ANDERSON — The Madison County Commissioners have voted to raise the tax rate for the cumulative bridge fund by a penny.
The commissioners voted Tuesday to increase the rate from 2.59 cents per $100 of assessed valuation to 3.59 cents. It would be for 2017 taxes payable in 2018.
The problem is if the Madison County Council agrees to the 1-cent increase in the tax rate for the bridge fund, there will have to be a deduction in the property tax rate for the general fund, health fund or reassessment fund.
Auditor Rick Gardner said the 1-cent increase, based on the county’s 2017 assessed valuation, would raise an additional $349,299 for work on the county’s bridges.
The property tax increase would increase revenues for the bridge fund from $905,782 to $1,255,011 in 2018.
In previous years, the commissioners have voted to increase the property tax rate for the cumulative bridge fund to the maximum 10-cents per $100 of assessed valuation.
John Richwine, president of the Board of County Commissioners, said Thursday the 1-cent increase in the property tax rate for the bridge fund would take effect in 2018.
“In the past we have always set it at the maximum rate and taken that to the council and agreed to any cuts they made,” he said. “The commissioners have the authority to set the rate and the council has no authority to make any cuts.”
Richwine said the commissioners decided to increase the tax rate incrementally to eventually get it where it needs to be.
“The county is going to get $1 million in increased revenues because of an increase in the assessed value for the county,” he said. “The council will still have $650,000 in additional revenues.”
Richwine said the 1-cent increase won’t increase the taxes for property owners.
The county has 217 bridges to maintain.
County Engineer Charles Leser previously said the county needs $3 million to $4 million on an annual basis to maintain, repair and replace the bridges.
Leser estimated the county would need to spend $34.5 million from 2015 to 2019 on bridges.
County council President Steve Sumner doesn't think the commissioners should be too optimistic about getting additional funding.
“The commissioners want to raise it every year,” Council President said of the bridge fund tax rate. “It’s a standard protocol.
“The health department needs more money,” he said. “We don’t have room in the budget to increase the bridge fund.”
The health department is expected to request an increase in the health fund tax rate of 2.32-cents per $100 of assessed valuation to eliminate a funding deficit in the future. For 2018, that increase could be for a half-cent.
“I would support a slight increase in the health fund,” Sumner said. “The council is split on the health department; some think it has been mismanaged.
“Their (health department) budget is cut every year,” he said. “The tax caps don’t give us any room.”
For this year the Indiana Department of Local Government Finance cut the health department budget by $252,000. The state agency eliminated an operating balance of $175,000 and made additional reductions of $77,000 in the budget.