Marshall County financial advisor Steve Dalton appeared before the County Commissioners on Monday to provide a financial update. While he assured the board that the county is currently in a strong position, noting that "the Auditor’s Office is functioning well, and the County Council is handling the county’s budget well," he warned of upcoming challenges.
"The legislature started making changes last spring, and they are making changes now that have created some chaos with property taxes and income taxes," Dalton said.
Dalton explained that for decades, counties have relied on static five-year projection reports. However, he advised that due to recent legislative volatility, those traditional reports are no longer sufficient.
Dalton recommended creating a dynamic financial model that incorporates the county's financial history and allows for "what if" scenarios. He emphasized the need to plan for specific variables, such as the expiration of the current jail bond revenue, potential changes to income tax that could affect other county units, and inevitable shifts in property taxes. He suggested starting this process immediately, as the County Auditor has just completed the 2025 financials.
"You have Capital Project needs that you talked about this morning. You probably have even more because every county has had to defer maintenance," Dalton said. "You have a desire to maintain reserves, but not so much reserves that it's just cash sitting there that’s been taken from the taxpayers. These are all active conversations we need to look at together."
Commissioner Stan Klotz noted that the county has options regarding the Special Local Income Tax (LIT) but urged the County Council to begin planning for when the special jail bond LIT expires in February 2027.
According to the current state statute, the county is limited to implementing a new Local Income Tax of 0.20% for jail operations. Klotz noted that an additional 0.05% could be enacted to assist in funding other needs, such as the new Public Defender’s Office.
Commissioner Jesse Bohannon motioned to urge the County Council to begin evaluating a new Special LIT for jail operations to take effect after the current bonds are paid. The motion passed.
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