Published: November 10, 2009 11:36 pm      

Peru mayor deems fire territory a success

Logansport has proposed territory system with townships

Peru mayor Jim Walker says fire territories have been a benefit for the nearby city.

Walker was invited by the Cass County League of Women Voters to discuss Peru’s decision to implement the fire territory system Tuesday. Logansport is discussing the same option with Eel, Clay, Noble and Washington townships.

“Quite honestly, when we looked at the fire department budget in Peru, we knew we needed to make some changes,” Walker said. “We have new revenue and it’s saving jobs.”

The fire levy for Peru Township in 2006 prior to the territory system accounted for about $72,000. The fire tax rate for individuals residing outside the city lines and within Peru Township was eight cents per every $100 of assessed value.

The fire levy in 2009 was approximately $537,000 with a fire tax rate of about 72 cents per every $100 of assessed value.

Walker admitted that there was a jump in fire tax rates for citizens of the township to pay an equal amount for fire service as the residents of the city.

He said, though, the overall general fund budget for Peru has decreased because money previously listed in the city’s board of works budget for health insurance, liability and utility costs for the fire department has been moved to the fire territory budget.

“It balances out overall for the taxpayers,” Walker said. “Even with going to territories, people are still only going to pay the 1 or 1 1/2 percent property tax.”

Washington Township trustee Jim Mayhill viewed the situation differently.

“So, the city wants the townships to bail them out, essentially?” Mayhill asked.

Washington Township residents currently pay a fire tax rate of about seven cents per $100 of assessed value, providing a total of approximately $48,000 to the fire department based on a township assessed valuation of $67 million.

Deputy mayor Linda Klinck responded with a services comparison.

“Do you want the same services?” Klinck asked. “You have to pay for the services rendered.”

Both Walker and Peru’s city attorney Bruce Embrey claimed that fire service provided by the city would be quicker than relying on a volunteer fire department.

Mayhill is interested in seeing the results of a study currently being conducted by Umbaugh, a financial consulting company hired to predict township tax rates based on assessed value and the Logansport Fire Department’s estimated budget for 2011.

“I don’t understand why Umbaugh hasn’t come around,” Mayhill said. “There has been no word from them yet.”

Mayhill said he could not commit to a position for or against the proposed fire territories, but he does have concerns on behalf of the people living within Washington Township.

“Farmers I’ve spoken to are concerned about a dramatic jump in tax rates that would be ridiculously high for farm ground,” he said.

• Jennifer Tangeman is a reporter for the Pharos-Tribune. She can be reached at 574-732-5148 or jennifer.tangeman@pharostribune.com.