Boone County Council 2015 Budget

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The 2015 Budget passed unanimously by the Boone County Council on October 14 is Taxpayer UNfriendly.

The 2014 certified property tax levy and rate data listed next was obtained by clicking on the “Certified Budget, Levy, Rate” link on the Indiana Gateway for Government Units web page at https://gateway.ifionline.org/report_builder/Default2.aspx?rptType=budget&rptVer=a.

2014 Certified Property Tax Levy
$6,274,535 General Fund
$   203,287 Reassessment Fund
$   738,870 Cumulative Bridge Fund
$   433,940 Health Fund
$   281,474 Mental Health Fund
$     97,734 County 4-H Fund
$   488,671 Cumulative Capital Development
$8,518,511 TOTAL 2014 Property Tax Levy

2014 Certified Property Tax Rate
$0.1605 General Fund
$0.0052 Reassessment Fund
$0.0189 Cumulative Bridge Fund
$0.0111 Health Fund
$0.0072 Mental Health Fund
$0.0025 County 4-H Fund
$0.0125 Cumulative Capital Development
$0.2179 TOTAL 2014 Property Tax Rate
NOTE: The 2014 Assessed Value computes to $3,909,367,141.

The 2015 proposed property tax levy and rate data listed next was obtained during the October 14 meeting of the Boone County Council – the 2015 Budget Adoption Minutes are available online at http://www.boonecounty.in.gov/Default.aspx?tabid=764.

2015 Proposed Property Tax Levy
$6,406,647 General Fund
$   325,000 Reassessment Fund
$   758,097 Cumulative Bridge Fund
$   405,657 Health Fund
$   256,200 Mental Health Fund
$   100,000 County 4-H Fund
$1,097,246 Cumulative Capital Development
$9,348,847 TOTAL 2015 Property Tax Levy

2015 Proposed Property Tax Rate
$0.1928 General Fund
$0.0098 Reassessment Fund
$0.0228 Cumulative Bridge Fund
$0.0122 Health Fund
$0.0077 Mental Health Fund
$0.0030 County 4-H Fund
$0.0330 Cumulative Capital Development
$0.2813 TOTAL 2015 Property Tax Rate
NOTE: The 2015 Assessed Value computes to $3,323,443,654.

The 2015 property tax levy increases $830,336 (or 9.75 percent) from $8,518,511 to $9,348,847.

The 2015 property tax rate increases 29.10 percent from $0.2179 to $0.2813.

The operating balance cash reserve at the end of 2015 is expected to be at least $1,199,000.

It is ”peculiar” that the assessed value used to compute the 2015 property tax rate is assumed to decline 14.99 percent from $3.909 billion to $3.323 billion. The assessed value increased 2.99 percent from 2013 to 2014. Assuming a 2.99 percent increase in the actual 2015 assessed value over the 2014 assessed value, a 2015 property tax rate of $0.2322 would generate the $830,336 property tax levy increase for next year. Therefore, it can be concluded that the 2015 property tax rate is expected to increase 6.56 percent from $0.2179 to $0.2322.

If the 2015 property tax rate had stayed the same as 2014 (and the 2015 assessed value increased by 2.99 percent), the 2015 property tax levy would have increased $254,307. Stated another way, the 2015 property tax rate could have been the same as 2014 if the 2015 property tax levy increase had been $576,029 less ($254,307 instead of $830,336). The 2014 total certified budget of $15,929,961 could have been reduced by just 3.62 percent to reduce the 2015 property tax levy increase by $576,029.

CONCLUSION: The 2015 property tax rate increase of 6.56 percent could have been prevented if the 2014 total certified budget had been cut just 3.62 percent. Because almost all of the of the homes in Zionsville are already taxed to the property tax caps threshold, very few of the high-income Zionsville residents will pay the property tax increase. It is Taxpayer UNfriendly that Boone County businesses, farmers, and low-income residents outside Zionsville will pay a property tax increase because the County Council did not have the political will to cut their ample budget a small amount.

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This page was last updated on 12/14/14.