Updated Oct 17, 2023.
Oct 16, 2023. County Council Meeting – Budget Approval.
Sep 18, 2023. County Council Meeting – Budget Submissions
Sep 7, 2023. IPR 2024 Budget Hearings; Public Meeting Reqs
The County Council determines the amount of property taxes that will be needed in order to fund the county government. 2024 Budget Hearings: August 15,16, 17 at 5:00 p.m.
Aug 17, 2023, Meeting 3 of 3. Budget Hearings – 2024. All the proposed budgets from the department have been submitted. Council has a lot of work to do to complete the 2024 budget. The final county budget hearing is scheduled for Sept 18, 2023. It is due to the State by Oct 31.
Convention Visitors Commission (CVC). I routinely challenge the CVC budget and lack of oversight by the council. The CVC manages the revenue from the innkeeper’s tax. The revenue is a county asset. Revenue from the tax was pledged as collateral for the loan to build the BC Music Center (BCMC). It is also shared with the Convention Visitors Bureau (CVB) which is responsible for tourism-related marketing and promotion. The revenue from the tax can be spent on just about anything that promotes tourism.
Similar to the Jail, a separate building corp was established to manage the building. A management group was established to manage the venue. This management group includes a representative from the council (Darren Byrd) and the board of commissioners (Jerry Pittman).
The purpose of creating a separate building corp was so that the debt could be associated with the building corp and not constrain the amount of money a county can borrow. The county still has responsibility for the venue.
The BCMC Admin agreement states that 75% of any excess profits (“if legal”) will be donated to the Community Foundation and 25% to the county taxpayer. Why shouldn’t 100% of any excess profits be returned to the county? This could be used to fund infrastructure-related needs such as roads and bridges.
Is the 75/25 arrangement legal? Was this agreement voted on at a council and commissioner meeting? I do not recall a formal vote on the topic.
By statute, the county council is responsible for reviewing and approving the CVC budget. The expected amount of revenue in 2024 is estimated at 1.3. million. The budget includes 3 line items. Is a 3 line budget sufficient to ensure the revenue from the innkeeper’s tax is leveraged to achieve the greatest benefit to county taxpayers? 2024 CVC Budget
Aug 16, 2023 – Meeting 2 – Budget Hearing – 2024. This was the second of three meetings. The last one is tonight, Aug 17, with the final budget hearing scheduled for the Sept 18th Council meeting. The final budget is due to be submitted to the State by Oct 31. Interesting that if this deadline is not met, the prior year’s budget is used. A small team will be working to resolve the budget challenges within the next few weeks.
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- Key Document – Budget Worksheet: 2024 Budget Worksheet Jacque Clements
- Consultants. The council has the responsibility for the county budget. The county uses three consultants – Jacque Clements, Association of Indiana Counties (Council), Baker-Tilly (Commissioners) and Melissa Stinson on contract this year to help commissioners put together their budget. Stinson gets support from both Jacque and Baker-Tilly.
- Budget Worksheet. Jacque provides a budget worksheet that is the starting point for developing the budget. This year, it is a “Draft” due to incomplete information. It identifies a shortfall of $54,310 which is not accurate. Councilman Kemp pointed out the likely shortfall in Health Insurance costs at $1.1 million which reinforced the need for budget cuts. Also not included are costs to repair/replace needed infrastructure – such as one or more air conditioning units at the jail at a total cost of 640K plus.
- The overall budget system/processes? Pretty sad. Good people working in a bad system that have opted to remain in firefighting mode that has become the status quo – “the way we always do things around here.” This includes a short-term perspective with the priority being just getting next years budget submitted and dealing with the challenges one fire at a time.
- Rainy Day Fund. (County savings account). Interesting that Jacque mentioned she works with a county that has 9 million in the rainy day fund. She also mentioned that Brown County has had years with only a few hundred budgeted in the rainy day fund.
- Crisis yet? Changing systems like this typically requires a crisis. This could include a situation where expenses exceed available revenue to the point the county has to take out a loan to pay the bills. Further, one can’t have a good budget without a viable strategy and plan.
- Contributing to the problem is our one-party monopoly on political power where preserving the status quo takes precedence over effectiveness and efficiency.
- Planning – a dirty word? For some reason, the Brown County culture has perceived a plan as a virus to be avoided. A simple thing like a capital improvement plan and budget has been avoided at all costs. Thankfully, new commissioner Ron Sander has taken on this task. He started with getting a list of the properties that the county is insuring. This provides a starting inventory for helping to identify expected repair and maintenance costs. For instance, the prosecutor’s office has been on the “talked-about” list for a replacement for years. Replacement may be a priority for the next capital improvement loan in 2025. We only have 75K left on the current loan.
- Finance and Budget Information. The State does not make it easy for any citizen (and elected official) to learn about State/County finance and budgeting. Consequently, this leads to the need to rely on consultants. It also requires a longer learning curves for government officials. And, you have to have a desire to learn a foreign language and few may be willing to put in the time needed to overcome the learning curve. The Budget Worksheet illustrates the point.
Aug 15, 2023. Meeting 1 Budget hearing – 2024. This was the first of 3 initial budget hearings.
