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Event transcript
Thank you. 00:00:03
So welcome to the first official meeting. 00:00:05
Of the must. 00:00:09
The municipal unit strategic task force and we do have everyone. 00:00:11
Present that's on the task force, so that's much appreciated. 00:00:15
We do have a sign in sheet coming around. 00:00:19
I think most everyone is signed up, but I'll have you all sign it up. 00:00:22
On the task force as well. 00:00:25
Before you leave. 00:00:27
So tonight. 00:00:29
We're going to just talk about a few things. One is that we're going to recap a little bit of what was discussed at the last 00:00:31
meeting. 00:00:35
Well, the main thing that we're going to go over tonight is some foundational information for you. We did run a baseline financial 00:00:39
analysis, so a local income tax analysis and I'm going to run through that with you and get your initial thoughts. 00:00:47
Um, and then. 00:00:56
There won't be a whole lot to discuss tonight beyond that, but again, this will be a good opportunity to give you some 00:00:57
foundational information. 00:01:01
So you can go to the next slide. 00:01:06
So. 00:01:09
We're going to go through just a recap of our initial session. We're going to review the process itself, the outcome of the 00:01:11
process. 00:01:15
We're going to establish some task force expectations, So what you can expect during each one of these meetings. 00:01:20
We're going to review and approve the meeting schedule. We do have that set up right now, but if there's an issue, please let us 00:01:27
know. 00:01:31
We're going to present that preliminary financial modeling and just get your initial reactions. 00:01:35
Next slide. 00:01:41
Oh, I'm sorry. 00:01:42
I'm sorry, I do have a clicker so I will do it myself. 00:01:43
Thank you. 00:01:46
So our objective, or the objective of the must is to evaluate. 00:01:47
All of this information together there should be a collaborative effort. 00:01:54
As you know, Banker Tilly is going to guide you through this process. 00:01:58
Over the coming meetings, we are going to review the financial data. We're going to evaluate the service impacts to varying levels 00:02:02
of. 00:02:06
The various local government entities. So the next meeting. 00:02:11
Baker Tilly will bring information about the budgets. 00:02:16
And the local income tax revenues that are currently received by the other taxing units, the overlapping taxing units in the 00:02:20
county. So the townships, yes, the municipalities, the schools, the libraries, so that you can see how. 00:02:27
Those entities are currently funding their budgets and most importantly, how much local income tax are they using to fund their 00:02:35
budgets? That's going to be very important for you all to know as you go into this process. 00:02:41
We're going to discuss various allocation scenarios. So tonight. 00:02:47
We're providing A baseline and we're assuming that the tax rates will be adopted at the Max. Certainly you don't have to do that, 00:02:51
but this is a place for you for us to start. So you can see what that. 00:02:56
Type of revenue, what would be generated under that? 00:03:01
Scenario. 00:03:05
We are going to assess long term sustainability now. We know there's going to be winners and losers. 00:03:06
In this process. 00:03:13
Or in the structure that you all agree upon. 00:03:14
But we're going to try to. 00:03:17
Come to some middle ground to where there is some. 00:03:20
Sustainability there. 00:03:23
We're going to develop some recommendations. So you as the task force will develop some recommendations. You will put that in. 00:03:27
Report that we will submit to the DLG. 00:03:34
So this next slide is the project. 00:03:39
Road map and we did initially talk about it at the last meeting, but I want to quickly go through this with you. So this outlines 00:03:44
each of the steps we we see this being. 00:03:49
A4 phase process. 00:03:54
So the initial phase was to have that work session. 00:03:57
Where we kind of educated you on the legislative changes and we will continue that education process as we go through these must 00:04:02
meetings. 00:04:05
Phase 2 is the official formation of the task force, which that is our first session tonight. So you are officially formed as a 00:04:10
task force. 00:04:14
And everyone is here and present on that task force. 00:04:19
After we go through some of these scenarios tonight, we're going to go right into the negotiation process, which really all that 00:04:24
means is we're going to review. 00:04:28
And evaluate. 00:04:33
Scenarios. 00:04:34
And try to determine. 00:04:36
The best approach to this taxing structure starting in 2029. 00:04:37
And then the final phase again is developing that formal report that we will submit to the Department of Local Government Finance, 00:04:44
who will then. 00:04:47
Submit that to the Legislative Council and all of that needs to be done prior to December the 1st. 00:04:51
So this is the meeting schedule that we have. 00:05:00
Put together, we want to try to stick to this meeting schedule because we have this room. 00:05:02
That is. 00:05:08
Scheduled and. 00:05:10
Right now this seems to work best for everyone. 00:05:12
So what I would say here is that. 00:05:16
If. 00:05:18
There's any task force members that cannot attend one of these meetings. You can designate someone to attend in your place as long 00:05:19
as we're not going to be voting on anything that evening and honestly. 00:05:25
The way I see this happening is you probably won't vote on anything until the very end. You'll vote on the report. 00:05:31
Umm, that you're going to submit to the state, but. 00:05:38
As we get through here, if you want to vote on various aspects of the report, we can certainly do that as well. 00:05:41
Yes. 00:05:48
You think these are all off by a day? 00:05:52
Oh my gosh, yes, you're right. 00:05:56
Hmm, OK. 00:06:01
Sorry about that. 00:06:02
We'll get that corrected. 00:06:03
It's it's Thursday, so. 00:06:06
Yeah. 00:06:08
Yes. 00:06:09
OK. Sorry about that. 00:06:11
I don't know how that happened. 00:06:13
I will correct the schedule and just send you out one schedule of the actual dates of the meetings. Apologize for that. 00:06:15
I have no idea how that occurred. 00:06:23
OK. 00:06:27
Next slide. So this is the. 00:06:29
The official task force roster, so obviously we have Danny Short as a representative of the County Council. 00:06:31
Linda Mueller as the controller of New Albany, Julia Keebler as the clerk treasurer of Georgetown and Jack Trevillian as the clerk 00:06:39
treasurer of Greenville. 00:06:44
All right. So some expectations and protocols. We don't want this to be super formal. This is not like a council meeting or a 00:06:55
board meeting. 00:06:59
Uh, we want to have. 00:07:03
You know, respectful conversations. We want to make sure that everyone's comfortable providing input, and that includes people in 00:07:05
the audience as well. 00:07:09
Obviously we want to get through our agenda items, but if anyone in the audience has questions or wants to provide input. 00:07:13
I feel like that should be something that we can handle as long as. 00:07:20
Time is permitting. 00:07:24
All of the participants of the task force should commit. 00:07:26
To attendance, hopefully again, if you cannot attend, you can designate someone that that is no problem as long as we're not 00:07:29
committing to a vote that evening. 00:07:34
Discussions should remain professional. Obviously, we know that each entity has their own unique priorities. 00:07:39
Completely understand that, but what we want to try to guide you to. 00:07:46
Is to take this approach that's county wide. We're trying to get a county wide plan for this local income tax structure. So we 00:07:50
want to make sure that yes, we focus on the municipalities, we focus on the county, but we also need to remember the townships, 00:07:56
the fire and EMS providers, the schools. 00:08:02
So we will continue to bring the focus back to a county wide local income tax structure. 00:08:09
Our goal is to share all the information. 00:08:19
Prior to the meetings, we will send out the packets of information and the agenda. We've done that the last two meetings. We will 00:08:22
continue to do that. 00:08:26
And we're going to make sure that our discussions and the decisions we make and the report that we generate is grounded based on 00:08:31
financial data. 00:08:36
So again, that's where we come in. We can run as many scenarios as you would like. 00:08:41
I can even bring in my computer and we can run live scenarios as we're going through the discussions. 00:08:46
So as far as some meeting protocols. 00:08:53
We're going to follow a structured agenda. 00:08:57
And again, we will provide that in advance and that is to keep the conversation moving in the right direction. I'm sure the fewer 00:09:00
of these meetings. 00:09:04
As possible is going to be best for you. We don't want to have this go on through the end of October. 00:09:09
So we're going to have structured meetings and we're going to have goals at each meeting and we're going to build on those 00:09:15
meetings as we go. 00:09:19
I know the statute, and I mentioned this the last time, requires unanimous approval of this document of this local income tax 00:09:24
structure. 00:09:28
But. 00:09:33
If we don't get unanimous approval from the task force members, that's OK. 00:09:34
We're still going to document that in a report and we're still going to submit that report because I that's going to be important 00:09:39
information for the legislature to know why you didn't reach a consensus if that's the case. 00:09:44
We know there will be competing viewpoints. We're going to try to summarize those as we get to those and circle back on them and 00:09:51
again, try to find some common ground. 00:09:56
Umm, we do recommend there's some sort of documented summary of each. 00:10:03
Meeting it might be minutes or otherwise, but that's up to you if you want to do that. I don't this is being recorded right? 00:10:08
Can we generate? 00:10:15
Some summary or OK, well that's good enough then, as long as somebody can go back and look if they wanted to. 00:10:16
About the meetings. 00:10:23
The meeting information. 00:10:25
All right, so we're going to dive right into the preliminary financial information, but. 00:10:27
As a starting point. 00:10:33
Um, we want to show you where you are right now. 00:10:34
So. 00:10:38
Floyd County has a total local income tax rate of one point. 00:10:41
8-9 percent. 00:10:46
That is comprised of multiple buckets. And I know I went through this last time, but I just want to reiterate just so you can see 00:10:48
what the starting point is. So they're certified chairs and remember that is deposited in the general fund of each taxing unit in 00:10:53
the county. 00:10:58
That rate is .75%. 00:11:03
And it generates about 22.8 million. 00:11:05
That 22.8 million is distributed to the units based on their proportionate share of property tax levy to the total levy. 00:11:08
So if if one unit. 00:11:17
Has. 00:11:19
30% of all levees in the county, they're going to get 30% of that 22.8 million. That's how that works now. 00:11:20
How was that different to the new structure? Very different because. 00:11:27
The new structure will be based primarily on population. 00:11:31
So completely different allocation method. 00:11:35
Public safety is a .5% rate and that is distributed only to the county unit. 00:11:39
And the municipalities? 00:11:45
And that is also distributed based on levy, your proportionate share of levy. 00:11:47
Economic development. 00:11:53
Also. 00:11:54
Only distributed to the county unit and the municipalities. 00:11:56
The adopted rate is .3%. It generates about $9.1 million. 00:11:59
And although the name says it's for economic development, it can actually be used for any legal purpose of of the municipality or 00:12:05
the county. 00:12:09
Correctional Facility is very specific. 00:12:14
Obviously can only be used in connection with the Correctional Facility. 00:12:17
That .2%. 00:12:21
The 6.1 million that it generates. 00:12:22
All goes to the county unit of government. 00:12:25
Judicial system, same thing. That all goes to the county unit of government. 00:12:28
.04% is the rate and it generates 1.2 million. 00:12:33
So those are the main expenditure rates. 00:12:37
And in total there's 54 point. 00:12:40
4 million that is distributed to the units. 00:12:43
And the county unit of government. 00:12:47
That rate is 1.79%. Now the reason why I. 00:12:50
Segregated out the expenditure lip. 00:12:53
Is because those are true distributions to the units. 00:12:56
There's also another form of local income tax here in this county. It's property tax relief. 00:12:59
That rate is 0.1%. 00:13:06
That isn't. 00:13:08
Distributed. 00:13:09
As. 00:13:10
