road East/New Albany Links Drive intersection

n Village

Hall improvements, including interior maintenance of Council Chambers and replacement of front and rear exterior brick walkways

n Outdoor n Speed

Village Hall improvements

classroom created at Resch Park

radar sign (paid for by homeownerâ&#x20AC;&#x2122;s association) installed on Dean Farm Road

n Construction began on two-million gallon Beech Road Water Tower, expected to be complete in 2016

Leisure Trail Specific Expansions and Connections n Thompson n Central

Road pedestrian bridge and trail connector to Thompson Park

College pedestrian bridge over Blacklick Creek and trail extension to east of US 62

n Dublin-Granville

Trail (north side of road) from Church of the Resurrection to Morgan Road

n Dublin-Granville

Trail (south side of road) across the frontage of the corner lot (southeast corner of Harlem and Dublin-Granville)

Resch Park outdoor classroom

n Walnut Street Trail (north side of road) connecting the west and east leisure trails at Bevelhymer Park together n Walnut

Street Trail (south side of road) joining the paths at the New Albany Links golf course in front of the historic Dryer House

Speed radar

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New Albany now has more than 33 miles of leisure trails connecting neighborhoods and the business park to our core Village Center.

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2014 New Albany Annual Report

Village Center Improvements Ongoing improvement was a constant in our Village Center in 2014. n The

55,000 square foot Heit Center (featured on page 6) for the first time brings together health care, personal fitness and community wellness activities all under one roof. The center also provides residents a new public place to relax in a lodgelike setting even if they choose not to utilize health care or fitness services inside the center

n Continued

construction on the Market & Main commercial development, which includes 26,000 square feet of office, retail and restaurant space so many residents have been requesting for years n Completed

construction on the Market & Main Roundabout (featured on page 11)

n Upgraded school zone flashers on Fodor Road, Dublin Granville Road and SR 605 n Completed

electric underground utility work along High and Main streets

n Completed

brick sidewalks along High Street

n Performed

Rose Run realignment and restoration work, protecting one of New Albanyâ&#x20AC;&#x2122;s scenic assets n Created

Resch Park outdoor classroom

n Installed

leisure trail from Church of the Resurrection to Morgan Road

Market & Main commercial development

Market & Main Roundabout Rose Run restoration

High Street brick sidewalks

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Village Center â&#x20AC;&#x201C; Market & Main Roundabout Market & Main Roundabout user information from vehicular, pedestrian and cyclist perspectives

A roundabout is an alternative to traditional intersections controlled by stop signs or traffic signals. Roundabouts reduce speed, helping to make the area safer for vehicular, pedestrian and cycling traffic, but safety and alertness are still incumbent on every user. The roundabout allows for continued narrow corridors. Main Street would have been widened to four or five lanes without it. Larger amounts of traffic are moved more efficiently.

Driving through a roundabout

Cycling through a roundabout

Walking through a roundabout

Look to your left. Vehicles already in the roundabout have the right-of-way. If there is no traffic in the roundabout do not stop.

Proceed with caution, making sure it is safe to enter the right hand lane.

The same rules apply for roundabouts as regular intersections, but walkers only need to watch one lane in one direction at a time at the Market & Main Roundabout.

If there is traffic in the roundabout, wait until it clears and then enter. Slow down through a roundabout; 15-20 mph is a safe speed for the Market & Main Roundabout. Once in the roundabout, drivers have the rightof-way from drivers outside the roundabout. Be on the lookout for pedestrians entering crosswalks, and cyclists entering crosswalks or the sharing lanes.

Stay to the right regardless of which leg you plan to exit. Make eye contact with as many vehicular drivers as possible. Use all appropriate cycling hand signals when turning. Be on the lookout for any pedestrians crossing the crosswalks.

You have the right-of-way once you enter the crosswalk, but look and listen for a safe gap in the traffic flow before crossing. Step up to the curb and point your finger across the crosswalk to say to drivers that you intend to cross. Use sidewalks and crosswalks around the outside of the roundabout. Do not cut across the center island. Use the splitter island, which is similar to a median. This will let you cross one direction of traffic at a time. Wait on the splitter island if needed. Continue to pay attention throughout the use of the roundabout. You can cross at the Market & Main Roundabout crosswalks, or you can use one of the regular crosswalks located on each side of the roundabout.

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2014 New Albany Annual Report

Strategic Plan & Land Use

35-member steering committee comprised of residents and community partners led the two-year effort of updating our Strategic Plan, approved in 2014. The plan guides all facets of land use, design, architecture and transportation.

The Ten Cornerstones of New Albany Development Market Square ambience

• A compelling environment • An exciting destination • People take precedence • Connected community • Carefully considered design • Commitment to quality • Recognizable community • Comprehensive sustainability • Collaborative growth • Accessible participation

Leisure trails

Market Square

Land Use in New Albany – A Snapshot hile beautiful homes and a picturesque landscape surrounded by our iconic white horse fencing are often the first descriptions of New Albany, we are also home to one of the largest master planned business parks in the Midwest. Council policies and actions show a commitment to less than one unit per acre for new residential developments, and New Albany’s residential density is by far the lowest of any central Ohio comparable city. Below is a snapshot of our land use today.