Tax Increases. The county’s budget consultant was not at this meeting. The consultant identifies the projected deficit and the percent/amount of property taxes the council can choose to raise via a growth quotient. The growth quotient is 4% this year or around 200k. The council must vote to accept or reject the increase. The council routinely votes to accept. Council has also routinely approved a 3% cost of living raise for employees. In the past, the 3% was estimated to cost around 130K which leaves 70K of “new” revenue.
Balanced Budget? The projected “net new revenue” is not enough to fund the county. In order to balance the budget, we routinely understate expenses. What we do not do and should do is identify what we know to be unfunded liabilities. This lack of due diligence caught up to this year when the council and commissioners had to scramble to find funding for both health insurance costs and funding a new addition to the courthouse.
On tax policy, the county opted to rely on revenue from income taxes vs property taxes. We maxed out on income tax increases and shifted to relying on the growth quotient from assessed property values
Property taxes can also be raised to fiancé debt. We routinely have been borrowing money to fund infrastructure costs. The recurring debt from a loan increased from 2 million to 3 million and there is only about 75K remaining on the last loan that expires in 2024. Over 600K has been identified as being needed to replace air conditioning units at the jail.
Longer-Term planning? The county’s budget process is typically focused on the short-term, e.g., the next year. No long-term goals for savings, investments, and spending priorities. On spending priorities, a capital improvement plan and budget is finally starting to be developed. The lack of a plan was a repeat finding by the State Board of Accounts that was routinely ignored by county officials.
Financial Plan and Strategy? We have had a Financial Plan that was not integrated into an overall finance and budget plan and strategy. A published financial plan reportedly helps the county to obtain a lower-interest loan. A recommended goal for counties is to maintain at least a 15% balance in major fund accounts. Should not be too difficult to track the status of such a basic goal.
Supporting Information:
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- BC Government Proposed 2024 Budget 08.10.2023 – developed by Councilman Jim Kemp
- Notes: 2023 Budget Hearings
- DLGF – Budgets
- Citizens Guide to Property Tax — Assessment, Budget Process, Property Tax Bills
Description: The county receives an estimate of revenue for 2024. This includes what will be allowed as a tax increase if approved by the council.
Departments – using their prior year histories as a baseline, identify expenses. A review is conducted to balance revenue and expenses. State reviews and approves the budget and publishes the budget order in January.
Surprises. The area of surprise is the renewal of contracts and the unfunded requirement for repairs and replacement of infrastructure.
What’s Missing? At least an annual review of budget performance which would include actual expenses vs planned and planned savings vs projected savings would be helpful. The goal is a minimum of a 15% fund balance. Some counties have savings in a Rainy Day Fund that will cover a year’s worth of expenses.
Contract Support
- Jacque Clements, Association of Indiana Counties.
- Services to be provided by Melissa Stinson – former commissioner admin assistant. (RFI submitted on July 6, 2023, for a copy of the contract)
- Caitlin Cheek, BakerTilly
Additional Information – FYI
Outline – Baker-Tilly – Proposal – Scope of Work – Budget Support – Overall Context
A. Annual Budget Assistance and Analysis (Consulting Services)
- Meet with the Client to discuss the budget process and collect data for budget preparation.
- Develop or analyze the budget calendar for consideration by the legislative body.
- Assist with Client prepared budget estimates.
- Compute state-distributed revenues based on formula sheets, certifications, and other information provided by the Department of Local Government Finance (“DLGF”) and the Auditor of State.
- Compute miscellaneous revenues based on historical information provided by the Client.
- Compute the estimated maximum levy.
- Compute the estimated tax rate and levy by fund.
- Assist with the preparation of prescribed forms related to the annual budget.
- Assist the Client with entering budget data into the Indiana Gateway program.
- Monitor the completion of the required steps of the budget process with the Client.
- Attend public meetings at the discretion of the Client to present budget information to the legislative body.
- Analyze the 1782 Budget Notice on behalf of the Client to ensure accuracy and completeness.
- Provide periodic budget management assistance through telephone, remote and on-site support.
B. Levy Appeals (Consulting Services) (as necessary)
- Assist the Client with determining its eligibility to apply for a property tax levy appeal with the DLGF.
- Assist with the preparation of the State appeal application and supporting documentation for levy appeals.
- Submit the levy appeal petition and application to the DLGF.
- Monitor the completion of the required steps of the levy appeal process with the Client.
C. Additional Appropriations (Consulting Services)
- Develop a timeline for the steps required to request approval of an additional appropriation from the DLGF.
- Analyze estimated receipts and cash on hand to determine ability to fund requested additional appropriation.
- Assist with State prescribed additional appropriation documents.
- Assist the Client to monitor completion of the required steps of the additional appropriation process.
D. Reestablishment of Cumulative Fund Rate
- Develop a timeline for the steps required to reestablish the rate on the Client’s cumulative fund.
- Preparation of State required documents.
- Preparation of the notice to taxpayers and establishing ordinance for local counsel review.
- Attend a public meeting, as requested, to discuss the establishing process and the estimated revenues to be generated from the tax rate.
- Additional meetings are covered under Section E below.
- Assist the Client to monitor completion of required steps of the process.
E. Other Accounting and Required Support Services (Consulting Services)
- Analyze historical financial information and develop estimated financial reports and analysis.
- Attend other meetings not covered under the Scope Appendix above.
- Provide other required accounting support services.
Image by Gary Varvel at 



