03-05-96 Council Special Meeting Minutes

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SPECIAL MEETING MARCH 5, 1996 South Bend Common Council, Mishawaka Common Council, the St. Joseph County Council, and other local units. NOW, THEREFORE, BE IT ORDAINED BY THE ST. JOSEPH COUNTY INCOME TAX COUNCIL OF ST. JOSEPH COUNTY, INDIANA, as follows: SECTION I. The St. Joseph County Income Tax Council hereby increases the percentage credit allowed for homesteads in St. Joseph County under IC 6 -1.1- 20.9 -2 as follows: For Real Property Taxes payable in 1997 and thereafter the percentage credit allowed for homesteads in St. Joseph County is increased eight (8) percentage points over that percentage allowed under IC 6- 1.1- 20 -9 -2. This shall take effect January 1, 1997. SECTION II. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason declared unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. SECTION III. This Ordinance shall be in full force and effect from and after January 1, 1997 upon its passage by the St. Joseph County Income Tax Council. SECTION II. This resolution shall be in full force and effect from and after its adoption by the Common Council and approval by the Mayor. /s/ Roland Kelly Member, South Bend Common Council A public hearing was held on the resolutions at this time. Mayor Kernan made the presentation for the resolutions. He indicated he had been in support of passing the option tax for the last four years, since he believes the tax is fair and is a way to alleviate some of the burden borne by home owners, especially those on fixed income, in St. Joseph County. He indicated this tax will give the City an opportunity to address the needs that are currently not being met, including capital expenditures and public works. He indicated money would be set aside to create an endowment to address Economic Development needs in the future and to provide tax relief. He indicated this homestead credit will increase to 16 %; 83% of the new revenue will be used for property tax relief, and in addition the property tax rate could be frozen for four years. He indicated the City is in a strong financial position, however, there is a good deal of uncertainly that faces cities throughout the Country. Peter J. Nemeth, Judge of the Probate Court, thanked the Council for the package put together by Economic Development, that allowed them to start the new juvenile detention center. He indicated their are problems obtaining funds to staff that facility, since we estimate a need for 3.5 million once it opens. He asked for the Council's support in passing these resolutions. Ann Puzzello, 1247 E. LaSalle, indicated she was in support of this tax in order to have the new juvenile facility, as well as more police officers on the street. Steve Queior, Director of the Chamber of Commerce, indicated that high property taxes can drive away business, and taking local responsibility by passing the option tax is the best approach. John Roos, 17300 Oak Park, discussed the financial status of the County. He indicated the County does not have a reserve, he said they only have one million left after paying bills, and 2.5 or 3 million has to be put into the operating budget of the County for 1997. Patrick McMahon, 1805 Bader, indicated this tax is good for the community from an development standpoint, the addition of this tax will enhance the City's financial standing. He indicated the City's tax rate is not as low as it is where the option tax has been in effect for many years. Eugene Oakley, 2614 York Road, asked if the school corporation was not going to receive any of the funds, how will the