Tuesday, January 02, 2007

Fort Wayne property taxes may skyrocket!

Kevin Leininger has a "must read" article in the News-Sentinel entitled "Fancy schools must justify financial impact."

Please read the article:
<http://www.fortwayne.com/mld/fortwayne/news/local/16366629.htm>

I grew up in FWCS. I graduated from Snider High School in 1985. Late last year I sold my mother's house in Walden. Walden is a very nice middle classed neighborhood near Georgetown Square. My mother's house was 33 years old, had a two car garage, was 1800 square feet, and had four bedrooms. I have always thought that my Mother's house was the very definition of "Middle Classed."

My mother lives on a fixed income. This year my mother's property taxes would have been about $1200 per year.

I did some number crunching and estimated what her property taxes would have increased once all factors are considered. Please remember that property taxes are expected to increase significantly this year WITHOUT any new bonds.

I estimate that her property taxes would increase to about $2300 a year depending on what the State legislature does this year if FWCS asks for 995 million dollars in bonds...

WOW...

Note her house sold for about $102,000 three months ago...

Fort Wayne MUST fix the Combined Sewer Overflow problem in the near future due to Federal mandates. This will certainly increase property taxes even more!

I feel sorry for all of those people living in FWCS who live on a fixed income! A property tax "tornado" is headed your way!

A tax increase of this type would have many effects that must be considered carefully:
1. It will drain a lot of money from area consumers. This will have a profound impact on the
local economy.
2. Property values in Fort Wayne would possibly DECREASE due to the property tax increase.
3. Many residents would consider moving out of Fort Wayne, especially those on a fixed income.
This would have a negative impact on Fort Wayne, it might flood NACS, SACS, and EACS
with new students. It also might cause the FWCS school population to DROP after spending
almost a billion dollars!
4. The bankruptcy rate in this area has been one of the highest in the nation for many years. A
property tax increase of this magnitude might cause it to increase further.
5. Fort Wayne has lost a lot of major employers and is strggling to attract new businesses.
One of the most important considerations for new businesses are the taxes they have to pay.
It would be much harder to draw new businesses to Fort Wayne with a tax increase of this
magnitude.

This issue needs to be looked at long and hard by the taxpayers!

Mike Sylvester

9 comments:

Anonymous said...

Your calculations only reflect owner occupied residential property. Rentals and commercial property have no exemptions. I have a client that has a rental in good condition assessed at $50,000. The house collect $550.00 per month rent or ($6600.00) per year. Currently the Real Estate taxes are $1356.00 per year. If the bond is issued his taxes will go to $over $2500.00 per year which is over 1/3 of gross rent.

LP Mike Sylvester said...

I know it Jon! Those who own rental property are going to get hit VERY hard.

Mike Sylvester

Jeff Pruitt said...

The proposals offered up by the commission are a farce. It's absolutely ridiculous to assume that all buildings HVAC systems need identical maintenance. No effort seems to have been done to prioritize whatsoever. I looked at the list where my wife teaches and one of the items (an expensive one at that) was ALREADY fixed over a year ago!

This is the kind of waste/fraud that will perpetuate within a huge project like this

LP Mike Sylvester said...

Now Jeff...

That is what we paid a consulting firm $390,000 dollars to do!

Mike Sylvester

Tim Zank said...

FWCS must be about as inefficient as the federal government. You never get real "oversight" you get more committees and more consultants. The circle grows ever bigger!

Anonymous said...

Especially when the consultant is getting a percent of the final billion dollar project.

Anonymous said...

The Consultant is getting what percentage of the final project?

I have NEVER heard this...

Mike Sylvester

Anonymous said...

Schmidt and Associates, the consultant that FWCS paid 390K to come up with a dog and pony show that would convince the public that they need to spend on public education, is planning to be the construction managers of the overall project. The construction manager, like an architect gets a percent of the total project and does not have to go through a bidding process. In other words the Board can award a contract to Schmidt and Associates that is be worth millions and there will be no competitive bid.

This is one of the many things going on with this bond issue that stinks…

Anonymous said...

Hello,

Do you know by any chance whom to call or how to sign the petition against the building project?
Thank you