LOIT backup funds approved

The Jay County Council utilized a safety net built into the Local Option Income Tax collection process to cover a shortfall in LOIT income this year.
Jay County Auditor Nancy Culy presented the council with a breakdown of this year’s LOIT numbers, explaining that there was a shortfall in the balance of LOIT funds utilized to make up part of the county’s total levy.
Culy explained that a portion of LOIT funds collected is “to cover part of our yearly budget” and that the amount received this year came up short.
Since the state lags about two years on LOIT payments to the county, this year’s funds are coming from the heart of the national recession when collections were down significantly due to high unemployment in the county.
This year the shortfall totaled $152,762, with most of that being felt in the City of Portland, which received $104,184 less than expected in LOIT revenue.
Culy said that most taxing units in the county were affected by the shortfalls, but the county has control and approval of the stabilization fund.
When LOIT was created by the state legislature, the regulations required the creation and maintenance of a “stabilization fund,” which would be built with excess LOIT dollars from years when the amount collected was greater than what was needed to meet the levy. That stabilization fund then serves the sole purpose of funding a shortfall as in Jay County’s situation this year.
“That’s what the stabilization fund was set up for,” Culy said.
“Is this a one-year issue?” asked councilman Dan Orr.
Culy said it is a once-a-year process but depends on LOIT collections. If the LOIT levy freeze distribution comes up short again next year, the county would have to dip into the stabilization fund again.
The council understood it didn’t have other viable options to cover the levy shortfall and quickly approved the move.
“We’d be transferring money out of the fund that was set up for this purpose,” said councilman Mike Rockwell.
In other business Wednesday, the county council:
•Approved an additional appropriation of $7,008 to the Jay Superior Court budget to pay for substance abuse program services with Meridian Services.
•Approved an appropriation of $15,987.29 to the Drug Free Commission, which supports local agencies.
•Appropriated $3,500 to the sheriff’s continuing education fund.
The money will be used for training and the fund is built by the $4 the department receives for tickets issued.
•Approved a disbursement of $87,500 in Economic Development Income Tax funds to Fort Recovery Industries.
•Appropriated $38,894 of state grant funds to the Jay County Emergency Management Agency.
•Approved an appropriation of $554.23 to pay for overtime hours accumulated during Operation Pullover, which enforces seatbelt and drunk driving laws.
•Transferred $650 within the courthouse custodian’s budget. Courthouse superintendent Roger McBride said he had to purchase dehumidifiers and a power sprayer to clean up the courthouse basement after the Feb. 28 flood.
•Forwarded a tax abatement request from IOM Grain, rural Portland, to the Tax Abatement Advisory Committee. IOM Grain is planning to buy $230,000 in new machinery.
•Assigned tax abatement compliance visits to council members Mike Leonhard, Red Gold, and Gary Theurer, Cross Roads Precision.
•Approved transfers of $18,900 and $5,500 in the highway department budget to pay a skid loader and labor to build a truck body, respectively.
•Approved a transfer in the treasurer’s budget to allow her to purchase a new computer for the office.[[In-content Ad]]