Thursday, August 27, 2009

Wayne Township: Debt Service to be retired

Wayne Township Trustee Rick Stevenson stated that the debt service line item in the budget for $568,000 will be $0.00 by the end of the year. This year Wayne Township will be asking for $3.7 million dollars for its budget. But if past history can be viewed as an indicator, Trustee Stevenson will be certified at between $2.4-$2.7 million. Once again leaving the trustee operating from a bare knuckles budget. Trustee Stevenson has been facing a budget shortfall since his election.

In 2007 Trustee Stevenson went before the States' Local Government Tax Control Board and crunched the numbers of an inadequate budget. Trustee Stevenson was given the permission to obtain an emergency loan of over $400,000. The loan would not be enough to achieve the goal of putting the budget in the black, but it would be enough for Trustee Stevenson to hold on till the next year. The Local Tax Board assured Trustee Stevenson, he would be back before them in 2008.

Instead, Trustee Stevenson took his budget before Allen County Commissioners. The Commissioners suggested that the township hold their budget at 4%, and were refused a tax levy increase. With the growing number of unemployed workers, Trustee Stevenson better prepared went back to the Local Government Tax Control Board to ask for another emergency loan. This time the loan would be larger, $630,000. The board impressed with the fact that Trustee Stevenson was working with next to nothing dollars, granted the approval for Wayne Township to borrow the needed dollars. And commended Stevenson on his handling of such a meager coffer.

However, Trustee Stevenson will not travel to the Statehouse to request an emergency loan. The certified budget amount is what Trustee Stevenson will have to work with. Under the circuit breaker funds can not be borrowed. Circuit breaker limits how much local folks can impose on property tax within percentage of the assessed value of the taxable property. Trustee Stevenson is left with operating on a shoe string budget. In essence, holding the bag with a meager budget for a large operation.

Some will blame the low budget on the State legislature circuit breaker. Instead,fingers should point directly at the politicos who had discriminated and redlined and maligned Wayne Township property value for quite some time. The more expensive homes saw an increase in their property value because of the cap. But Wayne township property has been creded and tipped out of profit for Wayne Township.

Now,the cap restricts a homestead properties from being taxed beyond 1.5 percent of its value. In other words, a home valued at $100,000 could only be taxed at max $1000.00. And to prevent local government from artificially inflating the value of properties, as in previous years, the state included a $45,000 homestead deduction plus 35% and 25% of the remaining balance.

Residents in Fort Wayne's portion of Wayne Township will see bills jump the most with a 29 percent increase for a home worth $100,000. Taxpayers in unincorporated Aboite Township will see their bills drop the most, a 19 percent decrease for a home worth $100,000, Auditor Lisa Blosser said.




The State has finally won the battle against folks like Blosser, who over taxed poor people's property to get State dollars. Unfortunately, this demographic is located in Trustee Stevenson township. And this is where Trustee Stevenson gets his tax dollars. Plus, the number of unemployed has increased. But Trustee Stevenson will not seek the emergency loan nor a levy appeal as example of what government can do when dealt a bad hand. However, Trustee Stevenson could opt for a Levy growth increase to increase Wayne township revenues.

The Local income tax option would tax workers. In other words, folks who works and not just homeowners would bear the burden of funding services. It would be better than the user fees that are now being used to keep certain government employees employed.

You know like the Renaissance building marriage of the city and council..it's all about jobs retention for politicos without credentials.

Until 2010 when the 1.0 restrain on property kicks in. Trustee Stevens has created a model in which city and county will have to found to cut their debt services.

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