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LOIT Funds Being Used By City Officials

Information reprinted with permission of the Courier Times, local newspaper New Castle, Indiana www.thecouriertimes.com

LOIT funds being used by city officials

Posted: Sunday, January 8, 2017 6:00 am

Henry County residents have been paying a public safety local option income tax (LOIT) for more than a year.

LOIT was adopted in September, 2015, during a joint meeting of the Henry County Council and the New Castle City Council. The tax is levied against a person’s adjusted gross income, with a maximum rate of 0.25 percent. Gross income is money made before taxes are taken out.

Each incorporated municipality in the county gets a share of those funds, as does county government, and each can spend them as they wish, as long as the expenditures fall within the realm of public safety. New Castle City Council President Mark Koger recently explained what the city has done with its share of the LOIT money.

According to Koger, in 2016, the city received $67,465.50 monthly from LOIT. That amounts to $809,586 for the year. Of those funds, the council appropriated $142,422.50 on fire packs for employees of the New Castle Fire Department and $162,307.95 in incentive pay for police, fire and EMS personnel. LOIT expenditures totaled $304,730.45, which leaves a balance of $504,822.55.

The New Castle Fire Department purchased 30 new airpacks with LOIT funds. New Castle Fire Department Chief Mark Boatright, Sr. the airpacks were a big improvement over the airpacks being used previously, which he said were 16 years old.

Koger said that may sound like an astronomically large amount of money, but added that as far as he is concerned, it has been and will continue to be put to good use.

“We are giving raises the next two years to our police, fire and EMS, which will come out of this,” he said. “We are budgeting for the future and hope to sustain a balance every year of at least this (much) or more. We will not let our emergency services go without.”

Koger said the city’s EMS and fire departments are both still in need of equipment and other items required to safely and properly do their jobs, adding that the police department will also require “a few updates” as well.

“I just felt like the public needed to know the balance of our account in that fund,” he said. “It’s not a slush fund like some cities and counties have with their LOIT, where they throw it into their general fund and spend it any way they want. We don’t (do that). We’re trying to be good stewards of the taxpayers’ money.”