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Things to go over with you tonight, One is a couple different local income tax scenarios and then also just kind of give you a 00:00:06
brief update of like a financial update through June 30th. 00:00:11
So again, I'm going to start with this PowerPoint. 00:00:18
Flipping to page #3. 00:00:22
Let me grab my glasses. 00:00:26
So part of the scope of this engagement was to to give you kind of an overview of the local income tax here in the state of 00:00:34
Indiana. 00:00:38
So we've got 3 buckets, 3 categories, expenditure, local income tax, property tax relief and special purpose. Within the 00:00:43
expenditure lit, there are several different kinds of local income tax. What's important to know about the expenditure lit is that 00:00:53
it cannot exceed 2.5%. That's the maximum for the expenditure lit. But there are 4 expenditure lits that have their own maximum. 00:01:03
So if you look certified shares, public safety, economic development, they don't really have a maximum, but you have to be within 00:01:14
that 2.5% in total combined. 00:01:19
Correctional and rehab facility has a .2% Max EMS lit has a .2% Max Judicial judicial system has a .2% Max, and then there's a new 00:01:24
one. Acute care hospital has a .1% Max. So that kind of just gives you an idea. But in total, those expenditure lids cannot exceed 00:01:32
2.5%. 00:01:39
I've also got should just be a handy kind of reference. I've got the uses for each one of these. So certified shares can be used 00:01:48
for any purpose that the same purposes as the general fund. Public safety. That's pretty self-explanatory public safety purposes 00:01:56
and and you all don't have that. And we're going to talk about a scenario economic development, despite the name of the lit, it 00:02:04
can be used for any purpose of the general fund, but it has to be allowed by your economic development plan. 00:02:12
Correctional rehab facility so self-explanatory as as is EMS, judicial system and acute care hospital. So just for your reference 00:02:21
there are the descriptions of the uses. 00:02:26
The distributions are different for some of these, so like certified shares goes to many of the units in the county and if you're 00:02:32
a former Cadet County, which Floyd County is, the property tax relief portion goes to the schools. 00:02:42
Now these some of these other ones just go to the county unit and the municipality. So like public safety lit only gets 00:02:53
distributed to the county unit and the municipalities. Same with economic development. 00:02:59
Then we get into these kind of special ones, the Correctional Facility, EMS, judicial, acute care hospital that just gets 00:03:06
distributed to the county unit. 00:03:11
And I'm going to show you some examples here. Property tax relief let is a good local income tax to have. I believe you have that. 00:03:17
It's good because it helps to reduce circuit breaker loss or it helps to reduce property tax loss due to circuit breaker. That's a 00:03:27
better way to say it because that is a credit on the taxpayers tax bill. So it's basically property tax credit paid by local 00:03:33
income tax. 00:03:39
So that credit is applied to the tax bill 1st and then the circuit Breakers are applied. So it does help to reduce your reduction 00:03:46
of revenue due to circuit breaker and you do have that here in this county. And then special purpose is just usually it's a jail 00:03:53
local income tax. You get special legislation to do that. So that's just a quick overview of the types. 00:04:00
Yes. 00:04:08
Can you tell us the percentages that we have of each of these that we have? Yes, we'll get to that. Yep, Yep. 00:04:10
It's going to be in here in just a second. So page four is just an illustrative example of what I just went through. Like some is 00:04:18
just some, let's go just to the county unit, some like public safety and edit go to the county unit and the municipalities and 00:04:26
then the certified shares goes to almost all the units. That's just an illustration. Now on page five is where we get to Denise 00:04:34
your, your question. So here in Floyd County right now, your total expenditure lit is 1.29%. 00:04:41
So certified shares is .75, economic development .3, correctional or rehab facility .2 and judicial .04. So that's 1.29%. You also 00:04:49
have that property tax relief let that I just talked about at .1%. So your total lit rate if we include that property tax relief 00:05:00
is 1.39%. So county wide that is generating $40.7 million county wide. 00:05:10
What you the unit gets from all of that is 17.6 million roughly and you can see the breakout of that. 00:05:21
So if you're wondering, well, how do we compare to other counties in the state? 00:05:31
That is on page #6. 00:05:37
I believe you're ranked 17th from the bottom. 00:05:40
So you are you have a relatively low local income tax rate right now. You don't have the public safety local income tax, but I can 00:05:45
tell you that 76 out of the 92 counties in this state do have public safety live. 00:05:52
And the average or the median, I should say the median rate is .25%. 00:06:00
But that's not the Max rate, it's just that's what most counties are loving as a local income tax. 00:06:05
.25% Yep. 00:06:13
But you can go higher as long as you stay within your 2.5% Max, which you're well below that. You got plenty of room. 00:06:15
So that's kind of how you stack up here compared to other counties within the state. 00:06:23
So if you go to page 7. 00:06:30
These are just scenarios, just to give you an idea of what you would get if you adopted two of these lits. So public safety lit at 00:06:33
.25%. 00:06:39
Would would generate about 3.2 million just to the county unit. Obviously it also gets distributed out to the municipality. So New 00:06:45
Albany would get 4 million, Georgetown about 79,000. In Greenville a small amount 5000. 00:06:53
.5% just double that. So now the county unit would get 6.4 million. 00:07:03
New Albany 8 million. Georgetown 159,000. Greenville 10,000. 00:07:09
EMS remember I said that that just goes to the county unit, so .2% EMS almost 6,000,000 dollars $5,850,000. 00:07:17
So that kind of gives you an idea of what can be generated with these rates. Now, how is it gonna affect the taxpayer that's on 00:07:28
page #8? 00:07:33
It really doesn't have a very big impact on the taxpayer compared to how much money you can generate from these taxes. So we just 00:07:39
picked 3 groupings here and this is based on your adjusted gross income. So after you take out all all of your deductions and 00:07:47
things. So if I have a $50,000 adjusted gross income, we'll start at the high 1.5% that the high one in my example, the annual 00:07:54
impact is $250. 00:08:01
But monthly it's 21 bucks, 21 bucks a month taken out of your payroll for this local income tax. If you're at 75,000 and you're 00:08:09
looking at .5%, that would be $31.00 a month. 00:08:16
And then $100,000 adjusted gross income, you're looking at $42.00 a month. 00:08:23
And it goes down from there. So point .28 dollars for the 50,000 AGI. 00:08:29
75,000 is about $12.00 and then 100,000 is $17.00. 00:08:35
So there is a very specific process that you have to go through and and if you do want to kind of go down this path, we always 00:08:43
recommend that you have your attorney, you know, draw up the appropriate paperwork, but I can give you a general idea of the 00:08:48
process. 00:08:53
It takes a notice of a public hearing, so you do have to have a public hearing before you adopt this, and you also have to provide 00:08:59
notice to all the taxing units in the county. 00:09:03
The county fiscal body, so the council would adopt the ordinance to implement the tax. 00:09:09
You also, if you're even thinking about doing this, you have until August, want to notify all of the units in the county that 00:09:14
you're considering this. You don't have to have your mind made-up or a decision made, but if you're considering it, you have to 00:09:20
give advance notice that you're going that you're thinking about doing this. 00:09:27
If you're going to change the allocation of income tax, it's kind of the same thing. And that is going to be my next report that I 00:09:36
go over that one page report. I'm going to talk about if you just want to make this tax neutral, what that what that would look 00:09:42
like. But again, you do have to provide notification and have a public hearing. 00:09:48
After adopted, you just have to send it to the Department of Revenue and DLGF within 15 days. 00:09:55
So what's nice about this is if you adopt it by October 31st, you'll start receiving distributions in January. 00:10:03
So pretty quick turn around. The state keeps reserves for for just this reason, because obviously you probably won't even have any 00:10:14
collected, you'll have probably November, December, but they'll start distributing it in January based on the reserves and you'll 00:10:22
get whatever certified for the whole year divided by 12. You'll get it on a monthly basis. 00:10:29
So. 00:10:39
I part of my presentation also included a little bit of an analysis on the fire district. So I'd like to go over that before I go 00:10:41
over Jason's one page presentation. He couldn't be here, but I'm going to go over that. So let's just continue on with the 00:10:48
PowerPoint. So I was asked to look at the three fire districts, Georgetown Township, New Albany Township and Highlander fire 00:10:54
districts just to see if they were at their maximum property tax levy. And if they weren't, what would it look like if they did go 00:11:00
to the maximum levy? 00:11:06
So for Georgetown Township Fire District, they are at their maximum levy. Their 2024 property tax is about 1.4 million. They've 00:11:14
got a cumulative fire fund as well that's outside the maximum levy. 00:11:23
So they're essentially at the Max, but they're they do have a couple options. They could reestablish that Hume fire fund because 00:11:33
they're not at the Max. They're close though if they re establish that would generate another maybe $36,000. 00:11:39
There is an excess levy appeal that they may be qualified for. We did preliminary calculations but we're waiting For more 00:11:47
information from the state. If they qualify, they could potentially file that appeal and get another 411,000. 00:11:54
So the possibility for them if they wanted to, maybe about 447,000. 00:12:02
New Albany fire districts, They are just slightly under their maximum levy they're under by 5468. 00:12:11
So they could potentially take that. 00:12:19
It's again not very much. 00:12:24
Now Highlander Fire District, this fire district was just reestablished I think this year. 00:12:26
And it looks like they're phasing in their tax levy because I got an order from the DLGF to see what was happening. And the first 00:12:35
year was this levy that we're seeing here, which is I think 2,453,000, but they can go up to 494,000. 00:12:44
So they do have capacity and maybe they planned that all along. They're going to phase this in, but they have capacity to increase 00:12:54
their levy by $1.6 million. 00:12:59
So what would happen if if they those units, those fire districts? Oh yeah, go ahead. 00:13:08
Factor in what? 00:13:16
Highlander District. 00:13:27
And New Albany Township fire districts just a few months back. 00:13:29
I think the Commissioners approved, at their request, an increase in their levy. 00:13:36
I'm not sure that's reflected here. Did you get that information, aware of that? It might have been the saliva appeal that I'm 00:13:42
Speaking of. I'm not sure, OK, because I know that like Georgetown. 00:13:47
Was calculated somewhere around the close around four 34140 something you got four 10411. So that's probably what what that is. 00:13:54
But New Albany and Highlander, I don't know is this coming through New Albany and Highlander did increase a few months back so. 00:14:03
I'm not sure if that's reflected. I'm not familiar with that and I guess I'd have to look into the details because New Albany and 00:14:13
Highlighter Highlander was not. 00:14:17
Eligible for the statutory appeal. So maybe they went through a reorg. Well, it was a one. It was kind of a one time thing from 00:14:21
the DLGF. 00:14:25
Permission to increase to that after that right there was never a specific increase. 00:14:31
Well, yes, they they did not implement, but I think what she's saying is the Max levy is their ceiling. They increase their Max 00:14:38
levy per your request. They never increase their budget to that. So they wouldn't be able to increase their Max levy even if 00:14:45
commissioners approved it unless they are reorganizing or they are approved for this the statutory increase which so we did the 00:14:51
calculation for the statutory increase and only Georgetown was. 00:14:58
Able to file that. 00:15:07
But again, highlight Highlander did go through some sort of reorg because I didn't didn't used to be called Highlander. So I don't 00:15:09
want to bog down the point. But there is there was a one time exception that the DL Jeff made for fire districts and all of them 00:15:16
were eligible to increase that level that captured that. 00:15:22
Yeah. And so anyway, I didn't know if that was reflected in here. Yes, we did the calculation for each one and found that only 00:15:28
Georgetown was qualifying for that. So I don't know, maybe there's some other things going on that I'm not aware of. 00:15:35
So if if these three fire districts do increase by what I'm showing and maybe there are some additional increases. 00:15:45
We have estimated on page 13 what that would do to their tax bill, what they would do to a person's tax bill if the property is 00:15:55
located in any one of these districts. There's multiple districts, so the Georgetown Township and town districts are colored in 00:16:02
yellow there. So if they would take that levy appeal and increase their Hume Fire, then it would be a 4% increase to the tax bill 00:16:10
for Georgetown Township and a 3 1/2 percent increase to the tax bill. 00:16:17
In Georgetown town. 00:16:25
New Albany again, I I don't know what you know what increase they've they've asked for recently, but if if. 00:16:28
They just go to what their current maximum levy is. Right now it's only $5000, so that's a .04% increase. 00:16:35
And then the last one is Highline Highlander, which includes Greenville Township, Greenville Town and Lafayette Township. This is 00:16:42
the one that has a whole bunch of room. They can go up 1.6 million if they do, you're looking at. 00:16:48
8.8 percent, 8.6% roughly in that range for all the properties located in that area. 00:16:56
So taxpayer impact of those percentage increases in the tax bill and also at the last page is the summary of everything the local 00:17:06
income tax and the taxpayer impact of the the the fire districts increasing their lobby so. 00:17:14
Local income tax is on the left hand side. We have those 3 scenarios .2% EMS, .25 Public Safety, .5 Public safety. The estimated 00:17:23
revenue to the county unit, this is the county unit only is 6,000,000 for EMS, 3.2 million for Public safety at .25%. 00:17:34
And 6.4 million for public safety at .5%. So what does that do to the taxpayer? We just picked the $75,000 adjusted gross income 00:17:45
like what was it on the other page? And for the point 2%, it was 12 1/2 dollars, 4.25 percent, $16.00 roughly and .5 percent, $31. 00:17:55
And then the the, I'm sorry, could you repeat what the property value is on that? 00:18:07
