County council issues nonbinding budget-review letter to taxing units; urges prudence on large reserves

At the Aug. 8 meeting, the Kosciusko County Council read a formal nonbinding review letter to all county taxing units about levy limits, property-tax credits and cash balances ahead of the 2025 budget cycle.

The letter reminded taxing units that the council reviews levy limits and the effect of property-tax credits and encouraged taxing units to avoid maintaining large reserves without a plan to spend them. The letter asked taxing units to review their 2023 year-end cash balances, their 2024 certified budgets and their June 30, 2024 cash balances; it recommended considering reduction or elimination of levies for funds with more than 2.5 times the amount of the 2024 certified budget if no large planned expenditures exist.

Nut graf: The letter is a routine, annual, nonbinding practice by the council intended to prompt taxing units to check reserves and planned spending before finalizing 2025 budgets; the letter also advised units to verify expected property-tax caps before finalizing budgets.

Council member Mike (identified in the transcript only by first name as the reader) read the letter into the record and a council member moved that the council send the letter; the motion was seconded and approved by voice vote. The transcript notes a Sept. 1 deadline for taxing units to respond and that the council plans to revisit related items after the budget process and at the November meeting as needed.

Ending: The council approved sending the letter and flagged follow-up as part of the budget calendar; no binding action over taxing-unit levies was taken at the meeting.