County Finances and Taxes – A Primer

Our county government (commissioners and council) have identified their intent to borrow an estimated $10 -12 million to build a new Justice Center ($10 million)and to renovate/re-purpose the historic courthouse ( $1-2 million?). The second floor of the courthouse will be used to create offices for our “part-time” commissioners.

Citizens should expect commissioners and councilman to address some basic questions:

  • What documentation is available that identifies the compelling need for this project?
  • Was a workload analysis completed to support the size and scope of the facility?
  • Where is the documentation that identifies the alternatives and their respective pros and cons?
  • Where is the documentation that identifies the counties projected revenues and expenses over the life of the loan for these combined projects (justice center and historic courthouse) that supports that this project represents the best option for the county and is financially responsible?


PROPOSED JUSTICE CENTER PROJECT.
  For the background on this project, see  Proposed Justice Center and Historic Courthouse – For the Record

FINANCIAL PLAN 2016-2021. The presentation of the “first-ever” Five Year Financial Plan (2016-2021) on April 4, 2019, identified significant financial challenges. The suggestion is to increase taxes, max out the income tax rate which will the lead to the need to increase the property tax rate and/or cut the size and scope of government.

COUNTY TAX POLICIES

Last year, Umbaugh and Associates (Now Baker Tilly) provided a presentation at the library that illustrated the complexity of our tax system – The Basics of Local Government Budgeting.   The information included  “scenarios” (pages 22-24) regarding transitioning from the high-income tax rate/low property tax rate option.

IU/SPEA SUPPORT

2018. In partnership with IU/SPEA, graduate students have prepared two reports for us. The report last year (2018 Brown County Financial Decision Support Model, covered tax policy, trends, and projections.  Note page 19: ” “The average increase in levy and budget indicate increasing tax burden on a diminishing tax base. Based on these calculations, Brown County’s needs are out-pacing its ability to levy property taxes.”

  • July 4, 2018. Brown County Democrat.  IU students discuss how data can guide county’s financial decisions by Sara Clifford. A group of Indiana University graduate students spent last semester studying Brown County’s tax structure and other variables. Their goal was to help county leaders develop tools to forecast how changes in taxes, spending, and the county’s economy will affect taxpayers and local government — a “county financial and decision support model.”

 2017. The 2017 IU/SPEA Report: Economic Analysis provided an excellent overview of county economics.

 

Local Politics – 4.15.2019

Disclaimer:  I’ve routinely registered as a Republican in the primaries but do not vote a straight-party ticket.   I advocate for a nonpartisan political platform.

Mr. Biddle is a recent Republican appointment (April 2019) to the county election board. He made comments on the Brown County Matters (BCM) facebook post referring to the “5-minute crowd” and “Brown County Lifers.”  I asked for his definition of these terms and he did not respond.  (References below).

He did provide clarification on his personal Facebook page where he associated the “five-minute crowd”  with new residents to the county.  He stated:  “Of course relative new comers have a voice – from the BACK of the bus.

Political Context. Mr. Biddle is the husband of Commissioner (R) Diana Biddle. Mr. Biddle along with his proxy and former county commissioners John Kennard (R), was selected by the Republican County Party Chair – Mark Bowman to serve on the county election board. Mark Bowman and his wife Robyn are realtors and owners of Tramcore Realty. Robyn Bowman is a Vice-Precinct Committeeman.

Opponents to Mr. Biddle’s nomination cited a conflict of interest that was determined not to be sufficient to prevent his appointment.  Commissioner Diana Biddle was accused of an electioneering violation during the 2018 primaries and due to a conflict of interest,  the complaint was referred to a special prosecutor in Jackson County.  Reference: Sept 25, 2019, BCD, Special prosecutor to investigate election complaints by Sara Clifford.

John Kennard is a former Republican commissioner and was appointed in 2019 to the Parks and Recreation Board. Mr. Kennard was nominated to the Parks and Recreation board by Councilman Bill Hamilton whose wife Judy is the GOP county party secretary.  Mr. Kennard also applied to serve on the Brown County Regional Sewer District Board but was not selected by the county council.  One of the reasons that was given was that he was too controversial.

REFERENCES

April 11, 2019. BCM Facebook Post – Screen Shot of Mr. Biddles post: in which he states: “Of course relative new comers have a voice – from the BACK of the bus.”  This statement contradicts his earlier posts that stated that he plans on representing all the voters.”

