The city of Lake Station and town of New Chicago are considering the formation of the East Lake Fire Protection Territory with Lake Station’s volunteer fire department providing fire and ambulance service. Data from the municipalities’ financial advisor shows the tax impact could fall harder on Lake Station and River Forest school districts than on most property owners whose bills have already reached the circuit breaker and can’t go higher. A series of public hearings will be held in the coming months by both municipalities to gather public feedback on the proposal supported by a new uniform tax paid by residents and taxing units in each community. The New Chicago Town Council held its first public hearing on Wednesday. The Lake Station City Council will hold a public hearing during its 7 p.m. meeting on Jan. 22. The fire district proposal comes as a new state property tax reform law claws back revenue from schools and local governments, making dollars difficult to replace. The new fire territory would have a proposed operating budget of $2,590,015 in its first year and a proposed tax levy of $1,930,015. Its equipment replacement levy would be $380,323 with a levy of $170,323, totaling $2,100,338. Daniel Dalton, financial adviser with Cender Dalton Municipal Advisors in Valparaiso, said the rest of the revenue, or about $490,000, would come from recouping fees for ambulance service. The first-year tax rate would be 0.3773 cents per $100 assessed valuation and the equipment replacement tax rate would be $0.0333, or a merged rate of about 0.41 cents per $100 assessed valuation. Numbers were being reviewed for the taxing units with the total loss estimated at about $87,000, said Dalton. The impact of SEA 1 – the property tax reform law – left New Chicago unable to finance its volunteer fire department, according to Town Manager Sue Pelfrey. In addition, she said New Chicago couldn’t afford the ambulance contract fee raised last year by the city of Hobart. Pelfrey said the town considered forming a fire district with Lake County, but it already has one with Calumet Township. “We’re between a rock and a hard place,” she said. Dalton said several overlapping taxing units contribute to tax bills hitting the circuit breaker cap. At Wednesday’s hearing, Dalton said the fire district could improve service times and attract more trained staff. He said the district would staff two full-time ambulances, requiring four additional staff members. Firefighters in both fire departments would remain as volunteers. River Forest Superintendent Kevin Trezak questioned the accuracy of the tax numbers. His district’s advisors, Policy Analytics and Baker Tilly, provided different estimates, he said. Trezak said the impact of SEA 1 has reduced money in the district’s operating fund. “I don’t want to put the schools’ needs ahead of the town’s, but I have to represent them,” he said. “This is going to have an impact, not only on schools but every governing unit,” said Lake Station Superintendent Thomas Cripliver. “There’s more assessed valuation coming from Lake Station so it will have a greater impact. We also understand the need for safety. That has to be No. 1,” he said. New Chicago has a population of about 2,000 people within one square mile. Its boundary on the east is Lake Station, which has a population of about 13,000. Carole Carlson is a freelance reporter for the Post-Tribune. ...read more read less