[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6164608,"mediaKeyId","5427951-41faec4c3131a8efce1c260a3803a696","parentId",5427951,"title","Senate Bill 1 will shrink local property tax base, consultants say; municipalities can adopt new income tax","audioSeconds",1202,"startMs",25000,"endMs",1227000,"viewUrl","/Search/View?dp=1&key=5427951-41faec4c3131a8efce1c260a3803a696&start=25&end=1227","thumbnailUrl","https://assets.pipeline.soar.com/5427951-41faec4c3131a8efce1c260a3803a696/thumbnail_25000.jpg","articleUrl","/articles/6164608/Indiana/Senate-Bill-1-will-shrink-local-property-tax-base-consultants-say-municipalities-can-adopt-new-income-tax","mediaUrl","https://secure.pipeline.soar.com/6164608-c5dff40026d25fd8869b42bc39bb7589/orig.mp4?Expires=1773656902&Signature=mT3K6XYqFD5lkRFZducPd5v6oBgOK1J9mi8OpPB4rQZIPaQDgSFWFsEts~w35g6~jWKZyYBcqqZdK1N4u1xs9VDSs2glzxImAKr-i72gTN3DNP5cvtpSMLTMXOuWN9Rfoalo~P3dJ6Yz3Fn8REP43H2ukDX8gRGGcQjzGD3fEPsKw2yUpwqiOQ7n3lE6KwLobWDQlvNuAlVgaR58paNITT3YQ56YeLBJd22pGZBq2d216NuzaqORgQseyqHN8fU3cMI8pS5Iv1IcBq0n-fGrETp0W49iyq~AIRXn8UGGt5PkyJv0u9AYVnPmxh0V6QEXyM8BbZgPh9fw5U2B~Jbm9w__&Key-Pair-Id=KUT5TJCACFTXG","author","Town Council of Westville IN","date","2025-07-18T00:12:41Z","article","Consultants Jeff Rau of Incertile and Adam of Wilcox told the Town Council of Westville that state legislation called Senate Enrolled Act 1 (SEA 1) will change how homestead deductions, business personal property exemptions and local income taxes are calculated, and that those changes are likely to reduce the town’s property tax base.

SEA 1 will phase in changes to the homestead standard deduction and the supplemental homestead deduction. Consultants noted the current standard homestead deduction is $48,000 and that the supplemental homestead deduction is moving from about 37.5% toward roughly 66.7% over the phase‑in. Rau said, “we're gonna see a reduction in property tax revenue as a result of the senate enrolled act 1.” The consultants explained that lower taxable assessed values, if levies are held constant, will raise tax rates and push more households up against the state’s circuit‑breaker caps (1% for most homesteads, 2% for certain other property types), which further reduces revenue available to the town.

The law also changes business personal property treatment, removing a current 30% taxable floor for new equipment placed in service and expanding a de minimis exemption threshold that is $80,000 now, remains $80,000 in 2026 and rises to $2,000,000 in 2027. The consultants warned those provisions will reduce tax revenue collected from businesses over time.

On income tax, Rau and Adam said the state is eliminating the current county‑collected local income tax (commonly called “LIT”) and, for municipalities with population at least 3,500, giving towns the option to adopt their own municipal income tax. The consultants said the maximum municipal rate a town may adopt is 1.2%; Adam noted communities will vary in whether a locally adopted rate replaces lost county distributions. “Every community has a little different makeup... so in some cases there's winners, in other cases there's losers,” Adam said.

Rau and Adam repeatedly emphasized uncertainty: the Legislative Services Agency (LSA) and the Department of Local Government Finance (DLGF) have produced early estimates, but local outcomes will depend on parcel‑level values, which units of government still must model. Town staff were told to expect substantial modeling work at the parcel and fund level to refine revenue forecasts.

What happens next: consultants said staff will build parcel‑by‑parcel scenarios and update the council as more reliable DLGF/LSA numbers and implementation guidance arrive. The analysis will inform whether Westville would preserve revenue by adopting a local income tax and at what rate, or whether other adjustments to budgets and services will be needed.

