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On December 16, 2015, the Clark County Commissioners held the second required public hearing on the possible continuation  and decrease, or discontinuation of the current 1/2% county sales tax.
County Administrator Nathan Kennedy opened the meeting with a review of the services the county provides to residents. According to Kennedy, the general fund supports law enforcement and the courts, building and grounds, financial services, human services, administrative services, and the engineer department. Law enforcement and the courts account for almost 60% of the expenditures. Fifty percent of the expenditures fund employee salaries with an additional 23 % for employee benefits.
The 1% permanent sales tax generates 41% of the revenues the county government receives. The 1/2% sales tax generates almost 21% of the revenues.
The 1/2% sales tax has been used to fund new financial software, and capital improvements including maintenance of equipment and renovations to the A.B. Graham Building, the Courthouse, and the Security Debt Service.
If the county renews the sales tax at 1/2%, Kennedy projects that the revenue will remain above expenditures for the next five years; however, if the sales tax is decreased to 1/4% or allowed to expire, the expected expenditures will increase above expected revenues by 2017. If this occurs, the county will need to reduce services, halt all renovation projects, and cancel capital improvement projects. With the discontinuance of the sales tax, the most severe reduction in services would occur in the sheriff’s office and the criminal justice system with projected layoffs of 100 to 125 people. Since the Sheriff’s Department is the largest county employer, the department would be most affected by the layoffs.
Kennedy proposed several alternatives including a property tax, economic development, cutting hours, salaries and benefits, cutting all non-mandated services, and applying for grants for general operations. However, none of these sources would sufficiently make up the shortfall in revenues without the 1/2% sales tax.
Currently, the total sales tax in Clark County is 7.25%. Of this the state collects 5.75%,, with the remaining 1.5% divided by a 1% permanent sales tax and 1/2% temporary sales tax collected by the county. He also pointed out that the sales tax is not levied on essentials including food, medical care, prescription drugs and housing.
To address some of the concerns expressed in the first public hearing, Kennedy said, “The research indicates that there is no material decrease in retail sales with the 1/2% sales tax. Retail sales in the county were effected by 9/11 and the stock market crash in 2008; however, the sales tax does not reduce sales.” He also pointed out for a resident to see a savings, they would have to spend over $800 to make up for the additional cost of gas required to drive to the Fairfield Mall. He added that according to Horton Hobbs, Vice President of Economic Development for the Community Improvement Coalition, sales tax is not a factor in businesses decisions to locate in an area. According to Hobbs, the quality of the workers, and property and income taxes are the determining factors that affect a business’s decision to locate in the county.
In order to avoid a budgetary imbalance, Kennedy recommends that the commissioners continue the 1/2% sales tax for 10 years to allow the county to pay off debt, complete some much needed capital improvement projects, and not increase spending unless mandated by the state.
In response to Kennedy’s explanation of the size of purchase necessary to see any costs savings, one audience member responded that the sales tax did not affect his purchase of small items; however, a substantial savings is incurred with a purchase in Green County of large ticket items such as appliances. In addition, he noted that many retail outlets such as Target, Penny’s and Macy’s are not available in Clark County.  
Bradley Carey proposed that the county commissioner put the 1/2% sales tax before the voters. He also pointed out that the old hospital has not paid property taxes since it closed. He said, “They are 1/2 million dollars behind in taxes. The county is losing money.” In addition, he pointed out that when the Expo Center got behind on their taxes the county forgave the debt. Carey also questioned the Parks Departments Expenditures waste of money for a bike bridge that is not needed.
Next, Gina Mollar questioned the commissioners on whether they had done any analysis on increasing productivity and efficiency in the county government. She said. “I would like to see the tax rate reduced. I would also like to see the county alternate the rate through the years rather than collect more than the county needs. The tax shouldn’t be permanent as the residents would lose accountability by the government.”
In addition, Mike Love questioned how much money is collected from the four auctions held by Ritchie Bros. Detrick explained, “Most of the sales are tax exempt purchases by farmers.”
Love also requested that the commissioners put the sales tax before the voters to let the people decide.
Last, Sheriff Gene Kelly spoke to the audience. He said, “During the past five years the Sheriff’s Department has consolidated services with the townships saving over $80,000. We are also working on consolidating 911 services with the city to save additional funds. We have  modified the distribution of medications to the inmates by using medications provided in blister packages and saved $200,000 and reduced the cost of inmate meals saving another $250,000 per year. We are trying to do everything we can to contain costs.”
Commissioner Richard Lohnes ended the meeting by telling the residents that the commissioners would make a decision by the end of the month.