Tuesday, June 5, 2012

Salt Creek Township Tax Rate Increases 421%

From the Bloomington Herald-Times:

Salt Creek Township is east of Bloomington. Its northern boundary is near Ind. 46, and the north end of the Ind. 446 causeway is at the township’s southern edge. About a quarter of the township lies east of Lake Monroe and borders Brown County.

The Hoosier National Forest, Paynetown State Recreation Area and Yellowwood State Forest occupy a big chunk of the township, which, according to the 2010 U.S. census, has 1,513 residents.

And those 1,513 residents, plus visitors recreating in the township, sometimes need emergency services.

There aren’t enough residents in the township to staff a volunteer fire department, said Trustee Donn Hall.

So the township contracts with Bloomington Fire Department for fire protection each year, and the township’s breach of that contract is the source of the high tax rate.


In 2010, the fire protection contract cost the township $119,212; in 2011, the bill was $115,684, and in 2012, $127,233.

But the sparsely populated township, whose advisory board usually meets only once a year, doesn’t have that kind of money sitting around.

In previous years, the trustee has taken out a bank loan to pay for the fire protection contract, then repaid the loan with property tax collections.

But it missed a deadline to publicly advertise that it intended to take out a loan, and so did not get permission from the state Department of Local Government Finance to do so.

The township didn’t pay for fire protection last year, and the city sued the township for breach of contract, explained Bloomington attorney Guy Loftman, whom the township board hired to represent the township.

Monroe Circuit Court ruled against the township, saying it owed the city $234,800, according to Cathy Wolter, an attorney for the DLGF.

The township didn’t contest the judgment, Hall said, and that amount covers the fire protection contract for both 2011 and 2012.

In 2011, Salt Creek Township property owners saw their property taxes drop over those of 2010 because they didn’t pay for fire protection that year, and this year, property taxpayers are footing the bill for two years’ worth of fire protection.


So in 2012, Salt Creek Township property owners are paying double. In 2013, they should see a drop in the township tax bill to a level that will pay for fire protection during the year — just one year.