City Council renews Cumulative Capital Fund tax
The Carmel City Council took the first step May 15 to keep the city’s Cumulative Capital Fund tax at around the same rate going forward.
The Council voted unanimously for the annual re-establishment of the Cumulative Capital Development Fund required to maintain the property tax rate, which is not to exceed $0.05 per $100 of assessed valuation. For a home valued around $200,000, the tax is around $100 a year before counting any deductions or credits.
The maximum tax of $0.05 per $100 of assessed valuation would be nearly identical to the previous year’s rate, said Curt Coonrod, financial consultant for the City of Carmel. Coonrod said any different would be about a dollar, although that is an estimate.
Coonrod said this action by the City Council doesn’t set the rate just yet but reestablishes the fund. He said if this action isn’t taken, the tax rate is automatically reduced slightly each year, and by reestablishing the fund the City Council can keep the rate nearly the same. Coonrod said the actual rate will be set later during the annual municipal budget process.
Coonrod said the Cumulative Capital Development Fund raises about $3 million every year to be used on capital projects, such as infrastructure improvements.
Some Carmel residents, including individual members of the Constitutional Patriots, raised the question about whether funds from the state gas tax could be used to offset the Cumulative Capital Fund tax. The Indiana State Legislature approved the gas tax this session to pay for road repairs statewide, and Coonrod said some estimate there could be $2 million available for Carmel, split between the Motor Vehicle Highway Fund and a local roads fund. Coonrod said the City Council could decide to use that money to offset the Cumulative Capital Development Fund, but the problem is that the money from the gas tax can only be used on roads.
Carmel Mayor Jim Brainard said he will likely suggest some road repairs in Carmel using this money from the state gas tax but nothing has been finalized or has come before the council yet.