Talking about local income tax, so it would be adjusted gross income. This is based on 75,000. 00:18:13
Now the property value portion is on the next part of the the graph there. Now we're talking about property tax. So we didn't look 00:18:20
up the average home value of Floyd County 272,000. 00:18:27
So for each of it depends on where the property is located, but let's say it's located in the Georgetown town or Township, you're 00:18:34
looking at six to seven dollar increase per month. 00:18:40
Or, you know, 76 to $90.00 for the whole year. 00:18:47
New Albany is 7 cents. Remember, it was only an increase of $5468. 00:18:52
Then Highlander, that big increase, 1.6 million, which I don't know if they're planning on going up to that next year, but if they 00:18:58
do, you're looking at about 190 to $196 for the whole year increase on a 272,000. 00:19:06
So 6 about $16.00 a month roughly. 00:19:16
Any questions before I go on to? 00:19:24
The next item. 00:19:28
Are you going to change subjects? 00:19:31
OK, I do have a couple of things. 00:19:35
Throw out SO. 00:19:40
The. 00:19:44
The EMS. 00:19:48
Let this. 00:19:51
A problem. 00:19:53
And Tony brought this up. I mean, New Albany will be paying that and won't be participating. 00:19:55
In any of the benefits for that unless we go to the mayor. 00:20:04
Somehow. And so, you know, and maybe that's OK. 00:20:08
We give him some of the money that's coming in. 00:20:13
I don't know that it's just a workshop. 00:20:20
That's offering to pay for the subsidy. 00:20:29
It's not $1,000,000 out of that. 00:20:31
Or, and Jason said, joining with us in some sort of countrywide service and then the pay point is often played altogether. Now 00:20:34
that was the details of it. 00:20:39
As a taxpayer of the city, that that makes a lot of sense to me, right? 00:20:47
And I I appreciate you. 00:20:54
I completely agree and from from where I'm setting that. 00:20:57
Tax that makes the most sense. 00:21:04
To me. 00:21:07
But we have the little caveat there. 00:21:08
That. 00:21:12
So. 00:21:15
I don't know what everybody else, if anybody else wants to try them in here. 00:21:18
What about the? 00:21:23
Option of looking at. 00:21:26
Increasing the judicial tax. 00:21:28
And following those funds saved. 00:21:30
From the General Fund to the Mississippi. 00:21:34
What? But I don't know how much we can tax on that because I know there's going to be a cap and I. 00:21:38
There was so much. 00:21:43
Turmoil before, between that last year, how much are we allowed to increase that to because I know there's a cap on that we can 00:21:44
increase it. 00:21:48
To the amount that we can .07, it's at 104, so about .03% only if we can split that is it half, fifty percent, 50%. If we can 00:21:52
identify 50%, which I think we can get really close with that. 00:22:01
Because we follow to the grandfather clause, so we have more judicial offices that we can throw in there that would qualify. 00:22:10
And that's definitely something that's been rolling around in my brain as well, Joe, Maybe not in lieu of this, but it might be 00:22:20
something we have to do on top of this. 00:22:25
Just because of the and maybe not this year, but because we, I mean we still need to talk about the short files we're facing in, 00:22:32
in the general fund. 00:22:37
I've got just a. 00:22:44
Maybe a calculation or breakdown question. So on the public safety. 00:22:46
The city and the county have approximately the same population. 00:22:54
There reason why at 25 the city would get 4 million and we would get 3.2 because it's not distributed on population, it's 00:22:57
distributed on how much you levy in property tax. OK, Yeah, OK. Right. So they must levy more than you. I don't have that with me 00:23:04
right here, but it's that sounds distributed. Thank you. 00:23:10
I have a question. 00:23:17
I mean. 00:23:22
Technically. 00:23:23
If we pass this EMS tax. 00:23:25
It includes the people in the city and the. 00:23:30
Mayor doesn't play with us. That's kind of on him. 00:23:33
If we feel like that's the best thing for the county, I mean, isn't it our decision? 00:23:37
I mean, don't get me wrong, I think we need to talk to the mayor. 00:23:42
However. 00:23:45
I just kind of feel like it would be silly for him not to have negotiation with us. 00:23:49
I think it's hard to be fair to the to the constituents regardless. 00:23:53
And I hear what Jim is saying, that the EMS. 00:24:04
Non reversible and the taxpayer knows. 00:24:12
Yes, I'm writing this portion of this check. It's going forward the service and it's in perpetuity, so. 00:24:16
You know, we know the EMS service we're talking to go down. 00:24:22
That is also clear because the money is there whether or not we get a county wide service that's. 00:24:27
Based upon government or whether it's outsourced, the money is still still there. 00:24:33
Detect a lot of different angles it sounds like. 00:24:41
So I have another question. 00:24:44
If we don't go county wide or outsource. 00:24:47
And we do the fire base, each fire department would be. 00:24:52
Responsible for their own districts. 00:24:58
At that point. 00:25:02
Wouldn't the? 00:25:04
The last couple pages. 00:25:07
Be a little more fair. 00:25:11
I mean, I don't know. I'm just. 00:25:14
Throwing that out there. I mean, if it's going to be Firebase, it's going to be. 00:25:16
Fire District. 00:25:21
Based it should be taxed via fire districts so fire my opinion are very limited on how much they can increase their levy unless 00:25:23
they re establish like reorganize or be qualified for that special appeal that just came out on the books. 00:25:31
So. 00:25:39
I mean, I hear what you're saying. Yes, if they want to increase their levy and they can increase their levy that that would help. 00:25:41
You're not going to probably get $6 million, but because remember .2% at the county level will generate 6,000,000. You don't have 00:25:47
to even go to the point 2% if you want, if you need to do something less. 00:25:53
But if we do the EMS lit, then that would be the county basically paying the fire department. Yes, yeah, yeah. For their ambulance 00:26:00
service, I guess. 00:26:04
But the whole county would be paying into it. 00:26:10
Right. Yeah, right. 00:26:13
Yeah, OK. Just wanna make sure I understood it correctly. Do we know how much the city stipend is to Ameripro? 00:26:15
So if we raise an EMS and just gave them their stipend for America Pro and we solved Tony's problem then? 00:26:28
Yes, and it's almost been a merit pro has covering the city and which technically the city is the county. America Pros covering 00:26:35
the whole county except for Highlander fire. 00:26:40
Am I correct? So if we raise that EMS tax and just agreed to pay this stipend that they normally would normally pay, they have a 00:26:46
contract with Maripro? I'm not sure. 00:26:51
And if we agree to pay that? 00:26:56
I mean. 00:26:59
I guess technically we could say that we we generate an extra $1,000,000 for their budget, but we provide an ambulance service for 00:27:01
the entire county. 00:27:05
And that's what this tax would do. 00:27:10
And like you said, you can help pay for the ambulance services for those fire districts out of that EMS slip. 00:27:13
Yeah, OK 'cause I mean, we're doing another general fund right now. Yeah, yeah, yeah. So this would just be like. 00:27:20
Replacement you'd be able to do. So we're going to practice to do that. 00:27:25
So I guess we need to. 00:27:31
Reach out to city controller or somebody and find out what their stipend is. 00:27:34
As per their contract next year, we know what ours is. 00:27:40
And we would know the amount that you need to raise EMS tax if that's what we decide to do. 00:27:44
Then that way the EMS tax pays for an ambulance service for the entire county, including the city. 00:27:49
What's the timeline for? 00:28:00
I'm I'm trying to find the timeline again. 00:28:06
Yeah, August 1st. So August 1st is, is you letting all the units in the county know that you're planning or you're not planning, 00:28:10
you're thinking about doing something with the income tax. Do we have to be specific about what we're doing? The statute doesn't 00:28:17
call for specifics. But if you have something, I would try to be a little, I would try, I would try to give the units as much as 00:28:23
much information. 00:28:30
Honestly, the EMS tax versus the public safety taxes is a huge, I know, huge difference. So. 00:28:38
But we do we have to notify them about the property tax too or no just. 00:28:47
If those fire districts are going to raise their levy, then they do their own notification like they have a public hearing. So I 00:28:52
think my point here is, is that we need to get that notification out out in the mail. And maybe we want to notify them that we're 00:29:00
thinking of doing one or the other at this point, and that needs to come from the auditor's office. 00:29:07
To all the other taxing units that I and last year I worked with. 00:29:16
That did this and it did come from the auditor's office, but the attorney prepared it so. 00:29:21
The statute, unfortunately, doesn't provide a lot of guidance. It just says you have to do it. So yes, since the auditor is the 00:29:25
financial, you know, the fiscal officer, I would say that'd be a good office. Gloria, would it be OK if you take this back to 00:29:31
Diana? I mean, I think guess we need to vote on it. 00:29:36
Here. 00:29:41
Right, right, right. I can e-mail Steve and give him a heads up, right? This is a workshop, so we can't really vote on this today, 00:29:45
but we can vote on it tomorrow. 00:29:50
Oh, does it need to be advertised? 00:30:00
Just a notification. 00:30:03
I think it's a notification. 00:30:06
I wouldn't think so. I in the county I worked with, Good point. The county I worked with last year they did put it in the paper 00:30:09
just. 00:30:13
Just so they were notifying everybody, but but do we need to put, do we before we vote on it, do we need to put it on the end? 00:30:18
Yes. 00:30:27
You have to have this done by October 31st. No, no, no, no. Then we want to sit by August 1st. We want to send out a notification 00:30:29
and we want to vote on it here. I don't know about that. 00:30:35
If you miss August 1st, are you done this year like we can't do? No wriggle room at all. We went through this last year. 00:30:45
Some attorneys say yes. Some attorneys say no. I say the way the statutes written that you can't move forward unless you send out 00:30:52
the notification by August 1st. But I'm not an attorney. 00:30:57
I said we just make sure we hit the notification out. 00:31:03
That buys us how? 00:31:07
And you know any? Also, obviously whether or not you have. 00:31:17
You have an advertisement for notification. 00:31:21
We. 00:31:26
Well, let me let me phrase it this way. We can't vote in this meeting, but unless there's a projection, I'm going to ask Steve to 00:31:29
prepare. 00:31:32
The notification and get with. 00:31:36
Auditor's office to finalize everything unless there's an objection. 00:31:39
For both taxes, what do we I guess, what do we notification to other taxing units on which tax? 00:31:45
Either or both. 00:31:54
I don't think we have to be specific on that. I have an issue with the property one, because there's nothing in there for Franklin 00:31:56
Township. So where's? 00:32:00
That you don't really have. 00:32:05
Yeah, you don't have control over the fire district. 00:32:08
Portion, I mean at least you do over the budgets. 00:32:11
Districts, but that would be handled during the budget time. 00:32:14
So you're saying either or what? 00:32:18
Either the EMS lit or the. 00:32:20
Public safety. Public safety. 00:32:23
Property tax? No, it's a local income tax. 00:32:26
Unless there's an ejection, I don't know. 00:32:37
You know, I think we're still in. 00:32:41
Discovery and discussion on. 00:32:43
He didn't have you brought up and then you can do it formally. 00:32:47
Well, I guess I have an observation on your thing here. 00:32:50
And you know, everybody knows I hate the term, the county, the city, the city, the county. But if we pass a public safety tax, 00:32:55
we're compelled to give them more than 50%. 00:33:02
This by this thing right here. 00:33:09
You have to it. There is a deal, there's a state calculation. So how I've calculated is right. That's what I'm saying. So if we 00:33:12
pass a public safety package, we're compelled to give the city don't even see it they get over they get or if we pass an EMS tax. 00:33:19
It's more or less our discretion if we include them, but as per Tony's comment, I don't see why the mayor would have a problem 00:33:28
with say hey, we're going to pay your mayor pro contract next year. 00:33:32
With EMS tax. 00:33:37
Yeah, and it would be cheaper on the taxpayer to do it that way. The only reason to do both of them is that we haven't approached 00:33:40
the mayor. 00:33:44
In my opinion. 00:33:48
Well, quite frankly. 00:33:52
If we pass the public safety tax and I turn over and hand the mayor half of what we generate. 00:33:55
We take the arrows for raising taxes. They get to say, look at all we do. We don't raise taxes. The county raises taxes. 00:34:02
Quite frankly, I don't like it. 00:34:10
So you don't leave, you just want to go forward with the EMS. From what I can see, it's plenty of money. We don't have to go to 00:34:12
the point 2%, I don't think. 00:34:17
Because we know what ours is, .15 if I'm correct, provides 4.4 million. 00:34:23
And we need to find out what the stipend that the city pays America. And then like I said, when you stepped out of the room out 00:34:30
basically the Merrick Pearl would be. 00:34:34
Yeah, well, so Maripro would be. 00:34:39
Basically the aimless provider for Floyd County. 00:34:42
Excluding how? Under next year, excluding Highlander. Highlander fire. 00:34:45
So America is already doing it for the city and the county wants do it. 00:34:50
The whole thing for the county. 00:34:55
A better rate, I mean, that's everybody. I think that could be a possibility. 00:34:57
Leverage on that. 00:35:05
For them and for the city's proportion. 00:35:09
Don't you understand unit placement? Things like that so. 00:35:14
So I guess the. 00:35:18
That was my point, but but I completely agree with everything you're saying. 00:35:25
I do believe that. 00:35:31
The EMS LIT is the way to go. 00:35:32
Yeah, I was looking at that. If we did like a 0.85% instead of .20, that would generate 2 point just under 2.5 million, which 00:35:35
would cover both. 00:35:40
Both budgets. Ours is under 1.4 and it still frees up 1.1 million. 00:35:46
To give to the city. 00:35:52
Oh, and we needed to find out what Thursday is. And as Out stated, maybe a Maripro would want to get it all under one umbrella. 00:35:53
You know it gives you latitude to move upwards if you want to. 00:36:02
Of course I'm not mistaken. 00:36:08
I understand you as well. 00:36:14
Well, we're only talking A2 year window anyhow. That's not a long term thing. This this thing can be adjusted. So why would we 00:36:20
want to put excess in there? 00:36:24
Well, we're always going to have EMS expenses. 00:36:30
Right. I'm just don't know why we're going to build up a fund when we need for it. 00:36:35
We're just taxing the taxpayer more when it's not unnecessary. 00:36:40
I would say that it's probably for me it confused, I think it confused the public. If you put out there a notification that you're 00:36:45