Local income tax to the units. Instead, it's distributed as part of the property tax distribution. 00:13:11
So you don't necessarily see it. 00:13:18
It just flows in with your property tax distribution, so. 00:13:20
We're kind of setting that aside when we do this analysis tonight because that's not something that the units are using. 00:13:24
That's specifically local income tax. It's basically property tax replacement. 00:13:31
The taxpayers get a credit on their tax bills, and this is what funds that credit. 00:13:35
Now it's important that you know that. 00:13:41
All of these are going to expire at the end of 2028. 00:13:42
So what that means is when property tax relief. 00:13:48
Lit goes away. 00:13:52
Pretty much all of the taxing units within this county is going to see some level of increase in property tax credits, so you'll 00:13:55
see a reduction in property tax revenue. 00:13:59
So we kind of have to think about that as we go through our meetings and our discussion because we need to try to replace that. 00:14:05
Lost. 00:14:12
Property tax revenue. 00:14:13
With this local income tax. 00:14:14
Alright, so now. 00:14:18
As far as the new structure, again, I know this is repetitive, but I think it's important to go through this. 00:14:20
The new structure is what we're seeing on this screen here. So we have a county services local income tax of 1.2%. 00:14:27
That will be under the authority of the County Council. 00:14:36
And that distribution will go directly to the county unit of government. 00:14:40
To be used for anything that the county desires now. 00:14:44
The county is going to need to use that to fund what's currently funded out of public safety. 00:14:48
Economic development. 00:14:53
Correctional Facility. Judicial. 00:14:55
And the general fund. 00:14:57
So that portion is going to need to cover those items that are currently paid from the current list structure. 00:14:59
Fire and EMS is another bucket that. 00:15:07
Is .4% as the maximum that is only to be distributed to fire and EMS providers? 00:15:09
So that would be the county unit. 00:15:17
The municipal fire department. 00:15:19
The fire territories and districts within this county and certain townships. 00:15:21
This distribution or this allocation is going to be based on whatever the County Council decides. 00:15:27
So the County Council is going to have a lot of flexibility in determining how this will be distributed. 00:15:34
The County Council does have to use a combination of service area square miles. 00:15:40
And population. 00:15:45
But you can do it 50506040, you can weight it different ways. You'll see in this initial analysis we waited at 5050. 00:15:46
What we could run a lot of different scenarios to see but. 00:15:55
You're not going to really know what the best waiting is until we provide you with. 00:15:58
What all the fire departments are currently budgeting for services and what they're currently getting as revenue. So we're going 00:16:02
to provide that. 00:16:07
Uh, the next time around. 00:16:11
Non municipal units. 00:16:15
Although the maximum rate is .2%. 00:16:17
You can only have a maximum of .05% for each unit. 00:16:20
Type. So like the libraries for instance, you can only adopt A rate of .05% and then that's distributed out to the libraries based 00:16:25
on population. 00:16:30
Township same thing .05% for all the townships distributed based on population. 00:16:35
And that is under the authority of the County Council. In fact, all of these are County Council, unless you you are New Albany who 00:16:42
can adopt their own. And we'll get into that in a minute. 00:16:47
So there is a county wide municipal services rate that the county can adopt. 00:16:52
And that would go to all municipalities that are less than 3500 and population and also. 00:16:59
To New Albany if they choose to opt. 00:17:06
In so, New Albany has the ability to opt in to the county wide municipal rate. 00:17:09
Or opt out and adopt their own. 00:17:15
Each one of those rates are a maximum. 00:17:18
Of 1.2%. But the big difference is this, If New Albany adopts their own rate at 1.2%, they're only going to be able to tax the 00:17:20
adjusted gross income of those living within New Albany. 00:17:27
While the county municipal services. 00:17:33
County wide municipal services rate will be taxed on. 00:17:37
The whole county. 00:17:41
And less New Albany. 00:17:43
OS out and then we would exclude that AGI because you you can't. 00:17:44
As a taxpayer, pay 2 municipal lit rates. 00:17:49
They do not stack. 00:17:53
OK, so that that kind of. 00:17:58
Now we can get into the financial analysis. 00:18:00
All right. So we're going to start with the easiest one to calculate and that is the county services local income tax. 00:18:05
So in the first column is the new lit structure. 00:18:14
So we're estimating an adjusted gross income tax of about $3 billion. 00:18:19
We have not included any growth in this. This is based on current because we just thought it would muddy the waters if we started 00:18:26
including growth. Yes, I think your AGI is going to grow. 00:18:31
But we want to compare apples to apples. 00:18:36
So 3 billion. 00:18:38
For the adjusted gross income county wide. 00:18:40
The county can put on a maximum rate of 1.2%. 00:18:43
That would generate $36.4 million and that. 00:18:47
All would go to the county, so the county share would be the $36.4 million. 00:18:51
Currently. 00:18:57
The county's local income tax distribution. 00:18:58
Is. 00:19:01
$24.4 million. 00:19:02
And that is derived from a 1.79% expenditure local income tax rate. 00:19:05
Which generates in total. 00:19:12
$54.4 million, but the distributions again are based on Levy, so out of that 54.4 million. 00:19:13
The county unit gets 24.4 million. 00:19:22
Now, that 24.4 million right now is comprised of certified shares. 00:19:25
Public safety. 00:19:30
Economic development. 00:19:32
Judicial. 00:19:33
Lit and correctional facilities. So it's not just the certified shares. 00:19:34
So if the county would adopt the maximum. 00:19:39
They would get an additional $12 million. That tells me likely the county may not need to adopt the maximum, but that's we're 00:19:43
starting at the Max and then we can run various scenarios based on the county's needs. 00:19:49
Moving on to. 00:19:58
Municipal services. 00:20:00
So again. 00:20:03
We there is only one. 00:20:05
Oh, I guess there's two. I'm sorry, I must have misspoke. OK, so there is 2, There's two municipalities that can opt in or out. 00:20:07
Sorry about that town of Georgetown. 00:20:12
And the city of New Albany. 00:20:16
Um, so those two municipalities have the option to opt into the county wide. 00:20:18
Or opt out. So we did run both options here. 00:20:24
But before I get to that, I just want to. 00:20:29
Go over a few assumptions so you know what's behind this analysis. 00:20:32
So again, and I already said this, but we are. 00:20:37
Using. 00:20:41
Current adjusted gross income numbers of 2026 adjusted gross income numbers, we are not inflating them at all. 00:20:42
That's something you need to know. 00:20:50
We are also using the maximum amount that can be adopted. 00:20:52
For these rates, just as a starting point. 00:20:56
We're not building in, in, in any growth and population changes in salaries and wages or economic expansion because again. 00:21:00
We are trying to show a fixed. 00:21:08
Baseline. 00:21:11
We are also using the 2020 US Census Bureau population because that is what is required of us by STAT. 00:21:14
So those are just a few of the assumptions that you should know as we go into this. 00:21:24
All right, so here is option one. 00:21:30
This is New Albany and Georgetown opt in. So we're saying that they both opt in to the county wide municipal rate and we have 4. 00:21:34
Different rate assumptions shown on here. Just so you can see the various levels, I'm just going to cover them. 00:21:44
The maximum at this point, but you can see we did .1%. 00:21:50
.5%. 00:21:55
1% and 1.21.2 is the maximum. 00:21:56
So right now. 00:22:00
Georgetown. 00:22:02
Currently all the way to the far right. 00:22:03
Is receiving about 434,000 in local income tax and that does include. 00:22:06
Certified shares, public safety and economic development. We just lumped all of those together. 00:22:12
If. 00:22:18
If the county, the County Council adopts the maximum 1.2%. 00:22:19
Georgetown could get. 00:22:24
2.6 million as a distribution. 00:22:26
Of municipal lit. 00:22:29
At 1%, it's 2.153 million. 00:22:32
.5% about 1.1 million and then .1% would be lower than what Georgetown is getting now. 00:22:36
Umm, Greenville. 00:22:44
Would get about 927,000 under the Max. Greenville is currently getting about 28,000. 00:22:46
So quite a bit more. 00:22:54
Under the Max. 00:22:56
Umm, then the city of New Albany they're getting right now, currently in 2026, they're getting 21.9 million of all those combined, 00:22:58
so almost 22 million. 00:23:05
Under the Max they would get 25.7 million. 00:23:13
With 1% it would be a little bit lower than what they're receiving now. 00:23:16
So you can see the various levels here. 00:23:23
The all of the municipalities would benefit at either 1% or 1.2%. 00:23:26
Now we're going to move on to the county unit. 00:23:33
This is. 00:23:37
The county unit actually gets 2 distributions. 00:23:38
They get their county services distribution. 00:23:41
But they also get a share of the county wide municipal local income tax. 00:23:44
So if you look at the county unit. 00:23:51
At 1.2%. 00:23:53
Their municipal share. 00:23:55
Is 7.2 million. 00:23:58
The county services is 36. 00:24:00
Point 4 million which we covered in the previous slide, so. 00:24:03
If you compare that to what the county is getting now, 24.4 million, that's a quite a bit of an increase it would be. 00:24:07
Oh, go ahead. 00:24:14
Question. 00:24:14
What is the makeup of the municipal allocation? What makes that out? 00:24:15
The municipal lit like how is it determined? 00:24:21
So the municipal lip. 00:24:27
Are they're going to go to your general fund? 00:24:29
That's where it will go. 00:24:31
Yes. 00:24:33
So these like, let's look at New Albany so. 00:24:34
If the county would adopt the 1.2% you would get 25.7 million as a city. You can you have to deposit. 00:24:37
All of that within your general fund. 00:24:45
And that should then cover whatever you're paying now out of public safety. 00:24:47
Economic development. 00:24:51
And your certified chairs in your general fund. 00:24:53
So the municipal. 00:24:56
So in that. 00:24:59
Option one. 00:25:01
Mm-hmm 20 5. 00:25:02
And then also in the seven. 00:25:05
You would only get the 25.7 million. 00:25:09
That that's all you would get. 00:25:12
Yeah, it would just be the 25.7 million. 00:25:14
Yep, now the county unit. 00:25:17
Gets 2 shares. 00:25:20
They'll get the 7.2 million plus the 36.4 million for a total of $43.7 million. 00:25:21
That's if they adopt the 1.2 Max. 00:25:30
So just. 00:25:33
You know. 00:25:34
Discussions and other must meetings that I've had. 00:25:35
We've seen where the county kind of makes out way ahead if they adopt the Max. So this is where we can have some discussions 00:25:39
depending on what level you want to go to. 00:25:44
Do you want to try to be able to take some of that county distribution? 00:25:50
And give it to the schools, for instance, who do not get distributions right now that's not permitted by the statute, but that is 00:25:55
something that we can talk about if that interests you as we go down the line because. 00:26:02
Right now the school doesn't have any. The schools do not have any opportunity of getting local income tax so. 00:26:09
I guess. 00:26:15
This kind of brings us to. 00:26:16
Why we're doing this is to let the legislature know that some units. 00:26:18
Are could potentially get way more lit than they need. 00:26:22
While other units aren't getting enough. So how can we redistribute this? 00:26:27
I think that should be part of our discussions as we go forward, even if the statute doesn't permit it now. 00:26:32
That's something that we can put in the report so that the Legislature understands the dilemma. 00:26:38
That there's an issue. 00:26:44
Umm, now as we go through this process, we are going to look at taxpayer impacts. 00:26:47
Because your rate right now. 00:26:54
Is. 00:26:56
1.89%. 00:26:58
Under this new. 00:27:01
A taxpayer could potentially pay up to 2.9%. 00:27:04
So that's a 1% increase. I don't know that the county is going to want. 00:27:09
All of you. When I say the county, I mean. 00:27:13
Everyone combined. I don't know that you want to go up to that Max, that is. 00:27:15
Remains to be seen, but. 00:27:19
We have to determine OK if you do want to go up to the Max or you want to increase it in some manner. 00:27:21
How is that going to impact the taxpayer? 00:27:26
