Starting this year, residents in Warren County will receive two separate tax bills.

The first – county and municipal taxes – will be sent to residents in March. School district tax bills will be sent in August.

Warren County taxpayers have, for decades, received one mailing that included municipal, county and school district taxes. The fiscal year for the county and municipal governments follows the calendar while the school district runs from July 1 through June 30.

The model brought some savings, especially postage; but it required the county to cover operating expenses on prior year tax revenues and tax anticipation note (TAN) borrowing before current year revenue started to come in during August and September.

The commissioners annually approve a resolution to agree to send one tax bill. That action will not take place in January when it would normally occur.

“We have taken into account that receiving one large bill including county, municipal and school taxes can be very overwhelming,” Commissioner Ken Klakamp said. “It is our intention to split the tax bills into lesser amounts in the spring and fall instead of one large bill.”

Those who pay their tax bill via a mortgage escrow account are not anticipated to have to take any action to accommodate this change.

“We’re actively reaching out to mortgage companies,” Commissioner Tricia Durbin said. “Mortgage companies are going to want to engage and be ac????ve in any kind of change with that.”

Commissioner Dan Glotz said that county and municipal taxes will be able to be paid between March 1 and April 30 at discount, between May 1 and June 30 at par and then from July 1 through Dec. 31 at penalty. The school district’s bill window will run from August 1 through Dec. 31.

The decision to make this change targets cash flow problems that have complicated the county’s financial position in recent years.

“We are making the assumption people are going to be encouraged and willing to pay in the discount period or at the face period so we can shore up revenues to manage the year,” Durbin said.

Klakamp said he’s hopeful that going with split billing will cut the size of the TAN.

“The reason for splitting of the tax bills is that the commissioners will reduce the amount needed to borrow,” Klakamp explained. “In 2024, Warren County borrowed $4 million to pay for operating costs from January to September. In June, the entire $4 million was used up.”

The loan terms also required a $500,000 collateral that was unavailable for county operations for the life of the TAN. Interest on the TAN totaled about $21,000 a month in 2024. The loan was paid off two months early, saving over $45,000.

Commissioner Dan Glotz noted that the TAN terms for 2025 are more favorable, operating “more like a line of credit” than a traditional loan.

Conversations are ongoing regarding the viability of taking out a TAN more generally.

“Interest rates aren’t particularly favorable,” Durbin said. “Interest rates were so low for so long a TAN was pretty much a no brainer. Now we’re living in a different world.”

“Warren County is the only county of 67 that has not gone to split billing,” Klakamp explained.

The tax bills for the county’s 27 municipalities will also shift to the earlier window.

Commissioner Glotz added that he’s been told that the delayed tax revenue forced municipalities to be very careful in their budgeting.

“The impression I got, they’re all for this,” he said. “They support this.”

The commissioners believe that this change will also improve cash flow for residents and businesses who may be confronted with other expenses when their tax bill comes.

“We understand that there will be confusion and concern and we, as commissioners, need to be aware and be flexible and work with all parties involved,” Klakamp said. “We truly believe while (this change) may be hard, it is in the best interest of our taxpayers.”

Anyone with specific questions is asked to contact the commissioner’s office.