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HomeMy WebLinkAboutPublic safety (local option income tax)RESOLUTION 3980-09 Passed by the Common Council of the City of South Bend, Indiana July 13, Attest: City Clerk President of Common Council Presented by me to the Mayor of the City of South Bend, Indiana July 14, 2g9 Approved and signed by me July 14, 20 0 9 ~ U~ 09 City Clerk RESOLUTION NO. ,~ ~ c1 ~~ ` `~ 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 severe loss in property tax revenues resulting from HEA 1001 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 October 1, 2009. 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 One Quarter Percent (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 October 1, 2009. 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 October 1, 2009 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 May Member, South Bend Common Council PRESENTER ..1~13~ ~~ NOT ARPROK~D ADOPTED ~ -~~ ~ ~~~ ~~i^~ !~1 ~~~~~'~ ®ffiice ,l U N 3 0 20Q9 ao~~ra vaQ ~aEr~u, trt. C1TY CL~F~K, TO THE COMMON COUNCIL OF THE CITY OF SOUTH BEND: Your Committee of the Whole, to whom was referred: BILL NO. 09-50 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 Respectfully report that they have examined the matter and that in their opinion, this bill is being recommended to the full Council with no recommendation due to wanting the public hearing heard at the evening Council meeting. Ann Puzzello Chairperson, Committee of the Whole CITY OF SOUTH BEND STEPHEN J. LUECKE, MAYOR OFFICE OF THE MAYOR July 13, 2009 South Bend Common Council 4~' Floor, County-City Building South Bend, IN 46601 Re: Resolutions Approving County Tax Council Ordinances to enact Local Option Income Tax (LOIT) for Public Safety and Property Tax Relief, and to enact County Economic Development Income Tax (CEDIT) Dear Councilmembers: The City of South Bend faces a severe revenue shortfall in 2010 due to the effect of the property tax caps enacted under HEA 1001. During 2009 budget deliberations you learned the devastating impact that would result to all our departments if some replacement revenue is not put in place. We have made significant reductions to our budget already, including $3 million in 2009 and savings of almost $4 million during 2008. We will continue to make further cuts and find more efficiencies, but we will not get to a $22 million reduction without decimating key services and reducing quality of life in our community. The State provided local government with one option to replace revenues lost to the caps -enact local option income taxes. So, in conjunction with Council President Derek Dieter, I am submitting three Resolutions for consideration at your July 13`~ meeting. These Resolutions would cast South Bend's 40.59 votes as a member of the St. Joseph County Income Tax Council in favor of enacting additional local income taxes at a combined rate of 0.95%. These taxes will provide relief for schools, parks and libraries, as well as for city and county government. Two LOIT taxes sought to be adopted consist of a public safety tax of 0.25% and a property tax relief tax of 0.5%. 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." The largest cost component of South Bend's general fund budget is for public safety, so adoption of this LOIT will prevent drastic reductions in sworn officers in our police and fire departments. COUNTY-CITY BUILDING • 227 W, JEFFERSON BOULEVARD • SOUTH BEND, INDIANA 46601 PHONE 574/235-9261 • FAx 574/235-9892 • TDD 574/235-5567 The property tax relief LOIT will be used to provide property tax credits uniformly to all types of property in the county. (In order to enact the 0.25% public safety LOIT, State law requires that a property tax relief LOIT of at least 0.25% be enacted.) The third measure would adopt the 0.2% County Economic Development Income Tax which remains available in St. 3oseph County. The CEDIT funds can now be used for general operations of government and are no longer restricted to economic development or capital purposes. In total, these three taxes would provide about $16 million relief to. the revenue lost to the caps. We will still need to find savings and efficiencies of approximately $6 million for 2010. In addition to developing additional efficiencies and savings in the delivery of services, we will continue to attract new jobs and investment to South Bend and look for opportunities to partner with other units of government and the private sector. Resolving these revenue shortfalls will take multi-pronged initiatives, including developing new revenue streams. The alternative is to drastically reduce key services that our residents and businesses demand. I believe it is in South Bend's best interest to implement these local income taxes. I look forward to making a presentation on these Resolutions on July 13t''. Thank you for your consideration of this matter. Sincerely, ~~~ ~~. Ste hen J.`~uecke p Mayor, City of South Bend Find In C1erk'S D#fice J U L 1 3 2009 JOfiN VOORDE CITY CLEt~K, S0. BEND, IN.