City Seeking To Re-establish CCD, Fire Equipment Funds
February 19, 2020 at 3:15 a.m.
City Seeking To Re-establish CCD, Fire Equipment Funds
By David [email protected]
The council approved all three items on first reading, with the second reading scheduled for the council’s next meeting on March 2.
On the ordinances re-establishing the CCD and FEF rates, Mayor Joe Thallemer said the council did the same thing in 2018.
“I know there seemed to be a little bit of misinformation at the time, so I wanted to kind of start with a discussion of why this is necessary,” he said. “The enabling legislation on these two rates specifies that you can – in the CCD, for example, I think it’s up to a nickel is the highest you can go – and there’s language written in that statute, that if your assessed valuation (AV) goes up, you don’t automatically get that increase. It actually goes down.”
Thallemer said over time, that nickel erodes.
In 2016, the CCD rate was 4.8 cents per $100 of assessed valuation; dropped down to 4.6 cents in 2017; and then in 2018 fell to 4 cents per $100 of assessed valuation.
“Bottom line is, in 2018 that penny was costing us a lot,” Thallemer said. In 2019, that rate was re-established back to 5 cents.
With the FEF, Thallemer said the net rate is at 3.3 cents. In 2016, it was 3.2 cents per $100 of assessed valuation; 2017, 3.1 cents; and stayed at 3.1 cents in 2018. The FEF rate was re-established back to its maximum at 3.3 cents in 2019.
The city had an increase in its AV in 2019 of $150 million, but that dropped the CCD rate from 5 cents in 2019 to 4.4 cents.
“If we re-establish that rate, that’s worth about $62,000,” Thallemer said. The state legislation requires the city council to re-establish the rates.
Clerk-treasurer Lynne Christiansen said there’s several steps the city has to do to re-establish the rates, the first being Tuesday’s public hearing. There has to be two readings by the council, and then there’s 30-day remonstration periods for the rates. It would take 50 remonstrators to challenge the CCD being re-established, but only 10 for the FEF. She said all the paperwork has to be to the Department of Local Government Finance by April 30. The Wayne Township also is involved in the FEF, but only meets once monthly.
Christiansen said this year the city’s tax rate ended up being $1.1822. Had both of the funds been re-established to their maxes, the rate would have been $1.1904.
Thallemer said the CCD rate of 4.4 cents raised $473,453. Had it been at the full 5 cents, it would have raised $534,449. Christiansen said the FEF rate was about a $37,000 difference.
Councilman Mike Klondaris asked for an explanation of what the money is used for. Thallemer said the CCD rate is used almost exclusively for stormwater projects, but the street department has in the past used some for roads. The FEF is for replacement of fire equipment for the fire territory.
Thallemer opened the meeting up to the public on the CCD ordinance, but no one spoke up for or against it, and the council approved it 5-0. The FEF ordinance was approved similarily.
City Planner Jeremy Skinner then took the podium to present the resolution for an additional appropriation of $300,000 from the redevelopment general fund for land purchase.
He said initially that money was put into the 2019 budget for the senior housing project on East Market Street, “but because it did not get finalized until after this year, I’m requesting that we put that money into this year’s budget.”
Skinner said the money did not get spent in 2019, but went back into the redevelopment general fund. To do the senior housing project this year, he said that fund needs to be reappropriated.
“The Redevelopment Commission, along with our partner (Englewood), going all the way back to the Stellar submittal, was to do a senior housing project on Market Street. We were committed as a city to participate in that project, both with land and then funds, up to $300,000, and then Market Street phase II project,” Skinner said, noting phase II is completed.
The city has acquired the land along Market and Center streets for the project. The building project will be around $9 million and have 72 units for low-income seniors.
“So, we certainly are leveraging our funds for a long-term great project for affordable housing, close to downtown, close walkability to parks, ability to walk to retail establishments, really providing that connectivity for those residents in Warsaw that need that affordable housing, especially (seniors),” Skinner said.
Councilwoman Diane Quance asked if the rent would be based on income. Skinner said “income and age,” with residents having to be 55 or older.
