Town of WolcottvilleWastewater Utility Rate Study

Jeffrey Peters, MPA, CPAPeters Municipal Consultants, P.C.

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Merger Study Plan Forum

Center Grove High School AuditoriumDecember 15, 2009

Tax Impact on $150,000 HomeProjected

Post-Reorganization

Projected W/ Stormwater FeeProjected Projected Post-Reorganization W/O Bargersville

Pre-Reorganization Post-Reorganization W/ Stormwater Fee Annexation AV

Calculation to arrive at assessed valuation:

Market Value of Home 150,000 150,000 150,000 150,000

Times: Percent FactorEquals: True Tax Value 150,000 150,000 150,000 150,000

Minus:Homestead Deduction 45,000 45,000 45,000 45,000

Additional Homestead Deduction 36,750 36,750 36,750 36,750

Mortgage Deduction 3,000 3,000 3,000 3,000

Equals: Adjusted Assessed Value 65,250 65,250 65,250 65,250

Calculation to arrive at property tax liability for the taxing district:

Assessed Value Divided by 100 653 653 653 653

Times: Taxing District Property Tax Rate 1.6813 2.0013 2.0943 2.1394

Total 1,097 1,306 1,367 1,396

Less: State Homestead Credit 0 0 0 0

Equals: Tax Liability for the Taxing District 1,097 1,306 1,367 1,396

Calculation to arrive at property tax liability for the New City:

Assessed Valuation divided by 100 653 653 653 653

Times: Town's Property Tax Rate 0.0000 0.3200 0.4130 0.4581

Total 0 209 269 299

Less: State PTRC and Homestead Credits 0 0 0 0

Equals: Tax Liability for the New City 0 209 269 299

Increase in Tax Liability 19.03% 24.56% 27.25%

Officers per Shift Johnson County Sheriff’s Office currently schedules 7 deputies per shift to police White River

Township• Sheriff’s Office operates on 2 -12 hour shifts per day• 168 man hours per 24 hour period

Greenwood Police Department would be able to schedule an average of 4 officers per shift to police White River Township*• Greenwood PD operates on 3 – 8 hour shifts per day• 96 man hours per 24 hour period

*Number was calculated by applying Greenwood PD’s current work schedule of 5 days on-duty and 2 days off-duty followed by 5 days on-duty and 3 days off-duty to the proposed hiring of 17 additional officers upon merger

“Efficiency”…..

Reorganization Committee claims to reduce property taxes by 11%, from $0.36/$100 of assessed value to $0.32.

Actually, it is an approximate increase of 27% for White River Township residents

11% reduction only applies to “Old” Greenwood residents because the projected expenses would be taxed to all of “New” Greenwood residents

Results of Underestimated Budget

1. Tax increases, both property and income, are actively pursued

2. Fees are increased to alleviate General Fund shortfalls (i.e. storm water and sewage)

3. Services are not adequately provided

Johnson County Tax Rate Reorganization Committee stated that a county tax rate

reduction is likely• FACT – Potential County tax increase with referendum in May 2010 to

expand County Jail with approximately $23 million Reorganization Committee represented that County tax

reductions are implemented by the Indiana Department of Local Government Finance (DLGF)• FACT – DLGF’s role in budget approval process is to ensure the

estimated budget expenditures can be funded with advertised property tax levies. Property tax reductions must be initiated by the County and then approved by the DLGF

Fire Protection

White River and Bargersville Fire Protection Districts are their own taxing units

New Greenwood would have NO governing control over these Fire Departments

Reorganization Committee and New Greenwood would NOT have the authority to transform all Departments into a single department

Reorganization Committee cannot guarantee this sort of control as it has previously claimed

Property Tax Caps and Your Loss

• Due to the Property Tax Cap of 1% passed in 2008, current Greenwood has anticipated tax cap loss of $532,000 annually*

• This loss of property tax revenue will be spread across New Greenwood and WRT residents will help make up this loss

• Thus, driving WRT towards the tax cap of 1% and pulling tax money away from Center Grove Schools, public library, fire protection, etc.

*Anticipated tax cap loss was calculated by Indiana Legislative Services Agency (LSA)

Property Tax Rate Breakdown

Ulterior Motive? FACT – Reorganization Committee Chairman stated that Greenwood

does not need the White River tax base and this merger is about vision 5-15 years from now

FACT – The Chairman also stated concerns that delaying the merger process might allow Bargersville to annex more of unincorporated White River Township

FACT – Reorganization Committee pushed for Greenwood to file suit against Bargersville’s annexation of the southern portion of White River Township

FACT – Greenwood Mayor was quoted as saying “…its basically a process of one municipality getting that unincorporated land”

YOU DECIDE – Is this truly about “vision” or is the City of Greenwood attempting to protect their future borders and commercial corridors from Bargersville?

Things to Consider1. Does the City of Greenwood provide services that I desire at a cost I am

willing to pay? Significantly less police protection than Sheriff currently provides Police coverage fails in comparison to comparable cities and DOJ

standards Tax and fee increase ~ 27% to begin

2. Has Greenwood’s management spent my money wisely in the past? Spent $5 million on sewage extension with no way to recoup the

investment Spending more sewage fees on appeals and lawsuits even though

rate increase is needed to cover present shortfalls Spending sewage fees on lawsuit to prevent my neighbors from

voluntarily becoming part of Bargersville