W New Albany International Business Park

39% Commercial n New

Albany International Business Park is the largest master planned park of its kind in Ohio, currently covering more than 3,000 acres and expected to grow to close to 5,000 acres n Commercial land development increased our tax base and eliminated 1,900 planned homes that could have been built during the last two decades within the New Albany-Plain Local School District

37% Residential Parks

n 0.4 units per acre, the lowest residential density by far of all comparable central Ohio cities n Dublin and Powell: 1.1 units per acre n Worthington, Westerville and Gahanna: >1.5 units per acre n Upper Arlington: 2.2 units per acre n Bexley: 3.1 units per acre

12% Open Space n 33

miles of leisure trails connecting all facets of New Albany standards mandate a minimum 20% of land be dedicated to open space n Additional half acre of open space for every 10 homes built in new subdivisions n Park or open space within ¼ mile of most neighborhoods n Open space land percentage does not include Rocky Fork Metro Park, which abuts New Albany and is expected to be more than 1,200 acres n $3.75 million city investment in Rocky Fork Metro Park, including creation of a dog park n Subdivision

Open space

12% Right-of-Way/Public Buildings/Places of Worship

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Economic Development Activity he New Albany International Business Park is the largest master planned corporate park in Ohio with three highway interchanges. Home to Abercrombie & Fitch, Discover, Tween Brands, Aetna, AEP, Bob Evans, Nationwide and L Brands, the parkâ&#x20AC;&#x2122;s easy access and technology infrastructure make it conducive to businesses of all sizes. The park now represents nearly $1.7 billion in private investment and 13,000 employees. Since 2009, this park has attracted more than 6,200 new jobs to our community, nearly 3,800 of which were also new to Ohio, helping to grow our regional and state economies.

In 2014, more than 1,600 new jobs were created in the business park, a new COTA Park & Ride was constructed and the SmartRide New Albany shuttle bus system began transporting workers throughout the New Albany International Business Park from COTAâ&#x20AC;&#x2122;s new Park & Ride.

Abercrombie & Fitch

2014 Major Commercial Recruitments and Expansions n L

Brands/Bath & Body Works (600 total jobs/$175 million investment/860,000 square feet)

n AEP

(500 total jobs/$39 million investment/195,000 square feet plus additional data center)

n Bocchi n KDC

Laboratories (300 jobs/$18 million investment/130,000 square feet)

Expansion (40 new jobs/$16 million investment/59,000 square feet)

n Mission

Tween Brands

Essential (95 employees/20,000 square feet of existing space)

n Anomatic

Expansion (70 new jobs/$12.5 million investment/70,000 square feet)

n Exhibitpro

(10 new jobs/$3 million investment/54,000 square feet)

n Capture

Education (out of Innovate New Albany incubator; 9 jobs, expected to grow to 27 within three years)

n Magnanni n Veriano

(7 new jobs/$1.2 million investment/15,000 square feet)

(7 new jobs/$1.5 million investment/10,000 square feet)

n Hampton

Inn Hotel began construction The Limited

KDC

COTA

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2014 New Albany Annual Report

Growing Our Economy – Supporting Our Schools rowing jobs within New Albany’s boundaries is critical to our community’s long-term health. The strength of our schools is also critical to our community’s long-term health. The good news is, here in New Albany, property tax abatements help the city attract jobs; while, thanks to income tax sharing, our schools receive operating revenues similar to what they would have received if no property tax abatements were ever in effect.

CHART 1 looks cumulatively at the entire business park, and its impact not just on the school district, but also the median household. IF NO DEVELOPMENT OCCURRED, the median household would need to pay an additional $1,968 annually in taxes to make up for the lost city and school taxes generated by the business park. IF RESIDENTIAL DEVELOPMENT OCCURRED, the median household would need to pay an additional $2,346 annually in taxes to make up for the lost city and school taxes generated by the business park. Had the business park developed residentially, the potential existed for 1,900 additional homes in New Albany. Based upon New Albany student to housing data, these additional homes would have generated 1,421 additional students in our school district, leading to the need for more teachers, more buildings and other additional costs. Instead, the business park is generating substantial income without adding one new student to our district.

DID YOU KNOW? In 2014, the median New Albany household ($485,200 home value, $185,076 annual household income) would have to pay an additional $1,968-$2,346 annually to make up for the city and school revenues produced by the New Albany International Business Park.

