Watchdog Indiana Home Page
Watchdog Lebanon Home Page
Boone County Council 2014 Budget
Watchdog Indiana Home Page
Watchdog Lebanon Home Page
(Note: Unless otherwise referenced, the facts cited on this web page were obtained from a September 4 Boone County Council public hearing and meeting notice, information and materials from attending 21 hours of the Boone County Council budget workshop from September 17 through September 20, and data included in the Watchdog Lebanon “Boone County Cumulative Capital Development Property Tax” web page at http://www.finplaneducation.net/county_ccd_tax.htm.)
Outcome
Taxpayer Friendly budgets are results-oriented, compassionate, and fiscally responsible.
As explained by the "Background" information further down this web page, it was determined that the 2014 Boone County Council budget would be Taxpayer Friendly if the total Pay 2014 county property tax rate is no more than $0.2185 per $100 of adjusted net assessed value.The 2014 Boone County Council budget that will be submitted for approval to the Indiana Department of Local Government Finance (DLGF) is Taxpayer Friendly because the anticipated total Pay 2014 county property tax rate of $0.2181 is less than $0.2185.
The components of the of the anticipated total Pay 2014 county property tax rate are as follows:The 2014 Boone County Council budget is Taxpayer Friendly because of the fanny influence exerted by concerned Boone County taxpayers that resulted in the DLGF disapproving an increase that was sought by the Boone County Council in the county’s Pay 2014 Cumulative Capital Development (CCD) property tax rate
: see http://www.finplaneducation.net/county_ccd_tax.htm.The 2014 budget approved by the Boone County Council on October 8 would have been Taxpayer UNfriendly if the DLGF had not disapproved the increase in the county’s Pay 2014 CCD property tax rate that was passed by the Council.
The 2014 county budget approved by the Council on October 8 included a CCD property tax rate of $0.0212 that would have increased the total Pay 2014 county property tax rate to $0.2270. Businesses, farmers, most renters, and limited income Boone County families outside Zionsville would have paid the property tax increase because of the 1% homeowner property tax cap. Most higher income Zionsville families would NOT have paid the property tax increase. Many limited income citizens would have been subjected to hardship from disproportionally bearing the burden of the property tax increase approved by the Council on October 8.The two votes taken by the Boone County Council to pass the unneeded CCD property tax rate increase that was ultimately disapproved by the DLGF make it easy to identify whether or not individual Boone County Council members are Taxpayer Friendly.
The first vote was taken on July 9 when the Council passed a motion with a 4-3 roll call vote that would enable the county’s Pay 2014 CCD property tax rate to be increased by 160% from $0.0127 to $0.0330. The second vote was taken on October 8 when the Council passed a motion with a 5 voice votes to approve CCD spending in the 2014 budget that would increase the county’s Pay 2014 CCD property tax rate by 67% from $0.0127 to $0.0212. The two CCD property tax votes cast by each individual Boone County Council member – and the resulting Taxpayer Friendly, Taxpayer UNfriendly, or Taxpayer Neutral identification – are recorded next.Steve Jacob cast a Taxpayer Friendly No vote against increasing the CCD property tax rate during the July 9 Boone County Council meeting. Steve did not vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting because there were already enough voice votes cast to pass the increase. Steve also declined a request to reveal how he would have voted on October 8 if a roll call vote had been properly taken. It can be reasonably concluded that if a roll call vote had been taken Steve would have cast a Taxpayer UNfriendly Yes vote on October 8 for the reduced CCD property tax rate increase because he remarked at the July 9 Boone County Council meeting that he supports an increase in the CCD property tax rate that is less than $0.0330. Steve had an extra involvement with the proposed CCD property tax rate increase because he did testify for the county at the September 4 DLGF public hearing. Steve’s testimony at the September 4 public hearing included his statement that, as summarized by the DLGF Final Determination, “he personally does not believe that a 160% hike is appropriate.” Steve’s September 4 public hearing testimony was not strident in support of the CCD property tax rate increase, and this was probably part of the reason the DLGF Final Determination concluded “the County has not explained or justified why an increase to the Fund’s tax rate is necessary despite the County’s existing cash balances.” When all things are considered, the involvement of Steve Jacob with the attempted CCD property tax rate increase is identified as Taxpayer Friendly.
David Rodgers cast a Taxpayer Friendly No vote against increasing the CCD property tax rate during the July 9 Boone County Council meeting. David explains his position on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting as follows: “You know I respect you and your efforts both to hold elected officials accountable and to encourage more citizen participation in the governing process. I really object, though, to your overly-simplistic labeling of public servants – and they all are, even when we don’t agree with them – based upon single votes. So many variables factor into every decision the council and other elected bodies make that basing an appraisal of their effectiveness on even a small group of actions is likely to be tremendously skewed. You more than most know how complex governing at any level must be. In this case in particular, the complexities of county budgets and DLGF rules make the exact final rates unknowable in any precise way until the DLGF gives final approval. I really wish you would be more generous and less inflexible in your judgments. Having said all that, I did not vote Yes (on October 8) on the CCD fund rate, though I was not given the opportunity to vote No since the motion clearly carried without my assent. This is consistent with my no vote this summer when the rate was re-established at a maximum of ($0.0330).” The CCD property tax votes cast by David Rodgers are identified as Taxpayer Friendly.