going to look at two different taxes, it almost makes it look like we're passing both. And I know that we can not message enough 00:36:50
that we're not, but. 00:36:55
Somebody gonna look at that and say what are they 2 taxes? So I'm not a fan of that. 00:37:00
But then on the other hand, if we do the EMS. 00:37:07
I'm not going to like hold up the notification process. 00:37:12
But I have some concerns about how that looks with the nuances that we have to workout with the city because if we're going to 00:37:15
give them money. 00:37:19
Which I think is fair. I think we need to have some binding written agreement that it goes towards what it was collected for. And 00:37:24
that means that we have to sit down and somebody has to sit down and talk with the mayor and get that ironed out. And I don't know 00:37:31
how that I don't know how that's going to go. I mean, I agree it has to be in writing. It has to be since these are both lists, 00:37:37
could the notice detect units say we're considering a list for? 00:37:43
Emergency medical services. 00:37:51
Specifically allocated towards services, so. 00:37:56
You really can't use it. They really can't use Brother. 00:38:01
Bottom line. 00:38:04
But I'm not an attorney, so I'm really kind of out of my lane, but I hear what you're saying. That's on us. But if we turn around 00:38:07
and gift the city part of this money that was collected, I think it has to be probably written in some way that the city has to 00:38:13
and then turn. 00:38:19
Policy could be that, you know, we're going to write a check out to America paid directly. 00:38:26
That's my point. Like, I don't know. 00:38:34
Those are the nuances I'm referring to, but it it also needs to have some. 00:38:40
Limitation. I mean, they can't, can't, can't go out and. 00:38:48
You know, yeah, yeah, I mean it. It has to be in writing. It has to be a legal document. 00:38:52
Steve has offered for me to call him that. You all would. 00:38:56
Like that or I can ask him after this or? 00:39:00
For more acid, from where I sit the deadline is always the 1st as far and we have to be noted if we have to notify. 00:39:04
Today's the 18th. 00:39:14
So we're that's pretty short window. 00:39:17
And then there's other stuff. And I totally agree, we need to have a. What's it called? 00:39:20
Understanding. 00:39:25
Something that that we agree to pay for your ambulance service. 00:39:30
You guys might go to occasional kind of music. 00:39:34
But if we make notifications, that's the pressing point right now. 00:39:37
In my mind. 00:39:40
And we got to October 31st before we actually act. 00:39:42
Great. 00:39:49
If we have to notify, guess what? They have a special meeting yet, won't we? 00:39:56
LIT just advertised a lot. Tax do basic LIT. I mean, I'm not an attorney. I wish I could provide more information, but the statute 00:39:59
literally just says you have to provide notice. So the definition of notice, we've gone back and forth with the state on that. 00:40:06
I think you need to get with your attorney. 00:40:15
I think you can do it general. 00:40:19
You know, we're planning on doing something. 00:40:22
With local income. 00:40:24
OK, any. 00:40:26
Further discussion or questions on this portion or move on to the next section. 00:40:29
Am I good? All right, so now there's this one page. It has a ladder on the front and if you turn it over, this is from Jason 00:40:35
somewhere. He couldn't be here tonight. 00:40:39
Go over it. You would ask him to do an illustration of what if this was rate neutral. 00:40:44
So there's three scenarios on this piece of paper. So at the very beginning, at the very top scenario #1 your current certified 00:40:51
shares local income tax rate is .5%. 00:40:57
The scenario is reduce that by .1%, so now it would be .4% and then increase your economic development local income tax by .1%. So 00:41:04
you're just reducing certified political income tax, certified shares, local income tax, and increasing economic development local 00:41:14
income tax. So what would that do for the county unit? You would get about $1,000,000 less in certified shares. 00:41:23
But she would get 1.3 million more and economic development, local income tax. So the net effect is additional revenue of 266,000. 00:41:34
That's the net effect. 00:41:40
Now you can see what it does to all the other units as well, New Albany, that they actually their net effect is a +247,000. So 00:41:47
they're kind of like you. So all you're doing is reducing 1 to increase the other but. 00:41:54
That's all that scenario is. 00:42:01
Scenario #2. 00:42:05
Is reduce certified shares again by the point 1%? 00:42:07
But now you're putting on a .1% EMS local income tax. 00:42:13
So the net impact now is 1.9 million because we lost a million of certified shares, but you get nearly 3 million of EMS lit. So 00:42:18
the net impact to the county unit is. 00:42:25
Increase in revenue of 1.9 million. 00:42:33
Now there is a you can see a significant negative impact to some of the other units, including the city and the county. 00:42:37
Because they would get less certified chairs and no EMS unless you had an interlocal agreement. 00:42:47
Scenario #3 is we're going to reduce the economic development local income tax by .1%. So instead of certified shares, we're going 00:42:53
to reduce lit or edit economic development. 00:42:59
And we're going to put on that EMS. 00:43:06
So if you did that, then that increase to your revenue is 1.6 million because you're losing 1.3 and economic development, local 00:43:09
income tax and you're gaining about 3 million. 00:43:14
In EMS. 00:43:20
So of the three scenario scenario, two benefits the county the most. That is if you do a great neutral like the overall rate stays 00:43:22
the same, you're just shifting it so it benefits us the most, but it also pushes that to the EMS. So we will in effect lose a 00:43:29
million out of general. 00:43:36
So yeah, the net revenue benefit is good, but you can't be without that $1,000,000 in general. 00:43:44
So that was so scenario one is. 00:43:51
Tax neutral. It just reallocates when we get another. 00:43:56
But but scenario one is. 00:44:01
Of the net +266 with and that's without an EMS, that's without an EMS. It's just basically taking monies from general and putting 00:44:07
it over to edit really. And that's kind of the way you can think about it. I don't think that's going to make the flood control or 00:44:13
the library. 00:44:18
No, and and honestly you have a very low level income tax rate. You've got some room there. Even if you increase it by .2%, you 00:44:25
know for EMS let you're still going to be on the low end. 00:44:31
So. 00:44:37
To me, it looks like you have opportunity, but yeah, you got to be aware of that. If you do something like this right, there's 00:44:38
going to be some people that are not going to be speaking. 00:44:43
And and also I want to mention something else because I did look at like the cities. 00:44:48
Debt. Outstanding debt. 00:44:54
They are using local income tax to pay about $1.4 million a year on on their debt payments. So if you take on 1.3 away from them, 00:44:56
that's going to that's going to hurt. 00:45:02
I'm just bringing that out because in the statute even says that. 00:45:10
You wouldn't be able to do that if it's going to cause them to not be able to pay them. I think they could still pay the debt, but 00:45:13
I think it's going to be. 00:45:16
It's gonna be a challenge. 00:45:21
I don't understand. 00:45:23
I know they tip everything they can tip. 00:45:26
They're paying a lot of debt with Tiff. They are they that's other. This is additional debt. They have got a lot of debt. This is 00:45:29
just debt that's supported by low income tax. They also have debt that's supported by tax. Incorrect finance. You're right, they 00:45:36
do. It's a different. They have like 3 bonds that are just supported with local income tax. They're at it to be specific. 00:45:44
So I'll just say for me this looks like a no go. 00:45:52
Just solved. There's some. 00:45:56
Talk here. 00:45:58
I yeah, it's, it's great that we taking a look at it, but I just, I can't see we were talking initially if we, if we did something 00:46:00
like this, we would rebate back to help some of these out. But it's going to be it's going to be a watch. 00:46:07
New Albany Township to be a little left on the boat. On the boat, you know, if you're going to say well. 00:46:21
The library or whatever. 00:46:27
It's a lot of, it's a lot of moving parts for not a lot of man. 00:46:33
Three weeks. Just my my take on this. 00:46:44
I appreciate the analysis. 00:46:48
It was good to take a look at. 00:46:51
Right. We had hoped it would be more like 5 or 600,000. Then we need to take a serious look at it, but I don't think. 00:46:55
Right. 00:47:05
And it and it could cause a net tax increase for citizens because. 00:47:09
Other departments may say, well, now we have to. 00:47:15
Increase our revenue. So I don't, I mean at this point. 00:47:19
OK. Any other questions on these scenarios? 00:47:29
Well, I have a question but not on the scenarios. 00:47:33
Do you want to go over the mid year? 00:47:36
It's about the EMS. 00:47:43
Tax, OK, let's let's do this mid year. 00:47:46
Let's finish up the. 00:47:50
Tax. 00:47:51
There's no need. It's just a quick. It's just a quick, it's a quick question. I haven't read the statute in a while. 00:47:54
Does this, does the county have to pass that in specific increments or can we pick whatever percentage of it up to two, up to .2%? 00:48:00
I thought that most of those are .1. We either have to do the .1 or the .2, either one, right? There's no other option. I can just 00:48:12
tell you that most of them are .1. I'd have to go back and look at the statue. Let me see if I have that in here. That's, that's 00:48:18
all. I do not. 00:48:23
I'm not an attorney, but that's what I remember is it's either half or the full rate. It's either. 00:48:30
Maybe I I just don't know. I'm sorry. I don't. I don't have that word anymore. 00:48:37
Yes. All right. So now I, I don't have a lot of information to share, but I do have kind of a mid year summary. 00:48:45
So there's two pages to this. The first page is 2024 right now. So this is basically showing you what we are projecting to happen 00:48:56
to year end based on your 630 information. 00:49:04
So I have all of your major funds on here. Let's start with county general. 00:49:13
First column is actual that you started the year in general with 3.7 million. 00:49:17
We're estimating receipts of about 19,000,000. Your budget as it stands now with any adjustments, additionals, etc. 00:49:23
Is about 19.9 million. 00:49:32
So I looked in the past and you do spend pretty close to 100% of your budget in general. 00:49:34
And you're on track to do that because if you look to the far right hand side and column G, it says you have spent 46.9% of your 00:49:41
budget and it's in green because that's typical. That's where we would expect you to be. 00:49:48
But if you spend your whole budget, you will use when column E you will utilize 850,000 of cash reserves. 00:49:56
You could find it, but you'll be your cash reserves will go down by 850,000, which will leave you at a 14.4% cash reserve level 00:50:07
and that is slightly below the recommended minimum. We say that you should end the year with 15% of your disbursements. 00:50:16
So would that leave us about two million then? Am I looking at that right? Yeah. If you look at Column D, you should be two 00:50:28
million, 854. So we would eat. OK, We would eat about. I'm not sure that's the whole story. We can get to that in a minute. 00:50:35
Well, I mean, how does that compare to this report that you sent us before? Because your estimate here only showed us have a 00:50:41
929,000 at the end of 2024. That's a major swing of. 00:50:47
So he looked at what you've receded in so far. Most of it was more interest than we ended haven't anticipated. 00:50:54
I don't know how you do it here. If you lump like you do pulled cash, like some counties will pull all of their cash and earn 00:51:34
interest on that or if it's just out of the general fund, I'm going to assume maybe it's a little bit of cash. 00:51:42
I'm pretty sure, but I can't. I don't know what we have so much interest. I think you've earned almost $1,000,000 in interest, I 00:51:50
think. 00:51:54
Yes, he broke that down for seven. 00:51:59
If you're getting 5% interest and you've earned a million, you've got to have. 00:52:03
Big hunk of money. 00:52:12
Out there, something that makes sense to me. 00:52:15
Well, there's a pretty good flow. 00:52:18
From what Steve explained to me. 00:52:20
And I don't know, I haven't gotten the budget in front of me, but. 00:52:25
Is there anything with the miscellaneous revenue that's increased like the sheriff's department's holding of inmates, does that 00:52:29
have any factor in this because it doesn't look like any of that's come in yet. I think that. 00:52:34
That doesn't come in very quickly from what I hear from other counties, but I didn't see very much revenue. Now will it come in 00:52:41
towards the end of the year? Probably because we are projecting that you are going to get some. Are you projecting 350 from state 00:52:46
because that's our, that's our projected almost 400. 00:52:51
I can tell you that at June 30th and the general fund you had 7.4 million. 00:52:57
2-3 yeah, just a couple few weeks ago. 00:53:11
Because we just because we just got our settlement, settlement and it and is about that much. 00:53:17
Yeah, that's why. 00:53:25
So that's not where we're earning the cash app or the interest app. 00:53:28
I mean, there's nothing that I'm seeing in the general fund that we're not, we didn't expect. Now if you don't spend your whole 00:53:33
budget, obviously you're going to you're going to end a little bit better. 00:53:38
So I'm sorry, I know you want to cover some more ground here. I just so I understand this, the F and the G column. 00:53:46
G is we're halfway through the year and we're 3% under. 00:53:54
The halfway mark, but you're anticipating if things. 00:53:59
Go the rate that you think that they're going to go, we're going to spend 17.5% more. So basically we're going to we're going to 00:54:04
end the year at 114.4% of our budget. 00:54:11
Of the 19.885 million, which is what you budget and the reason why I'm projecting that is based on historical information where 00:54:21
you've spent anywhere between 99 and 104% of your budget by doing additional appropriation. 00:54:28
So, yeah, I mean, I hope you understand and if you do that will help. OK. Yeah, that that's what I'm looking at is like the set. 00:54:37
So we, we you have it down here that we, we are anticipating spending for the next six months about 17.5 roughly percent more than 00:54:43
our than our 100% and that would come from additional appropriations. Is that what you're saying? And 100% budget right now your 00:54:50
budget which includes I think some additional appropriations is 19,000,008 eight five and I think you're going to spend pretty 00:54:56
close to that. 00:55:03
OK. If we if we trended 6 months and we're 3% to the good, I don't know how the next six months gets to 17%. Well, you'd be 00:55:11
surprised. A lot of departments will start spending down their appropriations towards the end of the I'm sure there's an 00:55:19
explanation. I just wondered, well, if you add the 14.4 and we're three under. 00:55:27
So. 00:55:36
14.4 is what they say we're going to end over. That's just the general fund. Yeah, OK, OK. But if you go over to column G, it's 00:55:38