April 5, 2019. BCM Facebook Post – Joint Meeting – Commissioners and Council – Proposed Justice Center and Five Year County Financial Plan

  • Brent Lee Biddle … no the Brown County lifers would win by an even larger margin over the 5 minute crowd.
  •  Tim J. Clark  Brent Lee Biddle How do you define a “Brown County lifer” and how do you define a “5 minute crowd”?

April 10, 2019. BCM Facebook Post: Sewer Assessment Equals $$$

  • Brent Lee Biddle Once again the 5 min crowd and other take up the cause—- 
  • Tim J. Clark Brent Lee Biddle “There you go again”. How do you define “5 minute crowd” and the term “Brown County Lifer” that you have also used. 

 

Election Board Meetings – For the Record

2019 Meeting Dates – Location is the County Office Building, Salmon Room, Start time 6:00.

April 11, 2019 – Amy Kelso elected President.  Sherrie Mitchell (D) and John Kennard (R) accepted as proxies.  Priority for the 2020 election is to review the lease for the voting machines.  A proposal for Voting Centers will be reviewed immediately following the 2020 elections.  The meeting lasted about an hour.

  • Audio Recording: n/a

May 9, 2019.

June 13, 2019.

July 11, 2019

Aug 8, 2019.

Sep 12, 2019.

Oct 10, 2019.

Nov 14, 2019

Dec 12, 2019.

 

Small towns in America are dying, but not here …

 As small towns elsewhere saw prosperity pass them by in favor of the big cities, something unusual happened to this rural hamlet tucked in the Bitterroot Valley: It flourished.

Two local boys came home from college and launched a microbrewery that takes in more than $1 million in annual sales.

Retirees arrived in droves, drawn by affordable land and recreation opportunities in the area’s snow-frosted mountains and trout-filled streams.

And the federal government’s Rocky Mountain Laboratories opened a state-of-the-art biosafety facility to investigate the deadliest viral diseases, including Ebola.

Hamilton’s median household income is $30,000 annually, well below the state’s $50,000 figure, though the gap is significantly narrower for married couples.

The outdoors is more than a scenic backdrop — it’s a pillar of the local economy.

The recreation industry plays an outsized role in determining the fate of places like Hamilton. In recent years, the recovery of a once-endangered fish, the west slope cutthroat trout, helped spur a surge in outdoor tourism. Some who come here as tourists later stay for good.

Nationwide, since the recession’s end, people have been more likely to move to counties with opportunities for outdoor activities than those without them, according to a January study by Headwaters Economics. ….  Recreation may make the difference between gaining or losing population, particularly in rural counties,” the study found.

At city hall, Mayor Dominic Farrenkopf, 40, seeks to balance growth and Hamilton’s small-town appeal. … “I don’t see a massive expansion of population. I see a nice steady growth,” Farrenkopf said. “I wouldn’t mind adding another 1,000 people to the city.”

But some local voices already have been raised against unbridled growth …

Small towns in America are dying, but not this Montana hamlet. – The Washington Post

County Comprehensive Financial Plan

Aug 17, 2020. UPDATE – Brown County Comprehensive Plan (CFP)  2017-2022

  • Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared in accordance with the cash basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the user’s conclusion about the Utility’s assets, liabilities, equity, revenues and expenses. Accordingly, these financial statements are not designed for those who are not informed on such matters.

March 18, 2019. Brown County IN Comprehensive Financial Plan 2016-2021

  • In addition to the plan, there needs to be some education and training for elected representatives and citizens to understand the basics of county finance.  A flowchart of the process would also be helpful.
    • Who will be maintaining and updating the data?
  • Projections assume no change in the tax base. The tax base is projected to decline.
  • The county is near the maximum rate allowed by state law on income tax and will have to rely on cutting expenses and/or raising property taxes.  Under state law, property taxes can increase every year and higher rates will create hardships.

Currently in-process — County Economic Development Strategic Plan.

WIP – County Financial Decision Support Model 

May 16, 2017.  IU/SPEA – Economic Assessment of Brown County.  Report: Local taxes, job options need further scrutiny,  By Sara Clifford/Brown County Democrat

Nov 1, 2018Town of Nashville 2016-2022 Financial Plan 2016-2022

Road and Bridge Maintenance Information

Local Technical Assistance Program (LTAP) – Purdue University

LTAP is an established nationwide system of technology transfer (T2) centers, some of which are located in universities, with others in State highway agencies.  Each center develops a mix of technology transfer tools and information to effectively address the needs of the local highway community.

