Proposing and voting in favor of a ordinance of the St. Joseph County Income Tax County Income Tax Council Imposing a property tax relief Local Option Income Tax

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YJS-~ i-~_La ~~° 1 J ~~ ~ 11ljl~l~i//~ CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR OFFICE OF THE MAYOR December 11, 2008 South Bend Common Council 4`}' Floor, County-City Building South Bend, IN 46601 Re: Bill No. 08-107 - LOIT Resolution Dear Council Members: a. D ~-11l~ DEC 1 1 2008 d~}ark ~1fliaP~3d At tonight's meeting I will introduce a substitute resolution which proposes the property tax replacement LOIT at 0.5%, rather than the full 1% in the original bill. I am doing this for several reasons. First, in recognition of the dire economic conditions and the stress that many families are under, I believe that we need to levy the least tax that we can until the economy improves. I believe that the 0.5% PTRC and the 0.25% Public Safety LOITs will allow us to sustain the most critical services and bridge until we can generate additional revenue. Second, I put forth the 1% to show the public what the true cost of the tax caps is and what is needed to replace those revenues. However, I also believe that we need to respond to public expectation that we do more to streamline government. Having a shortfall still facing us will make those decisions more urgent and provide an impetus for serious discussion with the Council and the public about what services should be provided by local government. Third, I fear that if we enact the full amount, the Legislature will be off the hook and feel that it doesn't need to provide any other tools since we will have "solved" our problem. We need to continue efforts to have more tools available to provide sustainable revenue for local government. I will make the presentation on this substitute resolution tonight. Thank you for the thoughtful consideration you are giving to this matter. Sincerely, ~.~--.,. Stephen J. Luecke, Mayor COUNTY-CITY BUILDING • SOUTH .BEND, INDIANA 46601 PHONE 219/235-9261 • FAX 219/235-9892 • TDD 219/235-5567