3.1% to the good right now, right. So if you add those two together, maybe this will help. You haven't made the $3,000,000 00:55:46
transfer yet. 3 million of what to benefit from your employee benefits. 00:55:55
She's also working off historical that we spend 99 to 104% of. 00:56:06
Absolutely. 00:56:11
You lost me on that very last one. Explain what was the last one she just said? 00:56:15
The pension are employee benefit, that's not included in here. You haven't made that as of June 30th, but we do anticipate that 00:56:20
you will make it. You'll make it. My understanding is you make it towards the end of the year to make sure that you have money to 00:56:27
make that. Are you talking about the spin rate coming in from the transfer that goes to? She's talking about the transfer from 00:56:34
county general that goes into the employee benefit fund to cover the remaining of what the spend rate does not cover. 00:56:41
It hasn't been done and then we do it at the end of the year. 00:56:49
Laura, do we, do we take the spin rate from the Community Foundation? Do we dump it in the General and then make A1 transfer from 00:56:52
General? 00:56:56
OK. So we're making two transfers into the general fund. We make one, one for from the Community Foundation spending rate and one 00:57:06
from general. 00:57:09
All right. 00:57:15
I calculated we'd have to have $40 million in the bank somewhere. 00:57:17
To have $1,000,000 worth of interest at 5%. 00:57:23
Halfway through the year. 00:57:27
40 million. 00:57:29
It's possible. 00:57:31
There's a lot the Treasurer has. 00:57:32
You're talking about grants, you're talking about all kinds of other stuff. So actually the captain ending cash at June 30th was 00:57:36
$38 million. Yeah. 00:57:39
At the beginning of the year was 44 and a half million. I guess we have that. 00:57:44
This is the June 30th. 00:57:50
So. 00:57:53
Other questions on general before I continue. 00:57:55
I mean, I don't need to go into every one of these in detail. I I really don't think I need. 00:58:02
Everybody still trying to process the 3840 million dollars? 00:58:08
The way the auditor and the treasurer explained it to me is. 00:58:14
Yes, it's there and yes, it's a real number. And no, you can't have it like it's, you know, there's 50% of that that is always 00:58:20
there. 00:58:25
To keep the pump proud, you know so. 00:58:31
Funds are always. 00:58:35
You know, to the good. 00:58:37
And it floats up and down. 00:58:39
With expenditures. 00:58:43
But that's not all. But that's not all tax dollar generated money to an extent. It's grant money. It's it's American Rescue Plan. 00:58:45
There's $4.2 million in American Rescue. There's everything. It's it's everything. The county does pass through money. There's 00:58:53
just $5.9 million in city Roads and bridges. Roads and Bridges Project 2024. 00:59:02
I don't know what that is. It's almost $6 million. 00:59:11
Yeah, to your point, Danny, we can't get to hardly any other. You know, it's not ours. It's. 00:59:21
Allocated. 00:59:28
Randy Days 3.8. 00:59:30
Just looking at big ones. 00:59:33
So. 00:59:37
Again, I don't need to go through everyone of these, but if you just kind of look down through here, there's a lot of your funds 00:59:39
that are hitting where we think they should hit. 00:59:43
The one fund that looks like it's going to be underfunded unless we're not calculating all the revenue. I just this lit 00:59:49
correctional fund number 1233. 00:59:55
The only receipts that I can see coming in there is from the local income tax. I don't see any other receipts. Well, you're 01:00:02
budgeting 6.6 million, but you're only going to get 6.1 and you only started the year with 125,000. So I. 01:00:09
It looks like that. 01:00:17
Cannot be funded. 01:00:19
By almost $400,000, So I would just monitor that. 01:00:21
Who's got the sheriff's budget? 01:00:25
Never. I'm sure there, I'm sure Stan is all over this, but. 01:00:29
But yeah. 01:00:35
That's an issue. 01:00:36
That's an issue. 01:00:38
You've got several funds that have really good cash balances. There's only a few that are going below. Well, there's a, there's a 01:00:41
few, maybe about half that are going below the 15% cash reserve. Some of your funds don't spend 100% of their budget. 01:00:47
OK. So although I said on general, yeah, you get pretty close to that. There's some of these funds where I assumed you would spend 01:00:54
100%, but you probably won't and I'm doing that to be conservative. So like what's a good example reassessment They that fund for 01:01:00
whatever reason, they don't normally spend the entire budget. They're at 41% right now. I don't anticipate they're going to spend 01:01:07
that full budget. 01:01:13
Cumulative bridge, you know a lot of that's project driven. They may not spend that whole budget part non reverting capitals only 01:01:22
spent 25%, but that doesn't mean that they're not going to spend that capital of the rest of the year. 01:01:27
So just for purposes of. 01:01:34
Conservative If all the departments spent 100% of their budgets, that's what this would look like. 01:01:37
That. 01:01:44
For next year, double S. 01:01:46
The bad news? After a you know -391 carryover, it grows by another. 01:01:49
3400 after that or total blue. 01:01:57
So yeah, there's gotten some answers to that saying that. 01:02:00
Especially if they're trying to negotiate a contract. 01:02:04
For corrections and that's where it comes out of if that can't sustain it, then where is it going to be sustained? That's a 01:02:06
different conversation for different time, but related related to this here and I assume this 2025 budget number does not include. 01:02:15
The new negotiations, so this 2025 page, which is the second page, we don't have your budget yet. So I just went ahead and said, 01:02:24
OK, well, what would happen if your current budget only increased by 3%? Just so you can just get a rough idea. But what I really 01:02:32
focus on is column B, that that's your estimated receipts for 2025. So if you want balanced budgets, you should try to get as 01:02:39
close to that as possible, at least in your operating funds, capital funds, yes, spend down your cash on capital, that's OK. 01:02:47
But for recurring operating expenses like in the county general, you want to get as close to 18.7 as you can. And I will say this, 01:02:56
there is a piece of information we don't have yet. 01:03:01
And that is the estimated local income tax numbers for 2025. 01:03:08
We just flatlined it, but it's possible they could increase. We should be getting those numbers within the next two weeks. We're 01:03:12
supposed to get them in July from the same. Can you shoot us a e-mail? Yeah, absolutely, absolutely. 01:03:18
And what about the supplemental distribution? You got one of those. You did. Let me see, it was, oh, no, you did not. You did not. 01:03:24
The last time you got a supplemental was in 2022. You did not get one in 23 or 24. 01:03:32
So we didn't. It's already done for 2024 and we didn't get one again. 01:03:41
I do not understand that calculation. 01:03:48
I can send you the paper from the state that shows how they're calculating that. We've been down this road. We've talked to the 01:03:52
people at there was an error. 01:03:57
Yeah, nearly every every county I work with except you has gotten 1 pretty much. I mean, so when? 01:04:04
So big money every year. Yeah. So what happens is the state holds 15% reserve and anything above that they are obligated by law to 01:04:12
distribute out. And your calculation shows that it wasn't above that 15% reserve for whatever reason. I mean, the strange part is, 01:04:19
is our our county is growing like crazy. 01:04:26
So why isn't it going? Hopefully, Sir, it doesn't make sense. I spent an app two years ago, I think it was maybe three. They I 01:04:33
spent an hour on the phone with them, with different officials around the state and. 01:04:40
I think I'm more confused after an hour on the phone with him than I was before that. I'm trying to explain why this was coming. 01:04:47
It was coming and it and it just doesn't make a lot of sense. Question. I have the receipts for the general fund in 25. It's about 01:04:54
$300,000 lower than they were this year, but yet you said maybe a 3% increase. So how does that work? So I increased your 01:05:00
disbursements, not your receipts. The receipts are $300,000 lower because I adjusted the interest. I don't think that high 01:05:07
interest rate is going to continue. 01:05:13
So I adjusted your interest. 01:05:21
So that's why that's the primary reason why your revenue is going down. But the disbursements, I just thought, OK, I'm not going 01:05:23
to flatline your disbursements. I just wanna see if you could handle a 3% increase based on what I'm estimating right now. 01:05:29
But you did include a growth potion in the. 01:05:34
Growth portion, we know what it is now it's 4%. And by the way, in case you're interested, it would have been 5.5% had the 01:05:39
legislation not limit limited the growth. 01:05:45
Can we go back to this interest you said you dropped it by 300,000. I don't know what the exact number is, but that was part of 01:05:52
why the whole the revenues as a whole are dropping for 2020. So what what's the estimated for this year though what we saw? I know 01:05:57
what that comparison is. I don't have that detail with me. I just have the. 01:06:03
Because I'm curious, aren't the commissioners, aren't you going to spend down a lot of our funds before the end of the year? We're 01:06:08
just going to drop that if we, if we pay our, if we use that cares funding we have for the healthcare or whatever else we use it 01:06:13
for, plus any deficits at all eats into it. Plus interest rates. Looks like they're going to lower the interest rates that's going 01:06:19
to drop as well. 01:06:24
So is that going to be enough? Here's what we did for 2024, just to let you know. So you you've received X amount through June 01:06:30
30th. I'm sorry, I don't remember the amount what I did. Instead of saying you're going to receive that same amount the rest of 01:06:36
the year, I said you're going to receive 80% the rest of the year. So I've already filled in a little bit of conservative. 01:06:42
The following year, I'm saying you're going to receive 80% of what you receive for the whole 2024. 01:06:50
So we are, we're backing off. We're backing off on the interest, but I was way too conservative on this report. I had no idea that 01:06:55
you were getting that amount of interest. So that's why the original report showed your cash balance a lot lower. 01:07:02
So it's good news that we are showing additional revenue, but that interest, let me see what you've got an interest. 01:07:10
Yeah, so 899,000 and 2023. 01:07:21
And again, I don't remember what the first six months was, but I had it in my mind that I was thinking you were going to get a 01:07:26
million for the whole year. 01:07:29
So. 01:07:33
I had only, I only projected 320,000 originally and now I wish I would have brought the update. We haven't updated this report 01:07:35
because we wanted to wait to get your budgets for 2025 to put them in this model to see where you stand. We don't have those 01:07:40
budgets yet. 01:07:46
Other questions? 01:07:56
Well, I guess what I would say is. 01:08:01
The cash balance in. 01:08:04
The General Fund will sustain us through 2024. 01:08:07
And based on these numbers. 01:08:13
We'll still have $1,000,000 left in 2025. 01:08:19
If you increase your budget by only 3%. 01:08:24
Yeah, so. 01:08:28
We don't need to react to that. 01:08:31
I mean, look, we're, we're eating into our cash all the time, but it's. 01:08:34
Actually, I'm glad to see this because I thought it was worse than worse than this. 01:08:41
I thought we were eating into our cash to the point in 2025 where we had no cash left. 01:08:46
At the end of 2025, but it looks like we will and that's what we had originally. But again, we were able to oh cut. So that's why 01:08:52
I had this, OK, we were able to update the revenues and. 01:08:58
You did, you did make it a reduction. You made a reduction in your appropriations too of like 600. And so it'll be interesting to 01:09:06
really get the 2025 budget numbers in and see if we have enough cash to sustain. 01:09:13
Increase by a lot they could. So those pieces of information are going to be valuable to put into this report. Then we can see 01:09:22
what you look like and when do we anticipate doing that again. 01:09:27
When? When are you gonna have your budgets ready? 01:09:34
That's the only thing I need is the proposed budgets and then I can come back and we need to have that before our budget meetings. 01:09:37
When are when is our budget? 01:09:42
September that. 01:09:48
We can probably get to level ones next. Yeah, if you want to provide me and then I can do a summary sheet and I can update this 01:09:52
this. 01:09:56
Yeah. 01:10:06
We just haven't met with the department yet, but we can get you the level 1 numbers. 01:10:08
Yeah, OK. 01:10:13
Good, yeah. 01:10:15
I would I would like to shoot for having another. 01:10:17
I don't know, maybe we even need the full report like you gave us the first time with the new budgets in them. 01:10:23
I I don't know the end of August. 01:10:31
Do you all think it needs to be sooner than that? 01:10:37
September 10th is our. 01:10:45
Budget meeting where we meet with every department, we take a whole day and. 01:10:48
Can you do it by mid August and get them to you? Yeah, it's actually going to be pretty quick because we already have the model 01:10:53
set up. I just need those numbers and yeah, mid August. 01:10:58
Can you can you forward the level 1 numbers so she can put but they need to be right. I know they're not quite right yet. 01:11:06
Into county general is the amount that will also be divided up into judicial list. 01:11:16
That hasn't been done yet 'cause we don't know exactly how much. 01:11:24
That will be as soon as we know and Diana will, you know, take that out. So it's going to be. 01:11:29
What 1.7 they? Isn't that what we had? 01:11:35
So I mean, it's plug and play. So we can, we can get an initial. Oh yeah. 01:11:39
But I, I think it's important. I mean, if it's that much money, we need to, we need to make sure we get those numbers right before 01:11:44
we send them to her and we should before the middle of August. 01:11:49
So do we have the New South, any increase that's already been improved up to date included like the prosecutors, the public 01:11:59
defender? 01:12:03
Are those included? Yeah. Are those included? 01:12:09
Whatever they submitted. 01:12:12
Yeah, but I don't know what they've submitted. 01:12:14
I'm sure, Jim, they submitted whatever they got this year and they added three. Did we say 3%? 01:12:18
22, did we say two? Yeah, everything's probably assumed that a 2% rate. So I think whatever they got this year and then a two on 01:12:23
on top of it. 01:12:27
Gloria or. 01:12:34
We'll get those to you and just. 01:12:35
OK, that will you. 01:12:41
We'll probably send several revisions to you. Yeah, no, it's super easy to update now that we have this. And hopefully we'll have 01:12:47
local tax numbers in the next couple of weeks because I could. I mean, that could make a difference. Well, that's what she said. 01:12:55
Any other questions for page or discussion for us? 01:13:07
Motion to adjourn. 01:13:13
2nd. 01:13:15
We have a 10 AM. 01:13:17
