From WTRL.com:
The State hearing concerning the Cumulative Capital Tax increase was held this morning at City Hall where the Department of Local Government Finance heard evidence in opposition and support of the proposed tax increase. The format for the hearing was very organized; those with evidence in opposition were given the chance to speak first, followed by those with evidence in support, with those opposed given a chance for rebuttal at the end with the understanding that no new arguments were to be raised in their rebuttal.
In the opening segment concerned citizen Hershel Houk and local business woman Jean Johanningman spoke. Hershel mentioned that he felt the public was not well enough informed as to this tax issue and that during the petition drive only about 2% of those he spoke to had even heard of the proposed tax increase. Jean Johanningman argued that the city is attempting to circumvent the property tax circuit breaker, a tax relief measure put in place by the State government. She went on to mention that she felt that in the current tough economic times, with sixty-percent of students on reduced cost lunches at school, the City needed to focus on needs instead of wants. She stated she felt that while the State was trying to cut back on spending the local government was not, taking on many new projects and establishing new government positions despite the down economy.
Eric Reedy of Reedy Financial, a firm hired by the City, spoke first in support of the tax increase supplying a packet of information on the process the city has went through in an effort establish the tax increase. By Reedy's financial figures the city will receive approximately $100,000 in increased revenues with the average annual impact to taxpayers at $7.03. He also presented data that stated Greensburg's tax rates were lower than ten similar surrounding cities in a study including; Columbus, Seymour, New Castle, and Bloomington. Average annual capital improvement needs were presented, with an estimated cost of 811,000 annual over the next six years based on city departments budgets. Mr. Reedy also noted that when the tax was established in 1986 it was set at the maximum level and has dropped over time, the city is only returning it to the original level.
The State officials asked their one and only question of the morning to Eric Reedy, questioning whether or not the city was attempting to circumvent the States property tax circuit breaker. Mr. Reedy answered that the funds were needed for capital projects.
Local businessman and TIF Board member Rick Fayette spoke in favor of the increase as well, stating that as a business owner he dislikes taxes in general but expects to help pay for the services he needs and wants such as street repairs and snow removal. He noted he didn't feel the cost was detrimental to families, and that the new positions added by the city government such as the city engineer were saving the city money. Rick presented his water bill and noted that the sanitation charge was only $3.50, stating that if he were in charge he would raise cost to help pay for these services the city currently provides at low prices.
Mayor Gary Herbert was the third and final speaker In favor of the increase, stating he wanted the city to continue to grow, and that the revenue was needed to fund projects to improve the city and provide for public safety. He noted the increase was unanimously passed by the city council and feels that he has been proactive in preparing for the future, including projects the public doesn't even know about yet.
In the Rebuttal stage, Hershal Houk mentioned that he felt the public is being kept in the dark and Jean Johnanningman reiterated her feelings that the city needs to weigh needs vs wants, and that someone is going to have to start cutting spending on a local level in these tough economic times. Christine Townsend was the third and final speaker in rebuttal, arguing that the city's cost aren't necessarily as cheap as they think; when she lived in the much larger city of Fairfax, Virginia she paid nearly the same property tax, less State income tax, and half as much for her water bill.
WTRE spoke with both Hersel Houk and Eric Reedy about this mornings hearing.
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