Portage kicking tires on wheel tax
Post-Tribune
April 06, 2016
http://www.chicagotribune.com/suburbs/post-tribune/news/ct-ptb-portage-wheel-tax-st-0407-20160406-story.html
Portage Mayor James Snyder defended the need for a wheel tax before a packed City Council meeting Tuesday. He blamed county officials, in part, for failing to share Porter hospital sale proceeds with municipalities.
Snyder, a Republican, said he believes Portage is the first city in Indiana to consider adopting a $25 per passenger annual vehicle tax that increases to $40 for commercial and recreational vehicles and motorcycles.
In the recent General Assembly session, state lawmakers set aside a pot of $150 million to match what local communities raise with the wheel tax. In Portage's case, Snyder said it would mean $1.5 million annually with the state match. Residents would pay the tax when they register at the Bureau of Motor Vehicles.
Council members gave the controversial measure a first reading, but no one except Council President Mark Oprisko, D-at-large, offered insight on how they might vote. Oprisko supported the tax.
"The bottom line is the state legislature gave us an option ... They let cities fight for it because we know our roads are in bad shape ... it's important to have our roads in tip-top shape and to have a plan for years to come."
Councilmen Collin Czilli, D-5th, and Scott Williams, D-3rd, are holding a town hall meeting on the tax at 2 p.m. April 16 at the Portage Public Library, 2665 Irving St.
The City Council is poised to vote on the wheel tax at its 6:30 p.m. May 4 meeting at Woodland Park. Snyder said the city needs to get in the state's funding pipeline by July to receive matching money by next January.
Because of budget constraints, Snyder said the city can only afford about $90,000 annually for roads.
"If it snows too much, salt money comes out of that budget," Snyder said.
He said he joined mayors from across the state to lobby for the wheel tax. Because of permanent property tax caps, approved in 2010, local governments typically receive less revenue. Snyder said Portage received more tax money in 2006 than it did in 2013.
"How do you maintain and take care of a city?" he said.
Residents asked Snyder questions for nearly an hour in the impromptu "town hall" that followed the council meeting. Many opposed the tax, saying they shouldn't be punished for saving their money to buy a second car or a recreational vehicle.
Another woman said the RVs and motorcycles are usually used only about six months a year, so the $40 fee was unfair.
Others complained their trash and sewage bills are about to increase as well. Snyder said failing to raise sewage fees for 20 years hurt the city's infrastructure.
Snyder recently butted heads with county officials because they won't agree to move the North County Government Complex from Willowcreek Road to downtown Central Avenue.
Snyder accused county officials of sitting on $30 million of Major Moves state money and $157 million in hospital proceeds. "They're derelict in their duty," he said. "They're using interest from the foundation to operate their bloated government. They won't pass a wheel tax.
"Now, they're holding us hostage and asking us to pay for our puppies to go to the new animal shelter … We can't wait for them to fix our infrastructure."
City officials get calls every day from residents asking for their roads to be paved, Snyder said. "We don't have a viable plan and that's what this will allow us to do," he said.
He said the city maintains 154 miles of local roads and if it spent the entire $1.5 million in wheel tax revenue on roads, it could pave 18 miles.
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