CHARLESTOWN — Charlestown residents could see an increase in their property tax bill next year after the city council voted to create a capital investment fund.
The resolution, which passed 4-1, allows the city to levy a tax at a rate not to exceed 5 cents for every $100 of assessed property value. The money collected would go into a Cumulative Capital Improvement Fund, or CCDF.
Mayor Bob Hall said the tax rate will be decided during budget sessions for 2017. If levied at its cap, the city could collect somewhere between $85,000 and $95,000 in revenue.
“It can and will be used for the developments that we’re looking at doing … in downtown, in the downtown revitalization project,” Hall said. “It may or may not be used in the Pleasant Ridge revitalization.”
Hall pointed to the comprehensive plan being developed for the city by Taylor Siefker Williams Design Group. That 20-year plan is expected to be finished and voted on this month. Hall said money from the CCDF could be used toward plans outlined in the comprehensive plans, including the creation of a downtown historic district.
“It’s not going to be a huge amount of money but it will help,” he said.
A required public hearing was held before the council voted, but nobody signed up to speak. Hall said the council did everything it was supposed to do to get the word out about the public hearing.
Councilwoman Tina Barnes, the lone dissenter on creating the fund, questioned if residents were aware of what the resolution could mean.
“Well it's a tax increase for all citizens that I don’t really believe they’ve been notified about, so they didn’t have time to do a public comment,” Barnes said, adding that she read the resolution Sunday. An agenda for Monday's meeting was emailed Friday afternoon.
The council also voted on first reading to create a Redevelopment Authority, an appointed three-person board that could tap into the CDDF. The city currently has a Redevelopment Commission that uses funds from the city’s tax increment financing district.
“ … And those (authority members) are non-elected officials, so they’re going to be allowed to use our tax money, for people who weren’t even elected by the citizens,” Barnes said.
Per state statue, a redevelopment authority could borrow money, purchase property, construct and renovate buildings and lease properties to the commission. Hall said he will bring names of possible authority board members to the council in the coming months. A second reading and vote is required for the ordinance to be formally adopted.