Council extends discussion of public safety tax

Friday, June 19, 2015

As the county continues to work through funding an upgrade to 911 software, the Putnam County Council likely needs to pass a new County Adjusted Gross Income Tax (CAGIT) for public safety.

The first ordinance, passed in May, did not address how the money would be divided between the county and municipalities.

County officials have since learned they have more control over this split than originally thought.

Discussing the CAGIT issue again on Tuesday, the council discussed setting the county share at a high rate -- perhaps even 100 percent -- for the first year, and then passing a new ordinance for subsequent years, giving the city and towns more in the coming years.

The biggest concern for the first year is funding as much as possible of the $960,000 price tag for the new software.

Although the Putnam County Commissioners have approved financing through North Salem State Bank, officials would like to pay the loan off quickly.

In subsequent years, it would be more of the money collected would go to municipal units of government to fund city and town police and fire protection.

Any new ordinance will have no effect on the rate of .25 percent. The move will bring an estimated $1.5 million into the county annually.

The burden on county taxpayers will be around $70 per $30,000 of income. This will be softened by coming tax decreases from the state.

No rate was decided during the meeting, but councilmen prepare to discuss the issue further with Dave Bottorff of the Indiana Association of Counties.

The council also heard a request from Commissioner David Barry and County Highway Supervisor Mike Ricketts for $112,868.68 from the hazardous waste fund for use on Russell Township roads.

The money is intended for asphalt on the Morton-Russellville Road as well as work on a pair of gravel roads in the township.

The money requested falls well within the 10 percent of the fund allowed to be spent annually on Russell Township roads.

The matter will be back before the council in July once it has been advertised.

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  • Why not use the the money that the hotels pay in innkeepers tax? Its "taxpayers" dollars as stated by several of their board members. This would pave many roads and help pay off the 911 tower debt pretty quickly. Economic development.

    -- Posted by canttakeitanymore on Fri, Jun 19, 2015, at 7:53 AM
  • "In subsequent years, it would be more of the money collected would go to municipal units of government to fund city and town police and fire protection."

    From county taxes? We in the county have a Sheriff already.

    Will any of this effect taxes that are supplied to townships?

    -- Posted by LibertyStork on Fri, Jun 19, 2015, at 5:30 PM
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