So at least just for the municipal lid, I. 00:27:29
Did put on the bottom line what the? 00:27:32
What the rate is now remember 1.79% is the expenditure let that doesn't include PTRC. 00:27:35
And then what would it look like? 00:27:42
Just the municipal rate, this is not county, this is not all the let's combine. We're just looking at municipal rate right now. 00:27:45
What would that look like for the taxpayer? Well. 00:27:49
At the Max that would be 2.4%. 00:27:53
You know, or you can go 2%, one percent, 1.3. There's going to be so many scenarios that we're going to be able to work through, 00:27:58
but that's another aspect we need to think about. We need to think about. 00:28:02
Can the units fund their services? 00:28:07
Number one. 00:28:10
#2 What is the impact on the taxpayer? 00:28:11
When we make these changes to the let structure. 00:28:15
So we're going to be looking at that as well. 00:28:17
As we go through this process. 00:28:20
Option number 2 is if. 00:28:23
Both Georgetown and New Albany opt out. So another words. 00:28:27
They adopt their own. 00:28:33
Municipal rate. 00:28:35
They're not a part of the county wide. 00:28:36
So that just leaves Greenville. 00:28:38
Well, what happens in that case is that actually? 00:28:40
Causes Greenville to get a little bit more. 00:28:43
It's not a whole lot more, but a little bit more. 00:28:46
But it causes the county unit to get. 00:28:48
A lot more. 00:28:51
Umm, just. And that's just the formula that's in the statue. 00:28:52
So. 00:28:57
The whole point of this is to show you if one or both municipalities opt out and do their own rate, it does. 00:28:59
'Cause changes in what? 00:29:07
The remaining units get. 00:29:09
So with. 00:29:13
With both of those opting out in the scenario, Greenville would get 1.2 again. They're currently getting 28,000. 00:29:14
The Floyd County unit in total would get 58.2 million. They currently receive 24.4 million, so quite a bit of a difference there. 00:29:22
But that. 00:29:32
Kind of tells us that you probably aren't going to need to go to the maximum rates in this county. 00:29:33
Which is probably a good thing, but again. 00:29:38
We're we're far away from really developing that structure as of now. This is just kind of to. 00:29:42
Get you started. 00:29:48
So. 00:29:51
If New Albany. 00:29:52
Opts out of the county wide rate and they adopt their own rate. This is what it would generate in that first column. 00:29:54
We have estimated. 00:30:02
That the adjusted gross income within the city of New Albany is about $933 million. 00:30:03
If. 00:30:13
The city adopts the maximum of 1.2 million. That would generate approximately $11.2 million. 00:30:13
So. 00:30:23
The Cur. 00:30:26
So $11.2 million, that's what it would generate just for the city of New Albany. 00:30:28
Currently, the city of New Albany's distribution is 21.9 million. 00:30:32
The total shares that are. 00:30:38
Generated as 47.1 million, but New Albany only gets a portion of that because, again, it's based on levy allocation. 00:30:41
So you can see that if the city. 00:30:49
Opts out there, they would get considerably less, about $10.76 million less. 00:30:51
This is not unusual to see the situation and that and in fact that's why the legislation was changed because what we found. 00:30:58
Through through many of the counties in the state, there were some larger municipalities that if they adopted their own rate, that 00:31:07
just wasn't going to be enough. 00:31:11
That's a smaller tax base than if we do a county wide municipal rate. 00:31:15
If we look at Georgetown. 00:31:22
With Georgetown, we're estimating an adjusted gross income of about $188.6 million. 00:31:26
At the maximum rate of 1.2%, that would generate about 2.3 million or 2.262. 00:31:34
A million. 00:31:42
And that would all go to Georgetown. 00:31:43
Currently Georgetown. 00:31:46
Is about 434,000 so Georgetown would actually come out. 00:31:48
Ahead in this situation. 00:31:54
And again, it goes back to distributions based on Levy. 00:31:56
Versus population. 00:32:02
That's why there's a big swing there. 00:32:04
So when you think about it. 00:32:06
New Albany is. 00:32:08
Probably. 00:32:10
Pretty high if you could. Well, we know it is. It's higher than Georgetown and Greenville. 00:32:11
Umm, but then when you flip it to population. 00:32:16
It's and look at all the population it's. 00:32:20
The distribution isn't favoring. 00:32:23
New Albany, but it is favoring Georgetown. 00:32:25
So that's why this is kind of fluctuating back and forth, but this should give you a good idea of what's happening here. 00:32:28
So now we're going to look at the non municipal units. 00:32:36
So you've got, let's see, it looks like 4 categories of non municipal units in this county. You've got townships. You've got, 00:32:41
let's see, about 5 different townships. 00:32:47
Remember that. 00:32:54
You, the council the County Council is going to be able to adopt A maximum rate of. 00:32:55
.05. 00:33:00
Per unit type. 00:33:01
It is .2% in total. 00:33:03
But by unit type it's .05%. So if you take that .05% and apply it to the county wide adjusted gross income. 00:33:06
That should generate about 1.5 million for the townships. 00:33:15
OK, but then. 00:33:20
It gets divvied up among the townships based on their population. 00:33:22
So if you look, Franklin Township 29,000, Georgetown Township 210,000. 00:33:28
Greenville Township 143,000, Lafayette Township 155,000 and the New Albany Township, who has the largest population 981,000. 00:33:35
And we can compare that. 00:33:46
With what these townships are currently receiving and local income tax. 00:33:47
And the townships actually make out. 00:33:52
Pretty good, right? 00:33:54
And again, this would be at the Max, so maybe you don't want to go to the Max but. 00:33:55
All of these townships end up getting distributions that are larger than what they are receiving now. You can see the estimated 00:34:00
change in the allocation. It's about 1.3 million in total. 00:34:05
That would be more going to the townships and then what they're getting now. 00:34:11
You only have one library. 00:34:16
That this would apply to. So the .05% everything that's generated by that library, non municipal lit 1.5 million would all go to 00:34:19
the New Albany Floyd County Public Library. 00:34:25
That's a $355,000 increase, again at the Max. 00:34:31
355,000. 00:34:35
Umm, you also have a New Albany flood control and because that. 00:34:38
Special district has a property tax levy. They would be able to get a share of this Non municipal lit. 00:34:43
Again .05% that would all go to the flood control. 00:34:50
1.5 million they currently get. 00:34:55
About $1,000,000. So that's about a $492,000 increase. 00:34:58
And then you have another special unit, the Floyd County Solid Waste. 00:35:03
Would would have the allocation of the point. 00:35:07
.05%. 00:35:11
Yes. 00:35:13
Dissolved in districts in February, so no longer loving taxes. 00:35:16
OK, we will make that correction then. 00:35:21
Because if they don't levy attacks, they're not. 00:35:23
They cannot be get this. 00:35:26
Oh, OK. 00:35:28
OK. 00:35:32
No, that's OK. That's probably not have a small Parks Department. 00:35:33
Small wedding. 00:35:37
I was thinking we had a special special park district that would be fall under the cities levees. 00:35:39
If it's a City Park district, it would fall under the city levels. It's a. 00:35:47
Yes, but. 00:35:53
The way you have to. 00:35:54
A special unit is defined as a standalone legal entity in the park District is under the city. Yeah, yeah. 00:35:56
OK. 00:36:08
So now the fire EMS. This is probably one that is going to require the most. 00:36:09
Time. 00:36:15
And attention. 00:36:16
To determine because there's a lot of moving parts. 00:36:18
So with fire and EMS, the maximum rate that can be adopted is .4%. 00:36:23
But the way that it's allocated to these providers? 00:36:28
Is something that the County Council will need to determine and actually the task force will determine that during this process. 00:36:32
We will put that in the report. So I know the County Council will ultimately adopt it, but this should be a part of the report. 00:36:38
How you all decide is the best way to distribute this. 00:36:44
So just to let you know, here's how we went about the baseline. 00:36:50
So this has to go to fire and EMS providers. 00:36:55
So what we first did is we looked at the budgets, the combined budgets of all the fire providers. 00:36:59
And EMS providers. 00:37:05
And I want to make sure before I go on, are these are all still the current EMS providers I have American Medical Response, no. 00:37:08
Are we already? 00:37:17
So current, yes. 00:37:18
Future No. 00:37:21
OK. 00:37:22
What Highlander Fire Protection districts? 00:37:24
Won't really be providing EMS as standalones anymore there OK EMS taking place. 00:37:27
So the contracts that we hold with America and Highlander expired at the end of this year. They won't. The commissioners have 00:37:34
expressed that they will not be renewing it because we are building. 00:37:38
A county wide EMS OK and I believe it is a firebase EMS. 00:37:43
I. 00:37:47
I have been involved in these meetings but I'm starting to go on overload with the absorption of information. So it is a Firebase 00:37:48
EMS. 00:37:52
And there's a lot of things changing between now and next year that have to do with not just our fire districts, but also our EMS. 00:37:56
OK. 00:38:04
So. 00:38:09
Yes. Future no. 00:38:10
OK, well, that's good to know. So. 00:38:11
Is it fair to say that there will be just one county wide EMS or is that American Medical still going to be? 00:38:14
I don't believe is participating in the county wide EMS. 00:38:21
Correct. So you'll have, you'll have a vendor for New Albany, OK. 00:38:24
Gotcha. 00:38:29
Well, that you do use my Pro. Oh gotcha. OK. 00:38:30
So that will make it a little bit easier if it's narrowed down to just two. 00:38:35
But let me make. 00:38:39
Some notes, yeah. 00:38:40
And also the Highlander Fire Protection District. 00:38:41
Is joining the territory. 00:38:46
Yeah, there's a lot of changes happening in the. 00:38:47
So yes. 00:38:49
To look at that with. 00:38:51
A full territory. 00:38:53
For the whole town, yeah. 00:38:55
Still be out of that so you'll you'll have 21 fire county wide EMS and the New Albany city as a standalone for both of those. 00:38:59
So really what we're going to have is the Floyd County Fire Protection territory we had, we have. 00:39:05
Highlander. Oh, I'm sorry, Highlander. 00:39:11
Kind of listed twice there, but really it's the Floyd County Fire Protection territory, the New Albany Fire Department and then 00:39:15
the county wide EMS and New Albany will be contracting with America Pro. 00:39:21
Got it. OK. 00:39:27
So first what we did at least in this analysis which we will update is that we looked at what is the county wide budget. 00:39:29
For all of fire and EMS services and the county. 00:39:39
Currently. 00:39:42
Then we tried to determine. 00:39:45
Of that. 00:39:47
Combined budget? How much of that is EMS? 00:39:48
So what we roughly calculated is 12% of that entire budget is EMS funding. Now obviously that's going to completely change. 00:39:52
And again, this is just an illustration. So what we did is we looked at OK. 00:40:02
.4%. 00:40:06
Generates about. 00:40:08
You know, over 11,000,000, almost $12 million. 00:40:10
We we took off the top 12% of that and just allocated it to the EMS providers. 00:40:13
Then we allocated the rest 88% to the fire. You don't have to do it this way, but this is kind of how we did it. We can talk 00:40:21
about. 00:40:24
Better ways to do it or what you think might be best, but again, this was just a starting point. 00:40:28
Then we took those buckets like the 10.69 million that we allocated just a fire. 00:40:34
We then used Service area population. 00:40:40
And service area square. 00:40:45
Square miles. 00:40:47
And we? 00:40:49
Awaited those 5050. 00:40:51
Again, just a starting point, but. 00:40:54
I guess the point of all this is that you can see that these scenarios can change. 00:40:56
Drastically depending on how you weight those and how much you want to allocate EMS. Now we could just throw EMS. 00:41:01
Into the bucket with fire. 00:41:07
And just allocate it a straight 5050 or 6040 however you want to do it. 00:41:10
Right now. 00:41:16
You know these at least the. 00:41:18
Fire territory. The Districts. 00:41:20
The districts, I should say the FIRE districts as they are now not combined do get shares of local income tax. So the next time I 00:41:23
come to the meeting, we're going to show you a comparison of. 00:41:28
What they receive now. 00:41:33
And then we'll work through some scenarios of what they might receive under this. 00:41:35
Structure to see if it's enough to cover their needs. 00:41:39
