State lawmakers may have provided a new way to pay for jail renovations in Columbus with minimum strain on the county’s finances.
It involves the local income tax which was increased by 40 percent last October by the Bartholomew County Council.
The city of Columbus is the largest recipient of the new funding stream, receiving about $6.2 million annually based on its population. Bartholomew County government is receiving about $4.8 million of new revenue being generated this year.
Some funds are also being distributed to many of the 25 taxing entities in Bartholomew County, which include incorporated towns, townships, school corporations and libraries.
But the Indiana General Assembly passed a law this year that allows the county to set aside anywhere from 0.01 to 0.2 percent of existing local income tax revenue for jail reconstruction before funds are dispersed to other taxing units, Bartholomew County Auditor Barb Hackman said.
In essence, that means more money for jail-related projects and less for the taxing units, council member Laura DeDomenic said.
Since this involves utilizing existing revenue without further raising taxes, Hackman said she will recommend the council reduce current amounts currently earmarked for either public safety or certified shares by whatever amount might be diverted for jail purposes.
“To me, it’s a no-brainer,” council member Jorge Morales said during the council’s Monday work session. “I think we should go with the .2 percent.”
But others on the council, including DeDomenic, said they prefer to wait until their June 12 regular monthly meeting before drawing conclusions.
At 6 p.m. that evening, financial consultant Jason Sembler will provide a variety of scenarios to reveal how much money can be set aside for jail renovations, depending on how much the council takes off the top from the new revenue, Hackman said.
Sembler, who works for Umbaugh and Associates of Indianapolis, will also explain whether these pre-distribution funds can be spent on jail operational expenses, in addition to renovation work, Hackman said.
Several jail projects are in the works as the county attempts to address overcrowding problems.
The Bartholomew County commissioners, who have already approved about $40,000 worth of minor improvements this year, are recommending that $800,000 be invested into a new audio/visual surveillance system at the jail this year.
They are also seeking about $200,000 in upgrades to cell blocks in the currently unused, 100-capacity older section of the jail.
Longer-term and more expensive plans call for a $4 million replacement of the jail’s heating and air conditioning systems in 2019. Another $600,000 will have to be spent two years later to address deterioration under the domed outdoor recreation area on the jail’s roof.
What has not yet been formally proposed is an anticipated request originating from the Alliance for Substance Abuse Progress (ASAP) in Bartholomew County. ASAP’s initiative to establish an in-house addictions treatment facility for jail inmates was first shared with the county council during last summer’s budget hearings.
Under the new law, the county can take money off the top of the new revenue for jail expenses for up to 20 years, Hackman said.
But in order to start receiving additional money next year, the council will have to give its approval to a specific proposal before Aug. 1, she said. If the council misses that deadline, the county will have to wait until 2020 to start taking financial advantage of the law change, Hackman said.
Although a similar arrangement has been available to pay for funding shortfalls at the Bartholomew County Emergency Operations 911 Center, both the city and the county have declined to use it, Hackman said.
However, pressure is increasing from the three Bartholomew County commissioners to begin using local income tax revenue prior to disbursement to finance that shortfall, she said.
Much of the center’s funding comes from the Indiana Statewide 911 Board, which provides $975,000 annually, center director Todd Noblitt said. That money comes from user fee surcharges paid by wireless and traditional phone users throughout the state.
However, that still leaves a funding shortfall estimated at $700,000 this year, which is paid for jointly by the city of Columbus and Bartholomew County government through an interlocal agreement. Hackman said.
Under that population-based agreement, the city pays 55 percent of the shortfall, while the county pays the remaining 45 percent.
Since recent population shifts now indicate nearly 60 percent of Bartholomew County residents reside in Columbus, rather than 55 percent, the change recommended by the commissioners could work in the county’s favor, DeDomenic said.
In addition, there was a dispute about the amount of money each government entity should pay for the E911 shortfall prior to Columbus Mayor Jim Lienhoop taking office in early 2016.
Besides new income for jail expenses, Sembler is expected to provide figures on the E911 shortfall proposal during the June 12 meeting.
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What: Income expectations will be presented in regard to a new state law allowing a percentage of local income tax revenue to be set aside for jail renovations and E911 service before it is distributed to taxing units.
When: During the 6 p.m. Tuesday regular meeting of the Bartholomew County Council.
Where: The council meets in their fourth-floor chambers at the Bartholomew County Governmental Office Building, on the northwest corner of Third and Franklin streets.
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