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Things to go over with you tonight, One is a couple different local income tax scenarios and then also just kind of give you a 00:00:06
brief update of like a financial update through June 30th. 00:00:11
So again, I'm going to start with this PowerPoint. 00:00:18
Flipping to page #3. 00:00:22
Let me grab my glasses. 00:00:26
So part of the scope of this engagement was to to give you kind of an overview of the local income tax here in the state of 00:00:34
Indiana. 00:00:38
So we've got 3 buckets, 3 categories, expenditure, local income tax, property tax relief and special purpose. Within the 00:00:43
expenditure lit, there are several different kinds of local income tax. What's important to know about the expenditure lit is that 00:00:53
it cannot exceed 2.5%. That's the maximum for the expenditure lit. But there are 4 expenditure lits that have their own maximum. 00:01:03
So if you look certified shares, public safety, economic development, they don't really have a maximum, but you have to be within 00:01:14
that 2.5% in total combined. 00:01:19
Correctional and rehab facility has a .2% Max EMS lit has a .2% Max Judicial judicial system has a .2% Max, and then there's a new 00:01:24
one. Acute care hospital has a .1% Max. So that kind of just gives you an idea. But in total, those expenditure lids cannot exceed 00:01:32
2.5%. 00:01:39
I've also got should just be a handy kind of reference. I've got the uses for each one of these. So certified shares can be used 00:01:48
for any purpose that the same purposes as the general fund. Public safety. That's pretty self-explanatory public safety purposes 00:01:56
and and you all don't have that. And we're going to talk about a scenario economic development, despite the name of the lit, it 00:02:04
can be used for any purpose of the general fund, but it has to be allowed by your economic development plan. 00:02:12
Correctional rehab facility so self-explanatory as as is EMS, judicial system and acute care hospital. So just for your reference 00:02:21
there are the descriptions of the uses. 00:02:26
The distributions are different for some of these, so like certified shares goes to many of the units in the county and if you're 00:02:32
a former Cadet County, which Floyd County is, the property tax relief portion goes to the schools. 00:02:42
Now these some of these other ones just go to the county unit and the municipality. So like public safety lit only gets 00:02:53
distributed to the county unit and the municipalities. Same with economic development. 00:02:59
Then we get into these kind of special ones, the Correctional Facility, EMS, judicial, acute care hospital that just gets 00:03:06
distributed to the county unit. 00:03:11
And I'm going to show you some examples here. Property tax relief let is a good local income tax to have. I believe you have that. 00:03:17
It's good because it helps to reduce circuit breaker loss or it helps to reduce property tax loss due to circuit breaker. That's a 00:03:27
better way to say it because that is a credit on the taxpayers tax bill. So it's basically property tax credit paid by local 00:03:33
income tax. 00:03:39
So that credit is applied to the tax bill 1st and then the circuit Breakers are applied. So it does help to reduce your reduction 00:03:46
of revenue due to circuit breaker and you do have that here in this county. And then special purpose is just usually it's a jail 00:03:53
local income tax. You get special legislation to do that. So that's just a quick overview of the types. 00:04:00
Yes. 00:04:08
Can you tell us the percentages that we have of each of these that we have? Yes, we'll get to that. Yep, Yep. 00:04:10
It's going to be in here in just a second. So page four is just an illustrative example of what I just went through. Like some is 00:04:18
just some, let's go just to the county unit, some like public safety and edit go to the county unit and the municipalities and 00:04:26
then the certified shares goes to almost all the units. That's just an illustration. Now on page five is where we get to Denise 00:04:34
your, your question. So here in Floyd County right now, your total expenditure lit is 1.29%. 00:04:41
So certified shares is .75, economic development .3, correctional or rehab facility .2 and judicial .04. So that's 1.29%. You also 00:04:49
have that property tax relief let that I just talked about at .1%. So your total lit rate if we include that property tax relief 00:05:00
is 1.39%. So county wide that is generating $40.7 million county wide. 00:05:10
What you the unit gets from all of that is 17.6 million roughly and you can see the breakout of that. 00:05:21
So if you're wondering, well, how do we compare to other counties in the state? 00:05:31
That is on page #6. 00:05:37
I believe you're ranked 17th from the bottom. 00:05:40
So you are you have a relatively low local income tax rate right now. You don't have the public safety local income tax, but I can 00:05:45
tell you that 76 out of the 92 counties in this state do have public safety live. 00:05:52
And the average or the median, I should say the median rate is .25%. 00:06:00
But that's not the Max rate, it's just that's what most counties are loving as a local income tax. 00:06:05
.25% Yep. 00:06:13
But you can go higher as long as you stay within your 2.5% Max, which you're well below that. You got plenty of room. 00:06:15
So that's kind of how you stack up here compared to other counties within the state. 00:06:23
So if you go to page 7. 00:06:30
These are just scenarios, just to give you an idea of what you would get if you adopted two of these lits. So public safety lit at 00:06:33
.25%. 00:06:39
Would would generate about 3.2 million just to the county unit. Obviously it also gets distributed out to the municipality. So New 00:06:45
Albany would get 4 million, Georgetown about 79,000. In Greenville a small amount 5000. 00:06:53
.5% just double that. So now the county unit would get 6.4 million. 00:07:03
New Albany 8 million. Georgetown 159,000. Greenville 10,000. 00:07:09
EMS remember I said that that just goes to the county unit, so .2% EMS almost 6,000,000 dollars $5,850,000. 00:07:17
So that kind of gives you an idea of what can be generated with these rates. Now, how is it gonna affect the taxpayer that's on 00:07:28
page #8? 00:07:33
It really doesn't have a very big impact on the taxpayer compared to how much money you can generate from these taxes. So we just 00:07:39
picked 3 groupings here and this is based on your adjusted gross income. So after you take out all all of your deductions and 00:07:47
things. So if I have a $50,000 adjusted gross income, we'll start at the high 1.5% that the high one in my example, the annual 00:07:54
impact is $250. 00:08:01
But monthly it's 21 bucks, 21 bucks a month taken out of your payroll for this local income tax. If you're at 75,000 and you're 00:08:09
looking at .5%, that would be $31.00 a month. 00:08:16
And then $100,000 adjusted gross income, you're looking at $42.00 a month. 00:08:23
And it goes down from there. So point .28 dollars for the 50,000 AGI. 00:08:29
75,000 is about $12.00 and then 100,000 is $17.00. 00:08:35
So there is a very specific process that you have to go through and and if you do want to kind of go down this path, we always 00:08:43
recommend that you have your attorney, you know, draw up the appropriate paperwork, but I can give you a general idea of the 00:08:48
process. 00:08:53
It takes a notice of a public hearing, so you do have to have a public hearing before you adopt this, and you also have to provide 00:08:59
notice to all the taxing units in the county. 00:09:03
The county fiscal body, so the council would adopt the ordinance to implement the tax. 00:09:09
You also, if you're even thinking about doing this, you have until August, want to notify all of the units in the county that 00:09:14
you're considering this. You don't have to have your mind made-up or a decision made, but if you're considering it, you have to 00:09:20
give advance notice that you're going that you're thinking about doing this. 00:09:27
If you're going to change the allocation of income tax, it's kind of the same thing. And that is going to be my next report that I 00:09:36
go over that one page report. I'm going to talk about if you just want to make this tax neutral, what that what that would look 00:09:42
like. But again, you do have to provide notification and have a public hearing. 00:09:48
After adopted, you just have to send it to the Department of Revenue and DLGF within 15 days. 00:09:55
So what's nice about this is if you adopt it by October 31st, you'll start receiving distributions in January. 00:10:03
So pretty quick turn around. The state keeps reserves for for just this reason, because obviously you probably won't even have any 00:10:14
collected, you'll have probably November, December, but they'll start distributing it in January based on the reserves and you'll 00:10:22
get whatever certified for the whole year divided by 12. You'll get it on a monthly basis. 00:10:29
So. 00:10:39
I part of my presentation also included a little bit of an analysis on the fire district. So I'd like to go over that before I go 00:10:41
over Jason's one page presentation. He couldn't be here, but I'm going to go over that. So let's just continue on with the 00:10:48
PowerPoint. So I was asked to look at the three fire districts, Georgetown Township, New Albany Township and Highlander fire 00:10:54
districts just to see if they were at their maximum property tax levy. And if they weren't, what would it look like if they did go 00:11:00
to the maximum levy? 00:11:06
So for Georgetown Township Fire District, they are at their maximum levy. Their 2024 property tax is about 1.4 million. They've 00:11:14
got a cumulative fire fund as well that's outside the maximum levy. 00:11:23
So they're essentially at the Max, but they're they do have a couple options. They could reestablish that Hume fire fund because 00:11:33
they're not at the Max. They're close though if they re establish that would generate another maybe $36,000. 00:11:39
There is an excess levy appeal that they may be qualified for. We did preliminary calculations but we're waiting For more 00:11:47
information from the state. If they qualify, they could potentially file that appeal and get another 411,000. 00:11:54
So the possibility for them if they wanted to, maybe about 447,000. 00:12:02
New Albany fire districts, They are just slightly under their maximum levy they're under by 5468. 00:12:11
So they could potentially take that. 00:12:19
It's again not very much. 00:12:24
Now Highlander Fire District, this fire district was just reestablished I think this year. 00:12:26
And it looks like they're phasing in their tax levy because I got an order from the DLGF to see what was happening. And the first 00:12:35
year was this levy that we're seeing here, which is I think 2,453,000, but they can go up to 494,000. 00:12:44
So they do have capacity and maybe they planned that all along. They're going to phase this in, but they have capacity to increase 00:12:54
their levy by $1.6 million. 00:12:59
So what would happen if if they those units, those fire districts? Oh yeah, go ahead. 00:13:08
Factor in what? 00:13:16
Highlander District. 00:13:27
And New Albany Township fire districts just a few months back. 00:13:29
I think the Commissioners approved, at their request, an increase in their levy. 00:13:36
I'm not sure that's reflected here. Did you get that information, aware of that? It might have been the saliva appeal that I'm 00:13:42
Speaking of. I'm not sure, OK, because I know that like Georgetown. 00:13:47
Was calculated somewhere around the close around four 34140 something you got four 10411. So that's probably what what that is. 00:13:54
But New Albany and Highlander, I don't know is this coming through New Albany and Highlander did increase a few months back so. 00:14:03
I'm not sure if that's reflected. I'm not familiar with that and I guess I'd have to look into the details because New Albany and 00:14:13
Highlighter Highlander was not. 00:14:17
Eligible for the statutory appeal. So maybe they went through a reorg. Well, it was a one. It was kind of a one time thing from 00:14:21
the DLGF. 00:14:25
Permission to increase to that after that right there was never a specific increase. 00:14:31
Well, yes, they they did not implement, but I think what she's saying is the Max levy is their ceiling. They increase their Max 00:14:38
levy per your request. They never increase their budget to that. So they wouldn't be able to increase their Max levy even if 00:14:45
commissioners approved it unless they are reorganizing or they are approved for this the statutory increase which so we did the 00:14:51
calculation for the statutory increase and only Georgetown was. 00:14:58
Able to file that. 00:15:07
But again, highlight Highlander did go through some sort of reorg because I didn't didn't used to be called Highlander. So I don't 00:15:09
want to bog down the point. But there is there was a one time exception that the DL Jeff made for fire districts and all of them 00:15:16
were eligible to increase that level that captured that. 00:15:22
Yeah. And so anyway, I didn't know if that was reflected in here. Yes, we did the calculation for each one and found that only 00:15:28
Georgetown was qualifying for that. So I don't know, maybe there's some other things going on that I'm not aware of. 00:15:35
So if if these three fire districts do increase by what I'm showing and maybe there are some additional increases. 00:15:45
We have estimated on page 13 what that would do to their tax bill, what they would do to a person's tax bill if the property is 00:15:55
located in any one of these districts. There's multiple districts, so the Georgetown Township and town districts are colored in 00:16:02
yellow there. So if they would take that levy appeal and increase their Hume Fire, then it would be a 4% increase to the tax bill 00:16:10
for Georgetown Township and a 3 1/2 percent increase to the tax bill. 00:16:17
In Georgetown town. 00:16:25
New Albany again, I I don't know what you know what increase they've they've asked for recently, but if if. 00:16:28
They just go to what their current maximum levy is. Right now it's only $5000, so that's a .04% increase. 00:16:35
And then the last one is Highline Highlander, which includes Greenville Township, Greenville Town and Lafayette Township. This is 00:16:42
the one that has a whole bunch of room. They can go up 1.6 million if they do, you're looking at. 00:16:48
8.8 percent, 8.6% roughly in that range for all the properties located in that area. 00:16:56
So taxpayer impact of those percentage increases in the tax bill and also at the last page is the summary of everything the local 00:17:06
income tax and the taxpayer impact of the the the fire districts increasing their lobby so. 00:17:14
Local income tax is on the left hand side. We have those 3 scenarios .2% EMS, .25 Public Safety, .5 Public safety. The estimated 00:17:23
revenue to the county unit, this is the county unit only is 6,000,000 for EMS, 3.2 million for Public safety at .25%. 00:17:34
And 6.4 million for public safety at .5%. So what does that do to the taxpayer? We just picked the $75,000 adjusted gross income 00:17:45
like what was it on the other page? And for the point 2%, it was 12 1/2 dollars, 4.25 percent, $16.00 roughly and .5 percent, $31. 00:17:55
And then the the, I'm sorry, could you repeat what the property value is on that? 00:18:07
