Burns Harbor officials are preparing their case for Friday’s 10:30 a.m. Department of Local Government Finance public hearing at the town hall.
Town Council president Jim McGee said he’s asked the town’s financial consultant to be present. At issue is whether the DLGF will allow the town in 2013 to raise its cumulative capital development fund tax rate so annual collections go from $29,805 to approximately $203,000.
A remonstrance petition was filed by a sufficient number of residents resulting in the DLGF field hearing. The remonstrators say they can’t afford a tax increase, nor do they feel one is necessary.
McGee, who’s served several terms on the council, said he didn’t know the CCDF rate could have been increased or he would have done it a long time ago.
Meeting Wednesday, councilman Mike Perrine suggested documents be prepared showing what Burns Harbor’s tax rate was five years prior to the 2001 Bethlehem Steel bankruptcy that forced the then-council to slash all but necessary town services to lower the operating budget to compensate for the 85 percent drop in property tax revenue.
Perrine said the current town tax rate is one-third of what it was prior to 2001. “That’s why nothing ever gets done anymore and the roads are falling apart. We’re not asking for (a $0.04 rate) to do foolish things and squander it.”
This year’s CCDF rate is just over one-half cent.
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