Henry County tax council approves LIT allocations, including $18,184.45 for Dunreith Volunteer Fire Department

The Henry County Tax Council and the Newcastle City Council voted unanimously to approve resolutions distributing local income tax (LIT) funds to volunteer fire departments, including a line item of $18,184.45 for the Dunreith Volunteer Fire Department.

Shannon, a county staff member in charge of the application packet, told the councils they had received applications and updated ordinances reflecting new assessor figures and state-law calculations for awarding LIT dollars. “I believe y'all have a packet, which is the applications from the fire departments,” she said, and she said she had forwarded the underlying emails and draft ordinance prepared by Joel.

The vote followed a round of discussion about whether money previously earmarked for Southern Spiceland Township — currently covered by the Dunreith Volunteer Fire Department under contract — should be paid now, held in trust, or redirected if service changes. One committee member argued the dispute was “none of our business, period,” saying the council should not insert itself into internal department conflicts. Shannon and county counsel cautioned that state rules govern how the dollars are distributed and that the council could not legally route LIT payments to a township trustee unless the statute and ordinance language permitted it.

A county staff member with legal responsibility told the councils that, under the statute cited in the packet, “if a department is actively providing fire protection service on the day you consider these resolutions, you legally can award them.” Counsel also noted state reviewers such as the Department of Local Government Finance (DLGF) typically discourage midyear changes to allocations.

Several public speakers urged broader planning. Donna Talber, who identified herself as a township trustee, said she hoped Dunreith would resolve its internal issues soon and reminded the councils that Dunreith is organized as a 501(c)(3) and had applied like other departments. Keith Hudnut, chief of the Silver Springs Fire Department, said a formal territory study by a consultant would cost about $35,000 and described the process as time-consuming; another commenter noted the councils currently distribute roughly $632,000 to 17 volunteer fire departments countywide.

After discussion, a council member moved to approve the ordinance that included the Dunreith line item; a city council member seconded. City council members — named on the record as Mr. Guffey, Mr. Perdue, Mr. Dickens and Mr. Pechenpaul — answered “aye” on a roll call, and the county council likewise recorded unanimous “ayes.” The motion passed unanimously.

With the resolution adopted, the councils adjourned. The action leaves in place the awarded amounts in the adopted ordinance; council members said any future midyear reallocations would be subject to state rules and likely require another formal council action.