BY TOM O'NEILL
The Cincinnati Enquirer
BATAVIA -- Clermont County officials Tuesday approved a property tax reduction at Cinergy's Zimmer power plant that is far less than the company requested, but still will cost communities and schools $123,047 a year in lost revenue.
Cinergy had requested a $54 million reduction to $12.02 million in the assessed value at its Zimmer and Beckjord generating plants along the Ohio River in southern Clermont County.
That request could have cost nearly $2.2 million in lost tax revenue, including $1.2 million annually to the New Richmond Exempted Village School District
County Auditor Linda Fraley, a member of the Board of Revisions that issued the decision, said that request was unreasonable. But the board did agree to a $9 million reduction in the appraised market value of a reactor facility at Zimmer in Washington Township. It was designed for nuclear operations and is 90 percent obsolete, according to Jack Trainor, state director for the private firm contracted to do the appraisal.
The reduction translates to an assessed value change of roughly $3.2 million, because assessments are based on 35 percent of market value.
Cinergy also is pursuing $800,000 in assessment reductions at five Hamilton County facilities, including its downtown corporate headquarters, but has not yet made any board appearances on those requests, spokeswoman Kathy Meinke said Tuesday.
TAX LOSSES
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How Cinergy's tax assessment reduction of about $3.2 million will affect local jurisdictions.
 Annual tax loss to:
Clermont County: $22,894.
New Richmond Exempted Village School District: $70,565.
Grant Vocational School: $9,127.
Washington Twp.: $20,461.
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Similar requests for four facilities in Butler County led to a combined $65,000 decrease in property taxes there last year, she said. The reassessment requests are part of a nationwide trend by utilities, which claim that expected industry deregulation has lowered their property values.
"'We want to remain a good corporate citizen but we have to be prudent on our part," Ms. Meinke said.
Cinergy officials said they would read carefully the Clermont board's ruling before deciding whether to appeal.
Teresa Napier, treasurer of the New Richmond Exempted School District, said she was relieved. It could have been much worse, she said.
The district will lose $70,565 in annual revenue from the assessment reduction, which is retroactive to Jan. 1, 1997. The district will return $35,000 for the first half of last year, but no cutbacks are expected, she said.
Eighty percent of the district's $23 million comes from taxes, 86 percent of which are generated by Cinergy.
"We're relieved, but our real concern right now is legal fees," said Ms. Napier, who estimated the school district's countercomplaint with the Board of Revisions has cost about $10,000 in legal and consulting fees.
That could grow if Cinergy appeals to either Clermont County Court of Common Pleas or the state Board of Tax Appeals in Columbus. It has 30 days to file.
Cinergy can also request another reassessment in 1999, which Ms. Fraley said she expected.