So this one is probably going to be the most complex to work through is the fire and EMS. It's not as straightforward. 00:41:44
And there are a lot. 00:41:52
Of decisions that. 00:41:53
The council will need to make but. 00:41:54
I say Council, under this must process, you all will need to make that, but we, we can help you and guide you through that 00:41:57
process. 00:42:00
I have a question. 00:42:04
Mm-hmm. 00:42:06
How does How do you later on? 00:42:08
The property tax. 00:42:11
So that you are adding. 00:42:13
Uh, the lead and the property tax together to get to a total budget and I don't see anything in here. 00:42:16
That sort of layers look to together. 00:42:23
So. 00:42:25
As far as LIT is concerned, we can show you what the potential losses of property tax are from Sea One. 00:42:27
And then from that we can determine what rate do you want to set these local income taxes at to cover those potential losses? 00:42:35
If you're going to try to use local income tax as a property tax replacement. 00:42:42
We're we can provide that information to you. 00:42:47
What are other counties doing that? 00:42:50
I have some moscavities that do want to do that. Others are saying we don't want this to be used as a form of property tax 00:42:53
replacement. So it's really up to what you want to do. I can next time bring you. 00:42:58
What we estimate is the loss due to Sea One. 00:43:04
And filling in that loss now I will say. 00:43:08
We have. 00:43:11
Then running parcel level analysis. 00:43:12
And what's interesting is, yes, the property tax credits do go up. 00:43:15
And 2728. 00:43:20
When we get to 29, there's as a. 00:43:23
Significant bump because your PTRC is going to go away, but then guess what happens? It starts coming back down. 00:43:26
The property tax credits actually start coming back down after 2029. 00:43:32
Why is that? Because. 00:43:37
That of the changes and not assess value, and the growth and not assess value. 00:43:39
What we're finding is. 00:43:43
There's not a whole lot of property tax relief provided from this bill. 00:43:44
Surprise, surprise. 00:43:50
So yes, we we could provide that information. It is important. I agree. It's important. It's important. 00:43:54
Relevant. It is relevant. 00:43:59
It is relevant. 00:44:02
That'll show the impacts to. 00:44:04
Oh, absolutely. 00:44:06
Absolutely. 00:44:08
Yup. 00:44:09
Yes, we can show that I'm sure we want property tax relief. Or do we just want to understand what the. 00:44:11
So you add your lead, your property tax together, you know your total budget. Make sure that. 00:44:19
Got the money that you need, right? The sustainability. 00:44:24
To cover whatever budget you have. 00:44:28
That's the my simple mind. Mm-hmm. 00:44:33
Some some committees are looking at that and def. I mean. 00:44:41
I'm at the whim of what? 00:44:45
What you would like to see? So yes, I do agree that's important and we can bring that the next time we we come. 00:44:47
But you want to see what the losses are. 00:44:55
Yeah. And I, I don't think the losses are as significant as we had originally. 00:44:58
Thought but. 00:45:02
There are additional losses. 00:45:04
That, umm. 00:45:07
So moving on to the next slide. 00:45:09
So we this is a. 00:45:15
Overall summary. 00:45:17
Of what I just talked about. 00:45:19
OK, but I thought it was. 00:45:21
Kind of an easy way to look at this. I think it goes on. Yeah, 2 pages. 00:45:23
But what you're seeing here is in the first column. Here's what all these units currently receive. 00:45:28
And local income tax. 00:45:35
That's current so you can see. 00:45:38
Comparison. 00:45:40
The next column is the estimated local income tax at the Max. So something I want to bring your attention to right now is that the 00:45:42
first column is 1.79%. 00:45:47
That's all your local income taxes except for the PTRC. We set that aside for now, but if you want to know what the PTRC rate is. 00:45:53
Included with this, it's about 1.89%. 00:46:00
OK, so these are the expenditure lids 1.79%. 00:46:03
At the Max, not any single taxpayer can pay more than 2.9%. 00:46:08
But there could be some taxpayers that pay something different depending on where they live. 00:46:14
So, for instance, if Georgetown goes out on their own and adopts their own lit. 00:46:20
And let's say they don't adopt the Max, they adopt .9%. 00:46:25
But. 00:46:29
The county. 00:46:30
Does the county wide municipal. 00:46:32
At 1.2%. 00:46:34
If I live in Georgetown, I'm going to pay lower. 00:46:36
Total local income tax rate in that example than I would if I live. 00:46:39
Somewhere else. 00:46:43
In the county. 00:46:45
That is completely different than what we know today, because today. 00:46:46
Every person that lives in this county pays the exact same local income tax rate. 00:46:50
We could have a situation where. 00:46:55
A taxpayer might pay a different rate. 00:46:58
Now, if you all strongly feel that everyone should pay the exact same rate, we'll try to structure it that way. 00:47:01
But I want you to know that it is possible. 00:47:07
That you could have people paying different rates. 00:47:10
We also. 00:47:15
On the. 00:47:17
4th column over the second to. 00:47:18
Second column from the end. 00:47:21
Of the right hand side. 00:47:23
We tried to tell you what would be a neutral break even rate. Now, not everybody is breaking even here. 00:47:26
But this was as close as we could get, so if you wanted. 00:47:34
Everyone. 00:47:37
To get about what they're receiving now again, we couldn't make it perfect because we can't. 00:47:38
Give different rates to each taxing unit. We could only do it by grouping. 00:47:44
We are looking at a rate of about 2.23%. 00:47:49
And that doesn't. 00:47:53
Include. 00:47:54
Trying to make up for losses on. 00:47:55
The sea. 00:47:59
Stuff. 00:48:00
So. 00:48:02
Again. 00:48:03
As close as we could get, 2.23% would be sort of breaking even, but again, not everybody is going to break even. 00:48:05
I think. 00:48:13
You know the townships make out. 00:48:13
Pretty well, I think. 00:48:15
And some of the other units. 00:48:18
But I don't want to lose sight, and I've said this a couple times of. 00:48:20
The units that don't get local income. 00:48:25
Primarily the school. 00:48:27
So the other Musk. 00:48:29
Committee that I'm working with right now, they are all feel very strongly that the school needs to get a distribution somehow, 00:48:31
some way, whether that's an interlocal agreement. 00:48:36
Or building in some sort of ability to have a rate for the schools right now that's not in the statute. 00:48:41
Not to my knowledge. 00:48:58
Yeah, local income tax is not the only source. They do get property tax, but that is getting reductions just like all of you from 00:49:02
Sea One. 00:49:07
But here's the hope. 00:49:12
That when we turn in these reports. 00:49:14
The the must committees that did include something for the schools. What that something is remains to be seen. 00:49:17
We hope that the Legislature will take that under consideration as they go into the 2027 legislative session. 00:49:23
We This is the first time we've. 00:49:31
Have been able to provide input. 00:49:33
Before legislative session. 00:49:35
No. 00:49:39
No, I don't know if the. 00:49:40
If any schools. 00:49:42
There's nothing right now. 00:49:44
Mm-hmm. My CFO, no other. 00:49:47
This is the only Ave. that they that they've provided us and even then. 00:49:50
They said there's no guarantees. Obviously it's up to the up to the group. So the only, the only thing that we've heard is if you 00:49:55
want more money, you have to referendum so. 00:49:59
That's that's what they tell us so. 00:50:04
We certainly don't want to do that. We don't have to. 00:50:06
Because that's outside the taxi. 00:50:09
So again, that's where it comes back to let's think of the county holistically. 00:50:16
And and that's what you all should be doing. 00:50:21
And then this last page is just a continuation of the libraries and the special units and the fire and EMS providers and again, 00:50:25
trying to. 00:50:29
Get as neutral as possible over to the far right. But then you can also see the comparison as we saw in the previous slides of. 00:50:33
Here's what these units are getting now. 00:50:38
Umm, and then what they would get going into the future? 00:50:44
The next slide is just some assumptions we use. I already talked about that as I went through the slide. So here is the tax. 00:50:52
Liability impact Just an illustration of what we. 00:51:00
Have put together thus far because I just want you to get an idea of what. 00:51:03
The taxpayers currently pay under your current local income tax structure and what it might look like. 00:51:08
Under an alternate. 00:51:15
Income tax structure. 00:51:17
So in this county, from the data that we could find in the US Census Bureau, the adjusted gross income in this county is about 00:51:19
79,000. The average adjusted gross income. If you think that's high on the high side, we also did provide some other some other 00:51:24
examples. 00:51:30
So let's start with this $40,000 adjusted gross income. 00:51:36
So this would be what you pay your taxes on. 00:51:40
Umm, under the current structure. 00:51:45
This person would pay $756 from a whole year but. 00:51:47
Monthly from the paycheck it would be $63. That's current. 00:51:52
If you went to the maximum. 00:51:56
This person would pay an additional $400.00 a year or an additional $34 a month. So it would go from $756 to $1160. That would be 00:51:59
the Max. 00:52:05
But under that neutral. 00:52:12
Um, the increase would be about $136 or monthly about $11.00 increase per month. 00:52:14
That just gives you kind of a flavor of how this might impact someone. Now we'll look at the $79,000 one. Currently, that person 00:52:21
pays about $1500 annually, which is about $124.00 a month. 00:52:28
If if you would go to the maximum, that would be an increase of almost $800. 00:52:35
Or $67 a month. 00:52:40
Under the neutral plan. 00:52:42
That would be an additional $269 or $22.00 for the mom. 00:52:45
So you can see the other examples there. 00:52:50
So we are going to be mindful as we go through this process how it impacts the taxpayer as well. 00:52:52
And we will include that in the report. 00:52:59
Any questions about that before I move on? 00:53:04
So that really concludes the financial portion of it as we move forward. 00:53:08
We really need to look at which services or operations appear to be most sensitive to the allocation changes. 00:53:15
You know the townships. 00:53:24
I think they kind of make out ahead, but we're, we're, I think we're going to see some sensitivity is maybe with the fire and EMS. 00:53:27
And. 00:53:34
Potentially with municipalities depending on whether the two opt in or out. 00:53:35
What additional information may be needed when I come next time I am going to have? 00:53:41
The budgets of all of the overlapping units, the revenues of the overlapping units, so you can see how they're funding things now, 00:53:46
not detail, but just. 00:53:50
Big picture. And then how much? 00:53:55
Of the local income tax is funding each of the units because with townships. 00:53:58
Most of their fire services are funded with local income tax, so you need to have an understanding of that and we will provide 00:54:03
that. 00:54:07
Umm, what long term concerns should we be incorporating into the future scenarios unlike Denise mentioned? 00:54:10
We will incorporate the potential impact of Sea One with the property tax loss or the revenue decline. 00:54:19
Property tax revenue decline due to the phase in of the credits through Sea One. 00:54:27
And then whatever additional assumptions you want to be included, we will include those. 00:54:33
So the next steps really is to. 00:54:40
Kind of review the information that I provided to you. 00:54:43
Be thinking about. 00:54:47
Things that. 00:54:49
Maybe you want Baker Tilly to provide other than what I mentioned so far, so maybe I should start out with that. 00:54:50
Will the information that I said I would bring next time, will that be sufficient for us to have some conversations about? 00:54:56
Where we want to go? 00:55:03
What? That's OK. 00:55:04
Any other items you think would be helpful as you? 00:55:07
Walk through this. 00:55:12
Could you provide something? 00:55:19
I was gonna ask if there's anything that I know Chris Street will be here next time with my CFO, be with me next time. We've done 00:55:23
some significant deep dives with some different. 00:55:27
With some, with some. 00:55:32
Financials as far as. 00:55:33
How I see a one is affecting us. 00:55:34
How this this the lift? 00:55:37
Mm-hmm. Affecting us, but then also we've got a third that's going to kick in too, where we share. 00:55:39
A lot of our operations dollars with. 00:55:43
Some charter schools in the area as well. So those are changes we're getting. 00:55:46
