Blog

January 21, 2022

Supplemental Medicaid Reimbursement

Written By: Stephanie Lilly, Lynsey Johnson, and Curtis Coonrod In addition to billing Medicaid for ambulance services, most local governments can apply annually for supplemental payment. States make Medicaid payments to hospitals and ambulance providers. One of the two ways payments are made via base payments for services and supplemental payments, which are made in a lump sum for a fixed period of time. In 2019, Indiana received federal approval to provide a supplemental payment adjustment to in‐state government‐owned ambulance providers. The payment adjustment is intended to reimburse the actual incurred costs of providing ambulance services to eligible Medicaid beneficiaries.                             An extensive amount of research and calculation is necessary for each reimbursement request. The complete packet of information […]
September 20, 2022

Impact of Annexation on Counties, Cities, Towns, and Townships

Written by: Curtis L. Coonrod and Benjamin W. Roeger If a city or town annexes territory, the county, and township lose revenue, right? Yes, but maybe not as much as you might think. There are many misconceptions about what happens to local revenue when a city or town annexes territory.   Here is a basic outline: Effect of Annexation on Cities (or Towns), Countries, and Townships (A) After annexation, the county and township may reduce their property tax levies voluntarily, but they are not required to do so. (B)  I.C. 6-1.1-18.5-12 and 13 (C)  If the LIT distribution of any unit is increased, as usually happens when a city or town annexes territory, the increase to that unit is made up […]
August 9, 2022

A Little Trick that Might Help You Find More Money for your 2023 Budget

Written by: Curtis L. Coonrod, CPA [Revised: 8/9/22] If you are starting to think about your 2023 budget, you might like to know a way to get a little more money. The Department of Local Government Finance provides Form 4b, which allows you to calculate the funds available for the coming year. One item you must take into account is the current year’s unspent appropriations (Line 2 of Form 4b in the current Gateway layout). That makes sense. Usually, if the money is appropriated to be spent this year, you should not use it for next year’s budget. However, most years, your local unit does not actually expend its full budget.  Now that we are halfway through the 2022 budget year, you may know of […]
July 19, 2022

Property Tax Shortfalls are Common. Here’s how to Recover the Revenue.

Written by: Curtis Coonrod and Benjamin Roeger [Revised: 7/22/2022] A common occurrence amongst cities, towns, counties, and townships is that they often do not receive the full amount of property tax revenue that was approved in their respective original budgets. This issue can often be resolved, but it requires action on the part of local officials. A comparison between the amount of property tax revenue received and the amount expected in the original budget will typically reveal a discrepancy.  And while there exists a great deal of variance between the amounts associated with such shortfalls, it nevertheless remains prudent to compare how much is actually received to the budget. Unfortunately, a portion of this discrepancy may be due to circuit […]
July 8, 2022
This image is placed here to illustrate money being saved for a rainy day.

2022 Rainy Day Funds per Civil City

June 10, 2022

Local Governments can expect a 5% increase in their maximum property tax levies in 2023

Each year, the maximum amount of property tax revenue (levy) that may be generated by a local civil government unit is adjusted to account for growth and inflation. This article is intended to explain this calculation and the impact on your unit’s 2023 budget.     How is the annual adjustment to the maximum levy calculated? Legislation stipulates the six-year moving average increase in Indiana, non-farm personal income (as published by the federal Bureau of Economic Analysis) is the factor used to adjust the maximum levy each year.      Will the amount of my local unit’s property tax revenue increase as a result of this annual adjustment?     Not necessarily. Factors such as lost revenue from property tax rate cap credits and delinquencies/non-payment […]