Council President Tim Harman provides snapshop of county's financial health

County Council President Tim Harman gave a snapshot of Marshall County's fiscal health during this week's joint work session of the Council and Commissioners.

Harman said the county was in strong fiscal health with increased combined cash balances in the General and Rainy-Day Fund.  He also commented that they have been doing a responsible spend down of the Jail Fund, still leaving ample reserves, and ended last year with a $1.8 million increase in all the funds in the county. 

Harman provided some numbers, such as, “Last year, the combined General Fund and Rainy-Day Fund balances hit almost a record of $13,417,000. That shows really good fiscal stewardship on everyone’s part; everyone in the county, departments, and elected officials is doing a great job.”

Looking at the jail fund, Harman said the council has been responsibly spending down the funds. He said that at the end of 2021, the fund had $9.6 million, and it had been going up for 13 to 15 years.   In 2021, legislation was changed and requires Marshall County to spend the surplus, once the jail bonds are paid, for jail maintenance.

Harman did reach out to Senator Mishler and Representative Jordan, asking them to look at special legislation to free up those funds. He projected a $4 million surplus in the fund by the end of 2026, even if they run a $1.8 million deficit in the next two years.  Harmon said $4 million on jail maintenance is too much, and they need to continue spending down the surplus.

Harman noted that the county will receive the $1.1 million cash deposit back once the bond is paid off. 

Councilman Harman also commented on pending legislation, including SB1, which is the governor’s property tax reform.  If passed as it currently stands, Marshall County’s property tax revenues for all taxing units together would be cut by $7 million in 2026, $8 million in 2027, and $10 million in 2028.  He said the county’s levy has gone up roughly 5.5% a year.  Harman also noted that income tax revenues and the jail tax revenue have gone up almost 9% a year.

House Bill 1402 allows for some revenue replacement via some local income tax changes.  Harman said municipalities could start their own income tax if the bill went through.  Marshall County’s could be 1.2%.  He explained that if there is a countywide 1% income tax, the Marshall County government only receives 40%, and the other taxing units, the city, towns, townships, and libraries, receive 60% of the income tax.

House Bill 1461 is Road Funding and includes a mandatory wheel tax for the 38 counties that don’t currently have one, including Marshall County. You would be required to have the tax at the maximum, or the county wouldn’t be eligible to apply for the $1.5 million Community Crossing Matching Grant funds it has received in the last 10 years. He said the county would only have to provide a 20% match instead of the current 25%, saving the county $125,000 a year.

The commissioners and council are against House Bill 1628, which strips away local zoning for renewal energy projects.  Commissioner Jesse Bohannon spoke at the committee hearing and said, “From reading the room, the committee at least seems like they are fairly committed to, um…they don’t like the decisions we have made locally basically, and it’s the same way statewide.”

President Harman said House Bill 1006 is a leadership bill, and the likelihood of it passing is quite good.  This bill reimburses the counties for half of the salaries of deputy prosecutors plus $15,140 in benefits.  Harman said Marshall County has four deputy prosecutors and would be a savings of $260,000 to the county.