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Home My WebLink AboutProposing and voting in favor of a ordinance of the St. Joseph County Income Tax County Income Tax Council Imposing a Public Safety Local Option Income TaxRESOLUTION 3931-08 Passed by the Common Council of the City of South Bend, Indiana December 11, 20 08 Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana December 12, 20 08 Approved and signed by me December 12 , 20 08 ~~ ~~~ City Clerk RESOLUTION NO. ~ ~ 3 ~ v ~ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROPOSING AND VOTING IN FAVOR OF AN ORDINANCE OF THE ST. JOSEPH COUNTY INCOME TAX COUNCIL IMPOSING A PUBLIC SAFETY LOCAL OPTION INCOME TAX WHEREAS, the Common Council of the City of South Bend, Indiana recognizes public safety as a priority for citizens of South Bend, and acknowledges the need to maintain effective public safety despite expected loss of property tax revenue; and WHEREAS, the Indiana General Assembly recently authorized local governments to impose a public safety local option income tax (Public Safety LOIT) provided certain conditions are met, which authority is codified at Ind. Code § 6-3.5-6-31; and WHEREAS, there is a financial need to provide a Public Safety LOIT pursuant to I.C. 6- 3.5-6-31. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. The Common Council of the City of South Bend, Indiana, proposes and casts its 40.59 votes in favor of the following Ordinance of the St. Joseph County Income Tax Council: ORDINANCE NO. AN ORDINANCE OF THE INCOME TAX COUNCIL OF ST. JOSEPH COUNTY, INDIANA IMPOSING A PUBLIC SAFETY LOCAL OPTION INCOME TAX IN ST. JOSEPH COUNTY, INDIANA STATEMENT OF PURPOSE AND INTENT The St. Joseph County Income Tax Council recognizes that maintaining public safety is a local government priority. The imminent decline in property tax revenues threatens to compromise and challenge local government's ability to provide high quality public safety to citizens of St. Joseph County, Indiana. By enacting Indiana Code 6-3.5-6-31, the Indiana legislature has provided a means for local government to help maintain quality public safety through imposition of a public safety local option income tax (Public Safety LOIT). Pursuant to Indiana Code 6-3.5-6-31, the members of the St. Joseph County Income Tax Council hereby adopt and impose such a tax in St. Joseph County effective December 31, 2008. Imposition of the Public Safety LOIT in St. Joseph County meets all requirements of I.C. 6-3.5-6-31(b) and (c), in that St. Joseph County recently imposed a property tax relief Local Option Income Tax (LOIT) of at least 0.25%, and the public safety tax to be imposed. does not exceed 0.25%. NOW, THEREFORE, BE IT ORDAINED BY THE ST. JOSEPH COUNTY, INDIANA INCOME TAX COUNCIL, as follows: SECTION I. The St. Joseph County, Indiana Income Tax Council imposes the public safety local option income tax (Public Safety LOIT) on the taxpayers of St. Joseph County, Indiana at a rate of 0.25% effective December 31, 2008. SECTION II. This ordinance meets all requirements of Ind. Code § 6-3.5-6-31(b). SECTION III. If any portion of this Ordinance is declared to be unconstitutional or invalid for any reason, such determination shall not affect the remaining portions of this Ordinance. SECTION IV. This Ordinance shall be in full force and effect from and after December 31, 2008 upon its passage by the St. Joseph County, Indiana, 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 Member, Sout nd Common Council .., l2'lt-~8' ... =„ . ~0~%ci.~ p Filed I~ri:'~ 1~ifiCe _.__--- NOV 2 5 200 JOHN V000 BEND, IN. CITY CLERK, .