Floyd County staff previews GO bond and revenue options ahead of budget deadlines

Floyd County staff and council members spent the workshop mapping capital needs and revenue options tied to a possible general obligation (GO) bond and a set of local tax adjustments.

Staff said Baker Tilly and legal counsel (Barnes & Thornburg) have been consulted and will present multiple scenarios — for example different term lengths and bond sizes — at a joint meeting with the county commissioners. That presentation will show what a $3.5 million midpoint looks like as well as larger and smaller options, the staff member said, and the group was asked to remain after 11 p.m. at the joint meeting to hear the full package.

Why it matters: the county faces several capital needs (building renovations, parks repairs, road equipment) and also has near-term operating stressors tied to shifts in state funding. Staff framed the GO bond as one tool to finance an identified set of projects while emphasizing the need to coordinate with the commissioners and the timing of the county’s budget adoption.

Key details

- Modeling baseline: staff reported Baker Tilly used a baseline scenario of roughly five years and $3.5 million to give the county a starting point for comparisons; staff stressed the number can be adjusted up or down based on the projects the council and commissioners agree to fund.

- EDIT fund timing: staff noted the EDIT fund will roll into the general fund in 2028, creating a two-year window in which some backflow or substitution arrangements might be structured; any arrangements to substitute capital funding with EDIT proceeds would need intergovernmental agreement.

- Next steps and schedule: staff said a GO bond would need to be in place by the end of the year to meet advertising and election/filing deadlines. They urged the council and commissioners to finalize parameters within the next six to eight weeks to align with budget adoption schedules.

Revenue and offset options discussed

Participants reviewed multiple revenue tools together so the county can compare “apples-to-apples” outcomes rather than pursue measures in isolation: wheel tax (vehicle registration), a public safety levy, the jail lid, and GO bond proceeds.

- Wheel tax: staff explained the wheel-tax structure and showed a substantial range. They described a blended minimum around $12.50 per vehicle (composed of the statutory components discussed) up to structural maximums (examples cited: $40 without an asset plan, $80 with an asset plan) plus an optional surcharge up to $25. Staff said wheel-tax revenue primarily funds roads and could also help trigger community-crossings supplemental grants.

- PTR/jail lid swap: staff raised a scenario that would remove the property-tax-relief (PTR) distribution and raise the jail lid to capture revenue that would otherwise be lost under new state tax rules. That swap was presented as a two-year stopgap that could generate material revenue to cover jail shortfalls while lowering net local income tax rates for residents in the short term. Staff said legal and legislative limits on how specific levies may be used would need review.

- Coordination with townships and small towns: staff described a conference takeaway that townships and small towns with cash reserves might be asked to contribute to specific local road or bridge projects if the county seeks a broader financing package.

Staff cautioned that the council should avoid adopting revenue changes before a clear financing plan is in place. They also committed to providing Baker Tilly’s spreadsheets and a follow-up joint meeting where the commissioners and council would see consistent scenarios and be able to discuss tradeoffs.

What remains unresolved

The council and staff did not adopt formal action during the workshop; they agreed to bring detailed bond-sizing scenarios and revenue-offset numbers back to the joint meeting and upcoming council agendas so members can make an informed decision within the calendar deadlines.

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