Huntingburg recognized Hispanic Heritage Month, hears tax update from Sen. Schmitt, approves interlocal agreement for U.S. 231 study

The last half hour of the Huntingburg Common Council meeting held on Tuesday was a discussion with State Senator Daryl Schmitt over the tax funding changes created during the last legislative session.

State Senator Daryl Schmitt has been visiting the elected councils in District 48 to discuss the philosophy of the sweeping property tax changes under Senate Bill 1.

“The philosophy of the seven-year plan of Senate Bill 1 was delivering decisions to the local level, empowering us to make decisions and basically simplicity and transparency of our property tax system,” Schmitt said during the meeting.

The senator outlined the seven-year implementation plan that fundamentally restructures how property taxes are calculated and collected across the state.

Under the new system, homeowners will see their tax calculations simplified into three categories based on property type. By year seven of implementation, homestead properties will have a 1% cap with a two-thirds deduction of assessed value, meaning a $150,000 home would pay taxes on only $50,000.

Rental properties and land will fall under a 2% cap with a one-third assessed value deduction, while businesses will pay the 3% rate on their full assessed value.

“Instead of making 18 calculations to come up with a deduction, we’re changing to where there will be straight credits to the system,” Schmitt explained.

The changes address widespread concerns about rising property taxes while providing local governments new tools to manage their revenue streams.

The legislation provides municipalities the ability to collect up to 1.2% in local income tax, while counties can collect up to 1.7%. These rates include specific allocations, with 0.4% designated for fire protection and EMS services.

The senator emphasized that the changes provide more flexibility rather than limiting local government options. Counties and municipalities can coordinate their tax collection efforts, with counties potentially collecting taxes for services that benefit all residents and distributing funds accordingly.

The implementation timeline allows local governments to adapt gradually. Most changes won’t take effect until 2028, giving officials time to plan and adjust their budgets accordingly.

State income tax rates will decrease from 3.4% to 2.9% by 2027, providing room for local governments to implement their own income taxes without increasing residents’ overall tax burden.

Mayor Neil Elkins noted that Huntingburg currently receives income tax distributions from Dubois County and that income tax distribution will be phased out in 2027.

If the county lowers their rate then the citizens should not see an increase in income tax, Elkins said.

Schmitt reiterate the move was to give local governments more power in how they use their funding.

“I would much rather collect it at the local level and administer it at the local level than collect it at the state or the federal level and let them dictate how we use our money,” Schmitt said.

Schmitt noted that Dubois County currently has the eighth-lowest income tax rate in the state at 1.2%, providing flexibility for future adjustments if needed.

The legislation also affects community crossings matching grants, requiring municipalities to implement wheel taxes by September 2026 to qualify for additional funding pools beyond the initial $100 million available to all communities.

“The minimum for excise taxes for vehicles $11,000 and less is $7.50, and over $11,000 the minimum is $5,” Schmitt explained. “As long as you do those minimums, then you qualify for that extra pool.”

Elkins expressed appreciation for the senator’s accessibility and willingness to listen to local concerns, even when they don’t always agree on policy positions.

“You listen and you consider,” Elkins told Schmitt. “I do appreciate your accessibility.”

The senator, who resigned from the Dubois County Council exactly one year ago after being selected to finish then State Senator Mark Messmer’s term, said his guiding principles remain focused on delivering decisions to the local level, accountability, and efficiency of government operations.

Study committees continue meeting to address any unintended consequences of the legislation before full implementation begins. The tracking of income tax collections by address will begin in 2025 to provide better data for local governments planning their revenue strategies.

“There’s a lot of moving parts yet,” Schmitt acknowledged. “As you see things that are wrong and things that we need to modify and change and adapt, we’ll do that.”

The senator encouraged local officials to contact him with questions or concerns as they navigate the transition period and prepare for the new tax structure’s implementation.

Fitness Court Project Approval

The council approved the Mayor and Mayor’s Youth Council moving forward with a fundraising campaign to support the construction of a fitness court at Niehaus Park. The Parks Board approved the project at its last meeting after receiving a $30,000 grant. The total project cost is approximately $145,000, with funding coming from local match contributions, donated labor, a Patronicity grant, and advertising revenue from local businesses. The fitness court will be located at Niehaus Park, chosen based on heat map data showing it as the most popular exercise location in the city. The equipment consists of multiple stations designed for users to move from one to another, utilizing body weight and kinetics suitable for all ages. Several Indiana cities already have similar installations, with positive long-term durability reports. The mayor’s youth council will lead fundraising efforts over the coming months, with no direct city funding required beyond potential donated labor for installation. Here is a story about the fitness court.

