Continuously serving Kosciusko County since 1854
WINONA LAKE - The Winona Lake town council approved advertising a tax levy of $1.27 to garner $939,500 in tax revenues based on an assessed valuation of $65.4 million in a special meeting Monday.
Clerk-treasurer Retha Hicks said $81 million is the legal assessed valuation, which reflects a subtraction of the Country Garden disannexation. The disannexation occurred in 1989 but wasn't adjusted until last year. The total of those adjustments are reflected in this year's annexation; otherwise the AV would be $88 million for the town.
The new levy, $1.27, is up from 94 cents and is the highest allowable levy.
Last year the town raised $796,000 from property taxes with an AV of $81 million.
Although all departments have been asked to trim their budgets by 5 percent, the town budget still stands at $957,000.
With the trimming, the town is asking for $143,000 more than last year.
Hicks said it is better to advertise high.
She said her calculations are based on the town's June 30 cash balance and estimates of revenues through December and all of 2003.
"We're always dealing with a year and a half," she said, of the state recommended figures.
She said clerks and auditors are concerned about the effects of the $35,000 homestead credit. Last year's credit was $6,000. This year a $95,000 home will be taxed at a value of $60,000, if the owner is still paying a mortgage.
Because of that significant difference, "anything we do to the tax rate is going up."
She said she hoped the credit and renters deduction will offset the increase.
"We'll hand in the paperwork and see what happens," Hicks said.
Councilman David Delp said citizens need to know why the rate is going up and it should be put down in simple terms in a newsletter. He also asked if $100,000 should be cut from the budget.
Hicks said the town still has to advertise high, with the expectation that state accountants will trim the levy, and cutting more from the budget doesn't solve the problem.
"We're still working on the budget," she said.
Town council members are Rolly Ortega, Craig Snow, Jerry Clevenger and David Delp. Jeff Carroll was absent Monday.
