RE-DIVIDING THE PIE: Bill would increase funding for Vernon Township, result in revenue losses elsewhere in county

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Vernon Township fireman Kaisy Stewart runs through a check of her gear at the new station in Fortville. (Tom Russo | Daily Reporter)

By Mitchell Kirk | Daily Reporter

VERNON TOWNSHIP — “An emergency is declared for this act.”

So reads Indiana House Bill 1202, authored by state Rep. Bob Cherry, R-Greenfield.

The emergency is over Vernon Township’s ability to respond to emergencies.

But the proposed legislation would allow the township  — which includes Fortville and McCordsville — to resolve that by increasing its maximum property tax levy for fire and emergency medical services.

Where would the money for that increase — estimated at more then $1 million — come from? The answer: Other tax units across Hancock County, such as other towns and school districts. Some stand to see six-digit losses.

Leaders of several of those units say while they’re not thrilled about the reductions, they understand the necessity driving them.

The provisions of Cherry’s bill have been merged into House Bill 1113, which the Indiana House of Representatives passed in January. The Senate Committee on Tax and Fiscal Policy is scheduled to discuss the bill on Feb. 25.

According to a fiscal impact statement the Indiana Legislative Services Agency prepared on the original bill, Vernon Township would be able to increase its property tax levy to about $1.85 million, an increase of about $1.33 million.

That would make its levy comparable to that of Buck Creek and Sugar Creek townships. Vernon Township is like those townships in terms of population, but unlike them in that it does not have a full-time fire department.

McCordsville is one of the fastest-growing communities in the state, adding nearly 2,000 residents in the past 10 years, according to census estimates. Planners have approved numerous new subdivisions in both McCordsville and Fortville, whose populations are expected to continue to grow.

Florence May started as Vernon Township trustee in January 2019. She said it was “an enormous reality check” to discover the township’s financial capabilities were so much less than that of its neighbors.

“If we were at the point where we were just talking about growth coming, it might be a really different story,” she said. “But the growth is here. It’s not a choice now. We are several years behind. And while none of us want to see any money taken from the schools, none of us want to see any money taken from police, none of us want to see money taken from any organization, the reality is as a community we chose not to fund fire, and now we have to play catch-up; we have no choice.

“Everyone wants a fire truck to show up at their house if their house is on fire,” May continued. “They want an ambulance to show up if they have a heart attack. And we have to fund it.”

May has overseen the completion of a new fire station in Fortville, started 24/7 on-station service and changed the township’s fire protection from two paid-per-run outfits into one department made up of paid part-time and paid-per-run firefighters. The township also ended its agreement with its former ambulance service provider and started providing the service in house on Jan. 1.

The township is currently spending into its reserves to fund the level of fire protection it provides now, May said. The legislation making its way through the Indiana General Assembly would allow it to sustain that level of protection in a fiscally responsible way, she added.

Vernon Township would see a net increase of $1.63 million of revenue, while other tax units in Hancock County would see a net decrease of $1.14 million, according to the fiscal impact statement.

Mt. Vernon Community School Corporation, which is mulling building a new school to keep up with its growing student body, would see the biggest loss under the bill — an estimate of more than $431,000 by 2022.

Kellie Freeman, president of the Mt. Vernon School Board, told the Daily Reporter in an email that while the loss is not ideal, she and her colleagues understand the necessity of fire protection.

“Safety for our students and staff is and always will be our number one priority at Mt. Vernon,” she said.

Freeman added that Mt. Vernon superintendent Jack Parker and his staff are thinking about the estimated loss as they develop a sustainable budget plan. The corporation’s finance team, she continued, is working to see that the impact won’t reflect in the district’s educational services.

The bill would result in an estimated revenue loss to Hancock County government of more than $250,000. Bill Bolander, president of the county council, said he recognizes how far behind Vernon Township is in its ability to fund fire protection and EMS as its population grows.

“The way I see it, they have to do something up there,” Bolander said. “…I feel like it has to be done.”

He added it wouldn’t be easy to adapt to the loss, but is confident solutions are possible within a county budget of about $34 million. Bolander also said if the economy continues with the strength it’s had, more income tax revenue coming to the county could help make up the loss.

Towns like Fortville and McCordsville would experience revenue losses under the bill, but their residents depend on Vernon Township for fire protection and EMS.

McCordsville’s loss would be more than $101,000. Barry Wood, president of the town council, called it a double-edged sword.

“Obviously it’s going to hurt, losing $100,000, but the bonus is getting full-time fire coverage, which we’ve never had,” he said.

Adapting to the revenue decrease will require fiscal conservation, Wood continued.

“We’re like everybody else at this point — just have to tighten your purse strings a little bit,” he said. “It comes down to wants and needs sometimes. I think for the short term, we’re just going to have to stick to the needs, and there are a lot of things people want that we’ll just have to put on the back burner for a little while till we see how things shake out.”

Fortville’s estimated net revenue loss would be more than $68,000. That’s worth it to Fritz Fentz, president of the town council.

“I’m for fire safety,” he said. “We need fire safety if we’re going to grow and we’re going to start bringing in more businesses to Fortville.”

The estimated revenue loss to Buck Creek Township comes in at almost $25,000. Melvin Branson, township trustee, is less accepting of the changes.

“We’re already hurting,” he said.

Branson added he doesn’t think the change would keep Buck Creek’s fire department from running the way it is. But it needs to grow, he continued, referring to the influx of plans for large industrial buildings in the area — buildings that need to be protected from fires.

At the same time, he said, he understands Vernon Township’s plight.

“They’re in trouble too,” he said. “…They’re hurting just as bad as we are.”

May recoils slightly at the notion that Hancock County tax units would lose money if the bill becomes law.

“The reality is that money was on borrowed time because in other communities, they chose to fund fire (protection) and it meant that their school systems didn’t get that money, it meant their police departments didn’t get that money,” she said. “It’s not like we’re taking money above what other communities are doing.”

If the legislation passes, the rate at which Vernon Township would be funded would still be slightly less than that of Buck Creek Township, which has a smaller population, May said.

“This is a very conservative step to get us to at least operational,” she said.