Warsaw City Council will not approve any money in next year's budget for Kosciusko Area Bus Service, but it will join with county representatives in studying the issue.
More than 70 people were present at Monday's city council meeting to show support for KABS, which previously asked the city for $82,000.
"The $82,000 is what Cardinal Center pays to support non-Cardinal Center passengers in the city of Warsaw," said Tom Sherron, KABS general manager.
The service originally began as a way of transporting Cardinal Center clients to and from the facility, said Jane Green, Cardinal Center CEO. KABS became a countywide transportation system about five years ago and now the majority of passengers are non-Cardinal Center users.
"Cardinal Center cannot continue to subsidize something we're not benefiting from," Green said.
Sherron expressed disappointment that the council had already finalized the 1998 budget, and explained that raising local funds is the only way to get matching government grants.
"If we don't raise money locally, we don't get the state and federal money," he said.
KABS's staff has been pared back and is now leaner and more efficient, he said.
"We have done everything we can to reduce expenses before asking for dollars," he said.
Since next year's budget was already passed, Sherron asked the council to appoint a chairman for a committee that will spend the next year studying public transportation in Warsaw and developing a comprehensive transit plan to spread expenses equally among the organizations that use KABS's services.
Council member Tammy Rockey volunteered for the committee position.
Several KABS passengers explained to the council their reliance on the bus service, whether as senior citizens, students or medical patients. They called KABS "a necessary part of the entire fabric of the area."
The council also agreed to re-negotiate the contract between Warsaw and Winona Lake in which Winona Lake pays Warsaw for treatment of Winona Lake's sewage.
Winona Lake Town Council president Brent Wilcoxson said the town's sewage department operates as efficiently as Warsaw's, but Winona Lake customer pay twice as much as Warsaw customers.
Winona Lake's proposal is that the town pay two-thirds of its current rate.
Wilcoxson asked for representatives of both councils to "hammer out an agreement whereby we can continue the long, long history of agreement between the two entities."
The council agreed that the three-man Board of Works will negotiate a new contract with Winona Lake.
In other business, the council:
Unanimously approved the 1998 budget. Final budget figures and tax rates will not be set until the state tax board's hearings in late fall.
Approved a 10-year tax abatement for DePuy, which is planning a $2 million addition to its building. Five council members voted in favor of the abatement, with councilman Dewey Lawshe voting against it and councilman Jerry Patterson abstaining.
Denied a request by Lakeland Art Association for a reserved parking space on Lake Street in front of the Association's building. City attorney Steve Snyder said city ordinances allow for double parking for short periods of loading and unloading. The council told the association to check with the county commissioners on a parking space in the lot at the end of the block.
Approved a cable TV franchise transfer from Warner Cable to Marcus Cable Partners.
Tabled a request for additional appropriations for the Warsaw Police Department to a special meeting to be held next week.
The city council meets in the council chambers the third Monday of each month.