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County Option Income Tax (COIT): These countywide taxes are allocated (net of
<br />homestead credits that are explained later) between all taxing units within the County
<br />based an the proportionate amounts of property tax levy for each taxing unit. Actual City
<br />receipts for 2001, 2002, 2003 and 2004 were $4,491,922, $9,531,190, $8,015,302 and
<br />$7,001,198 respectively. The 2005 Budget includes receipts of $5,988,413. The actual
<br />receipts in 2002 included a one time distribution of $2,409,701. This increase from the
<br />State is a "catch-up" from prior year conservative estimates. Future annual collections
<br />(based upon. the increasing COIT rate) are projected as follows: 2006 and beyond -
<br />$7,160,858 per year. Again, these projected revenue streams do not include any growth
<br />rate assumptions fqr years beyond 2005. The projected increase in 2005 and beyond
<br />reflects the impact from the annual tax rate increase only.
<br />The City would not have supported the new County Option Income Tax if it had not been
<br />accompanied by a tandem ordinance which established an additional 6% homestead credit far
<br />property taxpayers. This additional homestead credit increased to 7% and 8% in 1999 and 2000,
<br />respectively, and then remains at 8% thereafter. Thus, as a result of the passage of this new tax,
<br />City property taxpayers were provided relief through a reduction in their property tax bills while
<br />the City was provided with an additional source of revenue that will. eventually slow the growth
<br />of future property tax rate increases.
<br />Other taxes received from the State of Indiana and allocated to various funds within the City in
<br />2005 include the fallowing: auto and commercial vehicle excise taxes ($4,416,348), gasoline tax
<br />($4,676,297), cigarette tax ($514,153), financial institutions tax ($133,188), alcohol
<br />gallonage/state liquor excise taxes ($318,812) and gaming proceeds revenue ($679,690). In the
<br />State budget, adopted by the General Assembly, little additional funds have been available for
<br />Local Roads & Street Funds for both the City and County. Therefore, in 2003 the County has
<br />adapted a local wheel tax which is based upon vehicle registration. The dollars allocated to the
<br />City, $2,035,000 budgeted in 2005, will he used to repair and resurface City roads to keep them
<br />at appropriate levels. The remaining taxes listed above are not anticipated to change signifcantly
<br />over the next several years. The 2005 anticipated levels reflect modest increases from the prior
<br />year and follow general guidelines provided by the State of Indiana. One additional tax included
<br />in this category is the County's Hotel /Motel Tax, which is budgeted at $1,775,916 for 2005.
<br />This tax, which represents a portion of the 6% tax assessed against hotel and motel billings
<br />within the County, is projected to grow at a modest 3 to 4% per year. The City's portion of the
<br />Hotel /Motel Tax is utilized to support operational costs for the Century Center and marketing
<br />costs for the College Football Hall of Fame.
<br />Another significant source of revenue is fees received from rate payers fqr services provided for
<br />water, sewer and solid waste pick-up. The $34.3 million anticipated revenue for 2005 breaks
<br />down as follows: $16,155,935 for Sewage Works, $13,237,482 for Water Works, $3,897,150 for
<br />the Solid Waste Removal and Recycling Program, $1,382,000 for the Water and Sewer Insurance
<br />Programs and the remaining $154,440 for Project Releaf (a program providing leaf pick-up
<br />throughout the City). Revenue collected from rate payers is generally determined by either a flat
<br />fee charged per month for the service provided (Solid Waste, Releaf Program and Water/Sewer
<br />Insurance) or by multiplying the volume of services utilized by the current utility rate (water and
<br />sewage).
<br />The City is not anticipating any significant increase in volume of services provided by the
<br />utilities over the next several years. Volume increases will be generated through future
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