~ CITY OF SOUTFI BEND STEPHEN J. LUECKE, MAYOR OFFICE OF THE MAYOR November 25, 2008 Mr. Timothy A. Rouse President, South Bend Common Council 4`h Floor, County-City Building South Bend, IN 46601 Re: Resolutions Approving County Tax Council Ordinances for Local Option Income Tax (LOIT)-Public Safety and Property Tax Relief Dear President Rouse: In 2009 and 2010 our City faces a severe revenue shortfall due to the effect of the property tax caps under House Enrolled Act (HEA) 1001.. Throughout the 2009 City budget deliberations, the Common Council has learned how devastating the impact will be on City services if the budget shortfalls projected under HEA 1001 take place. In order to prevent large scale reductions in City services, including police and fire protection, I am filing with the Common Council two Resolutions casting South Bend's 40.59 votes as a member of the County Income Tax Board for two local option income taxes at a combined rate of 1.25%. These taxes will provide relief for schools, parks and libraries, as well as for city and county government. The two LOIT taxes sought to be adopted consist of a public safety tax of .25% and a property tax relief tax of 1%. By statute, the revenue derived from the public safety LOIT must be deposited into a separate fund and must be appropriated "only for public safety purposes." (Ind. Code §6-3.5=6-31(f)). Because the largest component of the City budget is for public safety, adoption of this LOIT will prevent drastic reductions in the public safety segment of the City budget. The property tax relief LOIT will be used to provide local property tax credits at a uniform rate to all taxpayers in the County. It is estimated that county-wide this will result in credits for property owners in significant aggregate sums. For example, it is projected that homeowners county- wide would receive a total of over $23 million in property tax relief credits. COUNTY-CITY BUILDING' 227 W. JEFFERSON BOULEVARD ~ SOUTH BEND, INDIANA 46601 PHONE 574/235-9261 • FAx 574/235-9892 • TDD 574/235-5567 We will continue to seek additional efficiencies and cost savings in the delivery of services. We will continue to work to attract new jobs and investment to our community. But the reality of the dramatic impact of HEA 1001 on our budget requires us to develop new revenue or to drastically cut key services that our residents and businesses demand. I believe it is in the City's best interest to implement these local income taxes. I look forward to making a presentation of these two Resolutions at the special meeting of the Common Council on December 11, 2008. Thank you for your consideration. Sincerely, Stephen uecke Mayor AMD/nb cc: Catherine Fanello Kathy Cekanski-Farrand Fii~d In Cictk's Office NOV 2 5 2008 JONPI V~o Rg ~~~ IN. CITY CLERK, ~~~ rJo. ~~- ion RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, PROPOSING AND VOTING IN FAVOR OF AN ORDINANCE OF THE ST. JOSEPH COUNTY INCOME TAX COUNCIL IMPOSING A PUBLIC SAFETY LOCAL OPTION INCOME TAX WHEREAS, the Common Council of the City of South Bend, Indiana recognizes public safety as a priority for citizens of South Bend, and acknowledges the need to maintain effective public safety despite expected loss of property tax revenue; and WHEREAS, the Indiana General Assembly recently authorized local governments to impose a public safety local option income tax (Public Safety LOIT) provided certain conditions are met, which authority is codified at Ind. Code § 6-3.5-6-31; and WHEREAS, there is a financial need to provide a Public Safety LOIT pursuant to I.C. 6- 3.5-6-31. NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, as follows: SECTION I. The Common Council of the City of South Bend, Indiana, proposes and casts its 40.59 votes in favor of the following Ordinance of the St. Joseph County Income Tax Council: ORDINANCE NO. AN ORDINANCE OF THE INCOME TAX COUNCIL OF ST. JOSEPH COUNTY, INDIANA IMPOSING A PUBLIC SAFETY LOCAL OPTION INCOME TAX IN ST. JOSEPH COUNTY, INDIANA STATEMENT OF PURPOSE AND INTENT The St. Joseph County Income Tax Council recognizes that maintaining public safety is a local government priority. The imminent decline in property tax revenues threatens to compromise and challenge local government's ability to provide high quality public safety to citizens of St. Joseph County, Indiana. By enacting Indiana Code 6-3.5-6-31, the Indiana legislature has provided a means for local government to help maintain quality public safety through imposition of a public safety local option income tax (Public Safety LOIT). Pursuant to Indiana Code 6-3.5-6-31, the members of the St. Joseph County