By PAULENE POPARAD

With two of five members absent Tuesday, the Porter Redevelopment Commission may call a special meeting to have the full board consider a settlement made by Porter County Auditor Jim Kopp regarding outstanding tax-increment financing (TIF) revenue owed the town.

Kopp has set the adjusted increases Porter is owed at $43,099 for 2005 and $56,951 for 2006.

Once a TIF allocation area is designated by a city or town, a portion of the property taxes collected within it are segregated and distributed into a separate TIF account which restricts how and where the money can be used.

Last week Kopp told the Porter County Council that the Town of Porter agreed with his numbers regarding TIF revenue although town Redevelopment Commission President Bill Sexton said then and again last night that’s not the case.

In a March 21 letter from Kopp to town attorney Patrick Lyp, Kopp said the town’s TIF file was closed March 15 and it is now part of the county’s settlement submitted to state tax officials.

Kopp was replying to a March 20 letter from Lyp saying the town would object to any certification initiated by his office because the Redevelopment Commission has not reviewed it.

Dan Botich, representing Porter’s financial consultant Cender & Co., said Tuesday it appears the town was shorted $167,212 over the past six years. Kopp’s settlement would pay $100,000.

However, Botich said both the Auditor’s Office and the town are at fault: the former because when a parcel was subdivided in the TIF district the new key number didn’t reflect that, especially in the Summertree development, and the town because it didn’t check annually to make sure parcels weren’t being dropped.

“Do we have the right numbers now?” asked Sexton. Botich said he believes the correct key numbers are in the system. Porter’s TIF district encompasses 193 parcels.

Botich said Kopp, who took office Jan. 1, calculated approximately $2,000 less than the $56,951 Cender said the town was shorted for 2005 taxes payable last year. Kopp has proposed paying $43,099 Porter wasn’t paid for 2004 taxes payable in 2005, something Botich said he’s not obligated to do.

Botich said his firm believes Kopp’s solution is adequate and that it’s better to go with his settlement now and move forward than to attempt to dispute prior years and delay matters further. Also, said Botich, any money repaid to Porter will come out of future funds distributed to the remaining government units in its taxing district like the Duneland School Corp. and Westchester Public Library.

It’s for that reason Kopp plans to repay the $43,099 over up to three years to soften the blow, explained Botich. He said Porter’s other prior annual TIF shortfalls were set at $12,212 in 2001; $15,690 (2002); $18,666 (2003); and $20,594 (2004).

The final 2006 property tax distribution to local government units, due last December, hasn’t taken place. Botich said Porter’s last TIF distribution was $301,407 received June 6, 2006 and he’s estimating $636,331 will be the annual revenue this year. He cautioned that 100 percent of taxes are not paid and numbers likely will vary.

The first 2007 tax bills, usually due in May, may not go out until this summer if provisional tax bills aren’t used. Kopp has said questions regarding outstanding TIF revenue in Porter, Chesterton and Burns Harbor were delaying a final 2006 settlement for the county, which had to take place before the 2007 taxes could be collected.

Sexton said he finds it problematic that even though Porter has fewer TIF funds at stake than Chesterton and Burns Harbor, his town wasn’t consulted about a final settlement.

In his March 21 letter to Lyp, Kopp said, “I am sorry your client feels slighted but, my primary focus must be to look at the big picture, attempt to get Settlement completed as quickly as possible, distribute 2006 dollars and start the 2007 taxing process.” He also said Porter had three weeks to contact him after his Feb. 20 meeting with Cender principal Karl Cender and did not.

Sexton said it was disturbing that Kopp said he had spoken to the town of Porter clerk about the TIF matter. After Tuesday’s meeting, Clerk-treasurer Carol Pomeroy said, “I have never, ever, ever talked to this man.”

Botich said Kopp’s office researched Porter’s TIF distributions back to 2001. He added that the improved communication has been a 180-degree turn compared to working with former auditor Sandy Vuko. “It’s a large step forward.”

Sexton said he likely will call a special meeting when absent members Paul Childress and Al Raffin can attend. Botich said it would be a moot point for the commission to approve Kopp’s numbers because he’s made his decision. “I haven’t said we agree with the numbers yet,” replied Sexton.

He also said he wants Botich to present to the full commission his plan for restoring the valuation of depreciated parcels in the TIF allocation area. By “pruning” original TIF parcels that have lost value and putting them back in the district at their current value, Botich estimated Porter’s annual revenue would increase by about $50,000.

In other business, members Michael Genger and Lorri Wickberg joined in approving a contract with Delta III of Hanna, IN to video and clean a portion of the Wagner Road sanitary sewer at a cost not to exceed $10,000. Sewers one block on each side of Wagner between Lincoln Street and Interstate 94 will be done, and on Lincoln from Wagner to Waverly Road.

The commission also voted 3-0 to spend up to $15,000 for a Michigan Central Railroad study related to construction of the planned Orchard Pedestrian Way hike/bike trail along Waverly from Woodlawn Avenue to U.S. 20.

Town engineer Hesham Khalil said, “We are really trying to meet March, 2008 (groundbreaking). I doubt we’ll make that (but) I’m pushing."

Posted 3/28/2007