The Department of Local Government Finance conduced a public hearing on Thursday for Marshall County’s request to re-establish the rate for the Cumulative Capital Development Fund back to the maximum.
Earlier this spring the County Commissioner, at the recommendation of financial consultants from Umbaugh decided to take the steps to increase the rate from $.0169 to $.0333 per $100 of assessed value. It was estimated the rate increase could bring in over $400,000 in revenues annually.
Local opposition to the rate increase filed a petition with at least 50 certified tax payers causing the need for a public hearing.
On Thursday, it appeared that only two people showed up in person to oppose the increase and a third voiced his concern by letter.
John Toumey, Hearing Officer for the DLGF heard Tim Hackett who said, “the property tax burden is heavy enough already.” He went on to reference former State Rep. Tim Harmon who indicated during last year’s attempt to increase the rate, “There were other avenues available to makeup funding shortfalls through reallocation from funds already existing in the county’s budget.” Hackett went on to say, “It has been alluded to that the increase will be used for road maintenance. However with the increase stated going into a fund so broadly named the new monies could go anywhere.”
Mr. Hackett from Argos also noted that if the county doesn’t have money to maintain its existing roads, how did they find the money to construct Veteran’s Parkway.
Mr. Hackett also read a statement from Thor Hebner from Plymouth who said, “The county had $2.8 million unspent in the Motor Vehicle Fund and 130% of last year’s expenditures remaining in the CCD account.” He said the commissioner have not told the taxpayers why they need to do this or what the spend plan will be.” He said the explanations are unspecific and in adequate. Thor’s statement mentioned the recent state gas tax increase which is to send a significant return back to the counties for roads. He went on to call the county “physically irresponsible.” Mr. Hebner, in his written statement told the hearing officer the county takes in more money than they spend yet they continue to tax and ask for more.
Thor Hebner then mentioned the Plymouth Public Library who he says, “Takes in 125% of operating costs while retaining enough funds to run for three and one half years if they didn’t raise another dime.” He continued in his statement, “Their cash on hand stands at over $6 million, yet I hear no proposal to lighten the load on taxpayers.”
Those speaking in favor of the rate re-establishment include County Commissioner Kevin Overmyer who said in his nearly 18 years as a commissioner he didn’t recall ever re-establishing the CCD rate. Overmyer said the County Highway Department has an aging fleet with many vehicle 20 to 30 years old. The commissioner went on explain the plan for the increased revenue through the rate increase. Six new dump trucks and a paving machine were purchased this year through a lease program and the funding will pay for the leases on the equipment which is approximately $300,000 annually.
County Commissioner Kurt Garner told the hearing officer the CCD fund also pays for the county’s IT software and equipment purchases and rentals for the county highway department the past two years. He too said the plans are to shift the burden of lease payments off the Highway Budget to the CCD fund, freeing up funding for additional work on road maintenance.
County Council President Judy Stone echoed the commissioner’s comments and said the Cumulative Capital Development Fund recently paid for a new roof on the 35 year old County Building and new chiller and repair elevators in the county’s historic court house. Stone said, “I understand the frustration of people with their property taxes but our property taxes, really due to county government have not increased exponentially and we are restricted by the tax caps.” Stone noted that the county has lost hundreds of thousands of dollars because of the tax caps.
County Council member Penny Lukenbill told the hearing officer that the idea to re-establish the CCD rate at the maximum came for their financial consultants from Umbaugh. She said, “They projected that the average homeowner’s taxes would increase only about $5.50.” Lukenbill went on to say, “We as the county council and county commissioners try very very hard to be transparent, to be upfront and to be very honest.” She said they work very hard at trying to fit their budget into the county’s revenues.
The hearing took less than 30 minutes and anyone still wanting to voice their opinion can submit to the Department of Local Government Finance within 7 days of the hearing to David Marusarz, 100 North Senate Avenue, Room N 1058, Indianapolis IN 46204.
After reviewing the evidence and testimony presented Mr. Toumey will make a recommendation to the commissioner at the DLGF in a timely fashion. After the commissioner of the DLGF reviews everything he will make a determination upon consideration of all evidence presented.