Hispanic Heritage Month Proclamation

The Mayor issued a proclamation declaring September 15 through October 15, 2025, as Hispanic Heritage Month in Huntingburg. The proclamation acknowledges the contributions of Hispanic and Latino cultures to American values. It acknowledges how Hispanic citizens have shaped the city’s future through their involvement in government, economic, and social growth. The proclamation will be presented at the high school, with recordings planned featuring Los Raiders. The mayor and other officials will participate in readings and recordings to promote community awareness. This initiative replaces the suspended Latino Festival and represents the city’s commitment to celebrating diversity and recognizing the valuable contributions of the Hispanic community to Huntingburg’s development and cultural richness.

Speed Limit Reduction on 400 West

The council approved changing the speed limit on County Road 400 West from 40 miles per hour to 30 miles per hour based on a recommendation from the Board of Public Works due to increased traffic from the OFS expansion. The company is adding 160,000 square feet of warehouse and manufacturing space, requiring their parking lot to become a retention pond for flood control. This change will force more employees to cross the busy street, creating safety concerns. The county portion of the road is already 30 mph, making the city’s 40 mph limit inconsistent. Testing shows 30 mph is comfortable for the road conditions, and the change will improve safety without significantly impacting travel times. OFS will fund flashing speed limit signs and crosswalk improvements, including potential elevated crosswalks and barriers to direct pedestrian traffic to controlled crossing areas.

Zoning Change for Duplex Development

The council approved a zoning change from R1 (single family) to R2 (duplex) for two lots on 8th Street for the CHRK project. The development will place two duplexes on currently vacant land that previously housed storage buildings. The Planning Commission had already recommended approval after proper public notice procedures. The location is appropriate for duplex development, situated near other existing duplexes and townhomes in the neighborhood. This represents targeted residential development that fits the existing character of the area while providing additional housing options. The zoning change affects only the specific two lots involved in the project, maintaining the integrity of the surrounding residential neighborhood while allowing for appropriate density increases in suitable locations.

Automatic Aid Agreement with Jasper Fire Department

Fire Chief Don Heim presented an automatic aid agreement with Jasper for structure fires with confirmed smoke or flames. Under this agreement, both departments will be dispatched simultaneously to qualifying fires, eliminating response time delays from assessment and callback procedures. Each department will send one engine with four personnel, following the scene commander’s protocols. The agreement is voluntary and can be denied if either department has concurrent emergencies. This arrangement differs from traditional mutual aid by providing immediate response rather than waiting for requests for assistance. The agreement will improve response times, provide additional training opportunities, and enhance experience for both departments. It may positively impact ISO ratings and insurance classifications. The council approved proceeding with the agreement, which will be finalized by the Board of Public Works.

Lucas Device Purchase from Opioid Settlement Funds

Chief Heim also requested funding for three Lucas devices using restricted opioid settlement funds totaling approximately $44,000. These automated CPR machines provide consistent chest compressions, allowing emergency responders to perform other critical tasks during cardiac events. The department has raised $10,000 toward the purchase and will contribute this amount. The devices will be placed on all three medical trucks, ensuring availability regardless of which unit responds first. This equipment is particularly valuable for opioid overdoses, where victims often require extended CPR due to depressed respiratory and cardiac function. The Lucas devices maintain proper compression depth and rate while allowing patient transport and other medical interventions. The council approved moving forward with the appropriation process, with final approval expected at the October meeting following required public hearing procedures. The council directed the clerk-treasurer to advertise for the additional appropriation to be approved in October.

Highway 231 Relinquishment Study Agreement

The council approved an interlocal agreement with Jasper to conduct a comprehensive study on potential Highway 231 relinquishment from state control. The study, costing approximately $53,000 for the City of Huntingburg, will analyze costs, liabilities, traffic impacts, and future maintenance requirements. This represents a fact-finding mission rather than a commitment to accept relinquishment. The state estimates the highway’s value at $50 million or higher, making the study cost minimal compared to potential financial exposure. Avenew Consultants will conduct the six-month study, with completion expected by February 2026. The analysis will include input from city planners, police, fire, and street departments to ensure all operational aspects are considered. Both cities recognize the need for unbiased, professional analysis before making any decisions about this significant infrastructure responsibility that could impact municipal finances for decades. “In the end we may decide the risk is too high and we don’t want it,” Mayor Elkins said.