Damon Run Conservancy District Tax issue and Elelction
I know this is much more localized than what I would normally write about, however with this affecting many of my friends and neighbors I felt it was important to type in. Rather than using Facebook for this forum, I felt it better to type it here due to the length it will eventually become.
As we freeholders are aware, the board elections are upon us and we need to choose our candidate very wisely. Two of the candidates, I have not heard from - or to my knowledge have even met. Thus, I cannot support those two candidates as I'm not aware of where they stand nor the representation they will provide to me - the free holder.
First, let's look at the tax issue.
I have documentation from one of the candidates who is adamant about changing the tax structure and has garnered support from other constituents. Within this tax structure, everyone in the district will pay the same amount based on an equal division of a 25 year bond. The tax would be assessed at the time the final Plat approval is given by Porter County. I would like to take a moment to detail out what the assumptions are:
- 631 Properties that are currently in the district including 112 in Eagle Ridge, 153 in Timberland, 51 in Mallards Pointe, 239 in Timberland Farms, 43 in St. Andrews, 5 along Route 6, and 28 equivalent homes given to Liberty Schools.
- 25 year bond at 4% to be issued in January 2011 for $12 million
- $1210 annually per property
There are a couple of fatal flaws to this change in the taxation. First, we must look at when the final plat approval is given. I do need to note here, that I have not received any communication on this issue since last July and these assumptions may have changed. I tend to believe that I have not received these communications due to my stance on the taxation issue - opposed to changing the tax structure.
This scenario is calculated with the presumption that final plat approval has been given to Timberland Farms. We all need to be aware that this is absolutely not the case. Final plat was given to the 56 lots on the West Side of Meridian road on January 14, 2010 http://www.post-trib.com/news/porter/1990235,pcplan0114.article : http://www.chestertontribune.com/PorterCounty/114101%20timberland_farms_subdivision_to.htm . In order to get final plat approval, the streets and utilities must be put in, the land surveyed and staked, and then inspected and voted on by the Porter County Plan Commission for the final approval. During this meeting the PRIMARY plat was given to the Timberland Farms South Development. This is the larger of the developments at 183 lots and I'm unsure where the information came from that this development would be included with the Exceptional Benefits Tax. PRIMARY plat was given on June 25, 2008 for the West development. Almost 2 years before final plat.
Since there is no committment by the developer to the county to develop this area, there is still time for him to bail out on the project and only the 56 lots will be developed. Keep in mind that the Damon Run subdivision (now Timberland) obtained Primary plat approval in February 2003. Development here did not even start until 2005. Therefore, I think it is in the best interest of all free holders to look at this change in taxation from the standpoint that it will be AT LEAST 2 years before development of the South portion, and better yet - take it completely out of the equasion as I don't believe it will ever be developed at the cost to the Developer of $200,000 per year in taxes along with the cost of the streets, utilities, survey work, engineering, etc before a house is even built.
Here's how the numbers break down under the new assumptions:
- 631 lots less the 183 in the Timberland South Subdivision - 448 lots to split the cost
- 25 year bond at 4% issued in January 2011
- Total Revenue needed annually - $763,756
- Split by 448 lots annually
Tax bill per lot - $1705
This is a far cry from the $1210 that is being touted and is actually only $83 per year less than what I will be paying in 2010 ($234K Assessed Value @ $0.7695 rate). It is also blatantly false that Timberland Farms has Final Plat approval. Even if the South subdivision is developed, it could be over 2 years before a shovel even hits that dirt. You the freeholder can expect to pay $1705 per year until it develops - if it develops. I cannot stress enough that the Timberland Farms South development HAS NOT HAD A FINAL PLAT APPROVAL YET.
We also must look at what is happening in our back yard. The Hospital is expected to open in this time frame. I'm quite certain that the hospital developer will go to Chesterton rather than to Damon Run. This would be a catastrophic blow for the district. Additionally, I would expect more commercial development along the US 6 cooridor as well. If Chesterton puts the lines in, the new developments will certainly tap into those lines rather than the DRCD lines due to the tax rates.
Beyond the hospital and the almost certain commercial development along US6, there is also vast amounts of farmland that I predict will continue to develop. One only needs to look at the south side of US6 between Meridian and Eagle Ridge to see hundreds of acres. Additionally, there is a lot of open space between St. Andrews and the hospital location. It would be silly for us to think that these areas will not develop in the coming years. These are all prime candidates for district development.
The next issue to take a look at is our upcoming board elections. It is no secret that Jack and I haven't been the best of friends every day over the last 4 years. However, as we look at what is the best for the conservancy district, we must also look at experience and contacts.
