Madison County auditor outlines cash flow; council discusses hiring Reading Financial Group to analyze Senate Bill 1 impacts
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Summary
The county auditor presented updated cash-flow projections showing a year-end balance target and highlighted a $2 million advance on property-tax draws. Councilors discussed hiring Reading Financial Group (capped fee $15,000) to model how Indiana's Senate Bill 1 will affect assessed values, levies and local income tax shares.
Madison County's auditor reviewed the county cash-flow spreadsheet at the council's August meeting, showing a projected year-end general-fund balance and warning of "pinch points" before the property-tax distribution season.
The auditor reported a year-to-date change in appropriations and receipts and noted the county took a $2 million advance on its property-tax draw. Revised payroll estimates were added to forecasts after July's payroll figure of $1,740,202; councilors were told the county would need to aim for approximately $13 million in year-end cash to avoid taking advances into next year if the 2026 budget increases.
Councilors then discussed an engagement letter from Reading Financial Group to analyze the fiscal impact of Indiana Senate Bill 1 and local income tax changes. The proposed study would run a property-level assessment and a year-by-year comparative model showing phase-in effects and local income tax allocation options for the county's first year under the new law. The firm provided an hourly estimate (about $175/hour) with a hard cap of $15,000; the council asked the auditor to confirm the expected final cost and the likely delivery schedule. Councilors said such analysis would inform levy and tax-rate decisions during the budget process.
No final contract was signed; councilors agreed to consider the engagement at the next meeting after clarifying timing and whether the work can be completed in time to inform the final budget.
