Indiana's proposed property tax reform is leading to questions for Portage's vehicle replacement plans.
Fire Chief Chris Crail is looking to replace a 27-year-old tower truck that's becoming obsolete. "I think Dombey and 20 is a big place that we have used it to stretch out over the river," Crail told the city council Tuesday. "Out at the mills, we've had to use the articulating boom, also at the rail yard a few times, surprisingly."
But rather than replacing a single fire truck, the police and fire departments have agreed to work together on a long-term equipment plan. Mayor Austin Bonta said it will take the politics out of funding new vehicles.
"When you don't have a set-up plan to be able to properly replace equipment on time on the police and fire side, it ends up being 'when there's money here' or 'when there's money here,' everyone's chasing it, trying to get the board of works or trying to get [redevelopment commission]," Bonta said. "This really is the beginning of a framework for us to be able to do consistent purchases."
As part of the funding process, the city council passed a resolution preliminarily determining that there's a need to issue up to four million dollars in general obligation bonds. The bonds wouldn't actually be issued until 2026 or 2027.
Council member Collin Czilli cast the lone opposing vote. He thinks that whatever the General Assembly does to reform property taxes will be bad for Portage's revenues.
"There is literally a bill right now — it's House Bill 1229 — that eliminates property taxes — they cease to exist in 2026 — and actually bans cities from bonding based on property taxes," Czilli said, pointing to one of the more drastic proposals.
He notes that Portage's finances are already tight. "We haven't settled contracts yet, which weren't fully budgeted for," Czilli noted. "We don't know what that impact is going to be. We took out seven-and-a-half million in tax anticipation warrants for this year. That is going to be higher next year because we have not created that surplus."
But Mayor Bonta didn't think the city should delay needed purchases, based on something that the state may or may not do. "The things that we have to plan for, reasonably, are our fire operations and our police operations," Bonta said.
Chief Crail said replacing fire trucks can take anywhere from 18 months to more than four years, depending on manufacturer. He said his department can order the truck with no money down. If the city isn't able to pay for it within six months after its completion, the dealer can simply opt to sell it to another department.
Similarly, the city doesn't have to proceed with the bond purchase, if it later decides against it.