Obviously there were mistakes made in the past during the start up of this district. Those have been acknowledged repeatedly at the DRCD board meetings and steps have been taken to correct those issues going forward. These changes have been presented in ways that are not necessary by the District as well. They are not required to have a website. They are not required to post operating budgets on the website. They are not required to post the district financial plan. They are not required to post the meeting dates and agenda. They simply must make the documents available for viewing by the free holders and announce meeting date, time, and location in a newspaper. They have responded to the requests of putting it on the web.
Additionally, this vote will be a critical one as I believe there is mounting efforts to upseed Jack from the board. I personally belive that this would not be in the best interest of the district. By replacing Jack from the board there are several things that must be considered.
- Where will the new district offices be? They are currently at the Duneland Group and at the Nardo office. I'm quite certain that the Nardo office will no longer be available for use - or there will be fees charged. Thus, it must be considered that there is a possibility that office space will need to be rented at an expense to the district.
- Who has the developer contacts? With the tenure that Jack has on the board, he has had an opportunity to develop relationships at the hospital as well as other developers and property owners (i.e. the trailer park on US6), the Porter County Board, and others. Removing these relationships from the district during it's infancy stages would hinder the growth.
- Who will be in charge of contacting these developers to spur growth in the district? Many requests were made to move the meetings to evening hours as people are working during the day. I must raise the question of who will be contacting these potential new annex areas - during the day as that is likely their business hours.
As always, I encourage eveyone to look at all of the facts and make a determination on what is best for you and your family. You can view the district plan that will actually drive the taxes lower by a huge margin ($1061 annually on Assessed Value of $232,400) at: http://damonrunconservancy.com/images/Financial%20Plan_2009-09-03.pdf
Please choose your candiate wisely and vote to enhance the district and create lower taxes for all.
DH
As we freeholders are aware, the board elections are upon us and we need to choose our candidate very wisely. Two of the candidates, I have not heard from - or to my knowledge have even met. Thus, I cannot support those two candidates as I'm not aware of where they stand nor the representation they will provide to me - the free holder.
First, let's look at the tax issue.
I have documentation from one of the candidates who is adamant about changing the tax structure and has garnered support from other constituents. Within this tax structure, everyone in the district will pay the same amount based on an equal division of a 25 year bond. The tax would be assessed at the time the final Plat approval is given by Porter County. I would like to take a moment to detail out what the assumptions are:
- 631 Properties that are currently in the district including 112 in Eagle Ridge, 153 in Timberland, 51 in Mallards Pointe, 239 in Timberland Farms, 43 in St. Andrews, 5 along Route 6, and 28 equivalent homes given to Liberty Schools.
- 25 year bond at 4% to be issued in January 2011 for $12 million
- $1210 annually per property
There are a couple of fatal flaws to this change in the taxation. First, we must look at when the final plat approval is given. I do need to note here, that I have not received any communication on this issue since last July and these assumptions may have changed. I tend to believe that I have not received these communications due to my stance on the taxation issue - opposed to changing the tax structure.
This scenario is calculated with the presumption that final plat approval has been given to Timberland Farms. We all need to be aware that this is absolutely not the case. Final plat was given to the 56 lots on the West Side of Meridian road on January 14, 2010 http://www.post-trib.com/news/porter/1990235,pcplan0114.article : http://www.chestertontribune.com/PorterCounty/114101%20timberland_farms_subdivision_to.htm . In order to get final plat approval, the streets and utilities must be put in, the land surveyed and staked, and then inspected and voted on by the Porter County Plan Commission for the final approval. During this meeting the PRIMARY plat was given to the Timberland Farms South Development. This is the larger of the developments at 183 lots and I'm unsure where the information came from that this development would be included with the Exceptional Benefits Tax. PRIMARY plat was given on June 25, 2008 for the West development. Almost 2 years before final plat.
Since there is no committment by the developer to the county to develop this area, there is still time for him to bail out on the project and only the 56 lots will be developed. Keep in mind that the Damon Run subdivision (now Timberland) obtained Primary plat approval in February 2003. Development here did not even start until 2005. Therefore, I think it is in the best interest of all free holders to look at this change in taxation from the standpoint that it will be AT LEAST 2 years before development of the South portion, and better yet - take it completely out of the equasion as I don't believe it will ever be developed at the cost to the Developer of $200,000 per year in taxes along with the cost of the streets, utilities, survey work, engineering, etc before a house is even built.
Here's how the numbers break down under the new assumptions:
- 631 lots less the 183 in the Timberland South Subdivision - 448 lots to split the cost
- 25 year bond at 4% issued in January 2011
- Total Revenue needed annually - $763,756
- Split by 448 lots annually
Tax bill per lot - $1705
This is a far cry from the $1210 that is being touted and is actually only $83 per year less than what I will be paying in 2010 ($234K Assessed Value @ $0.7695 rate). It is also blatantly false that Timberland Farms has Final Plat approval. Even if the South subdivision is developed, it could be over 2 years before a shovel even hits that dirt. You the freeholder can expect to pay $1705 per year until it develops - if it develops. I cannot stress enough that the Timberland Farms South development HAS NOT HAD A FINAL PLAT APPROVAL YET.