CHART 1 COMMUNITY IMPACT OF COMMERCIAL DEVELOPMENT BASED ON OPERATING MILLAGE (1998-2014)

SCHOOL IMPACT

Development Type Commercial Development

➊

➋

➌

➍

HOUSEHOLD IMPACT**

➎

➏

➐

➑

➒

➓

School Operating Income Property Additional Total Tax Tax #New School Impact of Commercial Millage Income Property Impact Revenues Revenues* Students Costs Development Variance Equivalent Tax Tax Tax

1998-2014. . . . . . . . . . . . . . . . . . . . . . . . . . $37,204,669 $15,789,822

$0 $52,994,491

2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,733,689 $1,807,866

$0 $5,541,555

No Development 1998-2014 Taxes on Reclassified Land Only. . . . . . . . . . . . . . . . . . . . . . . . . . .

$0 $5,376,997 $47,617,494

Average (17 years). . . . . . . . . . . . . . . . . . . .

$0 $316,294 $5,225,261

6.14

$925 $1,043 $1,968

Residential Development (2014 Only)***. .

$0 $16,425,973

1,421 $18,005,107 -$1,579,134 $7,120,689

8.37

$925 $1,421 $2,346

$5,376,997 $316,294

SEE PAGE 16 FOR NOTES TO CHART 1

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62.28 6.51

55.96 $15,731 $9,503 $25,234

CHART 2 EXAMPLES OF COMMERCIAL DEVELOPMENT CALCULATIONS ARE BASED ON CALENDAR YEAR / 2014 RATES ➊ ➋ ➌ Property Property Income Post Post Taxes Taxes Taxes 2014 Abatement Abatement Abatement Abatement Current Prior to Under Under Revenue with Property Annual Company Type/Entity Start End Value Development Abatement Abatement Abatements Taxes Revenue Abercrombie & Fitch Corportate Headquarters

2001

2016-2022 87,096,600

Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $97.96 $352,903 $1,071,253 $1,424,156 $1,515,717 $1,515,717 City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.40

$19,447 $1,071,253 $1,090,700 $83,526 $2,226,032

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $103.36 $372,350 $2,142,506 $2,514,856 $1,599,243 $3,741,749

Nationwide

Data Center

2013

2027

49,700,000

Schools. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $62,813 $369,470 $14,476 $383,946 $864,915 $864,915 City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,933 $20,360 $14,476 $34,836 $47,622 $76,574 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $69,746 $389,830 $28,952 $418,782 $912,537 $941,489

DID YOU KNOW?

Land once zoned for agricultural use generated a total of $103 annually for the schools and city. Last year, even with property tax abatements in place, this now-developed land generated $2.5 million for our schools and city.

Property tax revenues on a data center project increased more than 550% even with a 65% property tax abatement in effect. Though data centers produce limited income tax revenues for the city, they produce sizable property tax revenues for our schools now and into the future. Without the use of incentives to first lure these projects, however, they would not have occurred at all.

Chart 2 illustrates two projects in the business park originally planned for residential use but developed commercially.

➊ Property Taxes PRIOR TO Development Both properties combined to generate a total of $69,849 for the city and schools prior to being developed.

TAX REVENUE FOR THESE TWO PROPERTIES 5,000,000

➋ 2014 Total Taxes Generated with Abatement in Effect

4,000,000

Both properties currently generate $2,933,638 in combined property and income taxes.

3,000,000

➌ Total Taxes Generated After Abatement Expires After the abatements expire, the tax revenue generated from both properties is estimated to be $4,683,238 annually. (Ed.’s Note: The $103 annual property tax revenues for the Abercrombie project prior to development is not a misprint. Often, land zoned for agricultural use generates very little in property tax revenues. Also, the estimated property taxes prior to development are higher for the Nationwide data center because the rezoning had already occurred. Even so, and with abatements in effect, property tax revenues more than quintupled.) As the chart shows, total city and school revenues on these two properties prior to development was $69,849 annually. In 2014, with property tax abatements in effect, the total revenue benefit to our schools and city was $2,933,638.

2,000,000 1,000,000 0

Prior to With Abatement After Abatement Development in Effect Expires $69,849 $2,933,638 $4,683,238

The city started recruiting data centers in large measure to benefit our schools. There isn’t significant income tax revenue from these projects but they provide huge revenue benefit to our schools.

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ABATEMENT FREQUENTLY ASKED QUESTIONS Why must we offer abatements in the first place? Plain and simple, abatements are necessary to successfully compete for new business on a national level. Since the inception of the New Albany International Business Park in 1998, private investment stands at almost $1.7 billion (with nearly $900 million in investment since 2009). Of the 6,200 new jobs created in New Albany since 2009, more than 61% are new to Ohio. These new jobs, and the taxes they generate for our city and schools, would not have come to New Albany without the use of property tax abatements. Shouldn’t everyone pay their fair share instead of receiving tax breaks? Everyone, including every company receiving a property tax abatement, pays property taxes on land that they own. Abatements only apply to the building, not the land itself, and only for a specified time. They cannot be renewed, and upon expiration, the school district receives 100% of their property taxes. Additionally, income taxes generated by companies receiving abatements have been equivalent to the property taxes abated. Is it fair that companies get tax breaks if they don’t keep their promises? Incentives are reviewed annually and companies lose their abatement if they do not create the community revenues described in their agreement with the city. Are school income tax revenues similar to the full amount of property taxes they would have received with no abatements? Yes. Still, obtaining this 100% number should not be considered the success benchmark. If commercial development doesn’t occur, then

