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Long Beach Taxes and Cumulative Capital Development Fund

Long Beach Residents, Homeowners and Friends,

There have been some questions regarding a "tax increase" in Long Beach. While this has been an agenda item over the last few months for the Town's Budget and Finance Committee and Town Council, we know not everyone is able to make it to every meeting.

Here is a summary, but we always encourage you to reach out with questions.

Summary

Maintaining the financial health of Long Beach and increasing the property value for residents, while balancing the need for making necessary improvements and investments is important.

The fact is, Long Beach is facing a number of projects that need immediate funding, many of which have been put off for some time - ranging from a Community Center Roof Replacement to a Salt Storage Building, the development of the Stop 24 Pump House, heavy equipment for the Street Department and more. Projects that help enhance property values.

Much of the Town's annual budget is restricted from paying for these types of capital improvements (per the State Board of Accounts laws). So, the main source of funding for these items comes from the Cumulative Capital Development Fund (CCD).

Today, Long Beach property owners pay $0.006 per $100 of the net assessed value of your property, which goes into the CCD. Long Beach's rate is among the lowest in the state, and it has not been changed in recent history.

The tax rate for the great majority of the Cities and Towns in Indiana is at the maximum allowable rate of $0.05 per $100.

However, with the guidance of the Budget and Finance Committee and the Town's long-time outside financial adviser Cender and Co., a rate of $0.03 per $100 was proposed and adopted versus the maximum allowable rate.

1) How much revenue is this change going to generate for the Town?

Today's tax rate generates about $26,500 for the Town annually. The adopted change will increase the annual net revenue by $105,900. These funds will be restricted to Capital Development projects.

2) How will my tax bills be affected?

Not everyone will be affected.

Properties at the 1% and 2% tax cap - No IncreaseProperties in the Michigan City Sanitary District (Cove) - No IncreaseHomestead properties with assessed value (AV) of $267,000 = $35.00/annually; $200,000 AV = $25.00/annually; $100,000 AV = $10.00/annuallyNon-homestead properties with AVE of $100,000 = $25/annually; $200,000 AV = $50/annually; $300,000 AV = $75/annually; $400,000 AV = $100/annually; $500,000 AV = $125/annually; $1,000,000 AV = $250/annually

3) What are the types of improvement projects being proposed?

Increasing property values begins with making improvements. While the change will provide more funding to the Town, this is not a "blank check." Any investments still require approval, bidding, and work to secure the lowest cost for the work. As of 8-8-2016 here are examples of estimated and projected expenses for long-term maintenance and improvement (list subject to change). Funds from the CCD increase are not intended to cover all projects listed below and prioritization will be required.

Street Dept. Front Loader $140,000 (2016)Replace Leaf Machine $45,000 (2017)Salt Storage Building $50,000-$60,000 (2017)Roof for Community Center $100,000 (2018)Remodeled Fire Station $650,000-$800,000(2018-2019)Replace Primary Fire Truck $550,000-$700,000 (2019-)Erosion Control $ $30,000 (2016-2017)Community Center HVAC/Chiller Replacement/upgrade $25,000-$30,000(2016-2017)Town Hall Remodeling $8,000-$12,000 (2016)Golf Course Fence $10,000 (2016)Stop 24 Pump House Development $150,000-$200,000 (2017-2018)ADA Beach Access Compliance $20,000 (2017)

4) When will property owners see the change in their tax bill?

The change will be applied to the 2017 tax bill.

5) Is the Town exploring other sources of revenue beyond tax payer dollars?

Yes. It has been suggested by some Town residents and others to explore other options and the Town's Budget and Finance Committee is reviewing potential options outside of Long Beach tax payers. This includes matching grant funds for the Stop 24 Development.

6) What if this tax wasn't changed?

Maintaining a low cost of living is important. If the CCD were to go unchanged, more of the taxes paid by Long Beach property owners (beyond what is already going out) will continue go to the County and be dispersed to other surrounding communities for improvements. Making this slight increase, helps to ensure that more funds are able to stay within our community to make improvements that improve property values for all.

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Sincerely,

Long Beach Town Council and Clerk-Treasurer's Office

Town of Long Beach, Indiana

2400 Oriole Trail, Long Beach, Indiana 46360

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