City updated on tax impact (07/22/2008)

City officials learned Monday night about how a legislative decision could affect Portland.

Sue Beesley of Indianapolis law firm Bingham McHale explained to Portland City Council members how House Bill 1001 will affect the city's budget, the Portland Redevelopment Commission and the city's tax increment financing district.

The bill went into effect July 1.

She said the bill caps property taxes on all property.

The redevelopment commission receives the increase in assessed valuation on properties in the TIF district through property taxes.

Bruce Hosier, the city's mayor, added that because of the property tax cap, the TIF district will lose about $7,800 in 2009 and about $78,000 in 2010.

Beesley reassured the council that the city's TIF district will be fine, even though property taxes are being capped. "Portland is doing a marvelous job," she said.

Any projects that go through the remonstrance or referendum process, such as the planned expansion of the Jay County Jail, will be exempt from the property tax cap, Beesley said. The jail project will be on the ballot in November.

The bill also shortens the life of any new TIF district to 25 from 30 years. Because the city established its district before the bill was passed, the city's TIF will remain at a maximum of 30 years, Beesley said.

As part of the bill, a school board member also must be added to serve as a non-voting member of the redevelopment commission. Jay School Board member Jay Halstead recently was appointed to the city's commission. An appointment to the county's redevelopment commission has not yet been announced.

In terms of budgets, if a County Board of Tax Adjustment is not established to oversee annual budgets, then the Jay County Council will have to review budgets of all non-elected boards, such as the library board, the park board and the aviation board, Beesley said.

In other business Monday, council members voted unanimously to use $85,900 in Portland Economic Development Income Tax funds to pay for the engineering for phase III of the Hudson Family Park Project.

Before the council voted, Bill Bradley, executive director of Jay County Development Corporation, said the Portland Economic Development Income Tax Advisory Committee met earlier on Monday and voted to recommend the council vote in favor of using the funds for the park project.

"Parks like this are very important for the quality of life for the community," Bradley said.

The Schneider Corporation will do the engineering work on the park. This phase will include the creation of a pond, trails and drives throughout the park, as well as parking and utilities.

EDIT committee members are Hosier, city clerk-treasurer Linda Kennedy, and council members Judy Aker, Kip Robinette and Kent McClung.

Also Monday, council members:

•Held a public hearing on the proposed annexation of 65 acres located south and west of the city.

All properties owners were notified of the public hearing, said Kristi Sturtz of Sturtz Public Management Group. However, none attended Monday's meeting.

Sturtz said the next step is for the council to vote on the proposed annexation. The vote is set for Sept. 2.

Local developer Barry Hudson, of Beam LLC, is requesting annexation for land he owns located near the city's wastewater treatment plant. The parcels that could be annexed are bordered on the south and east by the Salamonie River. The west side of the land is bordered by the Green Park Drive, Honeysuckle Lane, Dogwood Lane and Bittersweet Lane neighborhoods, which are already within the city limits. Hudson wants the land annexed so he can build houses.

•Heard Hosier dispel a rumor spreading around about the Boundary Pike/Wayne Street project.

Hosier said he has heard a rumor that Boundary Pike is being converted to a one-way street or highway. The rumor is untrue, he said. Council members chuckled at the rumor.

He encouraged city residents to continue checking the city's web site for updates on the project.

•Approved a 4 percent pay increase in 2009 for all elected city officials.

With the pay increase, the mayor will make $47,256.48 up from $43,755.66, and the city clerk-treasurer will make $46,424.34 per year, up from $42,985.28. In 2009, there will be 27 pay periods instead of 26, making the pay increases appear as more than 4 percent. Without the extra pay period, the mayor would make $45,506.24, and the clerk treasurer would make $44,704.92.

•Heard Jeff Harker, street and park department superintendent, announce that most city residents are complying with the city's new policy on collection of large items.

The city no longer picks up large items, such as furniture and appliances on the first trash collection day of the month. Brush will be collected as long as it is bundled or bagged, Harker said.

Large items will be picked up during the next city clean-up week, which will be in October.[[In-content Ad]]