Porter is expected
to see a smaller final cash balance in its general fund for 2018 than 2017
due in part to property tax caps.
The Town’s 2018 net
assessed values that were certified earlier this month saw a small decrease
from $228.5 million in 2017 to $227.4 million.
Eric Walsh, a
partner with the Town’s financial advising firm Umbaugh & Associates, said
tax cap impacts are greater when the AV of a taxing unit dips or stays
stagnant as Porter saw.
“The state’s growth
quotient on maximum levies is four percent this year. If your property tax
stays stagnant, you are going to have more people hitting the caps because
tax rate is related to assessed value and levy,” Walsh said.
loss due to tax caps for 2018 is $244,854 which is more than $10,000 higher
than 2017’s estimated figure of $234,009.
According to state
law, residential property taxes are capped at 1 percent of assessed value,
farm and rental properties are 2 percent and commercial properties at 3
A home assessed at
$100,000 can only be taxed for $1,000, no matter the combined total property
tax rate. Should the taxes owed be more than $1,000, the excess will be
counted as circuit breaker loss, Walsh said.
Fund ending cash balance is expected to be $757,000 in 2018 while 2017’s
figure was a little over $900,000, but the line item for budgeted
disbursments is to grow by about $100,000 in the fund.
Because of the
growth quotient, the General Fund is expected to receive $1.5 million from
gross property taxes for 2018 whereas 2017 was closer to $1.4 million.
Walsh said that
overall, all the funds in Porter’s budget will likely have positive cash
balances, much better than five years ago.
“I think your 2018
budget is in pretty good shape. All your funds are pretty strong. Cash
balances enable you to spend a little more than what you have been bringing
in and you haven’t been able to do that in the past,” Walsh said.
The Town will again
transfer $200,000 from its County Local Income Tax distribution, which will
help offset some of the circuit breaker impacts, he said.
Walsh said he
doesn’t foresee any event in 2018 that would cause the Town to spend into
negative cash flows.
Greg Stinson thanked Walsh and Umbaugh & Associates for helping the Town
budgets stay in the black.
“I feel a lot
better than what I did my first year in office. On a major event and we were
going to be in real trouble. Now we have the cash flows we can sustain not
only in our budget but if something should come up that’s unplanned, we do
have cash reserve to meet those needs,” Stinson said.
The Council will
hold a public hearing on the budget at one of its meetings in September.
reports, Parks Director Brian Bugajski requested the rental fee for
Hawthorne Park be waived for the Porter Perfect Pint event and silent
auction on Saturday, Oct. 14. The event is hosted jointly by Leroy’s Hot
Stuff and Pat’s Liquors. Proceeds go to benefit the Porter Parks Department
and Fire Department.
approved the request 5-0.
Also, Public Works
Director Brenda Brueckheimer announced road closures that are happening this
week for paving. Roads around the Baillytown area were closed Wednesday and
Thursday but are expected to open back up on Friday.