From the Bloomington Herald-Times:
The Ellettsville Town Council agreed to seek a small increase in one of its property tax levies following a brief public hearing on the matter Monday.
The town council voted to reauthorize its cumulative capital development fund Monday, a move that allows it to seek an increase in the tax levy for that fund from the roughly 3.1 cents per $100 of assessed value to closer to the state maximum of 5 cents per $100 of assessed value. Town Clerk-Treasurer Sandy Hash said she did not expect the fund to be raised all the way to the 5-cent rate next year, as the maximum increase is based on a complex formula.
The fund — which in recent years has generated around $55,000 per year — is used for capital improvements, such as new police cars or information technology upgrades, Hash has said. She also noted that while this tax will increase slightly, homeowners are unlikely to feel the increase in 2013 because the town will be collecting less tax for debt service next year.
Only one person spoke at the public hearing, asking whether the increase tax will be collected outside the state’s property tax caps. Council President Scott Oldham said this specific tax has never factored into the property tax caps, and that will continue to be the case following the increase.
Councilman David Drake said during the meeting that nobody likes to raise taxes, but that as costs increase faster than the town ’s revenues this is “just one little way that we can make up a little bit of ground.” He said the money will go toward necessities that would have to come out of the town’s budget regardless.
“It may not be popular, but we’re not here to be popular,” he said. “We’re here to do what’s best for the town.”