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Transcript

Event transcript
Thank you. 00:00:03
So welcome to the first official meeting. 00:00:05
Of the must. 00:00:09
The municipal unit strategic task force and we do have everyone. 00:00:11
Present that's on the task force, so that's much appreciated. 00:00:15
We do have a sign in sheet coming around. 00:00:19
I think most everyone is signed up, but I'll have you all sign it up. 00:00:22
On the task force as well. 00:00:25
Before you leave. 00:00:27
So tonight. 00:00:29
We're going to just talk about a few things. One is that we're going to recap a little bit of what was discussed at the last 00:00:31
meeting. 00:00:35
Well, the main thing that we're going to go over tonight is some foundational information for you. We did run a baseline financial 00:00:39
analysis, so a local income tax analysis and I'm going to run through that with you and get your initial thoughts. 00:00:47
Um, and then. 00:00:56
There won't be a whole lot to discuss tonight beyond that, but again, this will be a good opportunity to give you some 00:00:57
foundational information. 00:01:01
So you can go to the next slide. 00:01:06
So. 00:01:09
We're going to go through just a recap of our initial session. We're going to review the process itself, the outcome of the 00:01:11
process. 00:01:15
We're going to establish some task force expectations, So what you can expect during each one of these meetings. 00:01:20
We're going to review and approve the meeting schedule. We do have that set up right now, but if there's an issue, please let us 00:01:27
know. 00:01:31
We're going to present that preliminary financial modeling and just get your initial reactions. 00:01:35
Next slide. 00:01:41
Oh, I'm sorry. 00:01:42
I'm sorry, I do have a clicker so I will do it myself. 00:01:43
Thank you. 00:01:46
So our objective, or the objective of the must is to evaluate. 00:01:47
All of this information together there should be a collaborative effort. 00:01:54
As you know, Banker Tilly is going to guide you through this process. 00:01:58
Over the coming meetings, we are going to review the financial data. We're going to evaluate the service impacts to varying levels 00:02:02
of. 00:02:06
The various local government entities. So the next meeting. 00:02:11
Baker Tilly will bring information about the budgets. 00:02:16
And the local income tax revenues that are currently received by the other taxing units, the overlapping taxing units in the 00:02:20
county. So the townships, yes, the municipalities, the schools, the libraries, so that you can see how. 00:02:27
Those entities are currently funding their budgets and most importantly, how much local income tax are they using to fund their 00:02:35
budgets? That's going to be very important for you all to know as you go into this process. 00:02:41
We're going to discuss various allocation scenarios. So tonight. 00:02:47
We're providing A baseline and we're assuming that the tax rates will be adopted at the Max. Certainly you don't have to do that, 00:02:51
but this is a place for you for us to start. So you can see what that. 00:02:56
Type of revenue, what would be generated under that? 00:03:01
Scenario. 00:03:05
We are going to assess long term sustainability now. We know there's going to be winners and losers. 00:03:06
In this process. 00:03:13
Or in the structure that you all agree upon. 00:03:14
But we're going to try to. 00:03:17
Come to some middle ground to where there is some. 00:03:20
Sustainability there. 00:03:23
We're going to develop some recommendations. So you as the task force will develop some recommendations. You will put that in. 00:03:27
Report that we will submit to the DLG. 00:03:34
So this next slide is the project. 00:03:39
Road map and we did initially talk about it at the last meeting, but I want to quickly go through this with you. So this outlines 00:03:44
each of the steps we we see this being. 00:03:49
A4 phase process. 00:03:54
So the initial phase was to have that work session. 00:03:57
Where we kind of educated you on the legislative changes and we will continue that education process as we go through these must 00:04:02
meetings. 00:04:05
Phase 2 is the official formation of the task force, which that is our first session tonight. So you are officially formed as a 00:04:10
task force. 00:04:14
And everyone is here and present on that task force. 00:04:19
After we go through some of these scenarios tonight, we're going to go right into the negotiation process, which really all that 00:04:24
means is we're going to review. 00:04:28
And evaluate. 00:04:33
Scenarios. 00:04:34
And try to determine. 00:04:36
The best approach to this taxing structure starting in 2029. 00:04:37
And then the final phase again is developing that formal report that we will submit to the Department of Local Government Finance, 00:04:44
who will then. 00:04:47
Submit that to the Legislative Council and all of that needs to be done prior to December the 1st. 00:04:51
So this is the meeting schedule that we have. 00:05:00
Put together, we want to try to stick to this meeting schedule because we have this room. 00:05:02
That is. 00:05:08
Scheduled and. 00:05:10
Right now this seems to work best for everyone. 00:05:12
So what I would say here is that. 00:05:16
If. 00:05:18
There's any task force members that cannot attend one of these meetings. You can designate someone to attend in your place as long 00:05:19
as we're not going to be voting on anything that evening and honestly. 00:05:25
The way I see this happening is you probably won't vote on anything until the very end. You'll vote on the report. 00:05:31
Umm, that you're going to submit to the state, but. 00:05:38
As we get through here, if you want to vote on various aspects of the report, we can certainly do that as well. 00:05:41
Yes. 00:05:48
You think these are all off by a day? 00:05:52
Oh my gosh, yes, you're right. 00:05:56
Hmm, OK. 00:06:01
Sorry about that. 00:06:02
We'll get that corrected. 00:06:03
It's it's Thursday, so. 00:06:06
Yeah. 00:06:08
Yes. 00:06:09
OK. Sorry about that. 00:06:11
I don't know how that happened. 00:06:13
I will correct the schedule and just send you out one schedule of the actual dates of the meetings. Apologize for that. 00:06:15
I have no idea how that occurred. 00:06:23
OK. 00:06:27
Next slide. So this is the. 00:06:29
The official task force roster, so obviously we have Danny Short as a representative of the County Council. 00:06:31
Linda Mueller as the controller of New Albany, Julia Keebler as the clerk treasurer of Georgetown and Jack Trevillian as the clerk 00:06:39
treasurer of Greenville. 00:06:44
All right. So some expectations and protocols. We don't want this to be super formal. This is not like a council meeting or a 00:06:55
board meeting. 00:06:59
Uh, we want to have. 00:07:03
You know, respectful conversations. We want to make sure that everyone's comfortable providing input, and that includes people in 00:07:05
the audience as well. 00:07:09
Obviously we want to get through our agenda items, but if anyone in the audience has questions or wants to provide input. 00:07:13
I feel like that should be something that we can handle as long as. 00:07:20
Time is permitting. 00:07:24
All of the participants of the task force should commit. 00:07:26
To attendance, hopefully again, if you cannot attend, you can designate someone that that is no problem as long as we're not 00:07:29
committing to a vote that evening. 00:07:34
Discussions should remain professional. Obviously, we know that each entity has their own unique priorities. 00:07:39
Completely understand that, but what we want to try to guide you to. 00:07:46
Is to take this approach that's county wide. We're trying to get a county wide plan for this local income tax structure. So we 00:07:50
want to make sure that yes, we focus on the municipalities, we focus on the county, but we also need to remember the townships, 00:07:56
the fire and EMS providers, the schools. 00:08:02
So we will continue to bring the focus back to a county wide local income tax structure. 00:08:09
Our goal is to share all the information. 00:08:19
Prior to the meetings, we will send out the packets of information and the agenda. We've done that the last two meetings. We will 00:08:22
continue to do that. 00:08:26
And we're going to make sure that our discussions and the decisions we make and the report that we generate is grounded based on 00:08:31
financial data. 00:08:36
So again, that's where we come in. We can run as many scenarios as you would like. 00:08:41
I can even bring in my computer and we can run live scenarios as we're going through the discussions. 00:08:46
So as far as some meeting protocols. 00:08:53
We're going to follow a structured agenda. 00:08:57
And again, we will provide that in advance and that is to keep the conversation moving in the right direction. I'm sure the fewer 00:09:00
of these meetings. 00:09:04
As possible is going to be best for you. We don't want to have this go on through the end of October. 00:09:09
So we're going to have structured meetings and we're going to have goals at each meeting and we're going to build on those 00:09:15
meetings as we go. 00:09:19
I know the statute, and I mentioned this the last time, requires unanimous approval of this document of this local income tax 00:09:24
structure. 00:09:28
But. 00:09:33
If we don't get unanimous approval from the task force members, that's OK. 00:09:34
We're still going to document that in a report and we're still going to submit that report because I that's going to be important 00:09:39
information for the legislature to know why you didn't reach a consensus if that's the case. 00:09:44
We know there will be competing viewpoints. We're going to try to summarize those as we get to those and circle back on them and 00:09:51
again, try to find some common ground. 00:09:56
Umm, we do recommend there's some sort of documented summary of each. 00:10:03
Meeting it might be minutes or otherwise, but that's up to you if you want to do that. I don't this is being recorded right? 00:10:08
Can we generate? 00:10:15
Some summary or OK, well that's good enough then, as long as somebody can go back and look if they wanted to. 00:10:16
About the meetings. 00:10:23
The meeting information. 00:10:25
All right, so we're going to dive right into the preliminary financial information, but. 00:10:27
As a starting point. 00:10:33
Um, we want to show you where you are right now. 00:10:34
So. 00:10:38
Floyd County has a total local income tax rate of one point. 00:10:41
8-9 percent. 00:10:46
That is comprised of multiple buckets. And I know I went through this last time, but I just want to reiterate just so you can see 00:10:48
what the starting point is. So they're certified chairs and remember that is deposited in the general fund of each taxing unit in 00:10:53
the county. 00:10:58
That rate is .75%. 00:11:03
And it generates about 22.8 million. 00:11:05
That 22.8 million is distributed to the units based on their proportionate share of property tax levy to the total levy. 00:11:08
So if if one unit. 00:11:17
Has. 00:11:19
30% of all levees in the county, they're going to get 30% of that 22.8 million. That's how that works now. 00:11:20
How was that different to the new structure? Very different because. 00:11:27
The new structure will be based primarily on population. 00:11:31
So completely different allocation method. 00:11:35
Public safety is a .5% rate and that is distributed only to the county unit. 00:11:39
And the municipalities? 00:11:45
And that is also distributed based on levy, your proportionate share of levy. 00:11:47
Economic development. 00:11:53
Also. 00:11:54
Only distributed to the county unit and the municipalities. 00:11:56
The adopted rate is .3%. It generates about $9.1 million. 00:11:59
And although the name says it's for economic development, it can actually be used for any legal purpose of of the municipality or 00:12:05
the county. 00:12:09
Correctional Facility is very specific. 00:12:14
Obviously can only be used in connection with the Correctional Facility. 00:12:17
That .2%. 00:12:21
The 6.1 million that it generates. 00:12:22
All goes to the county unit of government. 00:12:25
Judicial system, same thing. That all goes to the county unit of government. 00:12:28
.04% is the rate and it generates 1.2 million. 00:12:33
So those are the main expenditure rates. 00:12:37
And in total there's 54 point. 00:12:40
4 million that is distributed to the units. 00:12:43
And the county unit of government. 00:12:47
That rate is 1.79%. Now the reason why I. 00:12:50
Segregated out the expenditure lip. 00:12:53
Is because those are true distributions to the units. 00:12:56
There's also another form of local income tax here in this county. It's property tax relief. 00:12:59
That rate is 0.1%. 00:13:06
That isn't. 00:13:08
Distributed. 00:13:09
As. 00:13:10
