Jasper Council declines to pass resolution opposing State Senate’s property tax reform bill

The Jasper Common Council withdrew a resolution opposing Indiana Senate Bill 1 after members raised concerns about outdated information and questioned the measure’s timing.

The resolution, which would have formally opposed state legislation impacting local government finances, sparked a substantive discussion about property tax reform and its potential effects on city operations.

Council members noted that the numbers in the resolution no longer reflected the bill’s current version being considered in Indianapolis, making it difficult to take an official stance.

“Some of the numbers in this may not be correct anymore,” Councilwoman Nancy Eckerle pointed out during the meeting.

City Attorney Renee Kabrick suggested withdrawing the resolution rather than voting it down, allowing the council to potentially bring back a revised version later if needed. She noted that with the legislative session in swing and the timing of the next council meeting, it may be ineffective to wait to pass the resolution.

“I think timing-wise in another month or two it’ll be too late for any impact on this,” Mayor Dean Vonderheide said about the resolution. “With it dying here, it’s probably ended.”

Clerk-Treasurer Kiersten Knies shared updated projections about how the proposed state legislation could affect Jasper’s finances. She told the council that the city would receive $277,000 less in property taxes in 2026 than under current law, with additional reductions of $546,000 in 2027 and $731,000 in 2028.

The discussion highlighted the broader implications of property tax reform being considered at the state level. Council members acknowledged the need for tax relief while expressing concerns about maintaining essential city services.

“While I definitely agree that all of our constituents could use a break, this will have an impact on our budgeting,” Knies said, pointing out that the impact is still unclear.

She added that if House Bill 1402 were passed, it would allow the city to implement an income tax to offset property tax losses. This would be in addition to what the county has already implemented. However, income taxes are disbursed differently than property taxes, so this could create timing challenges for the city’s finances.

“If we do implement an income tax, there will be a period of time where we have to bridge the gap, possibly with our existing funds…because of late tax you will collect the year after,” Knies said.

Knies also expressed concern about how the state tax reforms might affect smaller neighboring communities.

“It’s communities like Ferdinand, Huntingburg, smaller towns that are really, really going to feel the strain,” she said. “They do make our community better as well. So, you know, we’re kind of a big dog at the fight. Do we stand up for the little guys, too?”

The council ultimately decided to withdraw the resolution rather than vote on it with outdated information.

Some council members expressed personal support for property tax reform, with Vince Helming noting, “Over the last five, six years, my property taxes have gone up about 7 percent a year. So I kind of welcome them slowing this down, stopping a little bit.”

Knies clarified that recent property tax increases have largely been driven by state efforts to align assessed values with market values rather than city tax rates.

The discussion reflected the council’s attempt to balance taxpayers’ needs with the city’s responsibility to provide services.

“This presents us an opportunity in these interesting times to do a gut check, you know, how much spending should we do?” Councilman Chad Lueken said. “I don’t feel that we’ve been unnecessarily extravagant. But this will present us an opportunity to say, well, what should we spend money on? Do we have to have more taxes or should we look at spending less.”

In response, Councilman Paul Lorey pointed out that the city has been fiscally responsible in recent years, saying, “From the city of Jasper standpoint, we have held the line and having cut the taxes of the city and taxpayers the last four years.”

The council plans to continue monitoring the legislation as it progresses through the state legislature, and it may revisit the issue once final numbers are available.

The council also took the following actions.

• Approved tax abatement compliance forms for Indiana Furniture Industries (2), Park Place I, Park Place II and Park Place III.
• Approved rezoning a roughly 35-acre plat owned by David and Lisa Seng from Agriculture General to Rural Residential to allow their children to build homes on the land.
• Adopted Ordinance 2024-3, allowing the city to issue bonds on behalf of Kerstiens Development for the Northridge Subdivision. Bonds will be repaid through captured TIF funds captured from the development.
• Adopted Ordinance 2025-4, amending rates charged for swim lessons ($45 per two-week session), and Ordinance 2025-6, adding a part-time camp instructor to the 2025 salary ordinance. The position will enable the city to offer golf lessons and, later, pickleball lessons.
• Accepted a total of $3,475 in donations for Jasper Arts.
• Heard an overview of the TIF districts reported by Clerk-Treasurer Knies.

The next meeting of the Jasper Common Council will be held at 5:30 p.m. Wednesday, April 23, at City Hall.