We also must look at what is happening in our back yard. The Hospital is expected to open in this time frame. I'm quite certain that the hospital developer will go to Chesterton rather than to Damon Run. This would be a catastrophic blow for the district. Additionally, I would expect more commercial development along the US 6 cooridor as well. If Chesterton puts the lines in, the new developments will certainly tap into those lines rather than the DRCD lines due to the tax rates.
Beyond the hospital and the almost certain commercial development along US6, there is also vast amounts of farmland that I predict will continue to develop. One only needs to look at the south side of US6 between Meridian and Eagle Ridge to see hundreds of acres. Additionally, there is a lot of open space between St. Andrews and the hospital location. It would be silly for us to think that these areas will not develop in the coming years. These are all prime candidates for district development.
The next issue to take a look at is our upcoming board elections. It is no secret that Jack and I haven't been the best of friends every day over the last 4 years. However, as we look at what is the best for the conservancy district, we must also look at experience and contacts.
Obviously there were mistakes made in the past during the start up of this district. Those have been acknowledged repeatedly at the DRCD board meetings and steps have been taken to correct those issues going forward. These changes have been presented in ways that are not necessary by the District as well. They are not required to have a website. They are not required to post operating budgets on the website. They are not required to post the district financial plan. They are not required to post the meeting dates and agenda. They simply must make the documents available for viewing by the free holders and announce meeting date, time, and location in a newspaper. They have responded to the requests of putting it on the web.
Additionally, this vote will be a critical one as I believe there is mounting efforts to upseed Jack from the board. I personally belive that this would not be in the best interest of the district. By replacing Jack from the board there are several things that must be considered.
- Where will the new district offices be? They are currently at the Duneland Group and at the Nardo office. I'm quite certain that the Nardo office will no longer be available for use - or there will be fees charged. Thus, it must be considered that there is a possibility that office space will need to be rented at an expense to the district.
- Who has the developer contacts? With the tenure that Jack has on the board, he has had an opportunity to develop relationships at the hospital as well as other developers and property owners (i.e. the trailer park on US6), the Porter County Board, and others. Removing these relationships from the district during it's infancy stages would hinder the growth.
- Who will be in charge of contacting these developers to spur growth in the district? Many requests were made to move the meetings to evening hours as people are working during the day. I must raise the question of who will be contacting these potential new annex areas - during the day as that is likely their business hours.
As always, I encourage eveyone to look at all of the facts and make a determination on what is best for you and your family. You can view the district plan that will actually drive the taxes lower by a huge margin ($1061 annually on Assessed Value of $232,400) at: http://damonrunconservancy.com/images/Financial%20Plan_2009-09-03.pdf
Please choose your candiate wisely and vote to enhance the district and create lower taxes for all.
DH
Labels: Damon Run, Damon Run Conservancy, Indiana, Nardo, Porter County, Strathmoore, Taxes, Timberland
posted by dickieh5150 at 10:56 AM
15 Comments:
Jack did not inform or oversee the
home builders relaying the information to the buyers. Everybody involved in promoting and selling homes in this area are to blame and I believe cannot be trusted. He will continue to do all the things you talk about because its IN HIS BEST INTEREST!
How much did the pipeline actually cost? Is it true 2 million was added for another reason and not the cost? If so why is that part of the cost and what was it used for?
Don't put a fox in charge of the hen house because that cuts the oversite and leads to the perception of or maybe the reality of corruption.
If Jack was so concerned about costs, perhaps he should get rid of the huge SUV the district pays. This NARDO builders is a joke. I recently heard of a situation,(from a very good source) in which a woman and her friend from the Eagle Ridge subdivision went to look at a house for sale. Nardo had it listed as brand new. The woman from the subdivision commented how she had seen people living there in this house before. Nardo builders indicated the house was rented before. Check out the taxes through the local assessors office. Nardo had a renter in this house for some time and has never paid taxes on the home that was rented but owned by Nardo. Doesn't sound too trust worthy to me. Makes me question why we are being instructed to put our faith in Jack's establishment to help us with the fees.
@ anonymous, not sure where the info of the $2 million for another reason is coming from. The Bond Anticipation has always been for $12 Million. Here's a link to the Local Government Tax Control Board from July 28, 2005. See page 14 for the DRCD discussion: http://www.in.gov/dlgf/files/LGPTCB_07-28-05.pdf
I do remember a statement made that there was $2 mil used for operating costs prior to any assessments of Tax. Remember they didn't collect tax until 2007 pay 2008. 2 years after the projects began. I can believe this amount as the pipes run from 149 in South Haven to Timberland. That's quite a few miles of piping, as well as the piping under the subdivision, lift stations, right of way access, and permits.
