The Fishers City Council will vote on a resolution Monday night to re-establish the Cumulative Capital Development Fund and city officials are trying to get the word out that this action will not impact the current city tax rate.

City Controller Lisa Bradford told the City Council Finance Committee Wednesday night that this fund was established by the town council in 1984 and was effective in 1985.  The Indiana legal code requires local units of government to re-establish this fund each year.

The resolution refers to a maximum property tax rate of 5 cents per $100 of assessed property valuation.  If that resolution is not re-established each year, by law the 5 cent figure goes down.

“As long as you re-establish, you have the opportunity to be at the max rate,” Bradford said to the committee.  “You don’t necessarily have to be at the max rate, but you have the opportunity to be at the max rate.”

Bradford described this resolution as a “budgeting mechanism” to put the Cumulative Capital Development Fund at the max rate if the city chooses to do so in the future.

This money is designed to fund large capital projects, such as HVAC systems for fire stations, electrical repairs, building roofs and fleet lease payments. Bradford cited a recent example of a new roof at the Holland Park shelter house paid for by utilizing this fund.

“It’s not a new tax, it’s always been around, it’s just (that) Indiana, a couple of years ago, changed the law, so that you have to re-establish it every year, and it is more of an opportunity, under the budgeting process, to go to the max rate.”

Bottom line, Bradford says this resolution is required by Indiana law and does not increase the city’s tax rate.