Thallemer said the additional appropriation would have to be approved by the DLGF, too. A public hearing was held on the additional appropriation, with no remonstrators. The council approved it, with a second hearing scheduled for March 2.
The council approved all three items on first reading, with the second reading scheduled for the council’s next meeting on March 2.
On the ordinances re-establishing the CCD and FEF rates, Mayor Joe Thallemer said the council did the same thing in 2018.
“I know there seemed to be a little bit of misinformation at the time, so I wanted to kind of start with a discussion of why this is necessary,” he said. “The enabling legislation on these two rates specifies that you can – in the CCD, for example, I think it’s up to a nickel is the highest you can go – and there’s language written in that statute, that if your assessed valuation (AV) goes up, you don’t automatically get that increase. It actually goes down.”
Thallemer said over time, that nickel erodes.
In 2016, the CCD rate was 4.8 cents per $100 of assessed valuation; dropped down to 4.6 cents in 2017; and then in 2018 fell to 4 cents per $100 of assessed valuation.
“Bottom line is, in 2018 that penny was costing us a lot,” Thallemer said. In 2019, that rate was re-established back to 5 cents.
With the FEF, Thallemer said the net rate is at 3.3 cents. In 2016, it was 3.2 cents per $100 of assessed valuation; 2017, 3.1 cents; and stayed at 3.1 cents in 2018. The FEF rate was re-established back to its maximum at 3.3 cents in 2019.
The city had an increase in its AV in 2019 of $150 million, but that dropped the CCD rate from 5 cents in 2019 to 4.4 cents.
“If we re-establish that rate, that’s worth about $62,000,” Thallemer said. The state legislation requires the city council to re-establish the rates.
Clerk-treasurer Lynne Christiansen said there’s several steps the city has to do to re-establish the rates, the first being Tuesday’s public hearing. There has to be two readings by the council, and then there’s 30-day remonstration periods for the rates. It would take 50 remonstrators to challenge the CCD being re-established, but only 10 for the FEF. She said all the paperwork has to be to the Department of Local Government Finance by April 30. The Wayne Township also is involved in the FEF, but only meets once monthly.
Christiansen said this year the city’s tax rate ended up being $1.1822. Had both of the funds been re-established to their maxes, the rate would have been $1.1904.
Thallemer said the CCD rate of 4.4 cents raised $473,453. Had it been at the full 5 cents, it would have raised $534,449. Christiansen said the FEF rate was about a $37,000 difference.
Councilman Mike Klondaris asked for an explanation of what the money is used for. Thallemer said the CCD rate is used almost exclusively for stormwater projects, but the street department has in the past used some for roads. The FEF is for replacement of fire equipment for the fire territory.
Thallemer opened the meeting up to the public on the CCD ordinance, but no one spoke up for or against it, and the council approved it 5-0. The FEF ordinance was approved similarily.
City Planner Jeremy Skinner then took the podium to present the resolution for an additional appropriation of $300,000 from the redevelopment general fund for land purchase.
He said initially that money was put into the 2019 budget for the senior housing project on East Market Street, “but because it did not get finalized until after this year, I’m requesting that we put that money into this year’s budget.”
Skinner said the money did not get spent in 2019, but went back into the redevelopment general fund. To do the senior housing project this year, he said that fund needs to be reappropriated.
“The Redevelopment Commission, along with our partner (Englewood), going all the way back to the Stellar submittal, was to do a senior housing project on Market Street. We were committed as a city to participate in that project, both with land and then funds, up to $300,000, and then Market Street phase II project,” Skinner said, noting phase II is completed.
The city has acquired the land along Market and Center streets for the project. The building project will be around $9 million and have 72 units for low-income seniors.
“So, we certainly are leveraging our funds for a long-term great project for affordable housing, close to downtown, close walkability to parks, ability to walk to retail establishments, really providing that connectivity for those residents in Warsaw that need that affordable housing, especially (seniors),” Skinner said.
Councilwoman Diane Quance asked if the rent would be based on income. Skinner said “income and age,” with residents having to be 55 or older.
Thallemer said the additional appropriation would have to be approved by the DLGF, too. A public hearing was held on the additional appropriation, with no remonstrators. The council approved it, with a second hearing scheduled for March 2.
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