As far as what you were told by your builder or whoever, I cannot verify. It's also tough to impossible to "oversee" what every builder is telling their buyers. I was aware there was an additional tax and we closed in 2007.
Thanks for your post. Let me know if you need further info.
DH
@worried
I don't mean to be disrespectful here, but worrying about a $2856 expense in an $806,642 budget? It equates to .35% of the total budget. Look at this logically, at the current federal rate of mileage reimbursement of 50 cents, this is 110 miles per week. Just driving back and forth to Valpo for permits would eat this up. This is actually a pretty low expense when you break down the numbers. Also keep in mind that this expense is paid from the operating budget that is paid from user fees and connection fees - not tax money. Tax money is soley used for the bond retirement. I know I wanted reimbursed for mileage from any company that I worked for in the past or I would write it off as an unreimbursed employee expense - with the reimbursement HIGHLY preferred. Seems pretty fair to me.
As far as the rented house, I haven't heard of it and this is more of a Nardo issue than a DRCD issue. Without the address I'm unable to look up the property tax there either. Prior to the sale of the house, they will need to ensure that these debts are paid. This will happen at closing - and I really don't trust the assessor's office or the auditor's office with the debacle they have had for the last few years. Also, which year of taxes? When was the house built? and What was the date of completion and the AV at the time? New construction property taxes get tricky from this standpoint and there is no magic formula for determining the first year taxes.
Thanks for your post.
DH
DickieH
Thank you for clearing up the 2 million. I guess I heard wrong at one of the meetings.
but,
I do disagree with not being able to control the information getting out to the perspective buyers. All they would need to do is create a form to go in the closing packet that the purchasers would need to sign.Problem solved.
Lord knows they have enough papers
to sign anyway one more won't make a difference.
A form would be nice anonymous! Thanks Dickie for the information. Perhaps you have a better builder or closing personel then I did!
What is this mess about? How can a developer come in here and make us pay for their investments? We should be stake holders. What do we get for our money? We already pay extreme amounts for the services we do get. Garbage, water, and sewer fess are astronomical compared to South Havens. So we are paying large fees for the piping, for the services, and on top let's pay HOA fees as well? Seems unconstitutional to me!
Anyone have a chance to look up the taxes Jack hasn't paid?
Chad,
Why are our fees so high for these services that worried speaks about?
Yes Chad, you did say that you had no problem answering any of these questions, so please answer the above asked question.
Thank you.
What about these taxes? This is a serious matter. Jack wants us to pay for him to profit and he can"t pay his taxes! Has anyone looked into this?
Time to contact the local news. Not the Chesterton Tribune but perhaps channel 2, 5, or 7.
What does everyone think?
Good idea sick. Chad, I was sorting through the many comments and one of the many things that did stand out to me was the Dave being a former DRCD lawyer.
Would you elaborate on this? How did he come about being out lawyer?
Since our lawyer didn't do us much, I sure would love my refund soon, perhaps some news coverage of this ordeal would do us some good.
@ sick - For one, the only good that would come of contacting a major news channel for a story and they ran it would be to deface the entire area. By doing so - it would actually deter people from developing in the area - and certainly scare off the hospital. I don't think you really want this in order to show the power of the people. This would certainly show the power - that we would have development cease in the area. Basically, whichever form of tax you choose - welcome to your payment for 26 years. also see below to give my thoughts on a related matter in your post.
@worried/@sick - we're not paying for a developer profit. I'd like to know if you would have bought here if it was well/septic rather than public utility. Personally, I would not have. Trash fees - you can shop to other companies. You don't have to use Able. Water fees are set by IN-AWC. Feel free to contact them and ask. I have or you can go to their website and take a look. These have little to nothing to do with DRCD. Sewer fees were raised to offset the tax needs as has been stated over and over and over again. Sorry for my insolance here, but I really get tired of repeating what has already been said. Keep in mind that our houses in Portage would have hit the tax caps - for the services that are rendered.
Back @worried - your HOA fees have absolutely, positively nothing to do with DRCD, water, sewer, garbage, etc. I'm not sure where you are coming from on this. Just take a look at the statement they send every year and look at where the money is going. Pretty self explanatory. Not sure why this is being brought up here other than an opportunity to bitch. Reminds me of the meetings where we complained at the DRCD board because someone didn't cut their yard to 2 1/4" mowing height....
Folks, seriously...you need to also do some homework here. Not rely on Chad to deliver the answer to why Able Disposal charges what they charge. Really? C'mon now. I didn't wait for Chad to tell me - I did my own homework. Sorry for being scathing, but Really?
Dickie H, thanks for the clarification.
Holy cow! We are all going to loose everything aren't we?
Anyone know how I can sign up to be a board member or developer and get my self taken care of?
This one has been neglected huh?
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