MOSCOW, Ohio — Schools, libraries and communities in Clermont County must repay more than $130,000 in tax revenue from the shuttered William H. Zimmer coal plant in Moscow and are facing another financial hit next year as the plant's value continues to plummet.
Texas-based Vistra challenged the county auditor’s $140 million property valuation of the plantand surrounding land, arguing that it was worth 80 percent less – or $28.5 million.
Before the Ohio Board of Tax Appeals could hear the dispute on Oct. 17, both sides reached a settlement with an agreed value of $52 million.
“Just like any taxpayer, Vistra is committed to paying its fair share of property taxes,” said Vistra spokesperson Jenny Lyons. “Vistra appreciates the cooperation of the parties involved and remains dedicated to paying taxes based on fair market value under Ohio law.”
The settlement forgives $3.7 million in estimated delinquent tax payments that Vistra would have owed, and orders a $139,053 refund to be paid jointly by New Richmond schools, county libraries, Grant Career Center, the village of Moscow, Monroe and Washington townships, and Clermont County.
“Well, we’ve got to pray and hope that we don’t have two big pieces of equipment break down at the same time,” said Dennis Cooper, trustee board chairman for Washington Township which must repay $19,274. “It doesn’t seem like a lot, but it is.”
For decades Clermont County was flush with tax revenue from two coal power plants perched along the Ohio River. It paved roads, built new fire stations and schools, opened parks and community centers, and replaced household septic tanks with municipally treated water.
But the last of that coal revenue is evaporating.
Duke Energy closed the former Walter C. Beckjord coal plant near New Richmond in 2014 and sold the 1,400-acre site to Commercial Liability Partners four years later. CLP demolished the plant and is preparing the site for new development.
When the Zimmer plant closed on May 31, 2022, it was the sixth coal-burning power plant in the region to close in a decade. The trend is driven by the increasing cost of complying with air-pollution rules and cheaper energy sources like natural gas.
“As it stands, the decision that was made to close the plant and reduce its valuation have resulted in a loss of millions of tax dollars paid to our schools. Coupled with the closing of the Beckjord plant, the financial losses have been staggering for our school district and our community,” said New Richmond Exempted Village School District spokesperson Garth Shanklin.
New Richmond voters passed a 9.4-mill operating levy in April 2021 to help bridge the loss of the Beckjord coal plant revenue – its first levy since 1977.
Now, with Zimmer’s closure, the school district is facing another deep budget loss. It had collected $3.5 million a year in Zimmer tax revenue, which was 10 to 15 percent of its budget.
“Whatever so-called fat there was before, it’s gone,” New Richmond Schools Superintendent Tracey Miller said in a 2022 interview.“Every area has been reduced: Teaching. Class size. Bus drivers. Administrative. Everything has been reduced. We’re about as low as you can go.”
Zimmer is already worth far less than it was a few years ago, forcing communities to cope with shrinking tax dollars.
Zimmer’s devaluation has gradually reduced its property taxes from $11 million in 2015 to an estimated $5.2 million for 2021, according to data from the Clermont County auditor’s office.
Washington Township has lost one-third of its revenue from Zimmer since 2016, forcing officials to close fire houses, cut employees, pave fewer roads, and mow parks and cemeteries less often.
“Zimmer was basically the only industry that we had,” said Cooper, who worries the next valuation will be even lower, resulting in sharper cuts.
Last week the county auditor released its 2023 preliminary valuation of Zimmer: $32.9 million – which is a 37 percent drop from the $52 million agreed upon value from last year. This tees up another potential financial hit for schools and local governments next year.
The reason for the steep drop in value is because the plant is no longer operational, and it is no longer appraised as a public utility.
“The shutdown and any attempt to further reduce the property’s values will place an enormous financial burden on our district,” said Shanklin, of New Richmond schools. “We are concerned that the Zimmer power plant ownership will attempt to further lower those values and we will make a determination with our legal counsel on how to proceed at that time.”
New Richmond schools, or Vistra, could decide to appeal the final 2023 property value, launching a new dispute.
“I expect either the school board or Zimmer will file a Board of Revision complaint depending on where that value ends up. So, we may be back at it next year,” assistant county prosecutor Brian Shrive wrote in a Sept. 28 email to Washington Township. “I have asked Zimmer’s attorney to consider making ‘tender payments’ if they file a complaint.”
Tender payments would allow Vistra to pay the tax bill they believe they would owe based on their proposed value. This avoids schools and governments from paying a big refund if Vistra is successful at lowering Zimmer’s value.
“Zimmer did this for the past couple of years which is why the refund is relatively small compared to their total tax bills,” Shrive wrote.
In the meantime, the $139,053 refund will be deducted from the next property tax settlement that local governments, schools, and libraries receive in late March or early April. They will not write a check, said Clermont County deputy auditor Chris Mehlman.
“Obviously, the township and other taxing authorities are going to need to prepare for the lower tax collections going forward,” Shrive wrote.
Vistra also plans to close the Miami Fort power plant in North Bend by the end of 2027.
Estimated refunds:
New Richmond Schools: $78,901
Grant Career Center: $11,449
Monroe Township: $493
Washington Township: $19,274
Village of Moscow: $4,407
Clermont County: $22,493
Clermont County Public Library: $2,036
Total: $139,053