Talking about local income tax, so it would be adjusted gross income. This is based on 75,000. 00:18:13
Now the property value portion is on the next part of the the graph there. Now we're talking about property tax. So we didn't look 00:18:20
up the average home value of Floyd County 272,000. 00:18:27
So for each of it depends on where the property is located, but let's say it's located in the Georgetown town or Township, you're 00:18:34
looking at six to seven dollar increase per month. 00:18:40
Or, you know, 76 to $90.00 for the whole year. 00:18:47
New Albany is 7 cents. Remember, it was only an increase of $5468. 00:18:52
Then Highlander, that big increase, 1.6 million, which I don't know if they're planning on going up to that next year, but if they 00:18:58
do, you're looking at about 190 to $196 for the whole year increase on a 272,000. 00:19:06
So 6 about $16.00 a month roughly. 00:19:16
Any questions before I go on to? 00:19:24
The next item. 00:19:28
Are you going to change subjects? 00:19:31
OK, I do have a couple of things. 00:19:35
Throw out SO. 00:19:40
The. 00:19:44
The EMS. 00:19:48
Let this. 00:19:51
A problem. 00:19:53
And Tony brought this up. I mean, New Albany will be paying that and won't be participating. 00:19:55
In any of the benefits for that unless we go to the mayor. 00:20:04
Somehow. And so, you know, and maybe that's OK. 00:20:08
We give him some of the money that's coming in. 00:20:13
I don't know that it's just a workshop. 00:20:20
That's offering to pay for the subsidy. 00:20:29
It's not $1,000,000 out of that. 00:20:31
Or, and Jason said, joining with us in some sort of countrywide service and then the pay point is often played altogether. Now 00:20:34
that was the details of it. 00:20:39
As a taxpayer of the city, that that makes a lot of sense to me, right? 00:20:47
And I I appreciate you. 00:20:54
I completely agree and from from where I'm setting that. 00:20:57
Tax that makes the most sense. 00:21:04
To me. 00:21:07
But we have the little caveat there. 00:21:08
That. 00:21:12
So. 00:21:15
I don't know what everybody else, if anybody else wants to try them in here. 00:21:18
What about the? 00:21:23
Option of looking at. 00:21:26
Increasing the judicial tax. 00:21:28
And following those funds saved. 00:21:30
From the General Fund to the Mississippi. 00:21:34
What? But I don't know how much we can tax on that because I know there's going to be a cap and I. 00:21:38
There was so much. 00:21:43
Turmoil before, between that last year, how much are we allowed to increase that to because I know there's a cap on that we can 00:21:44
increase it. 00:21:48
To the amount that we can .07, it's at 104, so about .03% only if we can split that is it half, fifty percent, 50%. If we can 00:21:52
identify 50%, which I think we can get really close with that. 00:22:01
Because we follow to the grandfather clause, so we have more judicial offices that we can throw in there that would qualify. 00:22:10
And that's definitely something that's been rolling around in my brain as well, Joe, Maybe not in lieu of this, but it might be 00:22:20
something we have to do on top of this. 00:22:25
Just because of the and maybe not this year, but because we, I mean we still need to talk about the short files we're facing in, 00:22:32
in the general fund. 00:22:37
I've got just a. 00:22:44
Maybe a calculation or breakdown question. So on the public safety. 00:22:46
The city and the county have approximately the same population. 00:22:54
There reason why at 25 the city would get 4 million and we would get 3.2 because it's not distributed on population, it's 00:22:57
distributed on how much you levy in property tax. OK, Yeah, OK. Right. So they must levy more than you. I don't have that with me 00:23:04
right here, but it's that sounds distributed. Thank you. 00:23:10
I have a question. 00:23:17
I mean. 00:23:22
Technically. 00:23:23
If we pass this EMS tax. 00:23:25
It includes the people in the city and the. 00:23:30
Mayor doesn't play with us. That's kind of on him. 00:23:33
If we feel like that's the best thing for the county, I mean, isn't it our decision? 00:23:37
I mean, don't get me wrong, I think we need to talk to the mayor. 00:23:42
However. 00:23:45
I just kind of feel like it would be silly for him not to have negotiation with us. 00:23:49
I think it's hard to be fair to the to the constituents regardless. 00:23:53
And I hear what Jim is saying, that the EMS. 00:24:04
Non reversible and the taxpayer knows. 00:24:12
Yes, I'm writing this portion of this check. It's going forward the service and it's in perpetuity, so. 00:24:16
You know, we know the EMS service we're talking to go down. 00:24:22
That is also clear because the money is there whether or not we get a county wide service that's. 00:24:27
Based upon government or whether it's outsourced, the money is still still there. 00:24:33
Detect a lot of different angles it sounds like. 00:24:41
So I have another question. 00:24:44
If we don't go county wide or outsource. 00:24:47
And we do the fire base, each fire department would be. 00:24:52
Responsible for their own districts. 00:24:58
At that point. 00:25:02
Wouldn't the? 00:25:04
The last couple pages. 00:25:07
Be a little more fair. 00:25:11
I mean, I don't know. I'm just. 00:25:14
Throwing that out there. I mean, if it's going to be Firebase, it's going to be. 00:25:16
Fire District. 00:25:21
Based it should be taxed via fire districts so fire my opinion are very limited on how much they can increase their levy unless 00:25:23
they re establish like reorganize or be qualified for that special appeal that just came out on the books. 00:25:31
So. 00:25:39
I mean, I hear what you're saying. Yes, if they want to increase their levy and they can increase their levy that that would help. 00:25:41
You're not going to probably get $6 million, but because remember .2% at the county level will generate 6,000,000. You don't have 00:25:47
to even go to the point 2% if you want, if you need to do something less. 00:25:53
But if we do the EMS lit, then that would be the county basically paying the fire department. Yes, yeah, yeah. For their ambulance 00:26:00
service, I guess. 00:26:04
But the whole county would be paying into it. 00:26:10
Right. Yeah, right. 00:26:13
Yeah, OK. Just wanna make sure I understood it correctly. Do we know how much the city stipend is to Ameripro? 00:26:15
So if we raise an EMS and just gave them their stipend for America Pro and we solved Tony's problem then? 00:26:28
Yes, and it's almost been a merit pro has covering the city and which technically the city is the county. America Pros covering 00:26:35
the whole county except for Highlander fire. 00:26:40
Am I correct? So if we raise that EMS tax and just agreed to pay this stipend that they normally would normally pay, they have a 00:26:46
contract with Maripro? I'm not sure. 00:26:51
And if we agree to pay that? 00:26:56
I mean. 00:26:59
I guess technically we could say that we we generate an extra $1,000,000 for their budget, but we provide an ambulance service for 00:27:01
the entire county. 00:27:05
And that's what this tax would do. 00:27:10
And like you said, you can help pay for the ambulance services for those fire districts out of that EMS slip. 00:27:13
Yeah, OK 'cause I mean, we're doing another general fund right now. Yeah, yeah, yeah. So this would just be like. 00:27:20
Replacement you'd be able to do. So we're going to practice to do that. 00:27:25
So I guess we need to. 00:27:31
Reach out to city controller or somebody and find out what their stipend is. 00:27:34
As per their contract next year, we know what ours is. 00:27:40
And we would know the amount that you need to raise EMS tax if that's what we decide to do. 00:27:44
Then that way the EMS tax pays for an ambulance service for the entire county, including the city. 00:27:49
What's the timeline for? 00:28:00
I'm I'm trying to find the timeline again. 00:28:06
Yeah, August 1st. So August 1st is, is you letting all the units in the county know that you're planning or you're not planning, 00:28:10
you're thinking about doing something with the income tax. Do we have to be specific about what we're doing? The statute doesn't 00:28:17
call for specifics. But if you have something, I would try to be a little, I would try, I would try to give the units as much as 00:28:23
much information. 00:28:30
Honestly, the EMS tax versus the public safety taxes is a huge, I know, huge difference. So. 00:28:38
But we do we have to notify them about the property tax too or no just. 00:28:47
If those fire districts are going to raise their levy, then they do their own notification like they have a public hearing. So I 00:28:52
think my point here is, is that we need to get that notification out out in the mail. And maybe we want to notify them that we're 00:29:00
thinking of doing one or the other at this point, and that needs to come from the auditor's office. 00:29:07
To all the other taxing units that I and last year I worked with. 00:29:16
That did this and it did come from the auditor's office, but the attorney prepared it so. 00:29:21
The statute, unfortunately, doesn't provide a lot of guidance. It just says you have to do it. So yes, since the auditor is the 00:29:25
financial, you know, the fiscal officer, I would say that'd be a good office. Gloria, would it be OK if you take this back to 00:29:31
Diana? I mean, I think guess we need to vote on it. 00:29:36
Here. 00:29:41
Right, right, right. I can e-mail Steve and give him a heads up, right? This is a workshop, so we can't really vote on this today, 00:29:45
but we can vote on it tomorrow. 00:29:50
Oh, does it need to be advertised? 00:30:00
Just a notification. 00:30:03
I think it's a notification. 00:30:06
I wouldn't think so. I in the county I worked with, Good point. The county I worked with last year they did put it in the paper 00:30:09
just. 00:30:13
Just so they were notifying everybody, but but do we need to put, do we before we vote on it, do we need to put it on the end? 00:30:18
Yes. 00:30:27
You have to have this done by October 31st. No, no, no, no. Then we want to sit by August 1st. We want to send out a notification 00:30:29
and we want to vote on it here. I don't know about that. 00:30:35
If you miss August 1st, are you done this year like we can't do? No wriggle room at all. We went through this last year. 00:30:45
Some attorneys say yes. Some attorneys say no. I say the way the statutes written that you can't move forward unless you send out 00:30:52
the notification by August 1st. But I'm not an attorney. 00:30:57
I said we just make sure we hit the notification out. 00:31:03
That buys us how? 00:31:07
And you know any? Also, obviously whether or not you have. 00:31:17
You have an advertisement for notification. 00:31:21
We. 00:31:26
Well, let me let me phrase it this way. We can't vote in this meeting, but unless there's a projection, I'm going to ask Steve to 00:31:29
prepare. 00:31:32
The notification and get with. 00:31:36
Auditor's office to finalize everything unless there's an objection. 00:31:39
For both taxes, what do we I guess, what do we notification to other taxing units on which tax? 00:31:45
Either or both. 00:31:54
I don't think we have to be specific on that. I have an issue with the property one, because there's nothing in there for Franklin 00:31:56
Township. So where's? 00:32:00
That you don't really have. 00:32:05
Yeah, you don't have control over the fire district. 00:32:08
Portion, I mean at least you do over the budgets. 00:32:11
Districts, but that would be handled during the budget time. 00:32:14
So you're saying either or what? 00:32:18
Either the EMS lit or the. 00:32:20
Public safety. Public safety. 00:32:23
Property tax? No, it's a local income tax. 00:32:26
Unless there's an ejection, I don't know. 00:32:37
You know, I think we're still in. 00:32:41
Discovery and discussion on. 00:32:43
He didn't have you brought up and then you can do it formally. 00:32:47
Well, I guess I have an observation on your thing here. 00:32:50
And you know, everybody knows I hate the term, the county, the city, the city, the county. But if we pass a public safety tax, 00:32:55
we're compelled to give them more than 50%. 00:33:02
This by this thing right here. 00:33:09
You have to it. There is a deal, there's a state calculation. So how I've calculated is right. That's what I'm saying. So if we 00:33:12
pass a public safety package, we're compelled to give the city don't even see it they get over they get or if we pass an EMS tax. 00:33:19
It's more or less our discretion if we include them, but as per Tony's comment, I don't see why the mayor would have a problem 00:33:28
with say hey, we're going to pay your mayor pro contract next year. 00:33:32
With EMS tax. 00:33:37
Yeah, and it would be cheaper on the taxpayer to do it that way. The only reason to do both of them is that we haven't approached 00:33:40
the mayor. 00:33:44
In my opinion. 00:33:48
Well, quite frankly. 00:33:52
If we pass the public safety tax and I turn over and hand the mayor half of what we generate. 00:33:55
We take the arrows for raising taxes. They get to say, look at all we do. We don't raise taxes. The county raises taxes. 00:34:02
Quite frankly, I don't like it. 00:34:10
So you don't leave, you just want to go forward with the EMS. From what I can see, it's plenty of money. We don't have to go to 00:34:12
the point 2%, I don't think. 00:34:17
Because we know what ours is, .15 if I'm correct, provides 4.4 million. 00:34:23
And we need to find out what the stipend that the city pays America. And then like I said, when you stepped out of the room out 00:34:30
basically the Merrick Pearl would be. 00:34:34
Yeah, well, so Maripro would be. 00:34:39
Basically the aimless provider for Floyd County. 00:34:42
Excluding how? Under next year, excluding Highlander. Highlander fire. 00:34:45
So America is already doing it for the city and the county wants do it. 00:34:50
The whole thing for the county. 00:34:55
A better rate, I mean, that's everybody. I think that could be a possibility. 00:34:57
Leverage on that. 00:35:05
For them and for the city's proportion. 00:35:09
Don't you understand unit placement? Things like that so. 00:35:14
So I guess the. 00:35:18
That was my point, but but I completely agree with everything you're saying. 00:35:25
I do believe that. 00:35:31
The EMS LIT is the way to go. 00:35:32
Yeah, I was looking at that. If we did like a 0.85% instead of .20, that would generate 2 point just under 2.5 million, which 00:35:35
would cover both. 00:35:40
Both budgets. Ours is under 1.4 and it still frees up 1.1 million. 00:35:46
To give to the city. 00:35:52
Oh, and we needed to find out what Thursday is. And as Out stated, maybe a Maripro would want to get it all under one umbrella. 00:35:53
You know it gives you latitude to move upwards if you want to. 00:36:02
Of course I'm not mistaken. 00:36:08
I understand you as well. 00:36:14
Well, we're only talking A2 year window anyhow. That's not a long term thing. This this thing can be adjusted. So why would we 00:36:20
want to put excess in there? 00:36:24
Well, we're always going to have EMS expenses. 00:36:30
Right. I'm just don't know why we're going to build up a fund when we need for it. 00:36:35
We're just taxing the taxpayer more when it's not unnecessary. 00:36:40
I would say that it's probably for me it confused, I think it confused the public. If you put out there a notification that you're 00:36:45