Asset Management Plans — Pavement, Bridge Priority, Pavement Inventory and Conditions, 5-year plan, cost analysis …

Assessment Procedures for Paved and Gravel Roads -LTEP Purdue,  Indiana Local Technical Assistance Program (LTEP), Purdue University School of Civil Engineering

Aug 15, 2019. BCD Bridge inspection report: More than $9 million in work needed to replace bridges over… by Suzannah Couch.  Brown County is looking at more than $9 million worth of bridge work needing to be done in the next nine years …

Examples: Capital Improvement Plans and Budgets

Road and Bridge Maintenance Information

 

 

 

Clear-cutting at the Overlooks – For the Record

Updated May 8, 2020.

Issue: Disappointment and anger over clearcutting at a popular overlook area in 2019. WTHR-TV – Drone Video

May 7, 2020. Democrat. One year later: The overlook valley cut  By Suzannah Couch

Who is responsible?   (1) The citizens (voters) for not demanding a strategy for managing county-owned land. This could be included in the county comprehensive plan and master plan for the Parks.  (2) The Judge, County Commissioners, and Council who appoint the majority of members to the Parks and Recreation Board.  (3) The Parks and Recreation Board who oversees the management of the Parks and Rec Department.

Unlike the county and several other boards, the Parks and Rec Board do not have legal counsel on contract.

A Way Ahead? Let’s just not forget and move on.  Review the policies, processes, and timeline that contributed to the decision and the current situation, share results with the citizens, and make the appropriate changes to prevent a reoccurrence. For voters, include “what happens next” as part of the criteria you use in selecting candidates in the 2020 county elections.

Background: The start of the overlook clearing by Parks and Rec

Guidance:

Deeds

Timeline

May 7, 2020. Democrat. One year later: The overlook valley cut  By Suzannah Couch

  •  Brown County Matters – FB Post.  When the cut first happened, there was confusion on who was responsible …” “… Lessons learned…” might include understanding the overall system, respective responsibilities of ALL … “key groups, and the value of a plan in support of our volunteers, employees, and citizens.

Oct 8, 2019.  BCD.  Tower work to begin at overlook: State approves partial release of deed restrictions By Suzannah Couch

May 14, 2019Due to restrictions at logged site, tower may cost more A project to build a new communications tower on State Road 135 North has been delayed after the discovery of a deed that limits what can be done so close to the highway.

April 16, 2019. BCD. Overlook litigation still possible; Nature Conservancy makes offer to manage  By Suzannah Couch. Commissioner Diana Biddle told the audience at the April 3 commissioners meeting that the county had received a “threat of litigation” and correspondence from legal firms representing local property owners. … According to online court records, no lawsuit has been filed.

April 16, 2019.  Letter: Forestry organization: 135 logging was not a ‘clearcut’ A true clearcut is a harvest method sometimes used by professional foresters to regenerate a stand of trees while also providing diverse wildlife habitats across a given landscape. 

April 7, 2019. BCM – Facebook Post.  Additional research identified the clear-cutting was in violation of the terms identified in the transfer of the property from the state to Parks and Rec.

  • See “Commentary” below on the systemic nature of the issue.

March 18, 2019.  WTHR, Indianapolis. Residents, visitors raging over tree debate in Brown County, by Kevin Rader.  A debate is raging in Brown County over this. A clear cut of trees along State Road 135.

March 15, 2019Indiana Audubon Statement on Brown County Logging Cut  Since the news of the recent clear-cutting of a swath of property in Brown County reached the Indiana Audubon Society’s Stewardship Committee, we have been following the events that led up to this unfortunate error (made either on the part of those entrusted by the public with the scenic property there …  While our primary concern is for the area’s nature itself, we are also perplexed by the causation of the event. We feel the communication between the invested parties (Parks Board, logging contractors, and community members) was flawed. Factors include:

  1. There was undue haste to complete the project, ergo crossing a line into the appearance of impropriety.
  2. There were no efforts to seek out or accommodate public input prior to the action.
  3. The contract was not devised to insure the protection of wildlife habitat, nor the public trust. Seen holistically, this indicates an alarming degree of irresponsibility or at the least the appearance of such.
Feb 26, 2019. BCD. GUEST OPINION: Overlook clearing: ‘See what it will becomeBy DAN SHAVER, guest columnist

Feb 13, 2019. BCD.  Residents wonder what happened at overlook By Poor communication led to more trees being cleared than planned

Feb 4, 2019. Brown County Matters. by Cheryl Ferguson.  178 comments, 1 share as of 3/19/2019.  Has anyone else driven out 135 toward bean blossom.?There across the road from the overlook is a valley of hell, all trees removed deep into that valley. Will anyone come to brown county if the leaves don’t have trees to hang on come October? What about the erosion that haircut is going to cause. Anybody know what’s going on? 

