Robbins attempted to shed some light on that issue.
Robbins has worked closely with the City Council in implementing the increase. According to the Reedy Financial Group website (www.reedyfinancial.server290.com), Robbins “provides consulting services to Indiana Counties, Cities, and Towns, Utilities and special taxing districts.”
According to state law, Robbins explained, every city, municipality and county in Indiana may charge a Cumulative Capital Development Fund Tax on property. The maximum amount of that tax, Robbins said, as dictated by state law, is 5 cents per $100 of assessed property value in a city or municipality. The maximum amount in a county is 3.3 cents per $100 of assessed value.
“What happens,” he explained, “is that the amount that can be taxed per $100 of assessed value generally decreases with time, because the value of the property comprising the city, municipality or county increases.”
At present, Greensburg’s Cumulative Capital Development Fund Tax is roughly 2.6 cents per $100 of assessed value.
“It used to be the full 5 cents,” Herbert pointed out. “But over time, if you don’t do anything to adjust it, it goes progressively lower.”
He continued, “The Indiana Department of Local Government Finance (DLGF) only has so much money to divvy out. Some years your city gets more; sometimes you get less. Revenues are down. The Circuit Breaker Cap is in effect. We’re trying to generate what revenues we can without causing too great a burden on the average citizen.”
According to Robbins, the “Circuit Breaker Cap” the mayor mentioned is a state-mandated limit on the maximum amount in property taxes any given property owner can be required to pay by his or her municipality or county.
“The Circuit Breaker was put into place around 2008 or ‘09,” Robbins said. “Once a taxpayer hits the cap, they can’t be required to pay any more, regardless of the Cumulative Capital Development Fund Tax.”