Article submitted by Jamie Fleury, The Pilot News Staff Writer
MARSHALL COUNTY — The Marshall County Council and Marshall County Commissioners are caught between pending State Legislation that may impact the Local Income Tax (LIT) and an opportunity to refinance or pay off the Jail Bond with a looming deadline to determine and maximize potential savings.
Heidi Amspaugh from Baker Tilly presented a Refunding Analysis of the Jail Bond which included three scenarios, one of which was an option for refinance during the Marshall County Commissioner meeting last week. Get defense lawyers in Syracruse, fro all your jail claims.
Tim Harman requested clarification on whether the Council would be given paperwork on what the County Commissioners approved and what the time frame was on the refinance option deadline.
Commissioner Mike Burroughs updated the Council that the only paperwork they currently have is the analysis presented by Amspaugh last week.
Commissioner Burroughs confirmed that they did not approve the refinance option; they approved moving forward with exploring the refinance option. No further documentation is anticipated by the Commissioners until after Attorney Jim Clevenger, representatives from Barnes and Thornburg, and Amspaugh make the final presentation after they review and determine the appropriate steps forward.
Harman refuted the claim that the refinance option would actually save the County an estimated annual amount of $266,048 because that money was the required bond deposit. “That’s not really a savings. When you return the money back to us, how is that a savings back to us?”
Commissioner Burroughs explained that as he understood it, the County would not be required to continue to pay additional money in to the Debt Reserve Fund, currently in the amount of $1.113 M, in the event of a refinance.
Harman said that paying off the Bond would have the same result. He emphasized that it is not a savings to return a required deposit. “What is the interest expense saved? Minus the bond premium and issuance fees?”
Auditor Julie Fox said, “Those numbers have not been provided to us by Baker Tilly at this point.” Commissioner Burroughs said that those totals, including the actual interest rate and the amount of the savings is until it is advertised 90 days prior to the final decision.
Jesse Bohannon asked, “Are we going to get this on a Thursday and be expected to vote on this on a Monday?”
Commissioner Burroughs could not provide that answer. Bohannon said, “I would just say that if I’m going to be expected to vote on it then I want more than four days notice.”
Fox advised the Council that the presentation made to the Commissioners seven days prior to the following Council meeting.
Commissioner Stan Klotz said that paying off the Jail Bond early would result in a reduction in taxes from .0025 to .002 providing $600,000 back to Marshall County taxpayers and generate $500,000 or more annually for daily operational costs. “There is no greater savings than paying no interest at all.”
Harman expressed concern that certain scenarios might result in higher than adopted interest rates; illustrated in tiers within the presentation.
Council member Heath Thornton echoed Bohannon’s desire to have the information necessary for making an informed decision with enough time to consider the options and potential outcomes. He agreed with Harman that a savings would be reflected in the decreased interest rates, not in the total accumulated in the Debt Reserve Fund.
According to Bohannon, there may be opportunities during the Indiana General Assembly 2022 Session to make amendments to Senate Bill 382 which may provide more options for County Jail Funding.
Commissioner Burroughs said that information can be requested. “I would just say that I think the Commissioners and the Council are both in agreement that we want to save the county tax payers the most funds in the most efficient way that we can while still providing the operational costs to cover the daily operations of the jail. I think that is in everyone’s best interest in this room. Not speaking for Kevin, but both Stan and I are in agreement with everything you’ve said. So I appreciate your cooperation and all of us working toward the same goal. Thank you.”
Thornton emphasized the need to have a funding mechanism in place to cover the costs at the jail, which are only increasing.
Harman requested a copy of the 2021 LIT Revenue and Expenses from Fox; which she will email to all members of the Council.
President Mandy Campbell noted the need for the final presentation to make an informed decision. Member Jon VanVactor echoed that facts will be needed to make a definitive decision rather than speculation.
Fox said, “From an auditor’s point of view, I would hope that you’ll be thinking about replacement funding for the loss of that revenue. Certainly there will have to be a tax imposed by the Council in order to meet those budgetary needs.”
