Park board bond plan clears committee after adviser says new issue won't raise taxes overall
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Summary
The Budget Administration Committee recommended favorably a park district bond issuance of up to $6.6 million; the county's municipal adviser said retiring other debt keeps the net tax impact neutral and estimated the specific bond would add about $12 a year on a $300,000 house if not offset.
St. Joseph County's Budget Administration Committee voted to send a park-district bond ordinance favorably after presenters said the issuance would not raise taxpayers' overall burden.
Catherine Fanello, outside counsel for the park district, and municipal adviser Steve Dalton described a plan for Park District bonds to finance multiple park projects. Fanello told the committee the park board held a public hearing and adopted a resolution in favor of issuing bonds; she said the park district, as a special taxing district, would issue bonds payable from an ad valorem property tax within the park district.
Dalton said the proposed bonds would not increase the overall tax levy because they would replace retiring debt. He estimated the new bond payment would be about $500,000 while retiring other obligations would free about $2 million, leaving a net neutral or lower rate. Dalton calculated the incremental tax for this specific proposed bond would amount to roughly $12 a year on a $300,000 house and said the overall tax rate would fall by a small margin.
Committee members voted to send the ordinance favorably to the full council. The committee vote ended in a 3-2 split that required the chair to break a tie; the chair voted to send the measure forward.
Why it matters: The bond would enable park capital projects without increasing taxes if planned retirements offset the new debt service, according to the municipal adviser.
What's next: The ordinance and appropriation of bond proceeds will appear at the full council for final action.