Financial adviser warns Warren County council SEA1 will shrink tax base; council asks for proposal

Mr. Peters, a financial adviser who said he has worked with local governments for more than 30 years, told the Warren County council that recent state legislation the meeting repeatedly called "SEA1" will materially change the county's revenue picture and requires multi-year planning. "We have a whole slew of problems that came out of SEA1," he said, warning that assessed values for different property classes would be reduced through 2031 and that the existing income-tax structure will be largely replaced beginning in 2029.

Mr. Peters outlined the mechanics: 1% property values will be reduced to roughly one-third of current assessed value, 2% to two-thirds, and a previously used income-tax subsidy that has helped offset property taxes will disappear under the schedule discussed in the meeting. He said the legislature has signaled an intent to cap taxing-district totals around a $3 rate, leaving open how that total would be split among counties, cities, townships and special districts.

The adviser recommended the county commission or fiscal body adopt a formal fiscal plan that projects revenues and expenses through 2031–2032 to show the net revenue loss under several scenarios and to test options such as new countywide income levies, debt levies for capital projects, or targeted reallocations. He described the plan as a tool to show commissioners and the public "here's what we believe the impact is" and to guide decisions about capital items such as jail replacement or park projects.

When asked about scope and price, Mr. Peters said an initial fiscal plan for Warren County would be "about $24,000," billed at $235 per hour, and that he "would not exceed that" estimate. He said the work can be scaled by the number of scenarios requested and by whether the county wants separate, smaller-town models to feed into a countywide projection.

Council members pressed him on timing and local inputs. Mr. Peters urged the council to collect data from fire territories, town clerks and small towns because those inputs will affect income-tax distribution modeling. He recommended completing modeling and public-facing materials in time to inform the county's decisions between July 1 and October 1, 2028, if the legislature leaves implementation schedules unchanged.

By the end of the presentation the council expressed informal consensus to ask Mr. Peters for an updated proposal and to forward that proposal to the county commissioners, noting that only the commissioners can sign contracts. Council members said they would consider negotiating the price and recommended the commissioners meet with Mr. Peters before any contract is executed.

The council did not take a final procurement vote at the meeting; members repeatedly noted the next formal step is for commissioners to approve any contract or to have the appropriation placed in the commissioners' budget.