Morgan County Council adopts short-term changes to local income tax rates to fund jail repairs

The Morgan County Council on an unanimous 4-0 vote passed Ordinance 2025-10 and Ordinance 2025-11, directing supplemental local income tax (LIT) distributions into the county stabilization fund and reallocating portions of the LIT to a correctional facilities rate to help pay for repairs at the Morgan County jail.

Council members said the changes will not affect other taxing units’ certified distributions for 2026. County staff said the stabilization fund will be used first to lower the county’s levy freeze tax rate and that remaining redirected LIT revenue will be allocated to correctional facilities to fund immediate repairs at the jail.

County staff provided projections prepared by Reedy Financial showing the stabilization fund balance for 2026 and described the action as a short-term “spin down” of fund balances to address deferred maintenance at the jail. Staff identified multiple facility issues — collapsing sewer lines, failing doors and leaky roofs — and said repairs are costly; the staffing and long-term capital needs of the jail remain under discussion.

Members of the public asked whether library funding or other local units would lose certified shares. County staff and Reedy Financial said the 2026 levy-freeze distributions to libraries and other taxing units will remain the same for next year; staff noted that state changes under SB1 will require counties to reset LIT rates beginning in 2027 and could change distributions in later years.

After passage, the council voted 4-0 to waive second readings of both ordinances so the measures proceed on the next schedule for formal adoption.

Votes at a glance: Ordinance 2025-10 — passed 4-0; Ordinance 2025-11 — passed 4-0. Second readings were waived 4-0.