our school district reaps no benefit at all, including guaranteed 100% property tax revenues once abatement agreements expire. Such a scenario would put an even greater school and city service burden on New Albany residents. Is the City of New Albany assisting the schools in other ways besides revenue sharing? In addition to $37.2 million in shared local income tax revenues since our business park was established, the City of New Albany: n has the lowest residential density of central Ohio cities; n pays 100% of costs associated with two police officers stationed on campus throughout the school year and a youth probation officer; n assisted our schools in creating a fiber optic network on their campus. Why is the city spending money to continue to develop our city center with the Heit Center and the new roundabout instead of assisting our schools? City leaders understand the importance of our schools to our entire community and actively balance any impact on our schools with resident desires for more restaurants, local shopping and recreational options. Our schools are receiving 100% of the portion of property taxes from the new Market & Main development and will share in income tax revenues, too. Our students and our entire community will be positively impacted by the recreational and lifelong learning opportunities inside our new Heit Center, which is funded by long-term leases with medical partners The Ohio State University Wexner Medical Center and Nationwide Children’s Hospital.

Interpreting Chart 1 (page 14) by Each Potential Land Use

revenue from income tax sharing nor additional property tax revenues from development.

Commercial Development (that actually occurred)

Commercial Variance (Column ➏) The loss of income tax sharing and property tax revenue would result in a loss to the school district of $47,617,494 (62.28 mills) over the life of the abatements and $5,225,261 (6.14 mills) in 2014.

School Income Tax Revenues (Column ➊) This column provides the amount of income tax revenue shared by the City of New Albany with our school district while the tax abatements are in effect. The city and schools receive an equal share of income tax revenue generated within the business park. Since the business park’s inception in 1998, our school district has received $37,204,669 in local income tax revenues for its operations; in 2014, our schools received $3,733,689. Operating Property Tax Revenues (Column ➋) Commercial land carries a higher valuation than agricultural and residential land. Property taxes are collected on the land while an abatement is in effect. Abatements only apply to the improvements on the land. Regardless of abatements, commercial land produces exponentially more property tax revenue than vacant agricultural land prior to development. Number of New Students (Column ➌) Commercial development adds zero additional students to the school district. Additional School Costs (Column ➍) On average, each New Albany home in our school district equates to 0.748 students (2,358 students living in 3,152 New Albany homes) at an annual education cost of $11,967 per student. Millage Equivalent (Column ➐) Commercial development has generated the equivalent of 62.28 mills over the life of the abatements (and 6.51 mills in 2014), alleviating the overall tax burden on New Albany residents and shifting it to those who work in our community. New Albany Income Tax Credit (Column ➑) In 2003, the city began shifting the tax burden away from the vast majority of New Albany residents by increasing the local income tax credit to 100% from 50% on all local income taxes paid to other municipalities. Prior to this change, residents working outside of New Albany paid an additional ½ percent in local income taxes to the city. Without the growth of the New Albany International Business Park, residents would continue to bear this additional local income tax burden to fund city services. If No Development Occurred Operating Property Tax Revenues (Column ➋) Under this development scenario, property taxes are generated on the vacant land without adding students. However, our schools would receive neither

2014 New Albany Annual Report

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Household Impact (Far section to right, itemizing income tax, property tax and total impact) The additional property tax millage and loss of the income tax credit associated with no development would cost the median New Albany household $1,968.15 per year in addition to any new levy commitments. If Residential Development Occurred Operating Property Tax Revenues (Column ➋) Based upon median home values, residential development of 1,900 new homes would produce $16,425,973 in property tax revenues for our schools in 2014. Number of New Students (Column ➌) These 1,900 new homes would generate an additional 1,421 students (1,900 new homes x 0.748 students per New Albany home). Additional School Costs (Column ➍) At $11,967 per student, 1,421 new students represent a projected student liability of $17,005,107. These new students would also require a new school building. Column 4 represents the total annual school costs of these additional students, which is $18,005,107. Development Impact (Column ➎) This represents Column 2 minus Column 4, showing a deficit impact from residential development of this land from a school funding standpoint. Commercial Variance (Column ➏) Based on 1,900 median homes, if this land had been developed residentially instead of commercially, our schools would have received $7,120,689 less in 2014 than the district actually received via the commercial development that occurred. Household Impact (Far section to right, itemizing income tax, property tax and total impact) The absence of income tax revenue sharing, combined with the operating deficit created by an additional 1,421 students, would cost the median New Albany household $2,346.89 per year in addition to any new levy commitments. Our business park shifts the service burden away from residents by collecting income tax revenues from non-residents and generating property tax revenues without adding new students to our schools.

