Warsaw City Council Deals With Fire Territory Budget
July 28, 2016 at 4:25 p.m.
By Daniel [email protected]
When Warsaw Clerk-Treasurer Elaine Call sent in the budgets for 2010 to the Department of Local Government Finance, the fire territory's budget was put together with County Option Income Tax money.[[In-content Ad]]Call said the state representative handling Warsaw's budget told her that the fire territory can't receive COIT money.
When the DLGF gave the city its 1782 notice, it had cut the fire territories budget for 2010 by $723,718, giving it no operating balance.
Paige Gregory, a certified public accountant from Umbaugh & Associates, has worked with the city and told the council Wednesday night COIT can be used to fund fire territories.
The city council took two steps Wednesday night while a response to the DLGF's 1782 notice is sent out. The city has to give a response to the DLGF by Friday.
Gregory said the DLGF should have a response for the city within a week.
First, the council cut $360,000 of the fire territory budget. That money was set aside for the future hiring of nine firefighters. Mayor Ernie Wiggins said that new firefighters won't be hired in 2010.
Then the council also decided to put $400,000 of COIT money back into the fire territory to give it an operating balance.
The council voted unanimously on both matters with 6-0 votes.
Councilman Jeff Grose was not at Wednesday night's meeting.
Gregory said she works with municipalities often and uses COIT funds toward fire territories.
"I'm sure this is something we'll get fixed," said Gregory.
Council President Joe Thallemer said he was confident in Gregory and the city's ability to fix the budget issues with the DLGF.
Thallemer said the measures taken Wednesday night were to "be prepared either way" on what the DLGF's response is to the city's present budget.
Call said the city wants to secure the levy that was given by the DLGF for the fire territory. One of the things that secures that is the budget, said Call.
"You have to be careful not to jeopardize growth for the future fire territory budget with so many unknowns," said Call.
The city intends to maintain the levy of $3,080,215.
Wiggins said that previously municipalities were given three years to establish a levy. That time period has been reduced to one year.
Thallemer noted the complexity of the issue.
"We met this afternoon and this is like a rubic's cube," said Thallemer. "One thing that is certain is there is uncertainty from the DLGF."
Wiggins also said there is a freeze on capital expenditures until the budget issues are resolved.
While the city council dealt with the fire territory, the city was notified that it will receive in excess of $1.1 million though that must go in the city's rainy day fund.
The city also will receive $290,000 from Economic Development Income Tax.
Besides dealing with fire territory funding, the city council also approved a transfer of $3,500 to pay for the utilities in 2010 at the former Heartline building, 337 N. Buffalo St., Warsaw.
The building was recently purchased by the city's redevelopment commission, and while no official decision on what to do with the property has been made, it has been proposed as a site for a new city building.
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When Warsaw Clerk-Treasurer Elaine Call sent in the budgets for 2010 to the Department of Local Government Finance, the fire territory's budget was put together with County Option Income Tax money.[[In-content Ad]]Call said the state representative handling Warsaw's budget told her that the fire territory can't receive COIT money.
When the DLGF gave the city its 1782 notice, it had cut the fire territories budget for 2010 by $723,718, giving it no operating balance.
Paige Gregory, a certified public accountant from Umbaugh & Associates, has worked with the city and told the council Wednesday night COIT can be used to fund fire territories.
The city council took two steps Wednesday night while a response to the DLGF's 1782 notice is sent out. The city has to give a response to the DLGF by Friday.
Gregory said the DLGF should have a response for the city within a week.
First, the council cut $360,000 of the fire territory budget. That money was set aside for the future hiring of nine firefighters. Mayor Ernie Wiggins said that new firefighters won't be hired in 2010.
Then the council also decided to put $400,000 of COIT money back into the fire territory to give it an operating balance.
The council voted unanimously on both matters with 6-0 votes.
Councilman Jeff Grose was not at Wednesday night's meeting.
Gregory said she works with municipalities often and uses COIT funds toward fire territories.
"I'm sure this is something we'll get fixed," said Gregory.
Council President Joe Thallemer said he was confident in Gregory and the city's ability to fix the budget issues with the DLGF.
Thallemer said the measures taken Wednesday night were to "be prepared either way" on what the DLGF's response is to the city's present budget.
Call said the city wants to secure the levy that was given by the DLGF for the fire territory. One of the things that secures that is the budget, said Call.
"You have to be careful not to jeopardize growth for the future fire territory budget with so many unknowns," said Call.
The city intends to maintain the levy of $3,080,215.
Wiggins said that previously municipalities were given three years to establish a levy. That time period has been reduced to one year.
Thallemer noted the complexity of the issue.
"We met this afternoon and this is like a rubic's cube," said Thallemer. "One thing that is certain is there is uncertainty from the DLGF."
Wiggins also said there is a freeze on capital expenditures until the budget issues are resolved.
While the city council dealt with the fire territory, the city was notified that it will receive in excess of $1.1 million though that must go in the city's rainy day fund.
The city also will receive $290,000 from Economic Development Income Tax.
Besides dealing with fire territory funding, the city council also approved a transfer of $3,500 to pay for the utilities in 2010 at the former Heartline building, 337 N. Buffalo St., Warsaw.
The building was recently purchased by the city's redevelopment commission, and while no official decision on what to do with the property has been made, it has been proposed as a site for a new city building.
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