MARTINSVILLE — Municipal governments across the state are scrambling to shore up their tax revenue on the heels of Senate Bill 1 (now Senate Enrolled Act 1), which was passed during this year’s General Assembly and is expected to bring down property taxes — and thus, downsize into the slice of pie local governments receive.
As part of that legislation, the state gave power to local municipalities to make up the difference, and that’s just what Martinsville is looking to do.
At its meeting last week, the city council held a public hearing and heard the first reading of Ordinance 2025-1906, which lays out the particulars of a new “wheel tax” and a “motor vehicle license excise surtax” on nearly all registered vehicles. Depending on the type of vehicle, the cost of the annual tax will be $25 or $40.
The state already imposes its own wheel tax, which is paid as part of the annual registration process.
The city of Martinsville’s proposed new taxes “would be in addition to any state levy associated with the wheel tax,” explained attorney Brent Pierce, who was filling in for city attorney Dale Coffey at last week’s meeting.
According to the ordinance, the funds raised from the new tax would be designated for streets and roadwork, in addition to matching funds for road and bridge grants that often come down from the state.
For city clerk-treasurer Ben Merida, sidewalk work would be the primary use.
“That would be our recommendation to assign that (funding),” he said.
He anticipates the new taxes would bring in $250,000 to $300,000 annually.
Councilman Phil Deckard II wondered if the state’s portion of the tax levy would be going down, or if the proposed new taxes would be adding additional costs to residents?
A member of the public also wondered if the new tax was for city residents only or residents throughout the county. He also asked if the city’s budget would increase because of the new taxes or if it would stay flat.
“This will be taken up at subsequent hearings,” Pierce replied.
A worksheet from the state on the issue shows that the city’s proposed increase would simply enlarge their portion of the “county wheel tax and excise surtax” that’s already in place, which means the county could potentially feel the financial squeeze.
The issue is expected to be discussed again and further clarified at the Dec. 8 meeting when the ordinance comes up for its second reading.
Annexation
Sun Energy Farms, on behalf of property owner John Fewell, came before the council for a public hearing and first reading of an annexation proposal for a 69-acre residential development that sits just north of Ind. 252 and just south of Faith Church off Ind. 44.
The land is contiguous to the city limits, and the city already ran water and sewer infrastructure underneath I-69 three years ago, according to mayor Kenny Costin.
During the public hearing, a nearby resident voiced concerns about the quality of homes that would be built in the proposed development. He was also worried about the safety of drivers, if Ind. 252 was used as an entry point to the development.
In previous discussions at the city’s redevelopment commission, an entrance onto Ind. 44 by way of Faith Church’s current property was looked at as a possible solution.
The resident also said that neighbors “weren’t given a lot of time” to look at the particulars of the project.
Costin said that plan details would come to the city plan commission once the property is annexed.
Rezone request
After the city’s plan commission gave a favorable recommendation for a rezone request to build three-story townhomes on South Main Street, the council was less enthusiastic about the proposal during the first reading last week.
The proposed project initially involved construction of 30 townhomes, but that was later dropped to 23 after “density requirements” showed the footprints were too small.
The properties in question are currently a mix of residential and business, but the developer is hoping to make them all Residential 3.
Costin opened the floor to the public, many of whom echoed the sentiments already aired at plan commission meetings. They worried about the view, about the density, the traffic congestion, the safety, the drainage, and their rental status — and by a developer who’s never managed rental property before, according to one resident.
“It’s going to be rentals,” one resident said. “And those notoriously go downhill. … Our little neighborhood is very peaceful. We don’t want that extra crowdedness.”
Both Costin and Deckard II also voiced their concerns, saying they initially thought they were going to be owned condominiums, not rented townhomes.
“When you initially came in, I was told these were going to be condos,” Costin said.
“High-dollar condos,” Deckard II echoed.
The developer’s representative said condos were “never our intention” and that they’d be “market-rate rentals.”
The issue will be heard on second reading Dec. 8.
In other business
- The council passed unanimously, with Phil Deckard I absent, the salary ordinance for elected officials, which is the same as last year.
The salary ordinance for appointed officials and employees, however, was tabled amid a disagreement over pay and title of the city court clerk, who was hired a couple of months ago at $25 per hour.
City court Judge Grace Terrell made that case that her court clerk should be receiving $26 per hour in the new ordinance due to the extensive and unique duties she must carry out, largely without supervision and assistance.
The ordinance was tabled until the Dec. 8 meeting.
The next meeting of the city council will be at 7 p.m. on Dec. 8 in council chambers, 59 S. Jefferson St.
Board of Works
The Martinsville Board of Works and Safety (BOW) voted unanimously to approve a $48,000 contract with Pros Consulting for a new master park plan for the city.
The plan will provide a “long range vision” for the park, according to the mayor’s executive assistant, Mack Porter, and serve as the guiding five-year plan document.
“Development of it will include public input, surveys through various mediums,” Porter added. “It’s not just something they’re just going to sit in a room and write.”
