When Clark County officials voted to approve a new fire territory last month, it was with the expectation that it would improve fire service to Jeffersonville, solidify service to Utica and Utica Township and include EMS.
Now, things aren’t so certain. Last week, Indiana lawmakers passed Senate Bill 1, overhauling property taxes in the state. Gov. Mike Braun has signed it into law.
One thing it does is cap fire territory tax rates at .40 on every $100 of assessed property value. Financial estimates show that will cut around a third of the estimated budget for the Jeffersonville-Utica Township Fire Protection Territory.
Jeffersonville City Council President Evan Stoner said officials have already been told by financial advisor Baker Tilly that EMS coverage may not be feasible with the tightened budget.
The firm will present the new estimates at a council meeting at 6 p.m. May 5.
“Many of us, including myself, voted for [the territory] and supported it because it was going to create a professional EMS service for Jeffersonville...which I believe we're lacking currently,” Stoner said.
He said he looks forward to learning more so the council can decide how to proceed.
The Jeffersonville City Council and Utica Township Fire Protection District board approved the territory last month, with an operating budget of around $28.5 million in the first year, including capital. That budget was based on being able to levy a .627 per $100 of assessed value property tax rate.
The new estimates, based on the cap in the new law, show a maximum annual budget of $18.7 million in 2026, going up to $19.7 million in 2028.
The new law doesn’t directly impact the existence of the fire territory — it’s already been passed by the two boards. The law limits how much tax the territory can bring in to fund operations.
Jeffersonville City Council attorney Larry Wilder said the council could take action to stop it.
“As of this time, [the] fire territory exists based on the ordinance,” he said in a text message. “Like any ordinance it can be rescinded. If there is a vote to rescind the ordinance the [Indiana Department of Local Government Finance] will not be asked to consider it. If the ordinance is not rescinded then the fire territory exists and there will be a need to determine if the city can afford to proceed.”
As of Friday morning, no vote was scheduled in relation to the territory.
An uncertain road ahead
Dustin White, a Jeffersonville City Council member who led efforts to create the territory, told LPM News this week he wanted to get a better understanding of the new numbers from Baker Tilly. He said he felt confident the money the territory would bring in would be enough to cover ramped up fire plans, even if EMS isn’t possible.
“I'm not going to express displeasure or excitement with respect to what they did. What happened happened,” White said of Indiana lawmakers’ advancement of SB 1. “Now it's our job to plan the best way we can to make sure that we provide the services that are needed for our citizens.”
Not everyone shares White’s hope. LPM asked Jeffersonville Mayor Mike Moore about the territory Thursday.
“I don’t see a path forward,” he said in a text message.
Leadup to the fire territory
Jeffersonville officials started looking into the feasibility of the territory last year. Council member White said it was initially pursued as a way to capture property taxes from businesses in the River Ridge Commerce Center. However, an attorney for the River Ridge Development Authority has argued the business park does not fall under what can be taxed in that way and that including River Ridge in the numbers skews the estimates.
White said he disagrees with River Ridge’s reading of the statute.
The River Ridge board recently offered the city $1.7 million to go toward fire service.
Jeffersonville officials asked Baker Tilly, the financial adviser, to add EMS into the feasibility estimates last year, as Southern Indiana leaders reconsidered their approach to securing emergency services for residents in the wake of the investigation of former Clark County Sheriff Jamey Noel.
Noel previously operated New Chapel EMS, which provided ambulance service to most of Southern Indiana. He was also responsible for fire service to some areas. Noel is currently in prison after pleading guilty last year to 27 felonies.
As the investigation wore on, leaders in Clark and Floyd counties signed on with new ambulance providers. Last May, Floyd County officials approved contracts with AmeriPro Health and the Highlander Fire Protection District for all areas outside the City of New Albany, which has its own coverage.
In August, the Clark County Commissioners approved a short-term contract with Heartland Ambulance Service to ramp up EMS coverage amid Noel’s investigation.
The following week, New Chapel announced they were stopping 911 service in Clark County. The Clark County Commissioners later signed a three-year contract with Heartland for ambulance service through the end of 2027.
Although White said Heartland is doing a good job, he feels it’s a stopgap measure while they find a more permanent solution.
“Clark County has had four different EMS services over the past 10 years, and we were seeking to provide some stability to that,” he said.
An already rocky path
In the leadup to the territory’s passage at the end of March, some officials in other municipalities and entities that benefit from property taxes voiced strong opposition.
They criticized the fire territory plan, as written, saying it would mean a hit to their tax revenue and impact operations. They questioned the need for the large budget and for EMS service when Clark County government currently provides that.
In March, the Clark County Commissioners removed all three members of the Utica Township Fire Protection District board, one day before they were scheduled to vote with the Jeffersonville City Council on adoption of the territory.
The Utica fire board took that to court on an expedited timeline, and were reinstated by a judge in time to vote on the territory just before deadline.
The new law also impacts other Southern Indiana taxing units’ revenue.
Jeffersonville Mayor Mike Moore announced Wednesday the city is expected to see a roughly $5.7 million loss in property tax revenue over the next three years. The city’s measures to cut costs include:
- Freezing hiring for all new or vacant positions in city departments and offices unless the Board of Public Works and Safety deems it essential to city operations
- All capital expenditures over $5,000 must have approval by the Board of Works and Public Safety
- All overtime for civilian employees must have prior approval by the mayor and controller
- All buyouts of vacation and PTO will be suspended
- The legal department will review contracts to see if any are eligible for early termination
Coverage of Southern Indiana is funded, in part, by Samtec Inc., the Hazel & Walter T. Bales Foundation, and the Caesars Foundation of Floyd County.