Your Taxes Property Taxes Property taxes are based on the local tax rate (in mills) and the taxable value of the property. In 2014, the Franklin County Auditor determined annual property taxes for City of New Albany households to be $2,978.58 per $100,000 fair market value based upon the mills for Tax District 222 – City of New Albany, Franklin County, New Albany-Plain Local Schools. (This millage rate does not include the 4.75 mills paid by most New Albany residents to the New Albany Community Authority for debt on the New Albany High School building, Fodor Road improvements and fire station improvements and equipment.)

2014 PROPERTY TAXES, HOUSEHOLD MARKET VALUE Source: Franklin County Auditor

$300,000

Schools. . . . . . . . . . . . . . . Franklin County . . . . . . . . . Plain Twp. Fire. . . . . . . . . . Library. . . . . . . . . . . . . . . . Eastland JVS . . . . . . . . . . . City of NA. . . . . . . . . . . . . . NA Parks District . . . . . . . . TOTALS. . . . . . . . . . . . . . . .

2014 Property Taxes = $2,978.58 per $100,000 of Value Source: Franklin County Auditor’s Office

Itemized Breakdown of Resident Property Taxes

$ 5,747.55 $ 1,679.07 $ 756.72 $ 257.25 $ 183.75 $ 178.23 $ 133.17 $ 8,935.74

New Albany-Plain Local School District . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,915.85 (64.3%) Franklin County

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 559.69 (18.8%)

• Board of Developmental Disabilities • Children’s Services • Alcohol, Drug and Mental Health Board • General Fund

• Aging • Metro Parks • Zoo

Plain Township Fire

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 252.24 (8.4%)

Columbus Metropolitan Library

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $

85.75 (3%)

Eastland Joint Vocational School

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $

61.25 (2%)

City of New Albany

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $

59.41 (2%)

New Albany Joint Parks District

. . . . . . . . . . . . . . . . . . . . . . . . . . . . $

44.39 (1.5%)

$600,000

$900,000

$11,495.10 $ 3,358.14 $ 1,513.44 $ 514.50 $ 367.50 $ 356.46 $ 266.34 $17,871.48

$17,242.65 $ 5,037.21 $ 2,270.16 $ 771.75 $ 551.25 $ 534.69 $ 399.51 $26,807.22

City of New Albany General Fund Property Tax Revenues 2008-2014 Source: City of New Albany 1,500,000

$1,200,000

1,000,000 500,000

2008 2009 2010 2011 2012 2013 2014 $1,083,570 $1,121,533 $1,116,635 $1,082,339 $1,034,940 $1,001,933 $1,043,756

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$22,990.20 $ 6,716.28 $ 3,026.88 $ 1,029.00 $ 735.00 $ 712.92 $ 532.68 $35,742.96

2014 New Albany Annual Report

City of New Albany General Fund Income Tax Revenues 2008-2014 Source: City of New Albany 15,000,000

Did You Know?

10,000,000

Most residents who work elsewhere pay no income taxes to New Albany because income taxes are paid to the community where people work. New Albany provides a 100% credit for local income taxes paid by residents who work elsewhere.

5,000,000

2008 2009 2010 2011 2012 2013 2014 $8,945,304 $7,416,292 $6,800,224 $10,959,194 $9,862,600 $11,710,706 $11,663,496

Income Taxes Income tax revenues are by far the City of New Albany’s largest funding source, accounting for 76% of all general fund revenues. Income taxes are integral to the city’s ability to provide police protection, snow removal, leaf collection, road maintenance, sewer and storm water maintenance, trails and other city services. Local income taxes are typically paid to the community where people work, not where they live. Because New Albany provides a 100% credit for income taxes paid to other communities by New Albany residents, many do not pay income taxes to New Albany. It may seem hard to believe, but the majority of New Albany income tax revenues are paid by non-residents who work in our community. This is why creating jobs inside New Albany borders is the single most important component of our community’s long-term financial health. Everyone who works in New Albany (regardless of where they live) pays income taxes to the city and in turn generates revenues to support city services and projects. Unlike property tax revenues, which are a more consistent source of funds and easier to estimate, income tax revenues are more volatile. In good economic years, income tax revenues can be higher than anticipated. During times of economic instability, however, the loss of jobs combined with cutbacks in wages and/or bonuses can double the negative impact. This is reflected in the cash balance figures below. Income tax revenues were much lower in 2009 and 2010 during the worst of the recession. The City of New Albany levies a two percent local income tax on gross wages, salaries and other personal services compensation. This tax is also levied on net profits of corporate headquarters and small businesses based in New Albany. As can be seen in the chart below, city income tax revenues were impacted by the recession, but have bounced back in recent years due to job recruitment success within the New Albany International Business Park.