going to look at two different taxes, it almost makes it look like we're passing both. And I know that we can not message enough 00:36:50
that we're not, but. 00:36:55
Somebody gonna look at that and say what are they 2 taxes? So I'm not a fan of that. 00:37:00
But then on the other hand, if we do the EMS. 00:37:07
I'm not going to like hold up the notification process. 00:37:12
But I have some concerns about how that looks with the nuances that we have to workout with the city because if we're going to 00:37:15
give them money. 00:37:19
Which I think is fair. I think we need to have some binding written agreement that it goes towards what it was collected for. And 00:37:24
that means that we have to sit down and somebody has to sit down and talk with the mayor and get that ironed out. And I don't know 00:37:31
how that I don't know how that's going to go. I mean, I agree it has to be in writing. It has to be since these are both lists, 00:37:37
could the notice detect units say we're considering a list for? 00:37:43
Emergency medical services. 00:37:51
Specifically allocated towards services, so. 00:37:56
You really can't use it. They really can't use Brother. 00:38:01
Bottom line. 00:38:04
But I'm not an attorney, so I'm really kind of out of my lane, but I hear what you're saying. That's on us. But if we turn around 00:38:07
and gift the city part of this money that was collected, I think it has to be probably written in some way that the city has to 00:38:13
and then turn. 00:38:19
Policy could be that, you know, we're going to write a check out to America paid directly. 00:38:26
That's my point. Like, I don't know. 00:38:34
Those are the nuances I'm referring to, but it it also needs to have some. 00:38:40
Limitation. I mean, they can't, can't, can't go out and. 00:38:48
You know, yeah, yeah, I mean it. It has to be in writing. It has to be a legal document. 00:38:52
Steve has offered for me to call him that. You all would. 00:38:56
Like that or I can ask him after this or? 00:39:00
For more acid, from where I sit the deadline is always the 1st as far and we have to be noted if we have to notify. 00:39:04
Today's the 18th. 00:39:14
So we're that's pretty short window. 00:39:17
And then there's other stuff. And I totally agree, we need to have a. What's it called? 00:39:20
Understanding. 00:39:25
Something that that we agree to pay for your ambulance service. 00:39:30
You guys might go to occasional kind of music. 00:39:34
But if we make notifications, that's the pressing point right now. 00:39:37
In my mind. 00:39:40
And we got to October 31st before we actually act. 00:39:42
Great. 00:39:49
If we have to notify, guess what? They have a special meeting yet, won't we? 00:39:56
LIT just advertised a lot. Tax do basic LIT. I mean, I'm not an attorney. I wish I could provide more information, but the statute 00:39:59
literally just says you have to provide notice. So the definition of notice, we've gone back and forth with the state on that. 00:40:06
I think you need to get with your attorney. 00:40:15
I think you can do it general. 00:40:19
You know, we're planning on doing something. 00:40:22
With local income. 00:40:24
OK, any. 00:40:26
Further discussion or questions on this portion or move on to the next section. 00:40:29
Am I good? All right, so now there's this one page. It has a ladder on the front and if you turn it over, this is from Jason 00:40:35
somewhere. He couldn't be here tonight. 00:40:39
Go over it. You would ask him to do an illustration of what if this was rate neutral. 00:40:44
So there's three scenarios on this piece of paper. So at the very beginning, at the very top scenario #1 your current certified 00:40:51
shares local income tax rate is .5%. 00:40:57
The scenario is reduce that by .1%, so now it would be .4% and then increase your economic development local income tax by .1%. So 00:41:04
you're just reducing certified political income tax, certified shares, local income tax, and increasing economic development local 00:41:14
income tax. So what would that do for the county unit? You would get about $1,000,000 less in certified shares. 00:41:23
But she would get 1.3 million more and economic development, local income tax. So the net effect is additional revenue of 266,000. 00:41:34
That's the net effect. 00:41:40
Now you can see what it does to all the other units as well, New Albany, that they actually their net effect is a +247,000. So 00:41:47
they're kind of like you. So all you're doing is reducing 1 to increase the other but. 00:41:54
That's all that scenario is. 00:42:01
Scenario #2. 00:42:05
Is reduce certified shares again by the point 1%? 00:42:07
But now you're putting on a .1% EMS local income tax. 00:42:13
So the net impact now is 1.9 million because we lost a million of certified shares, but you get nearly 3 million of EMS lit. So 00:42:18
the net impact to the county unit is. 00:42:25
Increase in revenue of 1.9 million. 00:42:33
Now there is a you can see a significant negative impact to some of the other units, including the city and the county. 00:42:37
Because they would get less certified chairs and no EMS unless you had an interlocal agreement. 00:42:47
Scenario #3 is we're going to reduce the economic development local income tax by .1%. So instead of certified shares, we're going 00:42:53
to reduce lit or edit economic development. 00:42:59
And we're going to put on that EMS. 00:43:06
So if you did that, then that increase to your revenue is 1.6 million because you're losing 1.3 and economic development, local 00:43:09
income tax and you're gaining about 3 million. 00:43:14
In EMS. 00:43:20
So of the three scenario scenario, two benefits the county the most. That is if you do a great neutral like the overall rate stays 00:43:22
the same, you're just shifting it so it benefits us the most, but it also pushes that to the EMS. So we will in effect lose a 00:43:29
million out of general. 00:43:36
So yeah, the net revenue benefit is good, but you can't be without that $1,000,000 in general. 00:43:44
So that was so scenario one is. 00:43:51
Tax neutral. It just reallocates when we get another. 00:43:56
But but scenario one is. 00:44:01
Of the net +266 with and that's without an EMS, that's without an EMS. It's just basically taking monies from general and putting 00:44:07
it over to edit really. And that's kind of the way you can think about it. I don't think that's going to make the flood control or 00:44:13
the library. 00:44:18
No, and and honestly you have a very low level income tax rate. You've got some room there. Even if you increase it by .2%, you 00:44:25
know for EMS let you're still going to be on the low end. 00:44:31
So. 00:44:37
To me, it looks like you have opportunity, but yeah, you got to be aware of that. If you do something like this right, there's 00:44:38
going to be some people that are not going to be speaking. 00:44:43
And and also I want to mention something else because I did look at like the cities. 00:44:48
Debt. Outstanding debt. 00:44:54
They are using local income tax to pay about $1.4 million a year on on their debt payments. So if you take on 1.3 away from them, 00:44:56
that's going to that's going to hurt. 00:45:02
I'm just bringing that out because in the statute even says that. 00:45:10
You wouldn't be able to do that if it's going to cause them to not be able to pay them. I think they could still pay the debt, but 00:45:13
I think it's going to be. 00:45:16
It's gonna be a challenge. 00:45:21
I don't understand. 00:45:23
I know they tip everything they can tip. 00:45:26
They're paying a lot of debt with Tiff. They are they that's other. This is additional debt. They have got a lot of debt. This is 00:45:29
just debt that's supported by low income tax. They also have debt that's supported by tax. Incorrect finance. You're right, they 00:45:36
do. It's a different. They have like 3 bonds that are just supported with local income tax. They're at it to be specific. 00:45:44
So I'll just say for me this looks like a no go. 00:45:52
Just solved. There's some. 00:45:56
Talk here. 00:45:58
I yeah, it's, it's great that we taking a look at it, but I just, I can't see we were talking initially if we, if we did something 00:46:00
like this, we would rebate back to help some of these out. But it's going to be it's going to be a watch. 00:46:07
New Albany Township to be a little left on the boat. On the boat, you know, if you're going to say well. 00:46:21
The library or whatever. 00:46:27
It's a lot of, it's a lot of moving parts for not a lot of man. 00:46:33
Three weeks. Just my my take on this. 00:46:44
I appreciate the analysis. 00:46:48
It was good to take a look at. 00:46:51
Right. We had hoped it would be more like 5 or 600,000. Then we need to take a serious look at it, but I don't think. 00:46:55
Right. 00:47:05
And it and it could cause a net tax increase for citizens because. 00:47:09
Other departments may say, well, now we have to. 00:47:15
Increase our revenue. So I don't, I mean at this point. 00:47:19
OK. Any other questions on these scenarios? 00:47:29
Well, I have a question but not on the scenarios. 00:47:33
Do you want to go over the mid year? 00:47:36
It's about the EMS. 00:47:43
Tax, OK, let's let's do this mid year. 00:47:46
Let's finish up the. 00:47:50
Tax. 00:47:51
There's no need. It's just a quick. It's just a quick, it's a quick question. I haven't read the statute in a while. 00:47:54
Does this, does the county have to pass that in specific increments or can we pick whatever percentage of it up to two, up to .2%? 00:48:00
I thought that most of those are .1. We either have to do the .1 or the .2, either one, right? There's no other option. I can just 00:48:12
tell you that most of them are .1. I'd have to go back and look at the statue. Let me see if I have that in here. That's, that's 00:48:18
all. I do not. 00:48:23
I'm not an attorney, but that's what I remember is it's either half or the full rate. It's either. 00:48:30
Maybe I I just don't know. I'm sorry. I don't. I don't have that word anymore. 00:48:37
Yes. All right. So now I, I don't have a lot of information to share, but I do have kind of a mid year summary. 00:48:45
So there's two pages to this. The first page is 2024 right now. So this is basically showing you what we are projecting to happen 00:48:56
to year end based on your 630 information. 00:49:04
So I have all of your major funds on here. Let's start with county general. 00:49:13
First column is actual that you started the year in general with 3.7 million. 00:49:17
We're estimating receipts of about 19,000,000. Your budget as it stands now with any adjustments, additionals, etc. 00:49:23
Is about 19.9 million. 00:49:32
So I looked in the past and you do spend pretty close to 100% of your budget in general. 00:49:34
And you're on track to do that because if you look to the far right hand side and column G, it says you have spent 46.9% of your 00:49:41
budget and it's in green because that's typical. That's where we would expect you to be. 00:49:48
But if you spend your whole budget, you will use when column E you will utilize 850,000 of cash reserves. 00:49:56
You could find it, but you'll be your cash reserves will go down by 850,000, which will leave you at a 14.4% cash reserve level 00:50:07
and that is slightly below the recommended minimum. We say that you should end the year with 15% of your disbursements. 00:50:16
So would that leave us about two million then? Am I looking at that right? Yeah. If you look at Column D, you should be two 00:50:28
million, 854. So we would eat. OK, We would eat about. I'm not sure that's the whole story. We can get to that in a minute. 00:50:35
Well, I mean, how does that compare to this report that you sent us before? Because your estimate here only showed us have a 00:50:41
929,000 at the end of 2024. That's a major swing of. 00:50:47
So he looked at what you've receded in so far. Most of it was more interest than we ended haven't anticipated. 00:50:54
I don't know how you do it here. If you lump like you do pulled cash, like some counties will pull all of their cash and earn 00:51:34
interest on that or if it's just out of the general fund, I'm going to assume maybe it's a little bit of cash. 00:51:42
I'm pretty sure, but I can't. I don't know what we have so much interest. I think you've earned almost $1,000,000 in interest, I 00:51:50
think. 00:51:54
Yes, he broke that down for seven. 00:51:59
If you're getting 5% interest and you've earned a million, you've got to have. 00:52:03
Big hunk of money. 00:52:12
Out there, something that makes sense to me. 00:52:15
Well, there's a pretty good flow. 00:52:18
From what Steve explained to me. 00:52:20
And I don't know, I haven't gotten the budget in front of me, but. 00:52:25
Is there anything with the miscellaneous revenue that's increased like the sheriff's department's holding of inmates, does that 00:52:29
have any factor in this because it doesn't look like any of that's come in yet. I think that. 00:52:34
That doesn't come in very quickly from what I hear from other counties, but I didn't see very much revenue. Now will it come in 00:52:41
towards the end of the year? Probably because we are projecting that you are going to get some. Are you projecting 350 from state 00:52:46
because that's our, that's our projected almost 400. 00:52:51
I can tell you that at June 30th and the general fund you had 7.4 million. 00:52:57
2-3 yeah, just a couple few weeks ago. 00:53:11
Because we just because we just got our settlement, settlement and it and is about that much. 00:53:17
Yeah, that's why. 00:53:25
So that's not where we're earning the cash app or the interest app. 00:53:28
I mean, there's nothing that I'm seeing in the general fund that we're not, we didn't expect. Now if you don't spend your whole 00:53:33
budget, obviously you're going to you're going to end a little bit better. 00:53:38
So I'm sorry, I know you want to cover some more ground here. I just so I understand this, the F and the G column. 00:53:46
G is we're halfway through the year and we're 3% under. 00:53:54
The halfway mark, but you're anticipating if things. 00:53:59
Go the rate that you think that they're going to go, we're going to spend 17.5% more. So basically we're going to we're going to 00:54:04
end the year at 114.4% of our budget. 00:54:11
Of the 19.885 million, which is what you budget and the reason why I'm projecting that is based on historical information where 00:54:21
you've spent anywhere between 99 and 104% of your budget by doing additional appropriation. 00:54:28
So, yeah, I mean, I hope you understand and if you do that will help. OK. Yeah, that that's what I'm looking at is like the set. 00:54:37
So we, we you have it down here that we, we are anticipating spending for the next six months about 17.5 roughly percent more than 00:54:43
our than our 100% and that would come from additional appropriations. Is that what you're saying? And 100% budget right now your 00:54:50
budget which includes I think some additional appropriations is 19,000,008 eight five and I think you're going to spend pretty 00:54:56
close to that. 00:55:03
OK. If we if we trended 6 months and we're 3% to the good, I don't know how the next six months gets to 17%. Well, you'd be 00:55:11
surprised. A lot of departments will start spending down their appropriations towards the end of the I'm sure there's an 00:55:19
explanation. I just wondered, well, if you add the 14.4 and we're three under. 00:55:27
So. 00:55:36
14.4 is what they say we're going to end over. That's just the general fund. Yeah, OK, OK. But if you go over to column G, it's 00:55:38
