Concerns about the tax impact on schools and residents led the Lake Station City Council to reject a plan to form a fire territory with New Chicago.
The East Lake Fire Protection Territory would have taken tax money away from the Lake Station Community School Corp. and the River Forest Community Schools, as well as adding another tax for property owners. Many homeowners are already at their property tax cap, leaving other taxing units to support the territory.
“We’re not acting on it, it’s not on the agenda,” City Council President Rick Long, D-5, said Tuesday.
“There’s tons of information we didn’t have. They tried to rush it… We can’t stop them from proposing it but we can kill it again,” he said.
The action halted advertised public hearings on the fire territory in Lake Station. New Chicago has already held one hearing.
New Chicago town manager Sue Pelfrey said her town remains in a difficult position because its volunteer fire department is losing members.
Under the fire territory agreement, the Lake Station Volunteer Fire Department would have provided fire and ambulance service to New Chicago, with taxpayers in both communities sharing the cost.
The overall tax rate would have been about 0.41 cents per $100 assessed valuation.
Lake Station has already been providing ambulance service to New Chicago since January after neighboring Hobart increased its annual fee to $200,000.
Late last year, the Lake Station Board of Works and New Chicago forged a pact calling for Lake Station to provide ambulance service for $50,000 annually, according to Long, who said the contract would be reviewed at the end of the year.
Lake Station Superintendent Thomas Cripliver said Tuesday he understood why communities were looking for other sources of funding to provide fire, police and EMS services.
“I appreciate our elected leaders taking time to understand what the fire district’s impact would be on our taxpayers and schools.
“It is very disappointing to me that communities have to look for other funding sources because of the lack of financial support from our state legislature and governor.”
River Forest Superintendent Kevin Trezak said its fiscal analyst determined his district would lose about $90,000 and Lake Station schools would lose even more if the fire territory gained approval.
“Those were alarming numbers and would have cost the schools jobs and services and would have caused us to delay repairs,” said Trezak.
Lake Station Mayor Bill Carroll blamed Senate Enrolled Act 1, passed last year, for the turmoil. The GOP bill, pushed by Gov. Mike Braun, provides tax relief for property owners but strips millions of tax dollars from schools and municipalities. It particularly impacts school districts and communities with low assessed valuation and little industry.
“Senate Bill 1 changes the rules in a way that hits cities like Lake Station the hardest. It limits local control at the exact moment municipalities are being asked to carry more responsibility with fewer options,” said Carroll.
“That isn’t fairness. That isn’t fiscal responsibility. That’s tying the hands of the people closest to the problem.”
Carole Carlson is a freelance reporter for the Post-Tribune.