COMMENTARY – “If you fail to plan, you are planning to fail!”

This incident is another example  on the results from ignorance on the importance of planning – a point reinforced by Ben Franklin – “If you fail to plan, you are planning to fail!”

“IF” you expect the efficient and effective use of county assets and tax dollars “THEN” each government office, board and commission need to have a basic plan. In the case of Parks and Rec, to develop a plan, you need to know what you can and cannot do with the land you have been deeded. 

Assessments and Planning Templates — Brown County Leader Network 

BCRSD Board Meeting, March 12

BCRSD (BCRSD)  – Brown County Regional Sewer District

Status? The BCRSD Board has been given assurance by the State that the Bean Blossom project will be given a high priority for approval and funding is available.  Information on approval of the application will be known in the June/July timeframe.   They offered a caveat that approval was not a certainty and would likely be dependent on validating the need and acquiring the needed easements.

The justification for the project:  The “age” of systems (they are using an “estimated average life” of 25 years.  This information was included in the letter to residents. They are also using the results from the Health Department’s review of records. This 25-year estimate is contradicted by the EPA and Presby Environmental.

  • Useful Life of a Presby System.   If the system is designed, installed and maintained properly, there is no limit to the life expectancy of Enviro-Septic® Technology. In the event that the System malfunctions due to abuse, AES or Enviro-Septic® may be rejuvenated in as little as 72 hours, eliminating the need for a replacement.
  • EPA Septic Systems (Onsite/Decentralized Systems): Conventional septic systems are designed to operate indefinitely if properly maintained.  However, because most household systems are not well maintained, the functioning life of septic systems is typically 20 years or less.”

Residents will be sent a questionnaire along with a request for them to identify the location of their system. At an audience members request, residents to will be provided with the opportunity to identify if they want or do not want sewers and the Board will total the responses and share with the public).  (Note that the RSD does not require resident approval).

Information Sheet. Bandy Russell is working with councilman Dave Redding on a general information fact sheet regarding septic systems and terminology. Information will also be added that will provide residents with cost benefit-related information.

Residents will also be asked to approve an easement.  No details were provided regarding compensation or eminent domain.  On the easements granted by homeowners affected by the Salt Creek Trail under threat of eminent domain, payments included $176,000 for .259 acres and the school recently received $161,000 for less than three acres.

An RSD can require hook-ups to sewers and can grant waivers. The state code was referenced regarding guidance on waivers.  Indiana Code Title 36. Local Government § 36-9-23-30.1

  • The process:  “The property owner, at the property owner’s expense, obtains a written determination from: (A) the local health department; (B) the local health department’s designee; (C) if subsection (f) applies, a qualified inspector;  or (D) if subsection (g) applies, the board of the local health department; that the septic tank soil absorption system or constructed wetland septic system is not failing.”
  • The first waiver is for 10 years followed by up to two 5 year extensions for a total of 20 years.

The RSD is working to acquire grants that can be used to develop a county-wide wastewater treatment strategy.

No firm dates yet on when to expect the results from any testing of water.

On the option of running a line to Helmsburg and limiting the area to be served to just Bean Blossom, the Project Engineer (Gary Ladd) stated that this was not a cost-effective option (not enough customers) that the State would approve. The option of expanding the Helmsburg plant to accommodate the 240 Bean Blossoms customers was not discussed.

BCRSD board member discussion regarding current and past efforts to work with Helmsburg have not been productive. There was conflicting and inaccurate information exchanged between the various representatives.

MISC.

  • Council members present Dave Critser, Dave Redding, Bill Hamilton, Darren Byrd. Commissioners present Diana Biddle and Jerry Pittman.  RDC President Jim Kemp. Republican Party Reps:  Mark and Robyn Bowman.
  • The audience was directed to limit their questions/statements to 3 minutes.   Appears that the new “word” to be associated with individuals with questions and concerns is “negative” ….  a step up from naysayer?   🙂
  • Several invoices were approved.  Government representatives acknowledged that obligating expenses (approving work) prior to budget approval is not a common practice.

Further information on the history of the project: