County proposes local income tax increase

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GREENFIELD — Hancock County’s local income tax rate is expected to increase next year so the county can fully fund the nearly $700,000 in operational costs of the 911 center.

The Hancock County Council plans to vote on the rate increase during a public hearing Wednesday. According to an Aug. 14 public notice in the Daily Reporter, the county proposes raising the income tax rate from 1.7 percent to 1.74 percent starting on Jan. 1. The county collects local income tax from residents’ paychecks.

John Jokantas, director of Hancock County 911, said the tax increase is supposed to bring in enough money to cover the 911 center’s operational budget. Next year’s budget should be about $670,000, Jokantas said. Hancock County has until Nov. 1 to adopt the 2019 budget for all departments.

Of the six surrounding counties, Madison, Marion and Rush all have higher local income tax rates than Hancock County’s proposed 1.74 percent rate. Hamilton County has the lowest rate at 1 percent, according to the Indiana Department of Revenue.

Jokantas said the center has been operating in 2018 on excess funding left over from past years. By the first of October, Jokantas said the operational fund will be empty and the center will need $125,000 to finish out the final three months of the year. The center currently has $28,000 left in its operating fund.

The shortcoming is due to how the county and city of Greenfield had previously funded the 911 center. Starting in 2009, the year after the center was built, the city and county agreed to a seven-year contract to fund $630,000 to the 911 center’s operational expenses. Greenfield gave $380,000, and the county gave $250,000, Jokantas said.

Once the contract ended in 2016, Greenfield gave $250,000 to match the county’s $250,000 for that year. In 2017, the city stopped funding the 911 center, Jokantas said, and the county only gave $150,000. This year, neither the county nor city designated any operational funding, which includes utilities, internet, phone services, group health insurance and other expenses to keep the center afloat.

“We have to keep operating, and our call volume continues to rise,” Jokantas said.

The operating fund also pays for Smart911, a program that links phone numbers to user profiles, and $11,000 for panic button apps that have recently been installed at each public school in the county, Jokantas said.

While the 911 center has had to tighten up its yearly operational budget, Jokantas said the center has still been able to pay employee salaries, social security and retirement plans through the surcharge fund that collects money from phone bills of county residents.

Without having any revenue this year for operations, Jokantas said the 911 center has sustained itself for most of 2018 from money left in its non-reverting fund from past years. Jokantas, however, said he knew through discussions last summer that by this October, the center wouldn’t have any money left and would need to ask the county for extra funding to keep operating through the rest of the year.

“We stick to our plan,” Jokantas said about having a tight budget. “It’s no different than a family budget. We’re very frugal … we want to be as responsible with the money that the taxpayers give us as we can be.”

Jokantas said despite the lack of revenue, the center could spend $100,000 less than expected in its 2018 budget, barring any emergency expenses from now until the end of the year. He said they’ve cut costs for phone and internet services and haven’t had any major equipment malfunctions.

“We budget for the worst, and then when the best happens, we come in under,” he said. “This could’ve been a lot worse. We could have literally come up $250,000 short on Oct. 1.”

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What: The Hancock County Council will have a public hearing on a proposed increase to the county’s local income tax rate

When: 9:15 a.m. Wednesday, Sept. 12

Where: Commissioners’ Court, 111 American Legion Place, Greenfield

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Hancock County’s local income tax rate could increase starting Jan. 1, from 1.7 percent to 1.74 percent, to cover the county’s 911 center costs. Here’s how the county’s proposed rate compares to the region:

Hancock County: 1.74%

Hamilton County: 1%

Henry County: 1.5%

Madison County: 1.75%

Marion County: 2.02%

Rush County: 2.1%

Shelby County: 1.5%

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