The proposed $110 million budget for Daviess County Fiscal Court in Fiscal Year 2025-2026 projects stable revenues across most funds, with modest shifts in subsidies and allocations aimed at maintaining core services and addressing infrastructure needs.
County Treasurer Jordan Johnson presented the budget highlights during Wednesday’s work session, noting that General Fund revenues are expected to remain steady with a projected $400,000 increase in property tax revenue. Johnson said that revenue adjustments throughout the budget were made in line with historical trends.
Johnson broke down the summary of appropriations by department as follows:
- Total Budget Appropriations: $110,149,426
- General Fund: $60,204,222
- Road Fund: $6,275,100
- Jail Fund: $11,546,724
- Local Government Economic Assistance (LGEA): $137,500
- Economic Development: $1,770,000
- Bond Fund: $3,066,700
- Solid Waste Fund: $26,768,180
- County Clerk Permanent Storage Fees Fund: $381,000
The proposed General Fund includes a $3.56 million subsidy for the Daviess County Sheriff’s Office, which reflects a 3.4% cost-of-living adjustment and updated pension costs. The transfer to the Road Fund is down to $1.75 million from $2.87 million last year, while the transfer to the Jail Fund has increased to $3.86 million from $3.41 million.
Johnson said the Road Fund includes $530,000 in state-reimbursable projects — matching the previous year — for resurfacing and other efforts yet to be identified. Asphalting projects using Road and Local Government Economic Assistance (LGEA) funds are also projected at $1.28 million, consistent with last year’s total.
The county remains classified as a coal impact county, which restricts the use of LGEA funds to transportation-related expenses, Johnson said. He noted the $137,000 projected income for the LGEA Fund will be used entirely for road maintenance.
Johnson said the shift in Jail Fund support is due to reduced revenue from housing state and federal prisoners, combined with salary adjustments. Revenues for the Jail Fund are budgeted at $3 million for housing state inmates and $1.7 million from federal prisoners.
The Solid Waste Fund is expected to remain self-sustaining, with no need for General Fund support, according to Johnson. He said revenue remains steady following a gate rate adjustment that took effect in January. The fund continues to operate as an enterprise fund, generating enough income to cover all expenses.
The Economic Development Fund will continue to support ongoing and new projects. Johnson said Fiscal Court has previously awarded funds to several initiatives and plans to continue investments in the upcoming year.
Key budget assumptions include a 2.9% cost-of-living adjustment, no new debt issuance, and a $1.15 million reduction in principal debt payments. Retirement contributions are expected to decrease, with non-hazardous rates falling from 19.71% to 18.62% and hazardous duty rates dropping from 38.61% to 35.73%.
The proposed budget assumes all existing tax rates will remain unchanged, including:
- Real property tax: 12.90 cents per $100
- Tangible personal property tax: 13.80 cents per $100
- Motor vehicle and watercraft tax: 17.00 cents per $100
- Occupational tax: 1.0%
- Insurance premium tax: 6.0%
Johnson also cautioned that several external factors could impact the budget’s performance, including unstable fuel and energy prices, continued inflation and supply chain disruptions, potential decreases in solid waste revenue, and reduced state funding.
“Those threats have remained pretty much the same for the last several years,” he said.
No action was taken regarding the budget, but a consensus was given to move forward with the proposal. Fiscal Court will vote on the proposal at a later date.
