Consultant: Senate Enrolled Act 1 will cut St. John park property-tax revenue by about $50,000 in 2026

At its Oct. 14 meeting, the Town of Saint John Parks and Recreation Board heard from Amber Nielsen of Baker Tilly, who told the board the town'wide shift from Senate Enrolled Act 1 will raise estimated property-tax circuit-breaker losses to just over $1 million and reduce the park fund's 2026 net levy by about $50,000.

Nielsen, a financial adviser with Baker Tilly, said the act "completely changes the property tax system in Indiana" and that its changes will begin phasing in in 2026. She told the board the park operating fund is expected to receive about 6% of the townwide increase in circuit-breaker losses; Baker Tilly's draft estimate shows the park's gross levy rising to about $492,000 in 2026 and an estimated $65,000 loss from circuit breakers that would bring the park's net levy to about $426,000.

The presentation placed the 2026 impact in broader context: Saint John's net assessed value has grown in recent years, keeping tax rates lower even as levies rise. Nielsen said the town's certified gross park levy for 2025 was $473,781 with a current circuit-breaker loss of $331; townwide property-tax revenue in 2025 was shown in the presentation at about $9.3 million.

Nielsen also told the board the maximum levy growth factor will be capped at 4% for 2026 (down from what would have been just over 5% absent the change), and recommended the board and council plan operationally for the phased-in impacts of the new law over the next five years. "As the town progresses into the years where Senate Enrolled Act 1 brings these losses, the town will have to kind of work together to consider how will it offset a lot of these losses in property tax," she said.

Board members asked several operational questions. Mike Moffitt asked whether the park fund was on track to spend its 2025 budget; Nielsen said through September the fund had spent about $427,000 of a roughly $590,000 2025 budget (about 70 percent) and that the fund was trending close to budget for the year. Mary Therese Robert asked how the town would cover shortfalls during a year; Nielsen described options including line-to-line transfers in the budget, encumbering purchase orders before year-end, or requesting an additional appropriation if necessary.

Nielsen said Baker Tilly's five-year draft financial plan projects the park operating fund's ending balances remain at or above a 50 percent operating-balance target (roughly a six-month reserve) even after accounting for the estimated impacts of Senate Enrolled Act 1 and reasonable capital spending. She said the capital fund (park and recreation capital) is separate and used for projects supported by park impact fees.

The presentation closed with Nielsen offering to provide the board a copy of the slide deck and follow-up answers; board staff agreed to distribute the PowerPoint and Nielsen offered to call or email any board members with detailed follow-up questions.

Nielsen's presentation cited Senate Enrolled Act 1 and the Department of Local Government Finance as the sources of procedural rules and forecast guidance that Baker Tilly used in its draft projections. No formal action was taken by the board on Oct. 14; the presentation was informational and staff indicated they will refine capital plans and continue to monitor levy and circuit-breaker estimates for future budget workshops.