A proposal to reorganize the Town of Ellettsville and Richland Township moved forward during a work session Friday as officials reviewed a hypothetical fiscal model and questions for a potential merger.
If voters in both jurisdictions approve it in November 2026, the reorganization could take effect Jan. 1, 2027, creating a single local government for the two areas that would cover about 40 square miles.
Currently, Richland Township covers approximately 35 square miles with a population of more than 15,000 additional residents, while Ellettsville spans 3.5 square miles with a population of around 7,000.
What is reorganization?
Indiana Code allows adjacent counties, municipalities, townships, school corporations or special taxing districts to merge or restructure.
A reorganization can take effect when it has been approved by majority of voters in each political subdivision. The adopted plan for reorganization specifies the effective date and the appointed or elected officials of the reorganized political subdivision are elected.
Paige Sansone, a certified public accountant and principal with Baker Tilly Advisory Group, told officials at the work session the reorganization is meant to improve efficiency and enhance cooperation. She said she found a limited number of consolidations in Indiana — including the town of Zionsville and Perry Township in 2014 and Yorktown and Mt. Pleasant Township in 2013 — have been successful.
“There’s a lot of great potential that can come out of this. It’s just that it’s not been utilized very much throughout the state,” Sansone said. “I think the legislature, if you would ask any of them, would probably say that they would like to see more reorganizing.”
One major issue the boards discussed Friday was whether property owners in a new consolidated entity would be taxed the same. State law allows reorganized governments to maintain separate tax rates based on geography.
“I think one of the things that will always be of interest is what’s this cost and how do you do it and the fiscal impact,” Farmer said.
There are three taxing districts that would be impacted by the reorganization. The unincorporated portion of Richland Township, the portion of Ellettsville that lies within Richland and the portion of Ellettsville that lies within Bean Blossom Township.
Under Baker Tilly’s model for the potential consolidation, the assumption was that Richland Township’s property tax rate would increase by about $0.05 but still retain a lower rate than Ellettsville. The Richland Township portion of Ellettsville would see a property tax increase of about $0.41, and the Bean Blossom Township portion would increase by about $0.43.
Most taxing services would be consolidated except for police, street, planning and zoning and debt services.
The model also showed that fire protection would become a unified service and offer one tax rate for the entire reorganized entity. Sansone said police services would remain separate, with the Monroe County Sheriff’s Department serving rural Richland Township and the Ellettsville Police Department serving the town.
However, Ellettsville Town Council President Scott Oldham questioned the assumption that the Monroe County Sheriff’s Department would automatically provide policing to rural areas at no additional cost.
“It seems fairly disingenuous to me to expect the sheriff's department and the county to continue providing services to something that's now inside of another municipality,” Oldham said.
Sansone agreed the sheriff's department’s role would need clarification, noting some residents already argue they are “double-taxed” for law enforcement — once to the county and again to the town. She said the boards would need to clarify with the sheriff’s department.
Sansone’s hypothetical model showed increases to district tax rates — but not to actual tax bills because many Ellettsville homes are already at Indiana’s constitutional tax caps. Property tax caps in Indiana ensure property owners do not pay more than a fixed percent of the property’s gross assessed value in taxes. The caps do not change the local tax rate.
Under this hypothetical model:
- A $150,000 home in Richland Township would see an estimated $31 annual increase in its tax bill
- A $150,000 Ellettsville home in either township could see an annual tax bill increase of about $250 a year, bringing it to the tax cap.
Most farmland and rental properties in Ellettsville are already at tax caps and would not experience changes unless budgets significantly shift.
Sansone’s hypothetical reorganization budget totaled $9.3 million. The two townships currently spend a combined $7.98 million. The increase in total spending under the model would be driven mainly by plans to spend more on police and fire services. However, administration costs dropped under the hypothetical reorganization from the $1.3 million currently budgeted as separate entities to $827,000 as combined.
Who will make the final plan?
Much of the consolidation process will be finalized by a seven-member reorganization committee, which will draft the required plan outlining services, boundaries, tax districts, governance structure and more.
Three members will be appointed by the Ellettsville Town Council, three by the Richland Township Board and a seventh chosen jointly by the six. Officials in Ellettsville said residents interested in serving on the board should contact the clerk's office at (812) 876-3860.
Ellettsville residents have until Nov. 21 to apply to be on the committee. The town council will announce its selection at the Nov. 24 town council meeting. Richland Township said names must be submitted by Dec. 5. Those who aren’t picked can be considered for the sub-committees.
If reorganization is approved, Bloomington will lose the ability to annex any parts of Richland Township included in the new entity. Areas of Richland Township that are already part of Bloomington would remain unaffected.
What’s next?
Creating a reorganization plan typically takes a year or more with multiple public hearings. The Indiana Department of Local Government Finance must review the plan and approve the ballot language.
A referendum could appear on ballots in November 2026, requiring majority approval in both Ellettsville and Richland Township.
Residents can submit questions to questions@ellettsville.in.gov.
Madelyn Hanes covers issues in southern Indiana. Her work is supported by a rural reporting grant from the Hearst Foundation.