Local income tax to the units. Instead, it's distributed as part of the property tax distribution. 00:13:11
So you don't necessarily see it. 00:13:18
It just flows in with your property tax distribution, so. 00:13:20
We're kind of setting that aside when we do this analysis tonight because that's not something that the units are using. 00:13:24
That's specifically local income tax. It's basically property tax replacement. 00:13:31
The taxpayers get a credit on their tax bills, and this is what funds that credit. 00:13:35
Now it's important that you know that. 00:13:41
All of these are going to expire at the end of 2028. 00:13:42
So what that means is when property tax relief. 00:13:48
Lit goes away. 00:13:52
Pretty much all of the taxing units within this county is going to see some level of increase in property tax credits, so you'll 00:13:55
see a reduction in property tax revenue. 00:13:59
So we kind of have to think about that as we go through our meetings and our discussion because we need to try to replace that. 00:14:05
Lost. 00:14:12
Property tax revenue. 00:14:13
With this local income tax. 00:14:14
Alright, so now. 00:14:18
As far as the new structure, again, I know this is repetitive, but I think it's important to go through this. 00:14:20
The new structure is what we're seeing on this screen here. So we have a county services local income tax of 1.2%. 00:14:27
That will be under the authority of the County Council. 00:14:36
And that distribution will go directly to the county unit of government. 00:14:40
To be used for anything that the county desires now. 00:14:44
The county is going to need to use that to fund what's currently funded out of public safety. 00:14:48
Economic development. 00:14:53
Correctional Facility. Judicial. 00:14:55
And the general fund. 00:14:57
So that portion is going to need to cover those items that are currently paid from the current list structure. 00:14:59
Fire and EMS is another bucket that. 00:15:07
Is .4% as the maximum that is only to be distributed to fire and EMS providers? 00:15:09
So that would be the county unit. 00:15:17
The municipal fire department. 00:15:19
The fire territories and districts within this county and certain townships. 00:15:21
This distribution or this allocation is going to be based on whatever the County Council decides. 00:15:27
So the County Council is going to have a lot of flexibility in determining how this will be distributed. 00:15:34
The County Council does have to use a combination of service area square miles. 00:15:40
And population. 00:15:45
But you can do it 50506040, you can weight it different ways. You'll see in this initial analysis we waited at 5050. 00:15:46
What we could run a lot of different scenarios to see but. 00:15:55
You're not going to really know what the best waiting is until we provide you with. 00:15:58
What all the fire departments are currently budgeting for services and what they're currently getting as revenue. So we're going 00:16:02
to provide that. 00:16:07
Uh, the next time around. 00:16:11
Non municipal units. 00:16:15
Although the maximum rate is .2%. 00:16:17
You can only have a maximum of .05% for each unit. 00:16:20
Type. So like the libraries for instance, you can only adopt A rate of .05% and then that's distributed out to the libraries based 00:16:25
on population. 00:16:30
Township same thing .05% for all the townships distributed based on population. 00:16:35
And that is under the authority of the County Council. In fact, all of these are County Council, unless you you are New Albany who 00:16:42
can adopt their own. And we'll get into that in a minute. 00:16:47
So there is a county wide municipal services rate that the county can adopt. 00:16:52
And that would go to all municipalities that are less than 3500 and population and also. 00:16:59
To New Albany if they choose to opt. 00:17:06
In so, New Albany has the ability to opt in to the county wide municipal rate. 00:17:09
Or opt out and adopt their own. 00:17:15
Each one of those rates are a maximum. 00:17:18
Of 1.2%. But the big difference is this, If New Albany adopts their own rate at 1.2%, they're only going to be able to tax the 00:17:20
adjusted gross income of those living within New Albany. 00:17:27
While the county municipal services. 00:17:33
County wide municipal services rate will be taxed on. 00:17:37
The whole county. 00:17:41
And less New Albany. 00:17:43
OS out and then we would exclude that AGI because you you can't. 00:17:44
As a taxpayer, pay 2 municipal lit rates. 00:17:49
They do not stack. 00:17:53
OK, so that that kind of. 00:17:58
Now we can get into the financial analysis. 00:18:00
All right. So we're going to start with the easiest one to calculate and that is the county services local income tax. 00:18:05
So in the first column is the new lit structure. 00:18:14
So we're estimating an adjusted gross income tax of about $3 billion. 00:18:19
We have not included any growth in this. This is based on current because we just thought it would muddy the waters if we started 00:18:26
including growth. Yes, I think your AGI is going to grow. 00:18:31
But we want to compare apples to apples. 00:18:36
So 3 billion. 00:18:38
For the adjusted gross income county wide. 00:18:40
The county can put on a maximum rate of 1.2%. 00:18:43
That would generate $36.4 million and that. 00:18:47
All would go to the county, so the county share would be the $36.4 million. 00:18:51
Currently. 00:18:57
The county's local income tax distribution. 00:18:58
Is. 00:19:01
$24.4 million. 00:19:02
And that is derived from a 1.79% expenditure local income tax rate. 00:19:05
Which generates in total. 00:19:12
$54.4 million, but the distributions again are based on Levy, so out of that 54.4 million. 00:19:13
The county unit gets 24.4 million. 00:19:22
Now, that 24.4 million right now is comprised of certified shares. 00:19:25
Public safety. 00:19:30
Economic development. 00:19:32
Judicial. 00:19:33
Lit and correctional facilities. So it's not just the certified shares. 00:19:34
So if the county would adopt the maximum. 00:19:39
They would get an additional $12 million. That tells me likely the county may not need to adopt the maximum, but that's we're 00:19:43
starting at the Max and then we can run various scenarios based on the county's needs. 00:19:49
Moving on to. 00:19:58
Municipal services. 00:20:00
So again. 00:20:03
We there is only one. 00:20:05
Oh, I guess there's two. I'm sorry, I must have misspoke. OK, so there is 2, There's two municipalities that can opt in or out. 00:20:07
Sorry about that town of Georgetown. 00:20:12
And the city of New Albany. 00:20:16
Um, so those two municipalities have the option to opt into the county wide. 00:20:18
Or opt out. So we did run both options here. 00:20:24
But before I get to that, I just want to. 00:20:29
Go over a few assumptions so you know what's behind this analysis. 00:20:32
So again, and I already said this, but we are. 00:20:37
Using. 00:20:41
Current adjusted gross income numbers of 2026 adjusted gross income numbers, we are not inflating them at all. 00:20:42
That's something you need to know. 00:20:50
We are also using the maximum amount that can be adopted. 00:20:52
For these rates, just as a starting point. 00:20:56
We're not building in, in, in any growth and population changes in salaries and wages or economic expansion because again. 00:21:00
We are trying to show a fixed. 00:21:08
Baseline. 00:21:11
We are also using the 2020 US Census Bureau population because that is what is required of us by STAT. 00:21:14
So those are just a few of the assumptions that you should know as we go into this. 00:21:24
All right, so here is option one. 00:21:30
This is New Albany and Georgetown opt in. So we're saying that they both opt in to the county wide municipal rate and we have 4. 00:21:34
Different rate assumptions shown on here. Just so you can see the various levels, I'm just going to cover them. 00:21:44
The maximum at this point, but you can see we did .1%. 00:21:50
.5%. 00:21:55
1% and 1.21.2 is the maximum. 00:21:56
So right now. 00:22:00
Georgetown. 00:22:02
Currently all the way to the far right. 00:22:03
Is receiving about 434,000 in local income tax and that does include. 00:22:06
Certified shares, public safety and economic development. We just lumped all of those together. 00:22:12
If. 00:22:18
If the county, the County Council adopts the maximum 1.2%. 00:22:19
Georgetown could get. 00:22:24
2.6 million as a distribution. 00:22:26
Of municipal lit. 00:22:29
At 1%, it's 2.153 million. 00:22:32
.5% about 1.1 million and then .1% would be lower than what Georgetown is getting now. 00:22:36
Umm, Greenville. 00:22:44
Would get about 927,000 under the Max. Greenville is currently getting about 28,000. 00:22:46
So quite a bit more. 00:22:54
Under the Max. 00:22:56
Umm, then the city of New Albany they're getting right now, currently in 2026, they're getting 21.9 million of all those combined, 00:22:58
so almost 22 million. 00:23:05
Under the Max they would get 25.7 million. 00:23:13
With 1% it would be a little bit lower than what they're receiving now. 00:23:16
So you can see the various levels here. 00:23:23
The all of the municipalities would benefit at either 1% or 1.2%. 00:23:26
Now we're going to move on to the county unit. 00:23:33
This is. 00:23:37
The county unit actually gets 2 distributions. 00:23:38
They get their county services distribution. 00:23:41
But they also get a share of the county wide municipal local income tax. 00:23:44
So if you look at the county unit. 00:23:51
At 1.2%. 00:23:53
Their municipal share. 00:23:55
Is 7.2 million. 00:23:58
The county services is 36. 00:24:00
Point 4 million which we covered in the previous slide, so. 00:24:03
If you compare that to what the county is getting now, 24.4 million, that's a quite a bit of an increase it would be. 00:24:07
Oh, go ahead. 00:24:14
Question. 00:24:14
What is the makeup of the municipal allocation? What makes that out? 00:24:15
The municipal lit like how is it determined? 00:24:21
So the municipal lip. 00:24:27
Are they're going to go to your general fund? 00:24:29
That's where it will go. 00:24:31
Yes. 00:24:33
So these like, let's look at New Albany so. 00:24:34
If the county would adopt the 1.2% you would get 25.7 million as a city. You can you have to deposit. 00:24:37
All of that within your general fund. 00:24:45
And that should then cover whatever you're paying now out of public safety. 00:24:47
Economic development. 00:24:51
And your certified chairs in your general fund. 00:24:53
So the municipal. 00:24:56
So in that. 00:24:59
Option one. 00:25:01
Mm-hmm 20 5. 00:25:02
And then also in the seven. 00:25:05
You would only get the 25.7 million. 00:25:09
That that's all you would get. 00:25:12
Yeah, it would just be the 25.7 million. 00:25:14
Yep, now the county unit. 00:25:17
Gets 2 shares. 00:25:20
They'll get the 7.2 million plus the 36.4 million for a total of $43.7 million. 00:25:21
That's if they adopt the 1.2 Max. 00:25:30
So just. 00:25:33
You know. 00:25:34
Discussions and other must meetings that I've had. 00:25:35
We've seen where the county kind of makes out way ahead if they adopt the Max. So this is where we can have some discussions 00:25:39
depending on what level you want to go to. 00:25:44
Do you want to try to be able to take some of that county distribution? 00:25:50
And give it to the schools, for instance, who do not get distributions right now that's not permitted by the statute, but that is 00:25:55
something that we can talk about if that interests you as we go down the line because. 00:26:02
Right now the school doesn't have any. The schools do not have any opportunity of getting local income tax so. 00:26:09
I guess. 00:26:15
This kind of brings us to. 00:26:16
Why we're doing this is to let the legislature know that some units. 00:26:18
Are could potentially get way more lit than they need. 00:26:22
While other units aren't getting enough. So how can we redistribute this? 00:26:27
I think that should be part of our discussions as we go forward, even if the statute doesn't permit it now. 00:26:32
That's something that we can put in the report so that the Legislature understands the dilemma. 00:26:38
That there's an issue. 00:26:44
Umm, now as we go through this process, we are going to look at taxpayer impacts. 00:26:47
Because your rate right now. 00:26:54
Is. 00:26:56
1.89%. 00:26:58
Under this new. 00:27:01
A taxpayer could potentially pay up to 2.9%. 00:27:04
So that's a 1% increase. I don't know that the county is going to want. 00:27:09
All of you. When I say the county, I mean. 00:27:13
Everyone combined. I don't know that you want to go up to that Max, that is. 00:27:15
Remains to be seen, but. 00:27:19
We have to determine OK if you do want to go up to the Max or you want to increase it in some manner. 00:27:21
How is that going to impact the taxpayer? 00:27:26
