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Clermont Council Approves New Tax Rate
(posted July 28)
(revised Aug 1 to correct tax rate)
Although no one raised a hand as a sign to end fire protection service
in Clermont, approximately 50 residents filled the room to oppose the firefighting
building and equipment fund tax rate that may be needed to help fund Wayne
Township's fire contract. Resident Linda Lucas rallied a crowd by distributing
fliers around town to come to the July 24 meeting.
Although the council listened to nearly three hours of public comments
during its July 10th and 24th meetings, the council voted for 4-1 to institute
a tax rate not to exceed .0333 cents per $100 assessed valuation for the
2009 budget. Councilor Vonda Kiger was the dissenting vote.
Town Attorney Robert Lutz explained the council is caught between "a
rock and a hard place" when calculating the budget with the unknowns
from Wayne Township about the cost of fire service. Wayne Township is the
only entity offering fire protection to the town.
The council tried "to shop" in 2006 for a different fire service
provider, but they were turned down by IFD, Pike Township and Brownsburg.
Lutz described the council as setting "behind the eight ball"
with no other place to seek fire services. The council had until August
2 to pass the tax rate so it could be applied in the 2009 budget.
The council members thought it was necessary to find another revenue source
instead of relying on the general fund to pay for fire services with two
unknowns. The council has not received notice of how much the 2009 fire
contract will be, nor do they know the fiscal impacts concerning the future
tax caps.
It was not until the 2008 budget was completed that Clermont received a
contract from Wayne stating fire service would increase from 298,000 to
$358,000 in 2008.
Wayne Township Board President Roger Bowser said he did not have any numbers
to give to the council at the meeting.
Council President Bob Hinshaw said Clermont's entire budget is $642,000.
Hinshaw speculated the fire contract could raise by $20,000 for 2009, Lutz
thought it would be more like $12,000 to $15,000.
The Clermont Town Council, like other taxing entities, are confined by
statutory laws not to increase the general fund levy by more than four
percent. The new tax rate is outside the levy and allows the council additional
power to raise taxes. Lutz explained that although no figures were given,
the township trustee said the town should expect to pay the same rate as
everyone else that will be receiving fire services from Wayne in 2009.
Clermont's fire tax rate is .425 cents per $100 while the rest of Wayne
residents are paying .64 cents per $100. Lucas thought it was unfair for
Clermont to pay the same rate as the rest of Wayne Township residents.
Wayne Township responds to about two fires a year in Clermont.
Several residents requested dissolution of the town, thinking that would
end the fire tax problem, not realizing that Wayne Township would still
be their fire service provider.
Some residents including Lucas were willing to cut the police department
or dissolve it so the funds could be used to cover the rising costs of
fire protection. The police department requires $180,000 to operate.
When councilor Nancy Baxter asked for a show of hands in support of the
retaining a police department, no hands were raised, only one resident
said she would like to retain the department because of the drug problems
in Clermont.
Resident Linda Backus asked the council to cut spending at the last meeting.
She said she has had to make cuts in her personal spending to afford her
taxes.
However, Hinshaw said he was not sure about making other budget cuts because
after police and fire are paid, the town only has about $100,000 to operate
with.
Some residents asked to review the budget to see if there is any wasteful
spending, but none of the residents asked Bowser about budget cuts or examining
the Wayne Township Fire Budget. Lutz contends the Wayne Township fire rate
is artificially high and therefore, the township has been able to cumulate
a couple of million dollars in its rainy day fund.
The final approval of the tax rate will be made by the Department of Local
Government Finance. Lucas said petitions are circulating to submit to the
DLGF to reject the tax rate. Some people in the audience shouted "pass
them around."
The council failed to adopt the cumulative capital development fund. It
died due to a lack of second. Councilor Walt Miller said the fund could
be used to help pave roads and sidewalks. Miller also said it could be
used to build a senior center.
However, some residents expressed skepticism that the money would be dedicated
to cover Ball State's architectural plans to revitalize Clermont. The revitalization
project was dubbed in mockery as "Field of Dreams" in the meeting.
Lutz said the CCDF could also be used to help fund the fire contract in
case the projected $90,000 budget short falls occur 2010 as a result of
the HEA 1001 tax caps. However, remonstrators called it a slush fund because
of the multiple purposes it could be used for. Their arguments brought
the proposed tax rate to its defeat.
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