BY TERESA SMITH

Times-Union Staff Writer

It seems the state wants to receive money but doesn't want to pay its own bills.

The county recently received an invoice for juvenile housing to the tune of more than $99,000 for the last quarter of 2005, county council members heard Thursday.

Yet the State Department of Corrections is not recognizing adult inmates housed by the county and shorted the jail accounts by around $100,000 each of the last five years, according to County Auditor Sue Ann Mitchell. The DOC owes $459,000.

"We bill them, then get a letter back from the state saying they're not sure we have the prisoners," Mitchell said. "We need to address this to the state. Maybe if we pointed it out to the right legislators something would be done."

Councilwoman Charlene Knispel asked if there was a problem with documentation.

Mitchell said the state either doesn't recognize the prisoners as ever being in Kosciusko County or says the paperwork submitted was wrong.

"It's our money. We're housing the prisoners in good faith. We house just a few prisoners compared to other jails," Mitchell said. "I'm sure at the sheriff's association, it is a big deal."

Councilman Brad Tandy suggested the council send a letter to the DOC and all agreed to this.

Not paying for juvenile housing is one reason for the state to withhold property tax replacement credit funds. Through PTRC, the state rebates property tax credits.

Last year every county received a letter indicating their tax estimates had been wrong for years.

Shocked by the accusation, Mitchell and County Assessor Laurie Renier called a meeting with representatives from five other counties to hammer out the problem.

Part of the problem is the software being used to report figures, and part of the problem is the reporting itself.

Mitchell said Renier included the assessed valuation of all government properties and then subtracted these tax-exempt properties for the abstract, a correct procedure.

New coding has been applied for veterans' exemptions and non-profit organizations and each parcel marked with an 18-digit state identification code.

She believes these adjustments may rectify the situation.

The council also:

• Approved a transfer of funds request by Renier to increase the classification of an employee to a six-year level because of prior experience with the county at a cost of $1,143.

• Approved additional appropriations as requested by the prosecutor: from the infraction deferral account, at a total of $20,703; $8,500 to the KCSD for transmitter devices; $1,087 for KCSD for training and education in the radKIDS Program for two instructors; $11,116.60 to the Winona Lake Police Department's K-9 program to purchase and train an animal; $38,045 to cover payroll for a part-time prosecutor.

• Approved an additional appropriation as requested by the health department, $8,000 from the Well Child account to contracted maintenance.

• Approved the purchase of a large format printer-copier-scanner to be shared by the Geographical Imaging System's, recorder's, surveyor's and assessor's offices at a cost of $16,500.

The unit will be able to scan and print images up to 24 by 36 inches in size.

GIS Director Bill Holter said all four departments will use the equipment for their needs.

A maintenance agreement could come from revenues generated by selling maps and plats and other services provided by the equipment.

• Reviewed the health department's 2005 annual report.

• Approved the highway department's purchase of four John Deere tractors and mowers from McKillip Equipment in Wabash at $32,000 each with trade-ins.

• Approved a temporary loan to the cumulative capital development account from the economic development income tax account in the amount of $1.5 million until June 7.

Mitchell said the CCD money was invested in error, the money should have come from EDIT accounts, and the certificate of deposit won't be mature until June.

The funds will be used to make a payment on the Maple Leaf/CR 900N bond.

Payments are $115,000 per year with a $400,000 pay-off. Collection on the tax increment financing is about $60,000 to $71,000, Mitchell said. When the TIF was established about 13 years ago, the county agreed to pay any shortfall.

Since the TIF funds can be collected until 2013, the county will eventually be paid back.

Councilman Brad Tandy asked why the TIF fund is short.

Mitchell said the county had nothing to do with the assessed valuation figure, accepting the company's estimate.

• Heard Mitchell testified against HB 1001 at the state capital Tuesday. She said there were several "bad" things in the bill.

• Were reminded state senators and representatives will be available at the Kosciusko County Farm Bureau today. The meeting is open to the public and begins at 9:30 a.m.

• Heard from Council President Harold Jones who said he was in full support of re-establishing the redevelopment commission.

• Heard representatives from Umbaugh and Associates, a financial consulting company, and Ice Miller, a law firm, will appear at the next redevelopment commission meeting Feb. 20 at 7 p.m.

The next county council meeting is March 9 at 7 p.m.

County council members are John Kinsey, Harold Jones, Charlene Knispel, Tom Anglin, Larry Teghtmeyer, Bob Sanders and Brad Tandy. Anglin was absent. [[In-content Ad]]