So at least just for the municipal lid, I. 00:27:29
Did put on the bottom line what the? 00:27:32
What the rate is now remember 1.79% is the expenditure let that doesn't include PTRC. 00:27:35
And then what would it look like? 00:27:42
Just the municipal rate, this is not county, this is not all the let's combine. We're just looking at municipal rate right now. 00:27:45
What would that look like for the taxpayer? Well. 00:27:49
At the Max that would be 2.4%. 00:27:53
You know, or you can go 2%, one percent, 1.3. There's going to be so many scenarios that we're going to be able to work through, 00:27:58
but that's another aspect we need to think about. We need to think about. 00:28:02
Can the units fund their services? 00:28:07
Number one. 00:28:10
#2 What is the impact on the taxpayer? 00:28:11
When we make these changes to the let structure. 00:28:15
So we're going to be looking at that as well. 00:28:17
As we go through this process. 00:28:20
Option number 2 is if. 00:28:23
Both Georgetown and New Albany opt out. So another words. 00:28:27
They adopt their own. 00:28:33
Municipal rate. 00:28:35
They're not a part of the county wide. 00:28:36
So that just leaves Greenville. 00:28:38
Well, what happens in that case is that actually? 00:28:40
Causes Greenville to get a little bit more. 00:28:43
It's not a whole lot more, but a little bit more. 00:28:46
But it causes the county unit to get. 00:28:48
A lot more. 00:28:51
Umm, just. And that's just the formula that's in the statue. 00:28:52
So. 00:28:57
The whole point of this is to show you if one or both municipalities opt out and do their own rate, it does. 00:28:59
'Cause changes in what? 00:29:07
The remaining units get. 00:29:09
So with. 00:29:13
With both of those opting out in the scenario, Greenville would get 1.2 again. They're currently getting 28,000. 00:29:14
The Floyd County unit in total would get 58.2 million. They currently receive 24.4 million, so quite a bit of a difference there. 00:29:22
But that. 00:29:32
Kind of tells us that you probably aren't going to need to go to the maximum rates in this county. 00:29:33
Which is probably a good thing, but again. 00:29:38
We're we're far away from really developing that structure as of now. This is just kind of to. 00:29:42
Get you started. 00:29:48
So. 00:29:51
If New Albany. 00:29:52
Opts out of the county wide rate and they adopt their own rate. This is what it would generate in that first column. 00:29:54
We have estimated. 00:30:02
That the adjusted gross income within the city of New Albany is about $933 million. 00:30:03
If. 00:30:13
The city adopts the maximum of 1.2 million. That would generate approximately $11.2 million. 00:30:13
So. 00:30:23
The Cur. 00:30:26
So $11.2 million, that's what it would generate just for the city of New Albany. 00:30:28
Currently, the city of New Albany's distribution is 21.9 million. 00:30:32
The total shares that are. 00:30:38
Generated as 47.1 million, but New Albany only gets a portion of that because, again, it's based on levy allocation. 00:30:41
So you can see that if the city. 00:30:49
Opts out there, they would get considerably less, about $10.76 million less. 00:30:51
This is not unusual to see the situation and that and in fact that's why the legislation was changed because what we found. 00:30:58
Through through many of the counties in the state, there were some larger municipalities that if they adopted their own rate, that 00:31:07
just wasn't going to be enough. 00:31:11
That's a smaller tax base than if we do a county wide municipal rate. 00:31:15
If we look at Georgetown. 00:31:22
With Georgetown, we're estimating an adjusted gross income of about $188.6 million. 00:31:26
At the maximum rate of 1.2%, that would generate about 2.3 million or 2.262. 00:31:34
A million. 00:31:42
And that would all go to Georgetown. 00:31:43
Currently Georgetown. 00:31:46
Is about 434,000 so Georgetown would actually come out. 00:31:48
Ahead in this situation. 00:31:54
And again, it goes back to distributions based on Levy. 00:31:56
Versus population. 00:32:02
That's why there's a big swing there. 00:32:04
So when you think about it. 00:32:06
New Albany is. 00:32:08
Probably. 00:32:10
Pretty high if you could. Well, we know it is. It's higher than Georgetown and Greenville. 00:32:11
Umm, but then when you flip it to population. 00:32:16
It's and look at all the population it's. 00:32:20
The distribution isn't favoring. 00:32:23
New Albany, but it is favoring Georgetown. 00:32:25
So that's why this is kind of fluctuating back and forth, but this should give you a good idea of what's happening here. 00:32:28
So now we're going to look at the non municipal units. 00:32:36
So you've got, let's see, it looks like 4 categories of non municipal units in this county. You've got townships. You've got, 00:32:41
let's see, about 5 different townships. 00:32:47
Remember that. 00:32:54
You, the council the County Council is going to be able to adopt A maximum rate of. 00:32:55
.05. 00:33:00
Per unit type. 00:33:01
It is .2% in total. 00:33:03
But by unit type it's .05%. So if you take that .05% and apply it to the county wide adjusted gross income. 00:33:06
That should generate about 1.5 million for the townships. 00:33:15
OK, but then. 00:33:20
It gets divvied up among the townships based on their population. 00:33:22
So if you look, Franklin Township 29,000, Georgetown Township 210,000. 00:33:28
Greenville Township 143,000, Lafayette Township 155,000 and the New Albany Township, who has the largest population 981,000. 00:33:35
And we can compare that. 00:33:46
With what these townships are currently receiving and local income tax. 00:33:47
And the townships actually make out. 00:33:52
Pretty good, right? 00:33:54
And again, this would be at the Max, so maybe you don't want to go to the Max but. 00:33:55
All of these townships end up getting distributions that are larger than what they are receiving now. You can see the estimated 00:34:00
change in the allocation. It's about 1.3 million in total. 00:34:05
That would be more going to the townships and then what they're getting now. 00:34:11
You only have one library. 00:34:16
That this would apply to. So the .05% everything that's generated by that library, non municipal lit 1.5 million would all go to 00:34:19
the New Albany Floyd County Public Library. 00:34:25
That's a $355,000 increase, again at the Max. 00:34:31
355,000. 00:34:35
Umm, you also have a New Albany flood control and because that. 00:34:38
Special district has a property tax levy. They would be able to get a share of this Non municipal lit. 00:34:43
Again .05% that would all go to the flood control. 00:34:50
1.5 million they currently get. 00:34:55
About $1,000,000. So that's about a $492,000 increase. 00:34:58
And then you have another special unit, the Floyd County Solid Waste. 00:35:03
Would would have the allocation of the point. 00:35:07
.05%. 00:35:11
Yes. 00:35:13
Dissolved in districts in February, so no longer loving taxes. 00:35:16
OK, we will make that correction then. 00:35:21
Because if they don't levy attacks, they're not. 00:35:23
They cannot be get this. 00:35:26
Oh, OK. 00:35:28
OK. 00:35:32
No, that's OK. That's probably not have a small Parks Department. 00:35:33
Small wedding. 00:35:37
I was thinking we had a special special park district that would be fall under the cities levees. 00:35:39
If it's a City Park district, it would fall under the city levels. It's a. 00:35:47
Yes, but. 00:35:53
The way you have to. 00:35:54
A special unit is defined as a standalone legal entity in the park District is under the city. Yeah, yeah. 00:35:56
OK. 00:36:08
So now the fire EMS. This is probably one that is going to require the most. 00:36:09
Time. 00:36:15
And attention. 00:36:16
To determine because there's a lot of moving parts. 00:36:18
So with fire and EMS, the maximum rate that can be adopted is .4%. 00:36:23
But the way that it's allocated to these providers? 00:36:28
Is something that the County Council will need to determine and actually the task force will determine that during this process. 00:36:32
We will put that in the report. So I know the County Council will ultimately adopt it, but this should be a part of the report. 00:36:38
How you all decide is the best way to distribute this. 00:36:44
So just to let you know, here's how we went about the baseline. 00:36:50
So this has to go to fire and EMS providers. 00:36:55
So what we first did is we looked at the budgets, the combined budgets of all the fire providers. 00:36:59
And EMS providers. 00:37:05
And I want to make sure before I go on, are these are all still the current EMS providers I have American Medical Response, no. 00:37:08
Are we already? 00:37:17
So current, yes. 00:37:18
Future No. 00:37:21
OK. 00:37:22
What Highlander Fire Protection districts? 00:37:24
Won't really be providing EMS as standalones anymore there OK EMS taking place. 00:37:27
So the contracts that we hold with America and Highlander expired at the end of this year. They won't. The commissioners have 00:37:34
expressed that they will not be renewing it because we are building. 00:37:38
A county wide EMS OK and I believe it is a firebase EMS. 00:37:43
I. 00:37:47
I have been involved in these meetings but I'm starting to go on overload with the absorption of information. So it is a Firebase 00:37:48
EMS. 00:37:52
And there's a lot of things changing between now and next year that have to do with not just our fire districts, but also our EMS. 00:37:56
OK. 00:38:04
So. 00:38:09
Yes. Future no. 00:38:10
OK, well, that's good to know. So. 00:38:11
Is it fair to say that there will be just one county wide EMS or is that American Medical still going to be? 00:38:14
I don't believe is participating in the county wide EMS. 00:38:21
Correct. So you'll have, you'll have a vendor for New Albany, OK. 00:38:24
Gotcha. 00:38:29
Well, that you do use my Pro. Oh gotcha. OK. 00:38:30
So that will make it a little bit easier if it's narrowed down to just two. 00:38:35
But let me make. 00:38:39
Some notes, yeah. 00:38:40
And also the Highlander Fire Protection District. 00:38:41
Is joining the territory. 00:38:46
Yeah, there's a lot of changes happening in the. 00:38:47
So yes. 00:38:49
To look at that with. 00:38:51
A full territory. 00:38:53
For the whole town, yeah. 00:38:55
Still be out of that so you'll you'll have 21 fire county wide EMS and the New Albany city as a standalone for both of those. 00:38:59
So really what we're going to have is the Floyd County Fire Protection territory we had, we have. 00:39:05
Highlander. Oh, I'm sorry, Highlander. 00:39:11
Kind of listed twice there, but really it's the Floyd County Fire Protection territory, the New Albany Fire Department and then 00:39:15
the county wide EMS and New Albany will be contracting with America Pro. 00:39:21
Got it. OK. 00:39:27
So first what we did at least in this analysis which we will update is that we looked at what is the county wide budget. 00:39:29
For all of fire and EMS services and the county. 00:39:39
Currently. 00:39:42
Then we tried to determine. 00:39:45
Of that. 00:39:47
Combined budget? How much of that is EMS? 00:39:48
So what we roughly calculated is 12% of that entire budget is EMS funding. Now obviously that's going to completely change. 00:39:52
And again, this is just an illustration. So what we did is we looked at OK. 00:40:02
.4%. 00:40:06
Generates about. 00:40:08
You know, over 11,000,000, almost $12 million. 00:40:10
We we took off the top 12% of that and just allocated it to the EMS providers. 00:40:13
Then we allocated the rest 88% to the fire. You don't have to do it this way, but this is kind of how we did it. We can talk 00:40:21
about. 00:40:24
Better ways to do it or what you think might be best, but again, this was just a starting point. 00:40:28
Then we took those buckets like the 10.69 million that we allocated just a fire. 00:40:34
We then used Service area population. 00:40:40
And service area square. 00:40:45
Square miles. 00:40:47
And we? 00:40:49
Awaited those 5050. 00:40:51
Again, just a starting point, but. 00:40:54
I guess the point of all this is that you can see that these scenarios can change. 00:40:56
Drastically depending on how you weight those and how much you want to allocate EMS. Now we could just throw EMS. 00:41:01
Into the bucket with fire. 00:41:07
And just allocate it a straight 5050 or 6040 however you want to do it. 00:41:10
Right now. 00:41:16
You know these at least the. 00:41:18
Fire territory. The Districts. 00:41:20
The districts, I should say the FIRE districts as they are now not combined do get shares of local income tax. So the next time I 00:41:23
come to the meeting, we're going to show you a comparison of. 00:41:28
What they receive now. 00:41:33
And then we'll work through some scenarios of what they might receive under this. 00:41:35
Structure to see if it's enough to cover their needs. 00:41:39
