Allen County’s assessed valuation that will be used to determine tax proceeds and levies for the 2014 budget increased about 1 percent. The new valuation is $96,988,697. That is $983,984 more than this year’s $96,004,713.
The outcome is that if commissioners were so disposed, they could lower the tax levy and raise the same number of tax dollars as this year. Leaving the levy as is, just a touch over 67.5 mills, would increase tax dollars available for county expenditures, and trigger what Rep. Ed Bideau calls the “invisible tax,” or an increase in tax dollars realized from a higher valuation with the same levy.
The levy is likely to inch up some, even with the higher valuation.
TAXPAYERS shouldn’t bellyache.
County taxes creep up because of increased expenditures the county — or any other governing body — feels compelled to make to fulfill wants and needs of citizens, plus commissioners recognize that inflation affects employees, and try to keep their wages in line.
Also, the county’s dependence on local ad valorem taxes to pay its bills is more pronounced than in the past.
Not so many years ago state aid was a part the county’s funding. It came under the heading of LAVTR — local ad valorem tax relief. The revenue was a buffer for local taxes, and was used by the county, and other local governing bodies, to pay a portion of their bills.
When the state fell on hard times with the dot.com crash and eventual recession, that revenue source was discontinued. Allen County was faced with either raising local taxes or cutting services. Commissioners opted to raise taxes, which from all indications was well explained and accepted; no taxpayer uproar occurred.
Iola, and many other cities, have advantage of enterprise funds through the sale of utilities. Transfers from those funds pay bills that otherwise would fall to tax dollars. The county’s only enterprise is the landfill, which produces some money that may be transferred to general fund use, but not of windfall proportions.
The other leg supporting county expenditures is a 1 percent sales tax, which by state requirement also benefits cities within the county through a distribution formula based on population.
ULTIMATELY, the test for county commissioners — for any governing body that levies taxes — is whether they spend money raised wisely for the public good.
To this point in time that’s a question lack of protest has answered.
— Bob Johnson
