County Council wrestles with taxes, debt and a growing bridge crisis during lengthy budget session

Local News X Members of the Brown County Council spent much of their May 7 work session trying to sort through a complicated mix of state tax law changes, long-term debt planning, bridge and road needs, emergency service costs and concerns about whether future county governments will be able to avoid raising taxes. The lengthy discussion centered largely on changes created by Indiana’s Senate Enrolled Act 1 and House Enrolled Act 1210, both of which affect how counties collect and distribute local income taxes and property taxes. Financial consultant Jerry Hickman of Reedy Financial Group walked council members through the changes, explaining how new property tax deductions and income tax structures could affect Brown County in the coming years. Hickman explained that the state is gradually phasing out the current homestead deduction while increasing supplemental deductions for homeowners. He said the changes are designed to lower taxable assessed values on homes, which could reduce property tax bills for some taxpayers, but could also create lower property tax collections for local governments. Hickman told the council that Brown County currently has relatively low “circuit breaker” losses. Circuit breakers cap property tax bills and can reduce how much tax revenue local governments actually collect. However, he warned that future changes could still reduce county revenues over time as deductions increase. Council members spent considerable time discussing how those state law changes might affect Brown County’s future budgets and tax structure. Hickman said one of the biggest challenges is that the laws continue evolving and could change again during the next legislative session. Much of the discussion focused on local income tax options. Hickman explained the new structure would allow counties to divide local income taxes into several categories, including county services, fire and EMS services, non-municipal units and municipal services. Brown County’s current local income tax rate is 2.5234 percent. Under the new system, the maximum combined rate could rise to 2.9 percent. Hickman stressed that the presentation was not a recommendation to raise taxes, but rather an explanation of what options could legally exist under the new law. He estimated that if Brown County ever fully maxed out the available rates, the county could potentially generate millions more in revenue. Council member Jim Kemp repeatedly voiced opposition to increasing taxes. He argued that local government must focus on controlling spending instead of looking for additional tax revenue. “Government wants to continue to increase and spend and spend and spend and at the same time demand that I have to live on less,” he said. Kemp repeatedly returned to what he called the county’s “story problem” — how to prepare financially for future infrastructure and emergency service costs without borrowing money or raising taxes. He said Brown County will be debt-free by 2030 and argued the county should begin aggressively building its Rainy Day Fund so future capital projects can be paid for in cash rather than through borrowing. Kemp also suggested the county should consider directing future interest income and surplus revenue into the Rainy Day Fund. He argued that strengthening reserves now could help the county avoid borrowing money and paying additional interest and legal fees later. Kemp specifically referenced a $4 million general obligation bond issued last year and said the county paid tens of thousands of dollars in fees and interest to borrow the money. “That’s 80 grand we could have used to almost do half a mile of road or something,” he said. Council members also discussed growing financial pressure from emergency services, labor costs and infrastructure needs. Kemp noted increasing costs associated with the county’s law enforcement center and ambulance services, while also pointing to what he described as a major backlog of road and bridge work. The council discussed estimates that the county could be facing between $10 million and $15 million in road and bridge-related needs over time. Kemp said much of the problem stems from years of deferred maintenance before current officials took office. Hickman said the county needs a more complete capital improvement plan so officials can better prepare for future expenses instead of reacting to emergencies as they arise. Council members also discussed the work of local CPA Ed Wojdyla, who has reportedly been helping county officials analyze highway department finances and reconcile claims and expenditures. Kemp said Wojdyla had spent extensive time reviewing county financial records and suggested coordinating his work with Reedy Financial Group. The council later reviewed 2025 financial summaries showing what Hickman described as a strong year financially for the county. According to the presentation, major county funds ended 2025 with nearly $4.5 million in combined surpluses. Hickman said the county did not spend more money than it collected in 2025 despite public concern over county finances. He also said Brown County currently has unusually strong operating reserves. Kemp pushed back on suggestions that the county’s financial condition should automatically be viewed as overly healthy. He argued the county arrived at its current reserve levels partly through unexpected revenue growth rather than deliberate long-term planning. The discussion eventually shifted to innkeepers’ tax appropriations requested by the Brown County Convention and Visitors Bureau. CVB Executive Director Kevin Ault requested an additional appropriation totaling $131,500 from the innkeepers’ tax fund. The request included $50,000 to help complete new pickleball courts at Deer Run Park, $36,500 for a mountain biking marketing campaign, $15,000 for a grant administration software system, $10,000 for the roof and signs at the Bean Blossom Overlook and $20,000 for Placer.ai, a marketing tool determining demographics of Brown County visitors. Ault said the pickleball project has encountered complications because portions of the proposed site fall within a floodplain area where fill dirt cannot legally be added. He said the Parks and Recreation Board is now considering an alternate layout and location for the courts. Ault said the county hopes to expand the project from six courts to eight courts because eight courts are needed to host tournaments. “Everything we’re doing, we’re trying to get it so we can do something to make revenue off of, so the revenue does the maintenance,” Ault said. The mountain biking request generated additional discussion. Ault said Brown County had recently been designated a mountain bike trail town by the International Mountain Bicycling Association, which he described as a significant achievement for the county’s tourism industry. Ault said the proposed campaign would expand Brown County’s mountain biking marketing reach from roughly a three-hour radius to about a five-hour radius and potentially target millions of additional riders. He also noted that many mountain biking tourists spend significant amounts of money during trips. Some council members questioned why additional marketing money was needed on top of the CVB’s existing marketing budget, but Ault said the opportunity arose unexpectedly and current marketing funds were already committed for the year. The council will bring the additional appropriations up for a vote at their May 18 regular meeting. Featured Local Savings