Fulton County Council members, from left, Phyl Olinger, Randy Sutton, Barry Hazel and Ron Dittman, discuss a proposed income tax increase before their Tuesday vote to approve. On the floor in front of them, a schematic drawing of the county’s proposed new jail, an architect’s rendering of the building’s exterior and, in orange, the property off Sweetgum Road the county has purchased for the planned building.
The Sentinel photo / Wesley Dehne
The Fulton County Council on Tuesday decided to enact an income tax hike to finance a new jail.
The county’s current income tax rate of 2.38 percent will increase by 0.3 percent under the measure. The revenue from the tax hike will go toward construction of the new jail and operating costs.
Of that rate increase, a little less than half will be allocated to a public safety answering point, or PSAP, expenditure. Revenues generated on that portion of the rate increase may be used to fund the 911 dispatch center, and therefore free up money from the county’s general fund to fund the jail project.
The remaining portion of the rate increase will be allocated to public safety and be distributed to the county, city of Rochester and the towns of Akron, Fulton and Kewanna.
An estimated $572,160 in additional revenue will be generated each year. The public safety portion will raise an estimated additional $410,584 for the county, $204,736 for Rochester, $18,375 for Akron, $16,413 for Kewanna and $3,793 for Fulton.
A handful of people attended the council’s meeting Tuesday to voice opposition and ask questions.
“Does Fulton County truly have the ability to take on this burden with some of the numbers that you’re seeing out of your taxpayers?” Aaron Bolinger asked.
He noted that from April 2010 to July 2018 the county’s population declined by 750 people, according to the U.S. Census Bureau. He noted the percentage of kids receiving free or reduced lunch at Rochester School Corp. is at 50.6 percent and 33.9 percent at Tippecanoe Valley School Corp. He also cited statistics covering job loss, property tax comparisons and assessed valuation.
“Every little bit, even if it’s .1 or .5 or .3 of a tax percent, that is more time that those who are already struggling are going to have to pay into this,” Bolinger said. “We have to trust the sheriff that he knows what the needs of the county are, but are we really able to pay for all of this?”
He also voiced concern about the county purchasing prime commercial property along U.S. 31 for the new jail.
“There’s never going to be a factory that is going to sit out there,” he said, adding the property has been removed from the tax rolls. “There’s going to be something that just sucks up taxpayer money now.”
The property at 2184 Sweetgum Road – southwest of the city limits between Indiana 14 and U.S. 31 – was purchased from Rochester Concrete Products Inc. The county agreed to pay $20,000 per acre on the 15.73-acre property. The total price, including closing costs, was $315,757.
“I’m just wondering, if we’ve known we’ve had an issue with the current jail for several years, have we escrowed any money back for this?” Troy Beehler questioned. “It seems to me if you’ve known this is a problem that maybe we would have put something back for it instead of just raising taxes.”
Others in attendance were critical of the county raising the tax rate before seeking bids on the project.
Tony Vie, architect of Elevatus Architecture, said his firm is finishing drawings of the new jail and the county’s construction management firm, Garmong Construction Services, has provided a conservative cost estimate of the cost to build.
“We’re very confident in that cost estimate,” he said, adding the project will be put out to bid on Nov. 1. Interested contractors would then have four weeks to submit their proposals.
Councilwoman Lorie Hurst said the decision to enact the tax increase comes from more than two years of studies and consultation.
“We haven’t just jumped to conclusions on it. We’ve studied it very well,” she said, adding income tax versus property tax was the best route to generate additional revenue.
“It’s not just landowners who will contribute to this need, it’s all of the county,” she said.
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