LOGANSPORT — Commissioners decided Monday to table a vote on implementing a new tax on residents within Cass County Fire District No. 1.

During a hearing Monday morning, Commissioner Gene Powlen expressed his reluctance to increase the current tax rate for fire protection in Eel, Clay and Noble townships.

“This is one of those things nobody likes to do,” he said.

The fire district’s board of trustees voted Thursday to establish a cumulative fund at a rate of 3.33 cents per $100 of assessed valuation, the maximum allowed by law.

That tax on more than $169 million in assessed values in the three townships would generate $56,458 per year for capital expenses, fire district board chairman Sherman Kantzer said.

The fire district needs revenue to pay back its debt.

The building at 1444 Holland St. was purchased for $350,000. Kantzer said the district is making payments of about $5,700 per month, but the contract calls for a 10-year amortization and five-year balloon. When the balloon payment is due, the district will be responsible for the balance of $221,451, he reported.

Ten years of water service will cost more than $20,000, and the district also borrowed more than $187,000 from County Economic Development Income Tax to buy equipment. Kantzer said repayment needs to start in five years and be completed in 10.

“So, over the next 10 years, we’re looking at $706,029 of capital expenditures,” Kantzer said. “And, of course, that doesn’t include anything that may pop up in the meantime — equipment replacement or repair or additions to the building.”

Collecting more than $56,000 a year would still leave the district short of meeting its obligations, but Kantzer said it would find a way. He suggested borrowing money to extend payments on the building.

Powlen, who voted for the creation of the fire district last year, said he had mixed feelings about the new tax.

“I just have a real problem with any increase,” he said.

Commissioner Dave Arnold asked Kantzer about the tax levy to support the district’s general fund, which covers items such as salaries and maintenance. Kantzer estimated it would be about 32.5 cents per $100 of assessed value.

Based on the figures Kantzer presented, fire district residents in the three townships would pay an estimated 35.8 cents per $100 of assessed valuation, which would equate to $358 a year for a home valued at $100,000.

Currently, residents in the Eel Township portion of the fire district pay about 25 cents per $100 of assessed valuation for fire protection. Those in the Noble Township portion pay about 10 cents, and those in Clay Township pay about 9 cents.

Kantzer said he understood public officials being gun shy about raising taxes, but he called the return a good deal for residents. The district has mutual aid agreements in place with Georgetown, Royal Center, Lucerne and Twelve Mile fire departments.

Providing that fire protection requires money, he said.

“I guess if you want fire protection, someone has to pay, and it’s going to be way less than what Logansport offered, and it’s going to be way better,” Kantzer said.

A fire territory deal between Logansport and the three townships fell apart last year when Mayor Mike Fincher vetoed it. Instead of negotiating a new agreement, the townships struck out on their own and partnered with New Waverly Fire Department.

City Councilman Scott Kraud, who played a key role in fire territory negotiations, was in the audience Monday. He did not comment during the meeting, but afterward, he said Kantzer had provided inaccurate information. He said with Logansport, the townships would have paid about 26 cents per $100 of assessed valuation , and they would not have had the debt.

Powlen suggested continuing the hearing until 9 a.m. Aug. 1, when Commissioner Jim Sailors could also be present.

Powlen said he also hoped to hear from his constituents. To date, no one has contacted him, he said.

After the meeting, Kantzer expressed his frustrations about the commissioners pushing the matter back to the Aug. 1 deadline set by the Department of Local Government Finance.

“It’s very disappointing,” he said. “These folks were the ones who started this ball rolling back in June or July of last year.”

Kantzer added that if the commissioners do not pass the tax of 3.33 cents, the district would likely ask for a slightly larger tax for its general fund. Approval of any tax would be up to the state Department of Local Government Finance.

• Kevin Lilly is news editor of the Pharos-Tribune. He can be reached at 574-732-5117 or kevin.lilly@pharostribune.com.