Debby Shubert cast a Taxpayer UNfriendly Yes vote to increase the CCD property tax rate during the July 9 Boone County Council meeting. Debby also cast a Taxpayer UNfriendly Yes vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting. The CCD property tax votes cast by Debby Shubert are identified as Taxpayer UNfriendly.
Butch Smith cast a Taxpayer Friendly No vote against increasing the CCD property tax rate during the July 9 Boone County Council meeting. However, Butch cast a Taxpayer UNfriendly Yes vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting. Butch explains his October 8 vote as follows: “I voted yes on the ($0.0300) increase knowing that the increase would not be that large but would rather be the ($0.0212) figure or whatever the Dept. of Local Government Finance would decree to be the appropriate final figure and less than the ($0.0300) figure. I feel with that knowledge my vote was leaning toward the taxpayer friendly label.” The conflicting CCD property tax votes cast by Butch Smith are identified as Taxpayer Neutral.
Gene Thompson cast a Taxpayer UNfriendly Yes vote to increase the CCD property tax rate during the July 9 Boone County Council meeting. Gene also cast a Taxpayer UNfriendly Yes vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting. Gene explains his October 8 vote as follows: “I voted ‘yes’ on the CCD rate at ($0.0300), with the lower amount budgeted into that account. I believe the budget passed by Council (on October 8) will provide a good value to all Boone County residents.” The CCD property tax votes cast by Gene Thompson are identified as Taxpayer UNfriendly.
Brent Wheat cast a Taxpayer UNfriendly Yes vote to increase the CCD property tax rate during the July 9 Boone County Council meeting. Brent also cast a Taxpayer UNfriendly Yes vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting. The CCD property tax votes cast by Brent Wheat are identified as Taxpayer UNfriendly.
Marcia Wilhoite cast a Taxpayer UNfriendly Yes vote to increase the CCD property tax rate during the July 9 Boone County Council meeting. Marcia also cast a Taxpayer UNfriendly Yes vote on the motion that would have increased the CCD property tax rate at the October 8 Boone County Council meeting. The CCD property tax votes cast by Marcia Wilhoite are identified as Taxpayer UNfriendly.
Steve Jacob, Butch Smith, Gene Thompson, and Brent Wheat may run for reelection to the Boone County Council in 2014. Boone County taxpayers who value results-oriented, compassionate, and fiscally responsible public servants are encouraged to remember how these Council members voted on the proposed CCD property tax rate increase.
Background
The 2014 Boone County Council budget will be Taxpayer Friendly if the total Pay 2014 county property tax rate is no more than $0.2185 per $100 of adjusted net assessed value.
The remainder of this web page explains how this conclusion was reached.Calculations #1 and #4 at the bottom of this web page show that the county’s total actual Pay 2013 property tax levy of $8,320,924 resulted from a total actual Pay 2013 property tax rate of $0.2192 per $100 of adjusted net assessed value.
Calculations #2 and #5 at the bottom of this web age reveal the total Pay 2014 property tax levy and property tax rate that was proposed at the County Council budget workshop and will be considered for adoption at the October 8 County Council meeting. The total proposed Pay 2014 property tax levy of $9,215,610 is 10.75% more than the total actual Pay 2013 property tax levy. The total proposed Pay 2014 property tax rate of $0.2358 per $100 of adjusted net assessed value is 7.57% more than the total actual Pay 2013 property tax rate.
The County Council’s proposed 2014 budget includes (a) an increase of 136% in the Cumulative Capital Development (CCD) portion of the total property tax rate and (b) no salary increases for county employees. Eliminating the proposed CCD property tax rate increase would mean that $676,310 would have to be found IF the county funds services at the levels included in the proposed budget (see Calculations #2 and #3 below under my name). Providing a 3% salary increase for county employees would cost about $240,000. Our County Council can use the five suggestions listed next to easily manage county finances to both avoid any increase in the CCD property tax rate AND provide a 3% increase in county employee salaries.
