The Marshall County Commissioners signed a joint resolution with the Marshall County Council last week that would direct use of the Special Local Income Tax (LIT) Funds. The Marshall County Council approved support of the legislation at their meeting this month.
The resolution outlines the support of the Marshall County Commissioners and the Marshall County Council to apply excess funds from Special LIT collected for jail bonds to be applied to continuing jail operations at the Marshall County Correctional Facility. The Special LIT was established to provide funding for the construction of the Marshall County Correctional Facility and some of the proceeds in excess of repayment of the bonds have been applied to the operations at the jail.
The government leaders are attempting to keep the money available for this purpose in the Special LIT to avoid having to take it out of the General Fund budget which could lead to an increase in taxes.
The resolution also asks the Indiana General Assembly to clarify that action and that a copy of the resolution be submitted to the Indiana General Assembly to assist in legislation to properly apply proceeds from Special LIT to keep funds as part of the Marshall County Correctional Facility operations.
Commissioner Stan Klotz was opposed to the joint resolution saying more should be done.
“I agree that we need to have a piece of special legislation, but I don’t think we’re going far enough,” stated Klotz. “We have the option to pay this off in 2022. The problem with that is if we pay it off it sunsets that tax. I think we need to ask for a piece of legislation that allows us to pay that off keep that quarter percent [tax rate].”
He said a $5 million or $6 million payoff in 2022 would free up $1.1 million in bond money and give the council more flexibility.
Commission President Kevin Overmyer said it may be beneficial to talk about that with legislators in the summer of 2021 to see what can come out of discussions. He brought up the possible construction of another pod at the jail and can adjust the rate of the bond.
The commissioners approved the resolution with a vote of 2-1 with Klotz opposed.
