At its most recent meeting, the Clarksville Town Council approved a $10 monthly sanitation fee to help ensure the Town can continue providing the reliable trash collection and public works services residents depend on every day.

For many years, Clarksville has been one of the few communities in the area to provide residential trash collection without a dedicated monthly fee. While the Town has worked hard to absorb those costs, recent changes to Indiana’s property tax system under Senate Bill 1 have created significant financial challenges for municipalities across the state.

The decision to implement a sanitation fee was not made lightly. Town Council carefully considered the impact on residents while also recognizing the importance of maintaining the level of service the community has come to expect.

Clarksville’s Public Works Department has consistently done more with less. Crews have kept aging equipment in service well beyond its expected lifespan, with some sanitation trucks now more than 20 years old. They have worked time and time again to keep those vehicles operating, allowing trash collection to continue without interruption despite increasing maintenance costs and limited resources.

The department also faces growing challenges in recruiting and retaining commercial driver’s license (CDL) operators. Like many public agencies, Clarksville competes with private industry for qualified drivers, making it increasingly difficult to fill these critical positions. Adequate staffing is especially important during winter weather, when Public Works employees are responsible not only for trash collection but also for snow removal and keeping roads safe for residents.

Revenue generated by the sanitation fee will help strengthen these essential services by supporting equipment replacement and improving the Town’s ability to attract and retain qualified employees. These investments will help ensure Public Works can continue providing the dependable service residents rely on every week.

Clarksville’s Public Works Department has earned a reputation for going above and beyond. Whether collecting large items, responding to unexpected service needs, or working through severe weather, crews consistently demonstrate a commitment to serving the community.

The new sanitation fee is an investment in preserving that level of service for years to come. While no one welcomes additional costs, Town Council believes this measured step is necessary to maintain the quality, reliability, and responsiveness residents have come to expect.

UNDERSTANDING SENATE BILL 1:

During the 2025 legislative session, Indiana lawmakers passed Senate Bill 1, a major reform of the state’s property tax system. The goal of the legislation is to provide tax relief for homeowners, farmers, and businesses while shifting how local governments are funded in the future.

Many homeowners across Indiana are expected to see lower property tax bills as a result of the new law. Beginning in 2026, homeowners will receive an additional property tax credit equal to 10% of their bill, up to $300 per year. The legislation also includes additional deductions and credits designed to reduce the property tax burden on Indiana residents.

State leaders have said these changes are intended to help Hoosiers, especially those on fixed or lower incomes, remain in their homes and communities by reducing the financial pressure created by rising property taxes.

The legislation also reflects a broader shift in how Indiana wants local governments to be funded. Rather than relying as heavily on property taxes, the State is placing greater emphasis on local income taxes and community growth. The idea is that growing communities with more residents, workers, and economic activity will be able to generate revenue through local income taxes while continuing to provide the services residents expect.

While many residents will benefit from lower property tax bills, it is also important to understand how these changes affect local governments.

For Clarksville, current estimates show the Town will receive approximately:

• $480,000 less in property tax revenue in 2026
• $1.24 million less in 2027
• Approximately $3 million less per year beginning in 2028

In addition, Indiana is completely restructuring the Local Income Tax (LIT) system beginning in 2028. Under the new structure, municipalities will have more direct authority over local income tax rates, but Clarksville is projected to receive significantly less revenue than it receives under the current system. Based on current estimates, the Town could see a reduction of approximately $3.5 million annually from this revenue source.

Combined, these changes represent a potential reduction of more than $6 million per year in revenue that currently helps fund essential Town services.

Like any household, local government must balance its budget. The difference is that local governments are responsible for providing services that residents depend on every day. Police protection, fire protection, parks, road maintenance, snow removal, community programs, public facilities, and other essential services all require ongoing funding.

Clarksville’s 2025 operating budget for general government, public safety, and parks totals approximately $33.6 million. Nearly 75% of that budget supports the employees who provide these services to residents every day. The remaining funds support utilities, facility maintenance, equipment, supplies, and other operational needs.

The Town has worked hard for many years to operate efficiently and responsibly. Clarksville has absorbed rising costs while maintaining relatively stable budgets and continuing to provide a high level of service to residents.

As Senate Bill 1 is implemented, Town officials will continue evaluating budgets, identifying efficiencies, encouraging economic growth, and planning for the future. However, it is important for residents to understand that the financial impacts of this legislation are significant and will require careful long-term planning.

The State’s goal of providing property tax relief and helping residents remain in their homes is a positive one. At the same time, communities across Indiana must now determine how to continue funding the services residents rely upon under a new revenue model.