Reorg Live: 9-17-09, finance plan & more

Tonight Paul Reed delivers the finance subcommittee report and we’ll a details on how much this will cost and how it will be paid for, hang on to your wallets. We’re talking taxes.

The meeting is not yet started so an observation we finally get down to something very important, how we are going to pay for this and it doesn’t look like there is one member of the general public present.

6:43  meeting is called order all members present.

Paul Reed explained that all figures are assumptions and not necessarily accurate.

Review of cash in flows as result of merger, non-property tax income.

Local Option Highway user tax aka the wheel tax, $25 per registration’

Gas and special fuel tax is 18 cents per gallon

Cigarette and tobacco tax

Alcohol taxes are based on per gallon

Riverboat Wagering Tax from riverboat taxes

Excise taxes: commonly grouped together with others bigger contributor is the auto excise tax.

All of these taxes (except riverboat) are paid by Johnson County tax.

Financial institution tax pays a small amount to the entity in which they reside. It is paid on the placement of the corporate headquarters. It was set in 1998, even if the headquarters moves out of the district the tax still comes to the district.

Local Option highway user tax

60% is based on population and 40% on highway miles

Gas & Special Fuels taxes four types: MVH1, MVH2, MVH and LRS.

Cigarette and alcohol taxes only go to city and towns. No county benefit.

Riverboat goes to cities, towns, and the county.

Excise taxes are distributed in the entity collected.

ASSUMPTIONS

Old Greenwood Population 2000 census adjusted for special census: 47,621

Unincorporated Johnson County in 2000: 42,025

WRT % of unincorporated Johnson County, this is an assumption real numbers are not available: 70% is the assumption.

WRT in Merger population: 29,418

Total Johnson County: 126,575

New Greenwood Population: 77,039

Total state population: 6, 143,492

Road miles: 32% or 118 miles of roads in unincorporated WRT – estimate

Johnson County  Tax Rates:

MVH#1 $1.61 per capita   137.39 per road miles

MVH#2 $1.34 state per capita

MVH $24.18 state per capita

LRS $7.81 per capita  $668.10 per road miles

Cigarette Tax $.085 state per capita

Cig Tax other: $3.11 state per capita

ABC Gallonage tax: $2.00 per capita

NOTE: State estimates are from 2000 census the Greenwood special census is included in these numbers.

All estimates are based on incorporating all of currently unincorporated White River Township, even the area that Bargersville has voted to annex, effective January 2, 2010.

Pat Sherman stated they are using conservative estimates. Paul Reed says the very conservative look comes from the belief that if we are not sure, we are going to go with the low estimate.

It is safe to assume that the township has grown faster than the state as an average and it is safe to say that the actual revenue will be higher when the new census numbers come in. Board of realtors estimates show that the numbers will likely be higher than the estimates as well.

Cigarette and alcohol taxes are currently flowing to the county, township gets none of it. That will change with the merger.

County Adjusted Gross Income Tax is not included in these estimates. A portion of that would come to the “new” community.

Mark Messick asked how you make sure that the money coming to the new Greenwood is money they wouldn’t get if it weren’t for the merger. How will this issue be addressed to be sure the money benefits the WRT residents.

Current Greenwood collects $4,078,605 in these type of taxes. The merger effect will provide an additional $2,768,648 to the new cities budget without any affect on your taxes. In other words this money is being “recaptured” and coming to the “new” community instead of the count or other taxes. Again, just to be clear this additional money will not come from a tax increase. Property taxes will likely increase but those numbers are not being discussed.

Pat Sherman wants to make it clear that these figures are a very conservative estimate. He feels you can be assured that the actual money coming into the new community will be higher.

The way the tax dollars are distributed throughout the state is very involved and it makes it hard to provide an accurate estimate so the finance team went with a conservative estimate on population.

These taxes are the small portion of the budget the county income tax and property taxes are more significant and easier to get accurate projections.

How much will the county use? That complete calculation has not been.

Pat commented on how much work it took for the finance team to get this far. They still have to complete disbursement (aka expense) side. They also still have to calculate the property tax income and the county option income tax.

Joe Peete from the Daily Journal asked what affect the Bargersville annexation would have on the figures. Pat Sherman felt that the population and road miles from that area would have limited affect and numbers will be re-figured if that is required. It is important to note that the figures presented at this meeting assume all of the currently unincorporated areas of White River Township will be included in the merger. That is not very likely as Bargersville has passed annexation legislation that will take effect January 2, 2010 for 13 square miles of the southwestern portion of the township.

Governance subcommittee recommendations:

Second class city with 11 council members

Residency requirements will apply to interim members

Boards similar to current situation

Common council will have final say on the work of the redistricting commission as required by the state law. Judge appoints four members and mayor appoints one member of the commission.

City comptroller will be created and appointed by mayor

City Clerk office will be created and elected.

Mayor may appoint one or more deputy mayors.

After 2020 council will change from 4 at large members to 3.d

Clerk will administer poor relief, mayor will be responsible for cemeteries but parks board will do the work.

Interim common council will exist of seven current member plus three board members of WRT and WRT Trustee will serve as interim members.

