Continuously serving Kosciusko County since 1854
An expanded tax base for 1997 will allow the city of Warsaw to hold next year's property tax rate at the current level.
The total assessed valuation for Warsaw jumped more than $7 million between 1996 and 1997, from approximately $170 million to $177 million. That growth was a major help in controlling the tax rate, Warsaw Mayor Jeff Plank said last week.
Warsaw's tax rate, which is the part of a resident's total tax rate used only to operate the city of Warsaw, will be $2.63 per $100 of assessed valuation for 1997. The rate is 25 cents less than 1990's tax rate of $2.88, and 15 cents less than the rate collected from 1993 through 1995.
With a tax rate of $2.63, Warsaw expects to collect almost $4.7 million in property taxes. That total amount is not even half of the city's 1997 budget of more than $10.3 million.
Much of the money needed to make up the budget will come from the city's share of the county option income tax. Some city departments, such as the cemetery and the airport, are self-supported and receive no tax money.
The city also gets excise tax money from the state for street and highway expenses.
Another advantage the city has is its cumulative funds, where cash builds up from year to year in anticipation of large future expenses that come up infrequently, such as fire trucks or storm sewers.
The city once again spent less money than was budgeted. For 1996, more than $500,000 was budgeted and not spent.
"We have not ever attempted to spend every penny we could get our hands on," Plank said.
Warsaw, unlike most government bodies, has for several years taxed below its frozen levy - the maximum amount it is by law allowed to collect. For 1997 the city could have legally collected almost $700,000 more than it will.
"That's what makes this community special," Plank said. "It's a growing community and people don't spend what they don't need."
