WESTON—Otsego Local Schools’ income tax collections are off to a strong start this fiscal year, but the district’s latest five-year forecast does not count any revenue from the solar field being built in and around Weston, Treasurer Steve Carroll told the Board of Education on Aug. 31. He expects to present revised numbers in November.
Income Tax Up Early
According to the Sentinel-Tribune, the district’s first income tax payment of the year was up 17%, though Treasurer Steve Carroll cautioned that it is too early to tell whether that is a trend or a one-time bump. The July payment has historically been the largest share of the district’s income tax revenue, he said, and he is assuming a 4% increase for the remaining payments.
Those figures are separate from the new 0.25% earned income tax Otsego voters approved on May 5. That five-year tax takes effect Jan. 1, 2027, and is expected to bring in about $1.1 million a year for daily operations and campus projects. Unofficial results reported by the Sentinel-Tribune showed it passing 1,287 to 1,125 across the district’s three counties, with Wood County voters supplying the margin.
At the board’s May 28 meeting, Carroll said the first payment from the new tax, roughly $285,000, is expected in April 2027, and that the levy’s full annual revenue will not arrive until fiscal year 2028.
What the Forecast Leaves Out
Carroll said he left several possible sources of new money out of the forecast rather than guess at them:
- Weston solar field: The district has no official projection or timeline for revenue from the project, so none was included. The Juliet Solar project, which developer Lightsource bp is building in Weston Township, Milton Township and the Village of Weston, lists Otsego schools among the local bodies expected to share in more than $18 million in revenue over the project’s life.
- Data centers: Carroll said he is watching the valuation of data center property under construction but has no timeline or projected increase to plug in.
- HB186: The district is still waiting on property tax settlement figures from its three counties, which are working through the state’s new HB186 tax credit. Carroll said the delay is not the counties’ fault and that the district does not yet know how much HB186 will affect it.
For now, the forecast assumes general property tax revenue grows 3% a year through the forecast period.
The Numbers
- This fiscal year: $21.44 million in revenue against $21.43 million in expenses
- 2030: $23.64 million in revenue against $23.56 million in expenses
- Spending growth: About 3% overall, driven mainly by special education costs; personal services are projected to rise just under 3%, benefits 2.7% and purchased services 10%
In June, Carroll described his spring forecast as rough numbers meant to inform the board rather than a document requiring approval. That version reflected the expected first payment from the new income tax and higher purchased-services costs, including a temporary speech-language pathology contract to cover staff on leave in the 2026–27 school year.
Otsego Local Schools serves Weston-area students. The treasurer’s refined forecast is expected at the board’s November meeting.
Sources: Sentinel-Tribune (Sept. 3) · Sentinel-Tribune (June 11) · Sentinel-Tribune (May 6) · Lightsource bp: Juliet Solar