• Proposed 2013 Brownsburg budget includes a 12.4% tax cut

    September 05, 2012 No comments

    Brownsburg town manager Grant Kleinhenz says that one of the messages from the town’s proposed 2013 budget is that town officials are working hard to lower taxes, and that goal has been met with a potential tax rate reduction of 12.4 percent.

    The 2013 budget will be read three times before a scheduled final adoption on Oct. 11.

    In an article by Bart Doan in today’s Hendricks County Flyer, he reports that Kleinhenz said “The proposed tax rate reduction is just over .1008, which will bring our rate from .8118 to .7110.”

    Kleinhenz went on to say that there are two main reasons for the reduction. One is due to the east annexation where Brownsburg added roughly $40 million to the towns assessed value, which allowed the town to spread their current rate over more taxpayers and reduce that rate by a fairly good amount.

    He also said they the town was also able to require less money for the town hall building complex debt service for 2013 and that also contributed to lowering the rate.

    Kleinhenz said the town has settled a lawsuit with a construction contractor that had monies tied up in a large escrow account and his recommendation was to use those funds to pay the debt down slightly. The return amount was $500,000.

    One of the changes that allowed for such a reduction was the removal of longevity pay for town employees that have worked in their positions over a long period of time. The system was put into effect in 2010.

    Town employees can still obtain pay increases as a pay-for-performance program replaced the longevity pay program.

    How the tax cuts effect individual residents will differ, based on whether they are at the property tax cap.

    The first reading of the proposed budget is slated for the town council meeting at 7 p.m. Sept. 13 at Brownsburg Town Hall.

    Once town officials approve a budget, it goes to county officials for approval. If the county approves it, it will be sent on to the State Board of Accounts for final approval.

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