So this one is probably going to be the most complex to work through is the fire and EMS. It's not as straightforward. 00:41:44
And there are a lot. 00:41:52
Of decisions that. 00:41:53
The council will need to make but. 00:41:54
I say Council, under this must process, you all will need to make that, but we, we can help you and guide you through that 00:41:57
process. 00:42:00
I have a question. 00:42:04
Mm-hmm. 00:42:06
How does How do you later on? 00:42:08
The property tax. 00:42:11
So that you are adding. 00:42:13
Uh, the lead and the property tax together to get to a total budget and I don't see anything in here. 00:42:16
That sort of layers look to together. 00:42:23
So. 00:42:25
As far as LIT is concerned, we can show you what the potential losses of property tax are from Sea One. 00:42:27
And then from that we can determine what rate do you want to set these local income taxes at to cover those potential losses? 00:42:35
If you're going to try to use local income tax as a property tax replacement. 00:42:42
We're we can provide that information to you. 00:42:47
What are other counties doing that? 00:42:50
I have some moscavities that do want to do that. Others are saying we don't want this to be used as a form of property tax 00:42:53
replacement. So it's really up to what you want to do. I can next time bring you. 00:42:58
What we estimate is the loss due to Sea One. 00:43:04
And filling in that loss now I will say. 00:43:08
We have. 00:43:11
Then running parcel level analysis. 00:43:12
And what's interesting is, yes, the property tax credits do go up. 00:43:15
And 2728. 00:43:20
When we get to 29, there's as a. 00:43:23
Significant bump because your PTRC is going to go away, but then guess what happens? It starts coming back down. 00:43:26
The property tax credits actually start coming back down after 2029. 00:43:32
Why is that? Because. 00:43:37
That of the changes and not assess value, and the growth and not assess value. 00:43:39
What we're finding is. 00:43:43
There's not a whole lot of property tax relief provided from this bill. 00:43:44
Surprise, surprise. 00:43:50
So yes, we we could provide that information. It is important. I agree. It's important. It's important. 00:43:54
Relevant. It is relevant. 00:43:59
It is relevant. 00:44:02
That'll show the impacts to. 00:44:04
Oh, absolutely. 00:44:06
Absolutely. 00:44:08
Yup. 00:44:09
Yes, we can show that I'm sure we want property tax relief. Or do we just want to understand what the. 00:44:11
So you add your lead, your property tax together, you know your total budget. Make sure that. 00:44:19
Got the money that you need, right? The sustainability. 00:44:24
To cover whatever budget you have. 00:44:28
That's the my simple mind. Mm-hmm. 00:44:33
Some some committees are looking at that and def. I mean. 00:44:41
I'm at the whim of what? 00:44:45
What you would like to see? So yes, I do agree that's important and we can bring that the next time we we come. 00:44:47
But you want to see what the losses are. 00:44:55
Yeah. And I, I don't think the losses are as significant as we had originally. 00:44:58
Thought but. 00:45:02
There are additional losses. 00:45:04
That, umm. 00:45:07
So moving on to the next slide. 00:45:09
So we this is a. 00:45:15
Overall summary. 00:45:17
Of what I just talked about. 00:45:19
OK, but I thought it was. 00:45:21
Kind of an easy way to look at this. I think it goes on. Yeah, 2 pages. 00:45:23
But what you're seeing here is in the first column. Here's what all these units currently receive. 00:45:28
And local income tax. 00:45:35
That's current so you can see. 00:45:38
Comparison. 00:45:40
The next column is the estimated local income tax at the Max. So something I want to bring your attention to right now is that the 00:45:42
first column is 1.79%. 00:45:47
That's all your local income taxes except for the PTRC. We set that aside for now, but if you want to know what the PTRC rate is. 00:45:53
Included with this, it's about 1.89%. 00:46:00
OK, so these are the expenditure lids 1.79%. 00:46:03
At the Max, not any single taxpayer can pay more than 2.9%. 00:46:08
But there could be some taxpayers that pay something different depending on where they live. 00:46:14
So, for instance, if Georgetown goes out on their own and adopts their own lit. 00:46:20
And let's say they don't adopt the Max, they adopt .9%. 00:46:25
But. 00:46:29
The county. 00:46:30
Does the county wide municipal. 00:46:32
At 1.2%. 00:46:34
If I live in Georgetown, I'm going to pay lower. 00:46:36
Total local income tax rate in that example than I would if I live. 00:46:39
Somewhere else. 00:46:43
In the county. 00:46:45
That is completely different than what we know today, because today. 00:46:46
Every person that lives in this county pays the exact same local income tax rate. 00:46:50
We could have a situation where. 00:46:55
A taxpayer might pay a different rate. 00:46:58
Now, if you all strongly feel that everyone should pay the exact same rate, we'll try to structure it that way. 00:47:01
But I want you to know that it is possible. 00:47:07
That you could have people paying different rates. 00:47:10
We also. 00:47:15
On the. 00:47:17
4th column over the second to. 00:47:18
Second column from the end. 00:47:21
Of the right hand side. 00:47:23
We tried to tell you what would be a neutral break even rate. Now, not everybody is breaking even here. 00:47:26
But this was as close as we could get, so if you wanted. 00:47:34
Everyone. 00:47:37
To get about what they're receiving now again, we couldn't make it perfect because we can't. 00:47:38
Give different rates to each taxing unit. We could only do it by grouping. 00:47:44
We are looking at a rate of about 2.23%. 00:47:49
And that doesn't. 00:47:53
Include. 00:47:54
Trying to make up for losses on. 00:47:55
The sea. 00:47:59
Stuff. 00:48:00
So. 00:48:02
Again. 00:48:03
As close as we could get, 2.23% would be sort of breaking even, but again, not everybody is going to break even. 00:48:05
I think. 00:48:13
You know the townships make out. 00:48:13
Pretty well, I think. 00:48:15
And some of the other units. 00:48:18
But I don't want to lose sight, and I've said this a couple times of. 00:48:20
The units that don't get local income. 00:48:25
Primarily the school. 00:48:27
So the other Musk. 00:48:29
Committee that I'm working with right now, they are all feel very strongly that the school needs to get a distribution somehow, 00:48:31
some way, whether that's an interlocal agreement. 00:48:36
Or building in some sort of ability to have a rate for the schools right now that's not in the statute. 00:48:41
Not to my knowledge. 00:48:58
Yeah, local income tax is not the only source. They do get property tax, but that is getting reductions just like all of you from 00:49:02
Sea One. 00:49:07
But here's the hope. 00:49:12
That when we turn in these reports. 00:49:14
The the must committees that did include something for the schools. What that something is remains to be seen. 00:49:17
We hope that the Legislature will take that under consideration as they go into the 2027 legislative session. 00:49:23
We This is the first time we've. 00:49:31
Have been able to provide input. 00:49:33
Before legislative session. 00:49:35
No. 00:49:39
No, I don't know if the. 00:49:40
If any schools. 00:49:42
There's nothing right now. 00:49:44
Mm-hmm. My CFO, no other. 00:49:47
This is the only Ave. that they that they've provided us and even then. 00:49:50
They said there's no guarantees. Obviously it's up to the up to the group. So the only, the only thing that we've heard is if you 00:49:55
want more money, you have to referendum so. 00:49:59
That's that's what they tell us so. 00:50:04
We certainly don't want to do that. We don't have to. 00:50:06
Because that's outside the taxi. 00:50:09
So again, that's where it comes back to let's think of the county holistically. 00:50:16
And and that's what you all should be doing. 00:50:21
And then this last page is just a continuation of the libraries and the special units and the fire and EMS providers and again, 00:50:25
trying to. 00:50:29
Get as neutral as possible over to the far right. But then you can also see the comparison as we saw in the previous slides of. 00:50:33
Here's what these units are getting now. 00:50:38
Umm, and then what they would get going into the future? 00:50:44
The next slide is just some assumptions we use. I already talked about that as I went through the slide. So here is the tax. 00:50:52
Liability impact Just an illustration of what we. 00:51:00
Have put together thus far because I just want you to get an idea of what. 00:51:03
The taxpayers currently pay under your current local income tax structure and what it might look like. 00:51:08
Under an alternate. 00:51:15
Income tax structure. 00:51:17
So in this county, from the data that we could find in the US Census Bureau, the adjusted gross income in this county is about 00:51:19
79,000. The average adjusted gross income. If you think that's high on the high side, we also did provide some other some other 00:51:24
examples. 00:51:30
So let's start with this $40,000 adjusted gross income. 00:51:36
So this would be what you pay your taxes on. 00:51:40
Umm, under the current structure. 00:51:45
This person would pay $756 from a whole year but. 00:51:47
Monthly from the paycheck it would be $63. That's current. 00:51:52
If you went to the maximum. 00:51:56
This person would pay an additional $400.00 a year or an additional $34 a month. So it would go from $756 to $1160. That would be 00:51:59
the Max. 00:52:05
But under that neutral. 00:52:12
Um, the increase would be about $136 or monthly about $11.00 increase per month. 00:52:14
That just gives you kind of a flavor of how this might impact someone. Now we'll look at the $79,000 one. Currently, that person 00:52:21
pays about $1500 annually, which is about $124.00 a month. 00:52:28
If if you would go to the maximum, that would be an increase of almost $800. 00:52:35
Or $67 a month. 00:52:40
Under the neutral plan. 00:52:42
That would be an additional $269 or $22.00 for the mom. 00:52:45
So you can see the other examples there. 00:52:50
So we are going to be mindful as we go through this process how it impacts the taxpayer as well. 00:52:52
And we will include that in the report. 00:52:59
Any questions about that before I move on? 00:53:04
So that really concludes the financial portion of it as we move forward. 00:53:08
We really need to look at which services or operations appear to be most sensitive to the allocation changes. 00:53:15
You know the townships. 00:53:24
I think they kind of make out ahead, but we're, we're, I think we're going to see some sensitivity is maybe with the fire and EMS. 00:53:27
And. 00:53:34
Potentially with municipalities depending on whether the two opt in or out. 00:53:35
What additional information may be needed when I come next time I am going to have? 00:53:41
The budgets of all of the overlapping units, the revenues of the overlapping units, so you can see how they're funding things now, 00:53:46
not detail, but just. 00:53:50
Big picture. And then how much? 00:53:55
Of the local income tax is funding each of the units because with townships. 00:53:58
Most of their fire services are funded with local income tax, so you need to have an understanding of that and we will provide 00:54:03
that. 00:54:07
Umm, what long term concerns should we be incorporating into the future scenarios unlike Denise mentioned? 00:54:10
We will incorporate the potential impact of Sea One with the property tax loss or the revenue decline. 00:54:19
Property tax revenue decline due to the phase in of the credits through Sea One. 00:54:27
And then whatever additional assumptions you want to be included, we will include those. 00:54:33
So the next steps really is to. 00:54:40
Kind of review the information that I provided to you. 00:54:43
Be thinking about. 00:54:47
Things that. 00:54:49
Maybe you want Baker Tilly to provide other than what I mentioned so far, so maybe I should start out with that. 00:54:50
Will the information that I said I would bring next time, will that be sufficient for us to have some conversations about? 00:54:56
Where we want to go? 00:55:03
What? That's OK. 00:55:04
Any other items you think would be helpful as you? 00:55:07
Walk through this. 00:55:12
Could you provide something? 00:55:19
I was gonna ask if there's anything that I know Chris Street will be here next time with my CFO, be with me next time. We've done 00:55:23
some significant deep dives with some different. 00:55:27
With some, with some. 00:55:32
Financials as far as. 00:55:33
How I see a one is affecting us. 00:55:34
How this this the lift? 00:55:37
Mm-hmm. Affecting us, but then also we've got a third that's going to kick in too, where we share. 00:55:39
A lot of our operations dollars with. 00:55:43
Some charter schools in the area as well. So those are changes we're getting. 00:55:46