(1) Properly use the ample funds provided by taxpayers instead of maintaining excessive reserve amounts. Boone County has six funds with few spending restrictions whose combined balance can be considered the county’s reserves to help meet most of the county’s management, maintenance, operating, and capital needs. The Boone County' Auditor’s office reported a few days ago on September 30 that the county reserves currently total $10,254,759 - $4,024,226 in Rainy Day; $1,909,115 in County General; $294,952 in Food & Beverage Tax; $3,005,801 in Economic Development; $410,011 in CCD; and $610,654 in CCD Investment. Since the County General Fund will receive about $3 million from this November’s property tax payments, the Boone County reserves will total about $13 million at the end of this year. A county reserves total of $13 million will be about 47% of the combined $27.7 million total disbursements from the county’s controlled and noncontrolled funds in 2012. The state identifies excess reserves in Indiana Code 4-10-22 as more than 12.5% of state general revenue appropriations for a state fiscal year. The August 11, 2010, Boone County Comprehensive Financial Plan that was prepared by H. J. Umbaugh & Associates focuses on maintaining a minimum cash reserve of 15%. County reserves are clearly excessive and should be properly used to help avoid any increase in the CCD property tax rate AND provide a 3% increase in county employee salaries.
(2) Use the $725,000 in increased county transportation funding from the state Motor Vehicle Highway Account to help avoid any increase in the CCD property tax rate AND provide a 3% salary increase for county employees. Because less money will be needed from the county’s non-transportation funds to supplement the county’s transportation needs, more of the county’s non-transportation funds can be properly used to protect taxpayers and reward deserving county employees.
(3) Use the $365,000 in increased County Option Income Tax revenue to help avoid any increase in the CCD property tax rate AND provide a 3% salary increase for county employees. The county’s estimated 2014 certified COIT shares of $7,425,289.48 will be $365,028.20 more than the $7,060,261.20 certified COIT shares the county received in 2013. The 5.17% increase in 2014 COIT revenues should be properly used to benefit taxpayers and county employees.
(4) Use the anticipated money that will not be spent from the county’s 2014 budget to help avoid any increase in the CCD property tax rate AND provide a 3% salary increase for county employees. It was mentioned during the Boone County Council budget workshop and reported in the September 24 Lebanon Reporter, “Historically, the county has ended a calendar year with $800,000 to $1 million in unspent money.” It is not proper to raise taxes and deny salary increases when the county is budgeting more money than it expects to spend.
(5) Make modest county spending cuts to help avoid any increase in the CCD property tax rate AND provide a 3% salary increase for county employees. The $27.70 million in grand total Boone County disbursements from the controlled and noncontrolled funds for 2012 was 1.12% more than before the Great Recession in 2008. The inflation increase from June 2008 to June 2012 was 4.87%. It is fair to say that county spending was cut 3.75% when inflation is considered. It is also accurate to point out there is considerable room for additional modest county spending cuts before property taxes are increased on limited income families and salary increases are denied to deserving county employees. If the county insists on funding services at the levels included in the proposed budget, it would cost $916,310 to both avoid any increase in the CCD property tax rate AND provide a 3% increase in county employee salaries. A $916,310 cost is about 3.30% of the $27.70 million in grand total disbursements from the county’s controlled and noncontrolled funds in 2012. A modest 3.30% spending cut in non-salary expenditures by the county would properly benefit taxpayers and allow salary increases.
If our County Council is Taxpayer Friendly and does not increase the CCD property tax rate, and IF no other changes are made to the other proposed Pay 2014 county property tax rates, then the county’s total Pay 2014 property tax levy will be $8,539,300 or 2.62% more than the total actual Pay 2013 Property Tax Levy (see Calculation #3 at the bottom of this webpage). A 2.62% increase in the county’s total Pay 2014 property tax levy would be Taxpayer Friendly because the average annual percent change in Indiana nonfarm personal income from 2007 through 2012 was 2.6%.
If our County Council is Taxpayer Friendly and does not increase the CCD property tax rate, and IF no other changes are made to the other proposed Pay 2014 county property tax rates, then the county’s total Pay 2014 property tax rate will be $0.2185 per $100 of adjusted net assessed value (see Calculation #6 at the bottom of this web page). Therefore, the 2014 Boone County Council budget will be Taxpayer Friendly if the total Pay 2014 county property tax rate is no more than $0.2185.
On occasion, it is easy to identify Taxpayer Friendly elected public servants – the 2014 Boone County Council budget presents one such occasion. Any Boone County Council member who votes for a 2014 budget with a total county property tax rate of $0.2185 or less is Taxpayer Friendly. Any Boone County Council member who votes for a 2014 budget with a total county property tax rate more than $0.2185 is Taxpayer UNfriendly.
Calculation #1. Actual Pay 2013 Boone County Council Property Tax
Levies
Calculation #2. Proposed Pay 2014 Boone County Council Property Tax
Levies
Calculation #3. Maximum Taxpayer Friendly Pay
2014 Boone County Council Property Tax Levies
Calculation #4. Actual Pay 2013 Boone County Council Property Tax
Rates
Calculation #5. Proposed Pay 2014 Boone County Council Property Tax
Rates
Calculation #6. Maximum Taxpayer Friendly Pay
2014 Boone County Council Property Tax Rates
Watchdog Indiana Home Page
Watchdog Lebanon Home Page
This page was last updated on 10/25/13 .