Income Tax Council hereby adopt and impose such a tax in St. Joseph County effective December 31, 2008. Imposition of the Public Safety LOIT in St. Joseph County meets all requirements of I.C. 6-3.5-6-31(b) and (c), in that St. Joseph County recently imposed a property tax relief Local Option Income Tax (LOIT) of at least 0.25%, and the public safety tax to be imposed, does not exceed 0.25%. NOW, THEREFORE, BE IT ORDAINED BY THE ST. JOSEPH COUNTY, INDIANA INCOME TAX COUNCIL, as follows: SECTION I. The St. Joseph County, Indiana Income Tax Council imposes the public safety local option income tax (Public Safety LOIT) on the taxpayers of St. Joseph County, Indiana at a rate of 0.25% effective December 31, 2008. SECTION II. This ordinance meets all requirements of Ind. Code § 6-3.5-6-31(b). SECTION III. If any portion of this Ordinance is declared to be unconstitutional or invalid for any reason, such determination shall not affect the remaining portions of this Ordinance. SECTION IV. This Ordinance shall be in full force and effect from and after December 31, 2008 upon its passage by the St. Joseph County, Indiana, 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. Member, South Bend Common Council ~il~ Gi~rl~~'~ C~~fice NOV 2 5 2008 JOHN cp R~ ND, tN. CITY CLERK, ~, CITY OF SOUTFI BEND STEPHEN J. LUECKE, MAYOR OFFICE OF THE MAYOR November 25, 2008 Mr. Timothy A. Rouse President, South Bend Common Council 4`h Floor, County-City Building South Bend, IN 46601 Re: Resolutions Approving County Tax Council Ordinances for Local Option Income Tax (LOIT)-Public Safety and Property Tax Relief Dear President Rouse: In 2009 and 2010 our City faces a severe revenue shortfall due to the effect of the property tax caps under House Enrolled Act (HEA) 1001. Throughout the 2009 City budget deliberations, the Common Council has learned how devastating the impact will be on City services if the budget shortfalls projected under HEA 1001 take place. In order to prevent large scale reductions in City services, including police and fire protection, I am filing with the Common Council two Resolutions casting South Bend's 40.59 votes as a member of the County Income Tax Board for two local option income taxes at a combined rate of 1.25%. These taxes will provide relief for schools, parks and libraries, as well as for city and county government. The two LOIT taxes sought to be adopted consist of a public safety tax of .25% and a property tax relief tax of 1 %. By statute, the revenue derived from the public safety LOIT must be deposited into a separate fund and must be appropriated "only for public safety purposes." (Ind. Code §6-3.5=6-31(f)). Because the largest component of the City budget is for public safety, adoption of this LOIT will prevent drastic reductions in the public safety segment of the City budget. The property tax relief LOIT will be used to provide local property tax credits at a uniform rate to all taxpayers in the County. It is estimated that county-wide this will result in credits for property owners in significant aggregate sums. For example, it is prof ected that homeowners county- wide would receive a total of over $23 million in property tax relief credits. COUNTY-CITY BUILDING • 227 W. JEFFERSON BOULEVARD • SOUTH BEND, INDIANA 46GO1 PHONE 574/235-9261 • Fax 574/235-9892 • TDD 574/235-5567 We will continue to seek additional efficiencies and cost savings in the delivery of services. We will continue to work to attract new jobs and investment to our community. But the reality of the dramatic impact of HEA 1001 on our budget requires us to develop new revenue or to drastically cut key services that our residents and businesses demand. I believe it is in the City's best interest to implement these local income taxes. I look forward to making a presentation of these two Resolutions at the special meeting of the Common Council on December 11, 2008. Thank. you for your consideration. Sincerely, '/~t~~~~/fit L[.v%;~` .~,._... Stephe///n ~: uecke Mayor AMD/nb cc: Catherine Fanello Kathy Cekanski-Farrand Filed in Cierk's O~ic® NOV 2 5 2008 ~oNrs so as~~~, trt. crrv c~.~~~,