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HomeMy WebLinkAbout03-05-96 Council Special Meeting MinutesSPECIAL MEETING MARCH 5, 1996 Be it remembered that the Common Council of the City of South Bend met in the Council Chambers of the County -City Building on Tuesday, March 5, 1996, at 7:00 p.m. The meeting was called to order and the Pledge to the Flag was given. ROLL CALL Present: Council Members Luecke, Pfeifer, Kelly, Broden, Varner, Zakrzewski, Coleman Hosinski and Washington Absent: None RESOLUTION NO. 2345 -96 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA VOTING IN FAVOR OF AN ORDINANCE OF THE ST. JOSEPH COUNTY INCOME TAX COUNCIL IMPOSING THE COUNTY OPTION INCOME TAX IN ST. JOSEPH COUNTY (COIT) WHEREAS, the Common Council of the City of South Bend, Indiana recognizes that the Indiana Legislature has passed legislation which provides for the County Option Income Tax (COIT), and WHEREAS, in order to continue to provide essential governmental services to all residents of St. Joseph County, Indiana, and in recognition there is a financial need to impose the County Option Income Tax (COIT). 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 casts its 42.71 votes for the proposed ordinance of the St. Joseph County Income Tax Council which reads as follows: AN ORDINANCE IMPOSING A COUNTY OPTION INCOME TAX (COIT) STATEMENT OF PURPOSE AND INTENT The St. Joseph County Income Tax Council, pursuant to IC 6- 3.5 -6, has determined that it will be in the public interest to impose a county option income tax in St. Joseph County to provide funding for needed governmental services to all residents of St. Joseph County, Indiana. The members of the St. Joseph County Income Tax Council are the 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 imposes the County Option Income Tax (COIT) on the county taxpayers of St. Joseph County. The County Option Income Tax (COIT) is imposed at a rate of Two- tenths of one percent (0.2 %) on the resident county taxpayers and at a rate of Five - hundredths of one percent (0.05 %) on all nonresident county taxpayers. This tax takes effect July 1 of this year, 1996. SECTION II. The county option income tax (COIT) is imposed on the county taxpayers of St. Joseph County at the following rates for subsequent years as follows: Resident Nonresident County County Taxpayers Taxpayers SPECIAL MEETING July 1, 1997 to June 30, 1998 0.3% 0.075% July 1, 1998 to June 30, 1999 0.4% 0.1% July 1, 1999 to June 30, 2000 0.5% 0.125% July 1, 2000 to June 30, 2001 and subsequent years 0.6% 0.15% MARCH 5, 1996 SECTION III. 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 portion of this Ordinance. SECTION IV. This Ordinance shall be in full force and effect from and after its passage by the St. Joseph County 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. Is/ Roland Kelly Member of the Common Council Council Member Coleman made a motion to combine public hearing on bills no. 96 -19 and 20, seconded by Council Member Luecke. The motion carried. RESOLUTION NO. 2346 -96 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA VOTING IN FAVOR OF AN ORDINANCE OF THE ST. JOSEPH COUNTY INCOME TAX COUNCIL INCREASING THE PERCENTAGE CREDIT ALLOWED FOR HOMESTEADS IN ST. JOSEPH COUNTY WHEREAS, the Common Coun Indiana, recognizes that the legislation which provides for allows, in connection therewith, credit allowed for homesteads Option Income Tax is in effect; cil of the City of South Bend, Indiana Legislature has passed the County Option Income Tax and for an increase in the percentage in counties in which the County and WHEREAS, the St. Joseph County Income Tax Council has approved the imposition of the County Option Income Tax in St. Joseph County and has determined that the imposition of this tax should be accompanied by property tax relief in the form of an increase in the percentage credit allowed for homesteads in St. Joseph County. 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 casts its 42.71 votes for the proposed ordinances of the St. Joseph County Income Tax Council which reads as follows: AN ORDINANCE INCREASING THE PERCENTAGE CREDIT ALLOWED FOR HOMESTEADS IN ST. JOSEPH COUNTY, INDIANA The St. Joseph County Income Tax Council, pursuant to IC 6- 3.5 -6, has determined that it will be in the public interest to increase the percentage allowed for homesteads in St. Joseph County to provide property tax relief to the homeowners of St. Joseph County, Indiana. The members of the St. Joseph County Income TaX Council are the 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 SPECIAL MEETING MARCH 5, 1996 money be made up to them. Kevin Horton, City Controller, this tax will have no effect on the school corporation. William Hojnacki, 1615 E. Wayne, indicated a community cannot expect help from the State legislature when they will not try and help themselves by passing the option tax. Linda Petill, spoke against the option tax, indicating that if the taxed is passed, she would watch very closely to see how the money is being spent. Jim Philson, 1314 E. Ewing, indicated his children and foster children stood to lose the most if this taxes is passed. Barry Baumbaugh, 12032 Timberline Trace North, spoke against this tax, indicating it was unnecessary. Jim Cierziniak, 1156 E. Victoria; Ralph Johnson, 734 N. Cushing, and Ted Mack of Lakeville, spoke against this tax. All of the Council Members, except Council Member Varner, spoke in favor of the tax, as well as the benefits it will bring to the County and the City. Council Member Varner spoke against the passage of the option tax resolution. Kathleen Cekanski, Council attorney, indicated the financial information presented to the Council should become a part of the record, and filed with the resolution. Council Member Coleman made a motion to adopt Resolution No. 2345- 96, seconded by Council Member Washington. The resolution was adopted by a roll call vote of eight ayes and one nay (Council Member Varner. Council Member Luecke made a motion to adopt Resolution No. 2346 -96, seconded by Council Member Washington. The resolution was adopted by a roll call vote of nine ayes. There being no further business to come before the Council unfinished or new, Council Member Coleman made a motion to adjourn, seconded by Council Member Washington. The motion carried, and the meeting was adjourned at 8:45 p.m. ATTE : ST 1 ity Cle President