04062016 - News Article - Residents show concern over proposed Portage wheel tax

Residents show concern over proposed Portage wheel tax
NWI Times
Apr 6, 2016
http://www.nwitimes.com/news/local/govt-and-politics/residents-show-concern-over-proposed-portage-wheel-tax/article_f9d8b171-02b8-58d8-958f-b352785beb2e.html

PORTAGE — This week's City Council meeting quickly turned into a town hall-type discussion as some 200 people attending wanted to know more about the city's proposed wheel tax.

While some residents voiced support of the proposed tax, others voiced adamant opposition to creating the tax.

Mayor James Snyder said he was one of several municipal officials who pushed downstate for legislation to provide communities a new source of revenue to maintain and build streets and sidewalks.

Snyder told the group the city can only budget $90,000 per year for road reconstruction, which would pave about 1,900 feet of roadway. He blamed state officials for tax caps constraining local budgets and took shots at Porter County for sitting on proceeds of the sale of Porter hospital instead of investing the money in needed infrastructure improvements.

The wheel tax, said Snyder, would allow the city to collect an additional $750,000 annually in revenues. It would be matched, under the recently approved road bill, by the state. In total, it would provide the city annually with $1.5 million to use for road repairs, construction and sidewalks.

As proposed, the city would assess $25 for each passenger car and motorcycle registered in the city and $40 for each commercial or recreational vehicle.

Some residents complained, that they could be paying in the hundreds of additional dollars each year because they own more than one vehicle. Some also suggested it would unfair to fully tax a vehicle — such as a motorcycle or RV — the full amount if it is used only a portion of the year.

Snyder said the fees have initially been set at the state-allowed maximum, but that the City Council is looking at the fee schedule and could lower the fees for some categories. He said the state law did not allow any "breaks" for multiple vehicle owners or senior citizens.

Snyder said the money will be used to pave streets, construct sidewalks and finance larger projects. He said a council committee would be put together to prioritize projects and the city would develop a three-year plan for spending the funds.

Snyder said he would like Portage to be the first to adopt the new wheel tax. Crown Point city officials also are considering adopting the tax.

Residents told Snyder he had previously said the savings from automating trash collecting would be used towards maintaining roadways.

Snyder said the city has used savings in trash collection along with funds saved on employee health insurance in addition to floating a $3.5 million bond two years ago, but that it simply isn't enough to maintain streets within the city. He said the city needs to have a continuing source of revenue dedicated to roads.

"After implementing the wheel tax, we will have the consistent fund," Snyder said.

The council held the first reading on the ordinance at Tuesday's meeting. A public hearing and vote on the tax will be held at the council's next meeting at 6:30 p.m. May 4 in Woodland Park.

Snyder said the city must pass the ordinance by June 1 for the state to begin collecting funds in 2017.