Allen County’s participation in Iola’s 2024 Neighborhood Revitalization Program (NRP) has some loose ends, Allen County Treasurer Darolyn Maley told county commissioners Tuesday.
The program offers a tax rebate to Iola property owners who make improvements, such as new structures or remodeling efforts, to their properties. The rebate is equal to the amount their property taxes increase because of the improvements.
Currently 198 properties are in the program, with approximately 40 more to be added in 2024. The city, county, school district and Allen Community College participate in the revitalization program by agreeing to dedicate funds from their mill levies to encourage local homeowners and business owners to improve their properties.
IN DECEMBER 2022, the county agreed to renew its participation in 2024 with the stipulation that it would offer a 100% rebate for the first six years and every year after that decrease the tax rebate by 20%. The other three entities remain content to provide a 100% rebate for the full 10 years.
Maley said the county’s stair-step plan is not ready to implement.
Computer Information Concepts out of Colorado has been hired to devise the plan, Maley said.
“They told me it was going to have to be custom-programmed,” she said, due to the change to a tiered rebate system.
The new program is due to go into effect June 1.
Maley said she expects to receive a proposal for the new program by mid-March, but “I have no clue what it will be cost-wise,” she said.
If approved, it will take 30 days to implement.
Maley worried about the tight time frame.
“I’m not sure if we’re going to be able to have this 2024 program happen,” she said.
Commissioner David Lee said that because the county oversees the revitalization program, “then whatever the cost of this new programming is, I believe that those three entities (the city, USD 257 school district and ACC) should shoulder the cost of it,” even though they did not request any of the changes.
County Counselor Bob Johnson and Lee pointed out that since the rebate rates don’t deviate for the first six years of the program, that it’s possible the current program could be used initially.
Commissioner Bruce Symes said the county still has the option to provide the 100% rebate for the full 10 years, like the other entities do.
“We wanted to continue receiving some tax revenue for a portion of that 10-year period,” he said. “The other option would be for us to reconsider that decision. I see a justification for thinking this over while we’re getting some cost information too.”
