Greensburg Daily News, Greensburg, IN

News

July 9, 2013

Herbert: Controversy over tax increase based on misunderstanding, wildly overblown

GREENSBURG – The move last month by the City Council to increase the city’s Cumulative Capital Development Fund Tax from roughly 2.6 cents per $100 of assessed property value to 5 cents per $100 of assessed property value is proving unpopular with some residents.

On Monday afternoon, The Daily News contacted both Greensburg Mayor Gary Herbert and Branden Robbins, Financial Consultant with Reedy Financial Group of Seymour, to get some understanding on what the increase means and how much of an impact it will have on Greensburg property owners.

The mayor expressed displeasure with the rumor that the additional revenue from the increase will go toward the proposed expansion of Greensburg Municipal Airport.

“For anyone to say that these additional tax monies, from this increase in the Cumulative Capital Development Fund, will be used to purchase land for the airport expansion – it’s an untrue statement, plain and simple,” Herbert said. “It borders on malicious. That will not happen. This increase has nothing to do with airport expansion whatsoever.”

Herbert was equally adamant regarding rumors that the additional revenue will go toward funding the Veteran’s Parkway Road Project (Veteran’s Parkway is a proposed three-lane road that would run east-to-west across the city from the Hampton Inn on Highway 421 to an outlet at Burger King on Lincoln Avenue).

“The Veteran’s Parkway Project will be funded by Tax Increment Fund (TIF) money, meaning the money will come from tax revenue generated from businesses in the proposed area of Veteran’s Parkway,” the mayor said. “Not a single penny for that project will come from the Cumulative Capital Development Fund. That project will be funded by business.”

The mayor noted, too, that there has also been a measure of confusion regarding how much the increase in the city’s Cumulative Capital Development Fund would impact each individual property owner in the City of Greensburg.

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