By John Estridge
Franklin County Commissioners unanimously approve an Infrastructure Development Zone, opening up rural Franklin County to high-speed broadband internet at their meeting Tuesday morning, January 12.
Their vote came after two residents voiced their opposition in the matter due to reduced taxes for the school system.
Southeastern Indiana REMC sought a property tax exemption for infrastructure it erects in the county over a six-year period for broadband purposes only. It is doing this across southeastern Indiana. Franklin County’s part of the seven-county plan is about $4 million in investments and includes 170 miles of fiber. The overall plan includes seven counties. Five of the seven counties have already passed the tax exemption while the sixth is considering it. Franklin County is the seventh county and now the sixth to pass it. This area where the tax exemption is allowed for broadband purposes is called an Infrastructure Development Zone.
Since it was passed, other utilities will also be able to make broadband-related investments in infrastructure within the county while enjoying the same tax exemption. It is thought, by those for the zone, it will greatly enhance broadband access within the county for current residents and potential new residents and business concerns.
“Even if you did give up this particular tax, you may gain back more than that from additional businesses that would come in because of the broadband,” Commission Vice President Gerald Wendel said.
Also, he said really tax revenue cannot be given up because it has not yet been collected. There is no broadband infrastructure in place.
“I don’t think you can take away tax you are not getting right now,” Wendel said. “I think it will even out or even be a plus if you let them come in.”
Commission President Tom Linkel agreed with Wendel.
“Not only businesses, but what about new homes?” Linkel said. “People would move in and build new homes because of availability of broadband right now. That’s where I’m at.”
Commissioners were responding to the same two Franklin County residents who spoke against the Infrastructure Development Zone at the last commissioners meeting. Sara Duffy is against the school corporation losing further tax revenue. Mildred Simmermeyer was against the county losing out on tax money at the last meeting but at the Tuesday meeting, she was against it because of the schools.
Duffy, a former Franklin County School Corporation Board of Trustees member and a board appointment to the Franklin County Redevelopment Commission, was against the proposal at the January 3 meeting. A week later she wanted the commissioners to delay making a decision for an unspecified time in order to negotiate a Payment in Lieu of Taxes (PILOT) program for the schools from Southeastern Indiana REMC.
After the last meeting, and the comments made by Duffy and Simmermeyer, the commissioners delayed a decision until they could find more information on how much tax revenue the county might not receive in the future due to the zone being enacted. It would be personal property taxes on equipment. Currently, SEIREMC pays $15,000 in property taxes. A SEIREMC representative said at the last meeting that amount would not change.
However, it was difficult for the commissioners and others who attempted to calculate the possible amount that SEIREMC would generate without the zone designation. That is because the personal property tax for utilities is determined by the state. The county assessor has no input on the matter, according to an email Franklin County Assessor Brenda Eckerle sent to commissioners after last week’s meeting.
Commissioner Tom Wilson said he did not think it would be more than $30,000 at the most. That tax money is split by the county, township and school corporation. The FCCSC has an annual budget around $30 million. Counting the entire $30,000, even though the school corporation would not receive that amount, is .001 percent of the FCCSC annual budget.
Commissioners asked Duffy specific questions concerning PILOT, but Duffy said she is not a legal representative and could not answer the specific questions. It was her understanding the commissioners would negotiate with the utility and seek a payment for the FCCSC between $4,000 and $150,000. She told the commissioners she believed the higher figure would be reasonable.
She compared the negotiations to what the commissioners do currently with utility companies over bonds for infrastructure improvements along the county’s roads.
Duffy wrote a letter for the school board members concerning the PILOT program, and the school board members unanimously agreed to sign the letter at their meeting on Monday, January 11. School board member Grant Reeves abstained from the vote as he is the county’s attorney.
Duffy read the letter to the commissioners during the commissioners’ meeting.
SEIREMC contains all or parts of Franklin, Dearborn, Ohio, Ripley, Jefferson, Jackson and Jennings counties. Its headquarters is located in Osgood.
