What local government consolidation will look like will be determined by local communities, with the state providing the mechanism to achieve that goal, said Micah Vincent, general counsel to the Indiana Department of Local Government Finance, Monday.
Vincent addressed the Citizens Committee for Consolidation on the role the DLGF will play as government entities consider consolidation in the future.
He said it was a good thing the CCC was meeting and discussing government reform in Howard County.
“It takes a lot of creativity and hard work,” Vincent said. “The Government Modernization Act provides a process.”
Vincent said once one or more governmental entities approve a similar resolution to consider reorganization, there is 30 days to appoint a committee.
He said the committee has a year to formulate a reorganization plan that is then submitted to the legislative bodies of the entities involved. The legislative bodies can adopt, reject of amend the plan. If rejected, the committee has 30 days to develop a new plan.
Vincent said 10 percent of voters within the governmental entities can petition to take the plan to a referendum vote.
He said the Government Modernization Act details how consolidation or reorganization is achieved and hopefully will save taxpayers money.
Vincent said the act allows for a variety of consolidations between townships, counties, municipalities and school districts. He said consolidation can be achieved through a combination of any of the two, but that a township couldn’t reorganize with a school district.
He said the Government Modernization Act is the only law that governmental entities have to reorganize or consolidate, and the courts will look at the law with a liberal view when it comes to interpretation. The act has not been challenged in any court to date.
Vincent said if a legislative body in a governing entity rejects a reorganization resolution, the effort dies.
He said legislation that has passed the Indiana Senate would require the creation of a fiscal plan by the consolidating or reorganizing governmental units to be reviewed by the DLGF.
Vincent said the DLGF would make recommendations on the viability of the proposed fiscal plan that would be made available to voters before a referendum vote takes place.
He said the Government Modernization Act is getting more attention around the state because of fiscal concerns at the local government level.
Vincent said Zionsville consolidated with two townships, Evansville is considering a reorganization with Vanderburgh County, Fishers is in discussions with surrounding townships, and talks are taking place between Muncie and Delaware County.
He said the act provides a wide range of options for local units of government considering consolidation.
Vincent was asked about property tax caps that are now included in the Indiana Constitution. He said it was straight forward for the agency to administer the caps.
He said one concern is the issue of increasing assessed values and the potential impact on property taxes.
“There are a lot of fiscal checks on the assessed value,” Vincent said. “There are checks to make sure the assessed value is right, and property owners have the right to appeal.”
When asked about local income taxes, Vincent said those are policy decisions made at the local level on the rate to be charged.
Vincent said there already has been some consolidation at the state level with the elimination of most township assessors.
“There has been an improvement in efficiencies,” he said.
Vincent said another area of consolidation is through the creation of Fire Protection Districts, which are stand-alone governmental entities created by county commissioners.
He said residents can petition for the formation of a fire district, and that the DLGF sets a maximum levy the first year which is used as the base line in future years. The county council sets the levy, tax rate and budgets.
Vincent said a Fire Protection Territory can be created that is not a stand-alone taxing unit. He said in the case of two or more townships, one township would provide the fire protection, set the budget and tax levy. Other townships would be participating units and pay property taxes for fire protection services.