The discussion was informational only; no ordinance, rate adoption or vote occurred at the meeting.","mediaType","Video","parentTitle","Westville Indiana Live Stream","oneSentenceSummary","Consultants Jeff Rau and Adam with Wilcox briefed Westville leaders that Senate Enrolled Act 1 will lower taxable assessed values by changing homestead deductions and business personal property rules, increase circuit‑breaker losses and give municipalities with 3,500 or more residents the option to adopt a municipal income tax capped at 1.2%.","taxTitle","Westville Town, LaPorte County, Indiana","taxId",70814,"location","Indiana","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6164599,"Water and sewer capital needs large; consultants recommend bond or phased cash plan and warn WCC project timing will determine rates",468,5198000,5666000,"/Search/View?dp=1&key=5427951-41faec4c3131a8efce1c260a3803a696&start=5198&end=5666","https://assets.pipeline.soar.com/5427951-41faec4c3131a8efce1c260a3803a696/thumbnail_5198000.jpg","/articles/6164599/Indiana/Water-and-sewer-capital-needs-large-consultants-recommend-bond-or-phased-cash-plan-and-warn-WCC-project-timing-will-determine-rates","https://secure.pipeline.soar.com/6164599-6122d9dc0d987b3367f1ca352cbe24a2/orig.mp4?Expires=1773656902&Signature=EqtiINtmIeNICQF2rK5Zl9pINfbB8yG~KXqaClNHwt5aCRFLLwZeazb-Cd3~tP4T2OwR0jmRQs9XVcqghOFLBYG25wUvyt-V4jE88ynfrLtH6WJ95PKMvkQGQlf~LF4vmznlkvxwq93B3e85HUTmWPT8sryqmg6YqG5nIJD5snucTLborsL1UGzPQ21NrrepithvMjyr5Lv3Ptq6caLB0taNwxBaeUkMoiChCS5dhN4OcWz4so4Ui~GouTxGqtAgVf-bPV3HBeCB2X9SVfgfqYcc8sTQWe5uvVjyfJM1Tby6BuYKz~RuFmuC3SnqZYZg~iIgrTft~b7S57QLpMrz6g__&Key-Pair-Id=KUT5TJCACFTXG","Consultants reviewed the town’s water and sewer finances and five‑year capital plans and cautioned that utilities’ long‑term affordability depends on the timing and scale of a large outside user project (referred to in the meeting as the WCC project) and on verified costs for multiple sewer lift‑station and force‑main projects.

On sewer, consultants said the sewage fund had roughly $1,000,006 at the end of the prior year and that, from an operating standpoint, existing revenues cover operating expenses and current debt service. Adam said, “from an operating standpoint... you have sufficient revenues to meet your operating expenses and your debt service. Where you would run short is with your capital improvement plan.” Consultants listed prioritized capital items: clean/televised lines, lift station replacements (New Durham, McDonald's, Westville Estates), force‑main replacements and backup generators at lift stations. The consultants estimated Nathan’s operator list at about $650,000 in aggregate but advised the council to obtain firm, line‑item quotes because early totals may be conservative or high.

Because those capital needs are sizable, consultants described two main funding approaches: (1) cash‑fund projects over multiple years, which may require substantial rate increases, or (2) issue a municipal bond to fund a multi‑project package at once, spreading cost through debt service. Adam said an illustrative municipal bond market interest rate would likely be in the 4–5% range for tax‑exempt borrowing and provided an example debt service estimate that the town could support under current revenue assumptions. Consultants also suggested bond repayment could be structured so rate increases are smaller or delayed compared with a pay‑as‑you‑go approach.

On the water side, consultants said the water fund had a strong cash position (about $2.2 million reported at the end of 2024) but noted that without the large WCC customer connecting, the utility could face substantial rate pressure to fund its capital program. Consultants said staff must finalize SRF loan pricing and project scope before a final rate decision; Adam estimated SRF borrowing costs in the mid‑single digits and said final rate recommendations would follow loan commitments and verified capital costs.

