Jasper Common Council moves to increase special tax levy
The Jasper City Council approved the first reading of an ordinance to increase the Cumulative Capital (Cum Cap) Development Levy during their meeting on Wednesday.
Cum Cap funds are specialized property tax levies authorized by Indiana law for local governments to fund long-term capital projects, such as infrastructure repairs, equipment purchases, or building improvements.
Jasper established the Cum Cap Development Levy in 2002 at the full 0.05 cent rate. Over time, increasing assessed property values created downward pressure on the levy rate, causing it to decline until legislative changes made it static around 2020 at its current level, Clerk Treasurer Kiersten Knies told the council.
The fund currently contains $1.3 million and generates approximately $445,000 per year. The city has generally appropriated about $475,000 annually to the street department for paving and infrastructure needs. It is also used for matching fund for Community Crossing grants when awarded.
The council is considering the increase as it expects to lose approximately $277,000 in property tax revenue due to recent legislative changes, making the additional Cum Cap revenue particularly important.
While Councilman Chad Lueken agreed it was necessary, he voiced concerns with other levies the council may have to consider due to the impact of legislative changes on the funding formulas for Indiana communities.
“There’s a whole ‘nother round of discussions that I know are going to be coming down the pipe too, with local income taxes and safety taxes and potential wheel taxes,” Lueken said. “Wish I had all the information before a vote on this.”
He also pushed back on the view that the increase was minimal. Pointing to the example supplied to the council, Lueken noted that a home valued at about $300,000 would experience a $40 annual increase. While it doesn’t seem like a lot, it is a 36 percent increase on this particular levy.
“My concern is it’s revenue for revenue sake. I’m well aware,” Lueken said. “Here’s again, how I operate if, if Jeff (Street Superintendent) said I would like $175,000 more in the street department budget this year. That gives me something real that I can say yay to.”
Street Department Superintendent Jeff Theising addressed the council, emphasizing the need for additional funding due to rising costs and equipment repairs and failures. He reported that paving costs alone have increased 11% since November based on the price index for asphalt, stone, aggregate and fuel.
Theising also described unexpected equipment costs, including an estimated $6,000 remanufactured engine needed after a spring broke in a valve on an older garbage truck that just occurred.
The street department has also cut several items from its 2026 budget, pushing equipment purchases down the road. Theising warned that delaying maintenance and equipment replacement often leads to more expensive problems later.
“So my thought is, is, why not do a little bit now, rather than have to do a great, big one at some point,” he told the council.
The Clerk Treasurer’s office researched other communities facing similar situations and found that Ferdinand reestablished its Cum Cap Development Levy back to the full 0.05 cents in 2023 after experiencing the same downward pressure on rates.
Lueken also noted the timing pressure, explaining that the ordinance must pass by June 1st to take effect for 2027. If delayed until next year, the increased revenue would not begin until January 1, 2028.
Despite concerns about raising taxes while revenue projections remain uncertain, the council members supported moving forward with the first reading.
“We’re asking all these guys to tighten budgets, tighten budgets, tighten budgets. At the same time, the cost of the equipment they’re buying, remember the trash trucks, the fire trucks, everything is going through the roof,” said Councilman Paul Lorey. “To me this is such a minimal increase on what we’re talking about doing. To me this is kind of a no brainer.”
Councilman Kevin Manley reminded the council that they have to address the estimated $277,000 loss in revenue regardless of the decision on the cum cap fund.
The council unanimously approved the first reading, though Lueken expressed reservations about his approval for the second reading scheduled for next month.
The final approval is set to take place at the regular Jasper Common Council meeting scheduled for 5:30 p.m. on Wedneday, May 20, 2026, in the council chambers.