Until January 2020 residency requirements will require boards to fairly represent current unincorporated WRT.

WRT board members would replace any vacancies during the interim for any of the four seats should one come open or not be filed. NOTE: Township Trustee Jay Marks will most likely be a Bargersville resident through annexation prior to the merger going into effect should it be approved.

The subcommittee report was passed after minor corrections and a few changes.

Infrastructure Recommendations:

Establish storm water utility, focus on area impacted by June 2008 flood

Road: responsibility of Greenwood street department. Common Council shall establish oversight committee.

Early warning system: Taken over by Greenwood fire department and will serve the entire city. Question abut it being Greenwood FD. Pat said leave it in, will see way in a later report.

Road repair: priority to be guided by current rating systems

Trash collection service through contracted service extended throughout the new area. Policy on residential street lighting will be establish.

Initiate detailed road plan for maintenance,

Adopt access management plan for major roads.

Early storm warning sirens: implement plan to provide service to entire community.

Storm water fee of $5 per month per parcel will be assessed to fund small maintenance and a study for future work. Fee must be approved by council.

Leaf and limb will be handled by contractor or the city, rates and charges and contractor or city responsbility must be approved by council.

Paul Reed would like to see sewers extended to homes that don’t have it and use some of the WRT money to do so. Pat Sherman said that is a decision for the new council on how to fund it. Currently when a neighborhood adds sewers they pay the cost over ten or twenty years. Reed wants to see the extended sewer service as a benefit of the new community. Eric Kapke stated he feels it is not fair to give sewers to some while others have already paid for them. The Greenwood Sewer Utility is a seperate entity and not supported by property taxes and so doing as Paul Reed suggests would not be fair was the common consensus.

It is important that citizens realize that no matter who their utility providers currently are they will not change. I have Bargersville Water and Greenwood Sewers and that will continue no matter the outcome of the reorganization effort. Citizens have to recognize that libraries, schools, utilities, and fire departments are not affected by reorganization.

Infrastructure recommendations were approved.

Health Saftey & Welfare recommendations – Forrest Chamber

Lots of discussion on the “no discharge of a firearm within 500 feet of an urban area.” Concern is will a person know what an urban area is. Should the word be residece? People know what a residence is and Pat Sherman believes that is a better option.  “I don’t think 500 feet is inappropriate” said Sherman.

Nuisance complaints handled in the same way as in the current city of Greenwood.

Urban areas adoopt current Greenwood standards. Rural areas will have execeptions from certain rules.

Greenwood and WRTFD should continue to talk merger. COMMENT: Why address this, it is not part of reorganization process. Now Forrest wants to include a recommendation that the ambulane service be provided by a contract provider. WHY is this being talked about, it is the fire departments responsibility and not a part of the reorganization process. Why does the committee even want to get involved?

Don Hanlin said stay out of this, don’t even mention it. The discussion turned quickly towards do not get involved in things we are not involved.

Pat Sherman says he believes that the enabling statute is broad enough to give the community authority over the fire district. He believes that the council should have the control over the fire district rate. He believes they should encourage the departments to continue merger talks. If the merger is not complete before the reorganization effort that a committee be established to design a plan to take over all fire departments in the city limits, even the part of Bargersville within the new city would be taken over. He believes that unelected officals should not have control of the cost of providing fire protection. County commissioners currently appoint fire boards according to a comment from the audience.

Sherman fears a significant increase in the Bargesville fire rate which would effect all residents of the new city living south of the Stones Crossing Road. Sherman asked for a motion to approve his plan, it passed.

Recommendations were approved, Forrest Chamers voted no due to the wording of the fire arms limitation provision.

Parks & Rec – Eric Kapke

No significant changes from the plan hammered out two weeks ago. School board membership is optional, if school boards choose to appoint a member the schools would have one vote and it would rotate amongst participating members. Pathways will be built.

Create five year plan for patks and pathways. Development of parks in WRT is a priority.

Parks and recreation development fund will not exceed, .075% of gross assessed value of property in the new community. The fund allows there to be money to be build a park without seeking a property tax increase each time they want to build a new park. The amount would be accumulated over a number of years.

Park and rec annual budget is currently .08% of certified assessed value or so they recall. Then again it may be .0379%. The rate in the new community will be determined later. Needs further analysis.

Don Hanlin again commented that he wants all WRT cash to be put in the parks fund to be used for aquisistion of land for parks in the Center Grove and Smith Valley area. The committee generally ignored his comment.

Approved with changes.

Planning and Land Use – Dale Tumey no changes from last presentation.

We may get home before 10pm yet.

Pat is now reading the proposal. Always dangerous someone might find something to discuss.

There are currently politcal affiliation requirements on plannin commission board and those requirements shall remain.

Proposal approved now 9:35

Forrest Chambers is now proposing and amendment to the firearms proposal restrictions. “Firearms cannot be discharged within 500 feet of a residence other than one’s own residence.” OPINION they are tweaking this to death.

Amendment passed seven to zero.

Almost over and then Brent Corey has comment, if the committee is coming to the council meeting and it runs this long the committee has to bring dinner.

Yet again it is almost over. Oh wait a motin for adjourment and it passed.

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