County OKs Abatement For Maple Leaf Farms
July 28, 2016 at 4:25 p.m.
By Tim [email protected]
The abatement covers four years of taxes on personal property and seven years on real estate. Maple Leaf originally requested a 10-year abatement on both personal property and real estate. The abatement will allow the company to capture some of their personal property and real estate tax money to use for improvements and expansion.[[In-content Ad]]According to attorney Steve Snyder, representing Maple Leaf Farms, the company is closing a large portion of one of its facilities in Yorkville, Wis., and transferring the work to its facility in Milford. Snyder said the move will add 81 new jobs with an annual payroll of $1.7 million to the Milford plant and include $1.8 million in building improvements and $2.1 million in new equipment purchases.
He said salaries for the new jobs will range between $10.70 and $19.23 per hour. With benefits included, the salaries are worth between $14.68 and $25.93 per hour.
Several members of the council expressed concerns about granting the abatement while waiting to see the effects of the state's new property tax legislation, House Enrolled Act 1001.
"I think it comes at a time when there's a lot of uncertainty about property taxes to begin with," said Council President Harold Jones.
Councilman Tom Anglin said he feels the county should protect its revenue until it is more clear what the property tax situation will be.
"Where's the money going to come from?" Anglin asked.
Snyder said the expansion of Maple Leaf's workforce would benefit the county more than the tax revenue.
"Maple Leaf's here, but they did choose to bring things here instead of Wisconsin," he said. "Just the payroll circulating in the community is going to be worth it."
Snyder reminded the council that, if they passed the abatement request, they would have the power to review the abatement each year to decide whether to allow it to continue.
Councilman Larry Teghtmeyer proposed the four-year/seven-year abatement. The council typically grants abatements of five years for personal property and 10 years for real estate. Teghtmeyer said one of the provisions of HEA 1001 weighed into his proposal of a reduced-term abatement.
"The 1-percent sales tax (increase) now replaces the school operating funds," he said. "This particular industry will enjoy the savings that they will have since they will not be supporting that expenditure."
Teghtmeyer also said his proposal is contingent on Maple Leaf meeting the salary and benefit levels.
"The pay level here is not quite at the same level as some of the other companies have paid that have earned our abatements," Teghtmeyer said.
He said Maple Leaf's policy of paying 100 percent of health insurance benefits for their employees was a key factor in his willingness to approve an abatement.
"We need good assessed values coming into the books," he said, "but, along with that, we also need good careers coming into the county."
The council passed Teghtmeyer's motion 5-1 with Anglin voting against and Councilman Bob Sanders absent from the meeting.
In other news, the council adjusted the county's financial records to reflect changes stipulated by HEA 1001 concerning the consolidation of township assessors' duties into the county assessor's office. The council passed a budget reduction of $249,601.92 to eliminate assessing allocations from township budgets and passed $166,042 in additional appropriations for the county assessor's office to accommodate an increase in personnel for that office.
Jim Moyer, Harrison Township trustee, had some words for the council concerning the elimination of township assessors. He said other counties have rehired their township assessors under the county assessor to continue their duties. Moyer said that has not happened in Kosciusko County.
"You've done away with elected officials and gave their jobs to hired employees," Moyer said. "The way it's working out, I think it's wrong."
The abatement covers four years of taxes on personal property and seven years on real estate. Maple Leaf originally requested a 10-year abatement on both personal property and real estate. The abatement will allow the company to capture some of their personal property and real estate tax money to use for improvements and expansion.[[In-content Ad]]According to attorney Steve Snyder, representing Maple Leaf Farms, the company is closing a large portion of one of its facilities in Yorkville, Wis., and transferring the work to its facility in Milford. Snyder said the move will add 81 new jobs with an annual payroll of $1.7 million to the Milford plant and include $1.8 million in building improvements and $2.1 million in new equipment purchases.
He said salaries for the new jobs will range between $10.70 and $19.23 per hour. With benefits included, the salaries are worth between $14.68 and $25.93 per hour.
Several members of the council expressed concerns about granting the abatement while waiting to see the effects of the state's new property tax legislation, House Enrolled Act 1001.
"I think it comes at a time when there's a lot of uncertainty about property taxes to begin with," said Council President Harold Jones.
Councilman Tom Anglin said he feels the county should protect its revenue until it is more clear what the property tax situation will be.
"Where's the money going to come from?" Anglin asked.
Snyder said the expansion of Maple Leaf's workforce would benefit the county more than the tax revenue.
"Maple Leaf's here, but they did choose to bring things here instead of Wisconsin," he said. "Just the payroll circulating in the community is going to be worth it."
Snyder reminded the council that, if they passed the abatement request, they would have the power to review the abatement each year to decide whether to allow it to continue.
Councilman Larry Teghtmeyer proposed the four-year/seven-year abatement. The council typically grants abatements of five years for personal property and 10 years for real estate. Teghtmeyer said one of the provisions of HEA 1001 weighed into his proposal of a reduced-term abatement.
"The 1-percent sales tax (increase) now replaces the school operating funds," he said. "This particular industry will enjoy the savings that they will have since they will not be supporting that expenditure."
Teghtmeyer also said his proposal is contingent on Maple Leaf meeting the salary and benefit levels.
"The pay level here is not quite at the same level as some of the other companies have paid that have earned our abatements," Teghtmeyer said.
He said Maple Leaf's policy of paying 100 percent of health insurance benefits for their employees was a key factor in his willingness to approve an abatement.
"We need good assessed values coming into the books," he said, "but, along with that, we also need good careers coming into the county."
The council passed Teghtmeyer's motion 5-1 with Anglin voting against and Councilman Bob Sanders absent from the meeting.
In other news, the council adjusted the county's financial records to reflect changes stipulated by HEA 1001 concerning the consolidation of township assessors' duties into the county assessor's office. The council passed a budget reduction of $249,601.92 to eliminate assessing allocations from township budgets and passed $166,042 in additional appropriations for the county assessor's office to accommodate an increase in personnel for that office.
Jim Moyer, Harrison Township trustee, had some words for the council concerning the elimination of township assessors. He said other counties have rehired their township assessors under the county assessor to continue their duties. Moyer said that has not happened in Kosciusko County.
"You've done away with elected officials and gave their jobs to hired employees," Moyer said. "The way it's working out, I think it's wrong."
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