Jasper approves Baker Tilly contract to navigate local income tax restructuring

Jasper is spending up to $30,000 to study the impact of the anticipated changes to the division of local income tax dollars among taxing units when Senate Enrolled Act 1 takes effect in 2028.

The Board of Public Works and Safety voted unanimously this week to hire Baker Tilly to guide Jasper through the Municipal Unit Strategic Task Force process — known as MUST — created under Senate Enrolled Act 1.

SEA 1 overhauled Indiana’s local income tax framework, changing how the pool of LIT revenue — the local option income tax collected countywide — is calculated and distributed to cities, towns, and other taxing units. Originally led by the county councils, the new act enables cities to administer their own income tax. The MUST program provides municipalities with a structured process for reviewing those distributions and negotiating adjustments with their county.

This was done to offset the impact of property tax relief offered by the bill.

Clerk-Treasurer Kiersten Knies brought the agreement to the board, framing it as essential financial groundwork before the city sits across the table from the county for upcoming negotiations over LIT distributions.

“This will help us determine our needs, what we currently receive in LIT, what we need to continue to receive in order to continue to fund the services and programs that we have and the projects that we want to do,” she told the board.

Once an agreement is reached, it must be forwarded to the Department of Local Government Finance. The department will then compile all county agreements into a report, which will be delivered electronically to the legislative council by Dec. 1, 2026.

City Attorney Renee Kabrick said Baker Tilly’s prior work with the city makes them well-suited for the assignment. “I think it’s unquestionable that Baker Tilly really did a deep dive into that legislation, and so I feel like they’re very, very prepared to provide this service,” she said.

The firm’s dual role — it also works with the county — prompted questions, but Kabrick said the arrangement has precedent. She pointed to the Northside sewer project, where both the city and county independently engaged Baker Tilly with the understanding that the two teams would operate without sharing information. “Baker Tilly is representing the county. Baker Tilly is representing the city. But we made it very clear that those two teams from Baker Tilly need to be independent,” she told the board.

The city is not the only municipality going through the process. Baker Tilly has assembled a dedicated team focused specifically on MUST-related work across Indiana, and the Association of Indiana Municipalities is actively encouraging cities to engage.

The $30,000 cost will be split between the city clerk’s and common council’s contractual services budgets. Eckerle said taking a proactive stance was critical. “I think this will be crucial and I think we should start driving that,” she said.

In other business at the meeting, the board approved removing a 2018 Dodge Charger from the city’s fixed asset inventory as part of a previously approved vehicle trade-in agreement for three new police vehicles.

The board also accepted a $1,000 unrestricted donation to the Jasper Volunteer Fire Department from residents who moved to the area and wish to support the department. According to Fire Chief Kenny Hochgesang, the individual had been a member of the fire department in their previous community, and since moving to Jasper, they want to continue supporting the fire department where they reside. This is the second year they have made a donation to the Jasper Fire Department..

The police department reported 1,313 calls for service in May, with 46 criminal arrests, 66 traffic citations, and 344 traffic warnings issued. The Real Time Intelligence Communication Center processed 1,909 calls for service, including 407 emergency 911 calls, with an average ring time of 2.58 seconds — well below the national benchmark of 10 seconds, said Chief Chad Dick.