The Town of Winamac may be able to get a larger share of tax revenues. During a special meeting last week, the town council voted to proceed with a maximum levy appeal, at the recommendation of Eric Walsh with accounting firm Baker Tilly.
“What that means is your assessed value has grown enough the last three years – not crazily but it’s grown very nicely, which is better than a lot of communities can say – that you’re actually allowed to ask for a little bit more money from the state,” Walsh explained. “Now it’s only $3,200, but $3,200 is $3,200. We suggest you do ask for it.”
Walsh told council members that it’s uncommon for small towns like Winamac to qualify. The appeal is expected to be discussed more during the council’s regular meeting on Monday.
Walsh said all of the town’s funds are generally in good shape, as the town prepares its 2021 budget, but the General Fund is projected to continue losing money. “Now, you have $700,000, $800,000 of cash sitting in your General Fund,” Walsh added. “You’re fine to get through a year like this, even two years or three years like this. If we actually start seeing, though, your General Fund having these material negative cash flows – again, the last two to three years, you’ve really cut a lot of stuff and not spent as much, so you’re seeing minor negative cash flows. If that ever takes off, we can’t do this in perpetuity, obviously. We’ve got to turn it around sooner than later.”
As a solution, he suggested gradually shifting some General Fund expenses into the Cumulative Capital Development and Economic Development Income Tax funds in the coming years. Walsh added that the Motor Vehicle Highway Fund is expected to have a positive balance next year, despite the drop in gas tax revenue caused by COVID-19.
For taxpayers wondering how the town is using their money, Walsh gave a brief overview. “You spend about half of every dollar you bring in on public-safety-related costs,” Walsh said. “You spend about 15 percent on parks, about 16 percent on town overhead. That’s basically the, kind of, keeping-the-town-running type of cost. And six percent on economic development, growing the town.”
Residents will have a chance to weigh in on Winamac’s budget proposal during Monday’s town council meeting. It starts at 6:00 p.m. EDT in the Winamac Municipal Utilities Complex.