3.1% to the good right now, right. So if you add those two together, maybe this will help. You haven't made the $3,000,000 00:55:46
transfer yet. 3 million of what to benefit from your employee benefits. 00:55:55
She's also working off historical that we spend 99 to 104% of. 00:56:06
Absolutely. 00:56:11
You lost me on that very last one. Explain what was the last one she just said? 00:56:15
The pension are employee benefit, that's not included in here. You haven't made that as of June 30th, but we do anticipate that 00:56:20
you will make it. You'll make it. My understanding is you make it towards the end of the year to make sure that you have money to 00:56:27
make that. Are you talking about the spin rate coming in from the transfer that goes to? She's talking about the transfer from 00:56:34
county general that goes into the employee benefit fund to cover the remaining of what the spend rate does not cover. 00:56:41
It hasn't been done and then we do it at the end of the year. 00:56:49
Laura, do we, do we take the spin rate from the Community Foundation? Do we dump it in the General and then make A1 transfer from 00:56:52
General? 00:56:56
OK. So we're making two transfers into the general fund. We make one, one for from the Community Foundation spending rate and one 00:57:06
from general. 00:57:09
All right. 00:57:15
I calculated we'd have to have $40 million in the bank somewhere. 00:57:17
To have $1,000,000 worth of interest at 5%. 00:57:23
Halfway through the year. 00:57:27
40 million. 00:57:29
It's possible. 00:57:31
There's a lot the Treasurer has. 00:57:32
You're talking about grants, you're talking about all kinds of other stuff. So actually the captain ending cash at June 30th was 00:57:36
$38 million. Yeah. 00:57:39
At the beginning of the year was 44 and a half million. I guess we have that. 00:57:44
This is the June 30th. 00:57:50
So. 00:57:53
Other questions on general before I continue. 00:57:55
I mean, I don't need to go into every one of these in detail. I I really don't think I need. 00:58:02
Everybody still trying to process the 3840 million dollars? 00:58:08
The way the auditor and the treasurer explained it to me is. 00:58:14
Yes, it's there and yes, it's a real number. And no, you can't have it like it's, you know, there's 50% of that that is always 00:58:20
there. 00:58:25
To keep the pump proud, you know so. 00:58:31
Funds are always. 00:58:35
You know, to the good. 00:58:37
And it floats up and down. 00:58:39
With expenditures. 00:58:43
But that's not all. But that's not all tax dollar generated money to an extent. It's grant money. It's it's American Rescue Plan. 00:58:45
There's $4.2 million in American Rescue. There's everything. It's it's everything. The county does pass through money. There's 00:58:53
just $5.9 million in city Roads and bridges. Roads and Bridges Project 2024. 00:59:02
I don't know what that is. It's almost $6 million. 00:59:11
Yeah, to your point, Danny, we can't get to hardly any other. You know, it's not ours. It's. 00:59:21
Allocated. 00:59:28
Randy Days 3.8. 00:59:30
Just looking at big ones. 00:59:33
So. 00:59:37
Again, I don't need to go through everyone of these, but if you just kind of look down through here, there's a lot of your funds 00:59:39
that are hitting where we think they should hit. 00:59:43
The one fund that looks like it's going to be underfunded unless we're not calculating all the revenue. I just this lit 00:59:49
correctional fund number 1233. 00:59:55
The only receipts that I can see coming in there is from the local income tax. I don't see any other receipts. Well, you're 01:00:02
budgeting 6.6 million, but you're only going to get 6.1 and you only started the year with 125,000. So I. 01:00:09
It looks like that. 01:00:17
Cannot be funded. 01:00:19
By almost $400,000, So I would just monitor that. 01:00:21
Who's got the sheriff's budget? 01:00:25
Never. I'm sure there, I'm sure Stan is all over this, but. 01:00:29
But yeah. 01:00:35
That's an issue. 01:00:36
That's an issue. 01:00:38
You've got several funds that have really good cash balances. There's only a few that are going below. Well, there's a, there's a 01:00:41
few, maybe about half that are going below the 15% cash reserve. Some of your funds don't spend 100% of their budget. 01:00:47
OK. So although I said on general, yeah, you get pretty close to that. There's some of these funds where I assumed you would spend 01:00:54
100%, but you probably won't and I'm doing that to be conservative. So like what's a good example reassessment They that fund for 01:01:00
whatever reason, they don't normally spend the entire budget. They're at 41% right now. I don't anticipate they're going to spend 01:01:07
that full budget. 01:01:13
Cumulative bridge, you know a lot of that's project driven. They may not spend that whole budget part non reverting capitals only 01:01:22
spent 25%, but that doesn't mean that they're not going to spend that capital of the rest of the year. 01:01:27
So just for purposes of. 01:01:34
Conservative If all the departments spent 100% of their budgets, that's what this would look like. 01:01:37
That. 01:01:44
For next year, double S. 01:01:46
The bad news? After a you know -391 carryover, it grows by another. 01:01:49
3400 after that or total blue. 01:01:57
So yeah, there's gotten some answers to that saying that. 01:02:00
Especially if they're trying to negotiate a contract. 01:02:04
For corrections and that's where it comes out of if that can't sustain it, then where is it going to be sustained? That's a 01:02:06
different conversation for different time, but related related to this here and I assume this 2025 budget number does not include. 01:02:15
The new negotiations, so this 2025 page, which is the second page, we don't have your budget yet. So I just went ahead and said, 01:02:24
OK, well, what would happen if your current budget only increased by 3%? Just so you can just get a rough idea. But what I really 01:02:32
focus on is column B, that that's your estimated receipts for 2025. So if you want balanced budgets, you should try to get as 01:02:39
close to that as possible, at least in your operating funds, capital funds, yes, spend down your cash on capital, that's OK. 01:02:47
But for recurring operating expenses like in the county general, you want to get as close to 18.7 as you can. And I will say this, 01:02:56
there is a piece of information we don't have yet. 01:03:01
And that is the estimated local income tax numbers for 2025. 01:03:08
We just flatlined it, but it's possible they could increase. We should be getting those numbers within the next two weeks. We're 01:03:12
supposed to get them in July from the same. Can you shoot us a e-mail? Yeah, absolutely, absolutely. 01:03:18
And what about the supplemental distribution? You got one of those. You did. Let me see, it was, oh, no, you did not. You did not. 01:03:24
The last time you got a supplemental was in 2022. You did not get one in 23 or 24. 01:03:32
So we didn't. It's already done for 2024 and we didn't get one again. 01:03:41
I do not understand that calculation. 01:03:48
I can send you the paper from the state that shows how they're calculating that. We've been down this road. We've talked to the 01:03:52
people at there was an error. 01:03:57
Yeah, nearly every every county I work with except you has gotten 1 pretty much. I mean, so when? 01:04:04
So big money every year. Yeah. So what happens is the state holds 15% reserve and anything above that they are obligated by law to 01:04:12
distribute out. And your calculation shows that it wasn't above that 15% reserve for whatever reason. I mean, the strange part is, 01:04:19
is our our county is growing like crazy. 01:04:26
So why isn't it going? Hopefully, Sir, it doesn't make sense. I spent an app two years ago, I think it was maybe three. They I 01:04:33
spent an hour on the phone with them, with different officials around the state and. 01:04:40
I think I'm more confused after an hour on the phone with him than I was before that. I'm trying to explain why this was coming. 01:04:47
It was coming and it and it just doesn't make a lot of sense. Question. I have the receipts for the general fund in 25. It's about 01:04:54
$300,000 lower than they were this year, but yet you said maybe a 3% increase. So how does that work? So I increased your 01:05:00
disbursements, not your receipts. The receipts are $300,000 lower because I adjusted the interest. I don't think that high 01:05:07
interest rate is going to continue. 01:05:13
So I adjusted your interest. 01:05:21
So that's why that's the primary reason why your revenue is going down. But the disbursements, I just thought, OK, I'm not going 01:05:23
to flatline your disbursements. I just wanna see if you could handle a 3% increase based on what I'm estimating right now. 01:05:29
But you did include a growth potion in the. 01:05:34
Growth portion, we know what it is now it's 4%. And by the way, in case you're interested, it would have been 5.5% had the 01:05:39
legislation not limit limited the growth. 01:05:45
Can we go back to this interest you said you dropped it by 300,000. I don't know what the exact number is, but that was part of 01:05:52
why the whole the revenues as a whole are dropping for 2020. So what what's the estimated for this year though what we saw? I know 01:05:57
what that comparison is. I don't have that detail with me. I just have the. 01:06:03
Because I'm curious, aren't the commissioners, aren't you going to spend down a lot of our funds before the end of the year? We're 01:06:08
just going to drop that if we, if we pay our, if we use that cares funding we have for the healthcare or whatever else we use it 01:06:13
for, plus any deficits at all eats into it. Plus interest rates. Looks like they're going to lower the interest rates that's going 01:06:19
to drop as well. 01:06:24
So is that going to be enough? Here's what we did for 2024, just to let you know. So you you've received X amount through June 01:06:30
30th. I'm sorry, I don't remember the amount what I did. Instead of saying you're going to receive that same amount the rest of 01:06:36
the year, I said you're going to receive 80% the rest of the year. So I've already filled in a little bit of conservative. 01:06:42
The following year, I'm saying you're going to receive 80% of what you receive for the whole 2024. 01:06:50
So we are, we're backing off. We're backing off on the interest, but I was way too conservative on this report. I had no idea that 01:06:55
you were getting that amount of interest. So that's why the original report showed your cash balance a lot lower. 01:07:02
So it's good news that we are showing additional revenue, but that interest, let me see what you've got an interest. 01:07:10
Yeah, so 899,000 and 2023. 01:07:21
And again, I don't remember what the first six months was, but I had it in my mind that I was thinking you were going to get a 01:07:26
million for the whole year. 01:07:29
So. 01:07:33
I had only, I only projected 320,000 originally and now I wish I would have brought the update. We haven't updated this report 01:07:35
because we wanted to wait to get your budgets for 2025 to put them in this model to see where you stand. We don't have those 01:07:40
budgets yet. 01:07:46
Other questions? 01:07:56
Well, I guess what I would say is. 01:08:01
The cash balance in. 01:08:04
The General Fund will sustain us through 2024. 01:08:07
And based on these numbers. 01:08:13
We'll still have $1,000,000 left in 2025. 01:08:19
If you increase your budget by only 3%. 01:08:24
Yeah, so. 01:08:28
We don't need to react to that. 01:08:31
I mean, look, we're, we're eating into our cash all the time, but it's. 01:08:34
Actually, I'm glad to see this because I thought it was worse than worse than this. 01:08:41
I thought we were eating into our cash to the point in 2025 where we had no cash left. 01:08:46
At the end of 2025, but it looks like we will and that's what we had originally. But again, we were able to oh cut. So that's why 01:08:52
I had this, OK, we were able to update the revenues and. 01:08:58
You did, you did make it a reduction. You made a reduction in your appropriations too of like 600. And so it'll be interesting to 01:09:06
really get the 2025 budget numbers in and see if we have enough cash to sustain. 01:09:13
Increase by a lot they could. So those pieces of information are going to be valuable to put into this report. Then we can see 01:09:22
what you look like and when do we anticipate doing that again. 01:09:27
When? When are you gonna have your budgets ready? 01:09:34
That's the only thing I need is the proposed budgets and then I can come back and we need to have that before our budget meetings. 01:09:37
When are when is our budget? 01:09:42
September that. 01:09:48
We can probably get to level ones next. Yeah, if you want to provide me and then I can do a summary sheet and I can update this 01:09:52
this. 01:09:56
Yeah. 01:10:06
We just haven't met with the department yet, but we can get you the level 1 numbers. 01:10:08
Yeah, OK. 01:10:13
Good, yeah. 01:10:15
I would I would like to shoot for having another. 01:10:17
I don't know, maybe we even need the full report like you gave us the first time with the new budgets in them. 01:10:23
I I don't know the end of August. 01:10:31
Do you all think it needs to be sooner than that? 01:10:37
September 10th is our. 01:10:45
Budget meeting where we meet with every department, we take a whole day and. 01:10:48
Can you do it by mid August and get them to you? Yeah, it's actually going to be pretty quick because we already have the model 01:10:53
set up. I just need those numbers and yeah, mid August. 01:10:58
Can you can you forward the level 1 numbers so she can put but they need to be right. I know they're not quite right yet. 01:11:06
Into county general is the amount that will also be divided up into judicial list. 01:11:16
That hasn't been done yet 'cause we don't know exactly how much. 01:11:24
That will be as soon as we know and Diana will, you know, take that out. So it's going to be. 01:11:29
What 1.7 they? Isn't that what we had? 01:11:35
So I mean, it's plug and play. So we can, we can get an initial. Oh yeah. 01:11:39
But I, I think it's important. I mean, if it's that much money, we need to, we need to make sure we get those numbers right before 01:11:44
we send them to her and we should before the middle of August. 01:11:49
So do we have the New South, any increase that's already been improved up to date included like the prosecutors, the public 01:11:59
defender? 01:12:03
Are those included? Yeah. Are those included? 01:12:09
Whatever they submitted. 01:12:12
Yeah, but I don't know what they've submitted. 01:12:14
I'm sure, Jim, they submitted whatever they got this year and they added three. Did we say 3%? 01:12:18
22, did we say two? Yeah, everything's probably assumed that a 2% rate. So I think whatever they got this year and then a two on 01:12:23
on top of it. 01:12:27
Gloria or. 01:12:34
We'll get those to you and just. 01:12:35
OK, that will you. 01:12:41
We'll probably send several revisions to you. Yeah, no, it's super easy to update now that we have this. And hopefully we'll have 01:12:47
local tax numbers in the next couple of weeks because I could. I mean, that could make a difference. Well, that's what she said. 01:12:55
Any other questions for page or discussion for us? 01:13:07
Motion to adjourn. 01:13:13
2nd. 01:13:15
We have a 10 AM. 01:13:17
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