State Audit orders Seymour city councilman to repay $3,371 after moving out of district

SEYMOUR — An official audit by the Indiana State Board of Accounts (SBOA) has requested that Seymour City Councilman Jerry Hackney reimburse the city $3,371 in compensation he received after relocating outside of his elected district.

Councilmember Jerry Hackney

According to state audit findings released this week, Hackney moved out of District 2—the seat he was elected to represent—in October 2025 and into District 3. Despite changing his primary residence, Hackney continued to collect his city council salary from October 27, 2025, through May 1, 2026.

State Residency Statutes and Audit Findings

Under Indiana Code, municipal officeholders automatically forfeit their seat if they relocate outside the geographical boundaries of the district or city they were elected to serve.

Key Timeline & Audit Summary

Event / ParameterDetails
Official AffectedJerry Hackney (Seymour City Council, District 2)
Relocation DateOctober 2025 (Moved from District 2 to District 3)
Ineligible Salary PeriodOctober 27, 2025 – May 1, 2026
Repayment Amount Demanded$3,371.00
State Statute CitedIndiana Code (Automatic forfeiture upon loss of district residency)

Hackney and City Officials Respond

When reached for comment, Hackney indicated that he intends to comply with the audit’s demand for repayment. He stated that he contacted the Indiana State Police to confirm where to direct the $3,371 reimbursement check.

“I just want this over with,” Hackney said.

Hackney stated that municipal administrative staff were aware of his move, noting that the clerk-treasurer’s office continued issuing his payments after he relocated. He added that health challenges prevented him from attending council meetings after April 2026 and stated that he no longer considers himself an active member of the Seymour City Council.

In a formal statement, Seymour City Attorney Christina Engleking confirmed that an inquiry into the situation remains active.

“To date, Mr. Hackney has not submitted notice of resignation to the City,” Engleking stated. “There is an ongoing investigation into this matter being handled by outside agencies. To maintain the integrity of the investigation, Council cannot comment further.”

The State Board of Accounts has forwarded its audit findings to the local prosecutor’s office for further review.