Kankakee Valley School board reviews possible future tax changes
- By Cheri Shelhart Post-News Reporter;
A short presentation was given to the KV School Board Monday, Nov. 12. Tyler Loeffelholz of H. J. Umbaugh and Associates, explained the projected net assessed values and tax rates based on the closing of four coal-fired generators at the Schahfer plant in Wheatfield by 2023. The accounting firm looked at the impact this would have on property taxes.
He first showed the numbers if the corporation does not add additional debt, a scenario where a $5 million bond was taken, and another with a $15 million bond. In the first scenario, the total tax rate in 2023 would jump from $.85 in 2018 to $1.17 per $100 of assessed value. If the corporation took a $5 million bond, the rate would go up to $1.22, and for a $15 million bond, the rate would be $1.24, with the rates then dropping a few cents per year after that.
The presentation showed the rates are projected to increase by about 40 cents assuming NIPSCO’s net assessed value drops by $394 million.
For a home with an assessed value of $200,000 with a homestead credit, the amount of the annual increase would be $384.55.
Superintendent Dr. Aaron Case said there will be a budget loss of about 30 percent, but he said NIPSCO is still looking at keeping the gas generation plant running. He said he sat in a session with Dr. DeBoer, an economist at Purdue, who said the county tax rate now is about $1.20 per $100 assessed value. School districts make up the bulk of the taxes, but as long as the tax rate is less than $2, it won’t be affected by the circuit breaker tax caps on land.