Candidates debate taxes, insurance

At-large candidates offer variety of solutions

By KEN de la BASTIDE

The six candidates seeking the three at-large seats on the Kokomo Common Council believe it will be difficult to reduce property taxes.

With two of the three incumbents not seeking re-election to the council, there will be new faces taking elected positions in 2008.

The candidates debated the issues for 90 minutes on Tuesday at the Lafayette Park Middle School.

The first question dealt with Republican mayoral candidate Rick Hamilton’s pledge to cut property taxes and if that could be accomplished.

Republican incumbent Mike Karickhoff said it would be a function of Hamilton’s leadership capabilities with the council.

“With the scope of the budget, it will be extremely difficult to reduce property taxes substantially,” he said. “The city’s portion of the property tax bill is less than 30 percent.”

Democrat Mike Kennedy said it is irresponsible to promise a property tax cut.

“The next mayor and council have to assess the city budget,” he said. “We need to get all five taxing entities together and look at future capital projects. As a group, priorities should be set to make sure they all don’t have a capital project in the same year.”

Republican candidate Lynne Bolinger said Hamilton is on record to reduce property taxes and she hopes he has a plan to accomplish it.

“We have to be frugal with the money we have,” she said. “We have to cut spending.”

Bolinger said the adoption of a local option income tax to provide property tax relief is a temporary fix. She hopes changes will be made by the Indiana Legislature.

Democrat Jim Brannon said if the city continues to do what it is doing, the council won’t be able to cut any taxes.

“We have to look at all city spending,” he said, “and find ways to cut spending. The council is responsible for the budget, the mayor makes recommendations.”

Republican Kevin Summers said the city will need help from the Legislature to reduce property taxes and there is talk of increasing sales tax.

“We need to make sure every dollar that is spent is accounted for,” he said.

Democrat Dennis Morgan said the council needs to make sure the city is saving every possible penny.

“We may be able to maintain the current property tax level,” he said. “We should look for ways not to increase spending. City employees will want raises, so it would be beneficial to cut spending to provide those increases.”

The six candidates didn’t favor a change in health insurance benefits for city employees, but recommended several alternatives. The city spends $15,500 annually per employee for insurance.

“I don’t know if the benefits should be reduced,” Brannon said. “We need to look at other options. I would hate to see anyone’s health benefits cut. In my opinion, we should have national health care.”

Summers said a committee should be formed to evaluate what is resulting in the increased insurance costs for the city. He said the committee should consist of union representatives and non-contractual employees to come up with ideas to reduce costs.

Morgan said companies are looking for ways to reduce insurance costs and the city shouldn’t be any different.

“I’m not in favor of city employees paying more,” he said. “We should make sure the employees are getting the best coverage.”

Bolinger said employees of Kokomo-Center Schools currently pay 30 percent of their health insurance premium.

“Hard decisions will have to be made,” she said. “In the school system, employees are paying higher premiums, deductibles and co-payments.”

Kennedy said everything should be on the table in 2008 when it comes to reducing the city budget and noted the city will be negotiating three contracts next year.

Incentives should be provided to employees who don’t sign up for the city’s insurance because they have coverage through a spouse’s employer, he said.

“We should compare costs with businesses and other cities,” Kennedy said.

Karickhoff said the share of insurance costs paid by employees has increased from 8 percent to 12 percent over the past three years.

“The trend will have to continue,” he said. “We should consider starting a health insurance fund so employees can keep track of how funds are being spent.”

Karickhoff said employees participating in a wellness program or living a healthy lifestyle should pay a lower premium.

The candidates were divided on how they would have voted on the local option income tax adopted by the council earlier this month to provide property tax relief for residential homeowners.

Bolinger said she would have voted for implementation of the tax as approved by the council.

“It was a courageous action by the council, coming a month before the election,” she said.

Kennedy said the city and county moved quickly in implementing the new tax, which he said replaces an old tax.

“There has been a lot of talk about helping people on a fixed income,” he said. “There are a lot of people on a fixed income that can afford to pay the property taxes.”

Kennedy said he couldn’t have voted for the tax because it didn’t benefit the majority of people working in $8 and $9 per hour jobs.

“We should have identified the people having problems paying property taxes and used the [Economic Development Income Tax] funds to help them keep their homes.”

Brannon said he would have voted no because shifting the tax from property to an income tax wouldn’t solve the problem.

“If state relief is provided, the tax should be repealed,” he said.

Morgan said local officials were under a deadline and did the correct thing in passing the tax.

“Low-income people rent, most don’t own their homes,” Morgan said. “The tax will help the elderly, but renters won’t be helped.”

Karickhoff said council members didn’t want to vote on a tax a month before the election, but it was a decision that had to be made.

“It is a shift of taxes from residential property owners to everyone who has an income,” he said. “The landlords wanted the property tax relief, but not one said they would lower rents if they received property tax relief.”

Summers said he would have voted for passage because it sent a message to state lawmakers that property taxes have to be addressed.

“It is relief for property owners until the state addresses the issue,” he said. “People are struggling.”

Ken de la Bastide can be reached at (765) 454-8580 or via e-mail at ken.delabastide@kokomotribune.com

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