Cash Balance

2008 2009 2010 2011 2012 2013 2014 Cash Balance at Beginning of Year. . . . $ 6,014,635 $ 6,928,541 $ 6,521,883 $ 2,750,896 $ 7,888,608 $ 8,407,622 $10,615,669 Revenue Property Taxes. . . . . . . . . . . . . . . . . . . . . . . . Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . Hotel Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . Inter-governmental. . . . . . . . . . . . . . . . . . . . Charges for Services. . . . . . . . . . . . . . . . . . . Fines, Licenses, Permits. . . . . . . . . . . . . . . . Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,037,505 $ 8,945,304 $ 0 $ 451,411 $ 206,935 $ 373,421 $ 682,114 $ 0

$ 1,083,052 $ 7,416,292 $ 0 $ 269,409 $ 212,502 $ 279,978 $ 688,275 $ 0

$ 1,079,685 $ 6,800,224 $ 0 $ 193,640 $ 284,861 $ 523,125 $ 278,131 $ 792,558

$ 1,077,120 $10,959,194 $ 0 $ 510,595 $ 385,957 $ 699,421 $ 313,115 $ 2,032,823

$ 1,034,935 $ 9,862,600 $ 0 $ 589,347 $ 281,788 $ 509,046 $ 232,213 $ 2,170,850

$ 1,001,933 $11,710,706 $ 48,447 $ 282,295 $ 429,900 $ 578,997 $ 484,245 $ 884,533

$ 1,043,756 $11,663,496 $ 183,225 $ 896,990 $ 470,435 $ 665,082 $ 512,165 $ 9,685

Total Revenue . . . . . . . . . . . . . . . . . . . . . . . $11,696,690

$ 9,949,508

$ 9,952,224

$15,978,225

$14,680,779

$15,421,056

$15,444,834

Expenses Police. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Community Development . . . . . . . . . . . . . . . Public Service/Engineering. . . . . . . . . . . . . . Admin, IT, Finance. . . . . . . . . . . . . . . . . . . . . Legal/Mayor’s Court . . . . . . . . . . . . . . . . . . . Facilities Maintenance. . . . . . . . . . . . . . . . . Other Charges. . . . . . . . . . . . . . . . . . . . . . . . Transfers & Advances. . . . . . . . . . . . . . . . . . Debt Service. . . . . . . . . . . . . . . . . . . . . . . . .

$ $ $ $ $ $ $ $ $

2,641,701 1,182,201 2,879,656 1,528,981 549,005 133,527 415,493 535,000 917,220

2,751,104 1,275,418 2,415,357 1,672,944 594,573 216,734 398,670 14,114 1,017,252

2,671,832 1,279,460 2,458,150 1,758,341 512,043 181,402 745,858 3,240,032 876,093

2,747,008 1,271,917 2,426,984 1,850,798 448,415 292,447 594,964 844,190 363,788

2,879,066 1,554,288 2,553,380 2,000,067 613,026 388,655 423,894 3,044,600 704,789

2,861,532 1,579,895 2,493,588 2,007,970 563,840 325,846 425,550 2,954,789 0

3,114,690 1,827,821 2,818,412 2,594,370 516,722 360,813 366,645 3,919,150 0

Total Expenses. . . . . . . . . . . . . . . . . . . . . . . $10,782,784

$10,356,165

$13,723,212

$10,840,512

$14,161,765

$13,213,010

$15,518,623

Cash Balance at End of Year. . . . . . . . . . $ 6,928,541

$ 6,521,883

$ 2,750,896

$ 7,888,608

$ 8,407,622

$10,615,669

$10,541,880

2014 New Albany Annual Report

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2014 Revenue and Expenses 2008-2014 City of New Albany General Fund Revenue Source: City of New Albany 12,000,000 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000

2014 City of New Albany General Fund Revenue

6,000,000 5,000,000

$15,444,834

4,000,000

Source: City of New Albany

3,000,000

2,000,000

7% Property Taxes

76% Income Taxes

1% Hotel Taxes

6% Inter-governmental

3% Charges for Services

4% Fines, Licenses, Permits

3% Other/Transfers

1,000,000 0 Charges Fines, Property Income Hotel Inter- for Licenses, Taxes Taxes Taxes governmental Services Permits Other

Transfers

n YTD 2014

$1,043,756

$11,663,496

$183,225

$896,990

$470,435

$665,082

$512,165

$9,685

n YTD 2013

$1,001,933

$11,759,153

$48,447

$282,295

$429,900

$578,997

$484,245

$884,533

n YTD 2012 $1,034,940 $9,862,600 _

$589,342 $281,788 $509,046 $232,213 $2,170,850

n YTD 2011 $1,082,339 $10,959,194 _

$505,376 $385,957 $699,421 $313,115 $2,032,823

n YTD 2010 $1,116,635 $6,800,224 _

$156,690 $284,861 $523,125 $278,131 $792,558

n YTD 2009 $1,121,533 $7,416,292 _

$230,927 $212,502 $279,978 $688,275

–

n YTD 2008 $1,083,570 $8,945,304 _

$405,346 $206,935 $373,421 $682,114

–

2008-2014 City of New Albany General Fund Expense Source: City of New Albany 4,000,000 3,500,000 3,000,000

