Drop in Assessed Value Forces Tax Talk in Syracuse
July 28, 2016 at 4:25 p.m.
By Jordan Fouts-
The town set a 2013 budget of $3.33 million at the July 17 meeting, which they agreed Tuesday to proceed with. But they may either ask department heads to shave more off their budgets or ask taxpayers for the first increase in years after learning of the shortfall later last month.
The assessed value that figured into the 2012 budget was $202 million, which did not include the $17 million value of Oakwood annexed that year. But instead of the approximately $217 million value the town expected for the 2013 budget, Clerk-Treasurer Julie Kline said she learned early this month that the assessed value was set at $190 million.
There has been a countywide reduction of seven percent, she added.
“Nobody's seen assessed value drops like this. Nobody's faced this,” she told council.
Council President Larry Siegel observed that such a significant drop forces the question, “Is anyone here interested in raising our tax rate?”
Councilman Brian Woody spoke in favor of a tax increase, necessitated by both planned projects and unexpected expenses.
“With this council, for four or five of the last six or seven years, taxes have only stayed the same or went down. This is the only year we've considered an increase – it's always cut, cut, cut,” he said. “We've sat up here and beat on our department heads to go as low as they can, they've done a fantastic job, (but) we have a lot of kettles in the fire.”
Siegel said if Syracuse does have to raise taxes, he wants to see a commitment to lower them again when circumstances allow.
“My concern with raising the tax rate is that it tends to stay up when it goes up,” Siegel said. “I understand we need dollars to run the town, but it bothers me we need to raise taxes to do that. I'd be willing as long as we promise to bring them back down.”
Council agreed to advertise the budget set last month, which means the amount can be lowered at a later date but not raised. Meanwhile they will explore their options, such as asking department heads to decide what percent of their budget they can live without or dipping into the rainy day fund.
Earlier in the meeting, council passes a comfirmatory resolution designating property recently purchased by Patrick Industries Inc. of Elkhart as an economic revitalization area and allowing two tax abatements on the property.
One abatement for the former Liberty Homes factory will be on real estate for three years, scaling down each year from 100 percent; the other is a 10-year abatement on equipment, scaling down more gradually.
George Robertson, president of Kosciusko Economic Development Corp., said during a hearing for the abatements at the outset of the meeting Tuesday that the factory has been empty for years, allowing Patrick Industries to purchase it for half its assessed value and make investments restoring it to full value. He said the company will create 26 new jobs immediately which may grow to 60.
Council also learned of a bidding war over water system equipment that may shave $100,000 or more off the cost of the industrial park being built north of town.
Ken Jones with Wightman Petrie said subcontractor H&G Underground Utilities bid out for the single largest expense, a $419,000 item, which resulted in the original vendor and another company lowering the initial estimate by about $107,000.
“It’s really unusual. I haven’t seen this happen,” he told council. “It definitely wasn’t anticipated. We only wanted a submittal for review purposes.”
Jones added that continued negotiations won’t delay the project, so councilmen agreed to let him proceed.[[In-content Ad]]
The town set a 2013 budget of $3.33 million at the July 17 meeting, which they agreed Tuesday to proceed with. But they may either ask department heads to shave more off their budgets or ask taxpayers for the first increase in years after learning of the shortfall later last month.
The assessed value that figured into the 2012 budget was $202 million, which did not include the $17 million value of Oakwood annexed that year. But instead of the approximately $217 million value the town expected for the 2013 budget, Clerk-Treasurer Julie Kline said she learned early this month that the assessed value was set at $190 million.
There has been a countywide reduction of seven percent, she added.
“Nobody's seen assessed value drops like this. Nobody's faced this,” she told council.
Council President Larry Siegel observed that such a significant drop forces the question, “Is anyone here interested in raising our tax rate?”
Councilman Brian Woody spoke in favor of a tax increase, necessitated by both planned projects and unexpected expenses.
“With this council, for four or five of the last six or seven years, taxes have only stayed the same or went down. This is the only year we've considered an increase – it's always cut, cut, cut,” he said. “We've sat up here and beat on our department heads to go as low as they can, they've done a fantastic job, (but) we have a lot of kettles in the fire.”
Siegel said if Syracuse does have to raise taxes, he wants to see a commitment to lower them again when circumstances allow.
“My concern with raising the tax rate is that it tends to stay up when it goes up,” Siegel said. “I understand we need dollars to run the town, but it bothers me we need to raise taxes to do that. I'd be willing as long as we promise to bring them back down.”
Council agreed to advertise the budget set last month, which means the amount can be lowered at a later date but not raised. Meanwhile they will explore their options, such as asking department heads to decide what percent of their budget they can live without or dipping into the rainy day fund.
Earlier in the meeting, council passes a comfirmatory resolution designating property recently purchased by Patrick Industries Inc. of Elkhart as an economic revitalization area and allowing two tax abatements on the property.
One abatement for the former Liberty Homes factory will be on real estate for three years, scaling down each year from 100 percent; the other is a 10-year abatement on equipment, scaling down more gradually.
George Robertson, president of Kosciusko Economic Development Corp., said during a hearing for the abatements at the outset of the meeting Tuesday that the factory has been empty for years, allowing Patrick Industries to purchase it for half its assessed value and make investments restoring it to full value. He said the company will create 26 new jobs immediately which may grow to 60.
Council also learned of a bidding war over water system equipment that may shave $100,000 or more off the cost of the industrial park being built north of town.
Ken Jones with Wightman Petrie said subcontractor H&G Underground Utilities bid out for the single largest expense, a $419,000 item, which resulted in the original vendor and another company lowering the initial estimate by about $107,000.
“It’s really unusual. I haven’t seen this happen,” he told council. “It definitely wasn’t anticipated. We only wanted a submittal for review purposes.”
Jones added that continued negotiations won’t delay the project, so councilmen agreed to let him proceed.[[In-content Ad]]
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