Before the City of Warsaw Common Council at its last meeting of 2015 Monday were a tax abatement, budget reductions and recognition of Councilwoman Elaine Call, among other items. Models Plus LLC requested the city council grant a personal property tax abatement on new manufacturing equipment in its facility at 4136 Corridor Drive. The facility is a vacant building at the old LRC manufacturing plant. City Planner Jeremy Skinner told the council there were four buildings there, with two already occupied by other businesses – Micro Machines and Iconacy – and Models Plus will occupy the third. LRC’s huge complex was given a tax abatement around 2005, Skinner said, but the downturn in the market “kind of sent them out of the game.” Since then, the city has been trying to find occupants for those buildings. Iconacy was the first, followed by Micro Machines and now Models Plus. Skinner said Models Plus is looking at purchasing $2.6 million in new equipment and hiring 10 additional employees. He recommended the council grant the tax abatement. Mayor Joe Thallemer asked Skinner to talk a bit about what Models Plus does, as owner Jeff Maki was unable to attend the meeting. Skinner replied, “They do dental models and then they do orthopedic implant models. So they basically design and make the models they may take to show people the surgery and how the implant will work. Then, both on orthopedic surgery and on dental surgery, they do a lot of show pieces and things like that. They do also provide cases that the models will go in to take around the country for sales reps and displays.” The council unanimously approved the abatement. The Department of Local Government Finance is required annually to provide taxing units with a Notice of Final Budget Recommendation – often referred to as a 1782 Notice – which is a preliminary budget determination and not a final budget certification, according to a definition on umbaugh.com. Taxing units are required to respond to the 1782 Notice by the deadline stated on the notice. Current law allows taxing units 10 calendar days to review the Notice and request budget revisions in writing to DLGF. Monday night, the city council responded to its 1782 notice that it received 10 days prior. Its deadline to submit its response was last night, Thallemer reminded the council. Part of the response to the 1782 Notice, Thallemer said, is to approve the line 1 budget cuts for 2016. The city’s cuts total $663,218, the majority from the general fund totaling $616,790. There’s also $9,305 from aviation; $15,123 from cemetery; and $22,000 from park and recreation. “All of those cuts, that have been presented previously, are on here with the exception of the fire territory. We decided that we’re going to leave that spending allowance in their budget because their line 11s, their reserves, are a little bit low, and this will allow that money to roll over,” Thallemer explained about why the line 1 cut from the fire territory was missing. “It’s money that won’t be spent because it was budgeted health insurance money that is not necessary because our rates came in at a lot lower. But this will allow us to help build their line 11 cuts, which will give them a little bit more evenness with their cash balances as they go through the year. With the size of their budget, it’s important to have that.” He then discussed the tax rate, saying the city was prepared to make cuts to its budget. That will allow the city to not have to use the state certified inflationary growth factor of 2.63 percent. Last year, Thallemer said the city used the full growth factor. Every year, he said costs go up and the state allows communities to keep up with that through the growth factor. This year, it doesn’t look like the city needs to use the entire amount of that 2.63 percent growth factor of the tax levy, he said. “What you have in front of you, including those spending cuts, shows about a 0.8 percent (growth factor), as opposed to the 2.63 percent. The ordinance you have in front of you would give you a 1 cent increase in the tax rate, which is about a 0.8 percent increase,” Thallemer explained. He said the council has the option to increase that to 2 cents, but he asked Clerk-Treasurer Lynne Christiansen to set the ordinance at a penny. After discussing whether to approve it at 0 cents, 1 cent or 2 cents – with Councilwoman Elaine Call in favor of 2 cents – the council unanimously approved the ordinance as presented at 1 cent. The ordinance states, in part, “And be it further ordained that the line 1 reductions are as set forth ... and that the 2016 appropriations are reduced to respectfully set a total targeted tax rate of $1.2391 by adjusting the rate and levy of the general fund.” In other business, the council: • Presented Call with a plaque for her service. She chose not to run for re-election this year and will be replaced on the council by Jack Wilhite. “Elaine has been on the council for four years. Elaine was in the clerk-treasurer’s office 27 years. And now, having the opportunity to sit on this side of the council, she added a lot to our discussion. She kept the i’s dotted and the t’s crossed, that’s for sure. Obviously I appreciate what you’ve done, your commitment to the city,” Thallemer said. He added that he “couldn’t say enough” for someone who has “given that much to the city” and “it was apparent on the council that your interest was the city.” • Approved a transfer ordinance on first and second reading for $269.45 from repairs and maintenance to land per Oakwood Cemetery sexton Hal Heagy’s request.
