GaryforPerry.com

Proposal to consolidate Perry Township and IFD fire services moves forward. Board votes 6-0 to continue the process. The board has to wait 30 days from Feb. 10th to approve the final agreement. The merger is expected to be finalized and completed by August 1, 2009


Perry Township would transfer all fire related assets, including cash balances and the rights to any uncollected taxes, to IFD in return for IFD providing and financing fire services in the future. Perry Township would also give up the rights to a portion of its Base COIT Distribution. The remaining amount of Base COIT Distribution kept by Perry Township would be an amount necessary for the Township to continue its ongoing operations for the Trustee, Small Claims Court, and Township Assistance. This amount will be determined after a thorough analysis of the needed future expenditures of Perry Township without its Fire Department.



In collaboration with the City Controller, we have estimated that the 2010 fire tax rate for IFD providing fire protection to Perry Township is ~ 5.4 cents less than the tax rate that Perry Township would impose to provide fire protection to the same area. This rate difference provides ~ a 20% saving in fire protection property tax for Perry Township Fire taxpayers (see the enclosed property tax impact).


In addition to the property tax savings, the consolidation eliminates two double taxation issues that we have previously discussed. First, the Perry Township Fire taxpayers pay income taxes into the Public Safety Income Tax pool which is shared between Indianapolis / Marion County and the excluded cities. Part of the portion received by Indianapolis / Marion County is expended for IFD. Second, the Perry Township Fire taxpayers pay property and excise taxes into the Consolidated City Cumulative Capital Development Fund (CCD). Part of the CCD Fund expenditures are expended for IFD. Therefore, part of the income, property, and excise taxes paid by Perry Township Fire taxpayers were allocated to IFD expenses while none were allocated to Perry Township Fire. Therefore, the Perry Township Fire taxpayers were paying tax toward two fire departments while only receiving service from one.