Published: November 21, 2008 11:18 pm      

County council rejects option tax

Members say they can do without additional revenues.

Cass County Council members voted unanimously Friday against introducing a local option income tax for county residents in 2009.

With no increases in the county’s 2009 budget, the idea of introducing an income tax was considered as a means to make up possible future shortfalls in available funds.

Council president Ralph Anderson dismissed the need for an additional tax.

“We’re living within our means here, and we do not need an additional tax in Logansport or Cass County,” Anderson said. “The council fulfilled its role to follow taxpayers’ wishes not to activate an additional tax in 2009.”

Anderson said that if an option tax were introduced, it could push county income tax rates up from 1.5 percent to as high as state income taxes, which currently stand at 3.5 percent. The Indiana Legislature made the tax option available to counties throughout the state, but on reviewing the current state cap on county budget increases at $500,000, and the county’s capability to provide essential services within the means of its current budget, council members decided that an additional tax was not required.

The 2009 budget passed by the council in August was intended to offset a $500,000 deficit from the previous year. The state projects the county should experience modest growth of 2 percent in 2009, increasing the tax base and revenues. The council believes the increased revenues from this base will make up for the shortfall in this year’s budget achieved through a decrease in operating costs of the county’s existing services while still providing a high level of service.

“We gave county officials a target of reducing costs by 5 percent in order to get a 2 percent increase in pay, and they more than exceeded this target,” he said. “It’s been a question of tightening the belt and cutting out the fat. Effectively doing more with less.”

The only cut in county services was the closure of the county home. Anderson said the facility had reached a stage where it was underused and was now cheaper to close than to maintain.

The joint funding with the city of the combined dispatch was the only addition to 2009’s budget. At Friday’s meeting, after a long discussion, the council approved unanimously the appropration of funds for the county’s share of the combined dispatch costs.

Elsewhere, the council unanimously approved the release of $18,000 to meet outstanding costs of the Cass County Animal Shelter from September until the end of the year. Kim Kesler, director of the animal shelter, informed the council that her budget of $40,000 had not been sufficient to meet rising costs at the shelter over the past few months.

Kevin Smith can be contacted at (574) 732-5148 or via e-mail at kevin.smith@pharostribune.com