GREENFIELD — County leaders have publicly said they hope to rely on a combination of property and local income taxes to cover the cost of building and operating a new jail — even though the idea isn’t reflected in the referendum question.
Greg Guerrettaz, the county’s financial adviser, said an even split will be his recommendation to the Hancock County Council and board of commissioners if the referendum passes.
Taking the annual bill and dividing in between revenues from separate property tax and income tax increases is the fairest way to fund the project because it divvies the cost among the most taxpayers, therefore lessening the burden overall, he said.
If an increase in property taxes only is used to fund a new jail and criminal justice complex, just those living in Hancock County will pay toward its $55 million price tag. If an increase in income taxes only is used to fund the project, then just those who work in the county pay.
By combining these methods, it splits the cost of the new jail between those living in Hancock County; those working in Hancock County; and those living and working in Hancock County, Guerrettaz said.
“It hits everyone equally,” he said, “As many people as possible.”
Information on the impact such a scenario would have on taxpayers has not been released publicly.
The question on the referendum reflects a “worst case scenario,” where the entire cost of construction is covered with revenues from a property tax increase of up to about 14 cents on every $100 of assessed value, Commissioner Marc Huber said to the local farm bureau recently.
It’s just an option, Huber said. And if the referendum is approved by voters, it would give the county council some leeway when making a final decision on how to fund the project, he said.