2014 City of New Albany General Fund Expenses

$15,518,623

Source: City of New Albany

20% Police

12% Community Development

18% Public Service/Engineering

17% Administration, IT, Finance

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Public Legal/ Community Service/ Admin, IT, Mayor’s Facilities Other Transfers & Debt Police Development Engineering Finance Court Maintenance Charges Advances Service

3% Legal/Mayor’s Court

2% Facilities Maintenance

n YTD 2014

$3,114,690

$1,827,821

$2,818,412

$2,594,370

$516,722

$360,813

$366,645 $3,919,150

–

3% Other Charges

n YTD 2013

$2,861,532

$1,579,895

$2,493,588

$2,007,970

$563,840

$325,846

$425,549 $2,954,789

–

n YTD 2012

$2,879,066

$1,554,288

$2,533,380

$2,000,067

$613,026

$388,655

$423,894 $3,044,600 $704,789

n YTD 2011

$2,747,008

$1,271,917

$2,426,984

$1,850,798

$448,415

$292,447

$594,965

n YTD 2010

$2,671,832

$1,279,460

$2,458,150

$1,758,341

$512,043

$181,402

$745,859 $3,240,032 $876,093

25% Transfers & Advances

$844,190

$363,788

n YTD 2009

$2,751,104

$1,275,418

$2,415,357

$1,672,944

$594,573

$216,734

$398,669

$14,114 $1,017,252

n YTD 2008

$2,641,701

$1,182,201

$2,879,656

$1,528,981

$549,005

$133,527

$415,493

$535,000

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$917,220

2014 New Albany Annual Report

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City of New Albany New Albany School District City of New Albany Corporation New Albany-Plain Local Schools County Line Parvels Rocky Fork Metro Park Water Bodies

Miles

www.newalbanyohio.org

0.25

0.5

N 1

2014 New Albany Annual Report

Our City and Government Structure At a Glance ew Albany, Ohio, founded in 1837 and incorporated in 1856, is a master planned community of 8,800 residents located 15 miles northeast of Columbus, Ohio’s capital city, and 10 miles from the Port Columbus International Airport. New Albany’s pastoral setting, timeless architecture, world-class amenities and attention to detail offer an exceptional quality of life for its residents. New Albany is home to one of the largest master planned international business parks in the Midwest, featuring dual feed electric power and fiber optic capabilities for companies of all sizes.

New Albany provides a range of municipal services, including police protection, street maintenance, sewer and storm water infrastructure maintenance, snow removal, leaf collection, planning, zoning and construction inspections. All New Albany residents receive their fire and emergency medical services from the Plain Township Fire Department, a separate entity from the City of New Albany. Health services are provided by the Franklin County Board of Health.

Home Rule Charter New Albany residents approved the community’s first charter in 1992. The charter gives the municipal government greater local control and flexibility than the statutory form. Ohio statutes govern only on matters that the New Albany Charter does not address. The charter is reviewed every 10 years, and any proposed revisions to the charter must be approved by the New Albany electorate before they can be enacted.

Style of Government New Albany utilizes the Mayor-Council-Manager form of government, which combines political leadership of elected officials with the managerial experience of an appointed, professional city manager.

Mayor & City Council City Council is the legislative branch of government made up of seven members, one of whom is the mayor. Council and mayoral elections are held in November of odd-numbered years and are non-partisan. Council members are elected by residents to four-year terms and are responsible for communicating regularly with their constituents, setting community priorities and adopting budgets consistent with those priorities. The mayor, in addition to the powers, rights and duties of a City Council member, presides over meetings, performs ceremonial duties including marriages, presides in Mayor’s Court, and often acts as a spokesperson to other governments. The mayor has no veto powers. City Council has been granted certain powers by the Ohio Constitution, the laws of the State of Ohio and the New Albany Charter. These powers are exercised through the adoption of ordinances and resolutions. Among other things, the charter gives City Council the authority to create and abolish departments, commissions, boards and committees, audit accounts and records, conduct inquiries and investigations, levy taxes, enforce laws and regulations, adopt a budget and appropriate funds, adopt building and zoning regulations and hire a city manager.

Current New Albany City Council Members (l to r) Sloan Spalding, Dr. Glyde Marsh, Chip Fellows, Mayor Nancy Ferguson, Colleen Briscoe, Stephen Pleasnick, Mike Mott

2014 New Albany Annual Report

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City Administration and Department Directors

New Albany Boards & Commissions

The city manager serves as the community’s CEO and is appointed by City Council to:

City boards and commissions play an important role in our local government by evaluating matters of interest and making recommendations to City Council. All board and commission meetings are open to the public.

n Provide

organizational leadership.

n Manage

municipal operations.

n Coordinate n Oversee

and direct the budget process.

implementation of City Council enacted policies and adopted budgets.

n Ensure

effective delivery of services to New Albany residents and businesses.

n Advise

City Council on policy matters and keep them apprised of municipal operations.

n Direct

department heads and consultants.

n Implement

Planning Commission Meets the third Monday of each month at 7:00 p.m. Board of Zoning Appeals Meets the fourth Monday of each month at 7:00 p.m.

all fiscal, planning and infrastructure programs.

The city manager and other administrative staff oversee human resources, community engagement efforts, special events, engineering services, Mayor’s Court and legal services. Legal counsel is currently provided by Frost Brown Todd, LLP. Aside from leading the Department of Administration, the city manager appoints the deputy city manager and city department directors for the city’s community development, finance, police and public service departments. Joseph Stefanov, City Manager (99 W. Main Street; 855.3913; admin@newalbanyohio.org) Debra Mecozzi, Deputy City Manager (99 W. Main Street; 855.3913; admin@newalbanyohio.org)

Architectural Review Board Meets the second Monday of each month at 7:00 p.m. Board of Construction Appeals Meets the third Monday of each month at 7:00 p.m. Parks & Trails Advisory Board Meets the first Monday of each month at 6:00 p.m. Community Improvement Corporation Meets as necessary

Scott McAfee, Public Information Officer (99 W. Main Street; 855.3913; info@newalbanyohio.org) Jennifer Chrysler, Community Development Director (99 W. Main Street; 939.2254; development@newalbanyohio.org) Adrienne Joly, Community Development Deputy Director (99 W. Main Street; 939.2254; development@newalbany.org) Chad Fuller, Finance Director (99 W. Main Street; 939.2245; cfuller@newalbanyohio.org) Greg Jones, Police Chief (50 Village Hall Road East; 855.1234; info@newalbanypolice.org) Mark Nemec, Public Service Director (7800 Bevelhymer Road; 855.0076; publicservice@newalbanyohio.org)

Economic Development Commission Meets as necessary Personnel Appeals Board Meets as necessary New Albany Plain Local Joint Parks District (Appointed by City of New Albany, New Albany Plain Local Schools, and Plain Township) Meets the first Monday of each month at 5:30 p.m. Rocky Fork Blacklick Accord (Appointed by City of Columbus, City of New Albany, Plain Township) Meets the third Thursday of each month at 7:00 p.m.

Organizational Priorities City Manager Joseph Stefanov, in conjunction with his senior staff and City Council, created the following organizational priorities to which all department goals are linked: n Enhance

the local economy through infrastructure investments and implementation of programs that encourage private development.

n Work

with private and public partners to promote a vital Village Center core that incorporates education and lifelong learning, arts and culture, health and wellness and environmental sustainability.

Jeanne B. McCoy Community Center for the Arts (Appointed by City of New Albany, Plain Township, McCoy Center, New Albany Community Foundation, New Albany Plain Local Schools) Meets the second Thursday of each odd month at 8:00 a.m.

n Develop

an organizational environment that rewards excellent performance and promotes continuous personal development.

n Pursue

continual improvements in operational and programmatic quality, emphasizing efficiency, effectiveness and sustainability.

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2014 New Albany Annual Report

New Albany Contacts City Service Contacts

Local Income Tax Questions

Administration. . . . . . . . . . . . . . . . 614.855.3913 admin@newalbanyohio.org

Regional Income Tax Agency.......... 1.866.721.7482

Community Development. . . . . . . . 614.939.2254 development@newalbanyohio.org Inspection Scheduling. . . . . . . . 614.939.2222

Other New Albany Area Municipal Services

City Council. . . . . . . . . . . . . . . . . . 614.939.2244 council@newalbanyohio.org Finance . . . . . . . . . . . . . . . . . . . . . 614.939.2245 finance@newalbanyohio.org Mayor’s Court. . . . . . . . . . . . . . . . . 614.855.8577 court@newalbanyohio.org Police. . . . . . . . . . . . . . . . . . . . . . . 614.855.1234 info@newalbanypolice.org Public Service . . . . . . . . . . . . . . . . 614.855.0076 publicservice@newalbanyohio.org

New Albany Plain Local Schools........ 614.855.2040 New Albany Joint Parks District......... 614.939.7275 New Albany Library............................ 614.645.2275 Plain Township.................................. 614.855.2085 Plain Township Fire........................... 614.855.7370 Plain Township Aquatic Center.......... 614.775.9430

New Albany Chamber of Commerce and Franklin County Contacts

Utilities

New Albany Chamber of Commerce...............................614.855.4400 Franklin County Board of Elections...............................614.525.3100 Franklin County Auditor.................................................614.525.4663

Cable (Time Warner)...................................................1.800.892.2253

Cable (Insight)..............................................................614.236.1200 Electric (AEP).............................................................1.800.277.2177 Gas (Columbia Gas)...................................................1.800.344.4077 OUPS (Call Before You Dig)........................................1.800.362.2764 Sewer (City of Columbus)..............................................614.645.8164 Trash (Rumpke)..........................................................1.888.786.7531 Water (City of Columbus)..............................................614.645.8270

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