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Consultant warns Steuben County: income‑tax choices, lease options shape courthouse financing
Summary
A financial consultant presented a six‑year fiscal plan showing the county could retain roughly $4 million in cash reserves under a 3% expenditure increase and outlined income‑tax options (a 0.25% LIT increase would generate about $1.2M) and lease‑rental as an alternative financing tool for a possible courthouse project.
Jeff Peters of Peters Financial Consultants reviewed a six‑year fiscal plan with the Steuben County Council on July 9, saying the county can maintain healthy cash reserves if it holds spending growth near 3% and emphasizing options for raising revenue to fund large capital projects.
Peters said maintaining a roughly $4 million cash cushion keeps the county in a position to borrow within recommended bond‑capacity targets. He reviewed Local Income Tax (LIT) options and presented an impact table showing incremental revenue at rates from 0.05% to 0.25%; Peters said a 0.25% LIT increase would generate approximately $1.2 million annually and estimated per‑household impacts (for a median household income of $55,184): a 0.25% increase would add about $137.96 per year.
On courthouse financing, Peters reviewed property‑tax and income‑tax options and described lease‑rental financing as a tool that can avoid counting against bond caps. He noted the county’s Motorola bond will be paid off in 2024, which would increase available bond capacity and could change financing choices.
Council members asked about timing and the wisdom of acting while interest rates are relatively low; Peters said municipal rates historically are low now and that lease rental arrangements are commonly used when projects would otherwise exceed bond caps.