Consultants walked through operational reserve mechanics for utilities, explaining typical bond‑order buckets (operation & maintenance, bond & interest, debt service reserve, and maintenance/improvement funds). They also recommended verifying the list of proposed vehicle and equipment purchases (two utility trucks, dip tanks, large lift‑station generators) to ensure the capital plan matches expected useful lives and available grant/loan resources. No formal financing decision was made; staff were asked to collect firm contractor estimates, confirm SRF terms, and return with an updated capital‑funding recommendation.","Consultants told Westville officials that the water fund currently has healthy cash but the correctional facility water connection (WCC) and wastewater capital needs create near‑term uncertainty; they recommended verifying cost estimates, considering a bond to fund multi‑site sewer work and using SRF financing for large projects.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6164604,"Westville forecast: small shortfalls in 2025–27, municipal income tax could restore general fund by 2028",673,1518000,2191000,"/Search/View?dp=1&key=5427951-41faec4c3131a8efce1c260a3803a696&start=1518&end=2191","https://assets.pipeline.soar.com/5427951-41faec4c3131a8efce1c260a3803a696/thumbnail_1518000.jpg","/articles/6164604/Indiana/Westville-forecast-small-shortfalls-in-202527-municipal-income-tax-could-restore-general-fund-by-2028","https://secure.pipeline.soar.com/6164604-71a7db467507681a2e37410ae8f14b84/orig.mp4?Expires=1773656902&Signature=cRcyFE6JpA8QswhtfXLKLVL2zhfSUtaZfvor~sswG0z1pKdrH-pxEaXESuTBCf4L14~g9hDc-L-tjvj9k1wEiaHaNnHL3b83Eyil785L4c94cTJvg014gbUqDCaEAFu0jCN738SCuRJPbP9-aSR8KABjySs7Dft3N7MSlDRuZBNVx2j7OjjxaEzZ7hm2V67Mr-rh5g06V3m8oD8haGuWB-FoNmcszZ1Fhrqllkoy9tf6k8dhW-2rVKbHdVuTUT6l2RWlcHIVzsMsGZB~y91iJxeysWAQmPLlu8KNsXtFBkA8hTPR-qhGGCraGZADcVh9K1HuHDaXFAgmV1Rhw8Oyow__&Key-Pair-Id=KUT5TJCACFTXG","Consultants presented Westville’s comprehensive financial forecast (CFP), showing the general fund has a relatively strong cash position today but faces modest spenddowns in 2025–27. Adam of Wilcox summarized the CFP and the assumptions used for property tax growth, circuit‑breaker increases and transfers from other funds.

Adam said the town’s operating balance percentage remains healthy — he cited an expected ending operating balance of about 158% of annual operating expenses in 2025 — but that the town should expect some spenddown in the next two to three years under current assumptions. He told the council that, based on the LSA/DLGF allocations used in the model, the general fund’s estimated SEA‑related revenue reduction would be modest in absolute dollars: “for the general fund... '26 what that means would be somewhere around $26,000,” Adam said.

Rau and Adam highlighted one material timing and structural change: certified municipal income tax shares for public safety and other programmatic uses that towns now receive from the county are scheduled to end in 2028. The consultants said those recurring public‑safety costs would need to be budgeted from the general fund after that date unless the town adopts a municipal income tax or otherwise adjusts revenues or services.

The CFP included one modeled scenario in which Westville adopts a municipal income tax (modeled up to the 1.2% statutory cap). Under the consultants’ assumptions that scenario produced a projected positive cash inflow for the general fund in 2028; Adam reported a modeled positive cash flow of roughly $369,000 in 2028 if the town adopts the modeled income tax and shifts affected shares into its budget.

Council members asked about the effect of a new municipal income tax on residents and whether implementing a new local tax would simply replace county collections. Consultants reiterated that outcomes vary by community composition, whether overlapping units adopt their own taxes, and whether the county continues to distribute LIT the same way during the transition. No vote or formal decision was taken; the council directed staff to refine parcel‑level and fund‑level projections and to return with options for the 2026–28 budget cycle.

There was also discussion about the town’s fire contract and how the loss of county distributions could change budgeting for that contract. Staff and consultants said multiple options exist: shifting costs to utility customers via a payment in lieu of taxes (PILOT) from the utilities, using fund balances for one‑time differences, or adopting a municipal income tax to cover recurring costs. Consultants cautioned that any decision will require more detailed numbers and stakeholder outreach.","Town consultants presented a multi‑year comprehensive financial forecast showing modest operating drawdowns through 2027 and a projected positive general‑fund cash flow in 2028 if the town adopts a municipal income tax at the modeled level; consultants recommended parcel‑level modeling and noted public safety certified shares will end in 2028.","actionData","errors"]

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Senate Bill 1 will shrink local property tax base, consultants say; municipalities can adopt new income tax

Water and sewer capital needs large; consultants recommend bond or phased cash plan and warn WCC project timing will determine rates

Westville forecast: small shortfalls in 2025–27, municipal income tax could restore general fund by 2028