FOR SHELBY COUNTY

LOIT Public Safety Tax is an income tax that a county may adopt up to .0025 to use for the county’s public safety and only for public safety. This tax will be paid by everyone in the county that works, not just property owners.

• Police / law enforcement • Firefighting & fire prevention systems• Emergency ambulances & medical services• Emergency Action (environmental cleanup)• Probation Programs• Community Corrections Programs• Juvenile detention centers & facilities• County Jail

Communication systems – E-911 systems Medical & Health care expenses for inmates Pension payments for:

◦ Police officers & other department employees◦ Firefighters & other department employees◦ Sheriff & other department employees◦ Other personnel providing public safety services

Revenue decrease from the States Actions:◦ From 2007 - 2014 the decrease in State Revenue

has dropped $1.3 million: 2007 - $1,657,969.95 2008 - $1,627,012.20 2009 - $ 746,732.30 2010 - $ 699,103.07 2011 - $ 587,855.23

2012 - $ 491,418.88 2013 - $ 362,274.85 2014 - $ 327,645.20

The losses stem from :◦ Interest rates dropping (Banks) $653,923.08◦ Inheritance tax (state dropped it) $ 73,193.97◦ DOC (money for prisoners) state took Federal

Prisoners out of the Counties $400,000.00◦ Homestead Credit & Property Tax Replacement

Tax (state dropped it) $400,000.00

Since 2007 the state has cut Personal Property Taxes:

Inventory Tax: Personal Property Tax – boats, campers,

ATV 2016 dropping any Personal Property that

the acquisition amount is under $20,000.00

The State has cut the county’s levy for the budget to be raised from 5% to 2.6% (this is the amount the county can raise their budget from year to year)

2.6% only equals $147,000.00 increase for the 2016 budget. This isn’t very much when you consider: Electric, fuel, insurance, supplies prices are still rising.

For the 2016 Budget the County has used an extra 36% from Racino on top of the 15% to balance the budget

The County has had two employees either retire or leave and they have not replaced them – this is a savings of around $75,000.00 with benefits.

Each department has done their best with their spending and has turned back in some of the current year budget.

These departments are not big or nor do they have excess spending.

SHERIFF DEPUTIES:◦ 30 CURRENT INCLUDING SHERIFF◦ NEED 4 MORE TOTAL COST =$339,523.08

CURRENT JAIL OFFICERS: 30 CURRENT

NEED 13 MORE RECOMMENDED BY JAIL ANALYSIS REPORT

TOTAL COST = $867,429.29

INCOME TAX

A Person with the annual salary of $45,000.00 will pay

An extra $112.50 per year or

$8.66 per monthor

$4.33 per pay if paid biweekly

THE PUBLIC SAFETY LOIT TAX WILL BE THE SAME AS THE CURRENT EDIT TAX .0025

2015 EDIT TAX INCOME = $947,427.12

2016 ESTIMATED INCOME = $947,249.00

CITY OF SHELBYVILLE - $1,234,403.00 ST. PAUL - $ 2,775.00

EDINBURGH - $ 22,732.00MORRISTOWN - $ 41,749.00FAIRLAND - $ 4,225.00

This must also be used for Public Safety Only

If the Council Adopts the LOIT Public Safety Tax before November 1, 2015, the County will start receiving money in January 2016

Where the Racino Money that the county has been receiving has helped the county a lot, the county has been able to keep the property tax rate low. The county has not had to go out and borrow money for Capital Projects, Maintenance on Current Buildings, Computer Equipment, etc.

There are two things the Council has in the back of their minds are:

◦ 1. The state could lower the percentage that the county is currently receiving.

◦ 2. The Racino could file bankruptcy and close all together and the county would have no back up.

Currently the County is putting 10% of the yearly income into savings, so that if the county does loose the monthly income, they will be able to continue running until they can come up with a plan

State Representatives:

Jean Leising

Michael Crider

Sean Eberhart