Fund Established To House $750K In Funds From State
Posted
David Slone-dslone@timesuniononline.com
In order to receive over $750,000 from a one-time distribution from the state, the City of Warsaw Common Council Monday night approved a resolution establishing a fund to hold the monies until it spends them. Of the funds, 75 percent is restricted to road improvements, but the city can spend the remaining 25 percent any way it deems necessary. While the 75 percent must be placed in the newly created Local Option Income Tax 2016 Special Distribution fund, the rest may be put in the city’s general fund or rainy day fund. The one-time special distribution was created by Indiana Senate Enrolled Act 67. Mayor Joe Thallemer said the city would receive its distribution by the end of the month. “This is a one-time distribution, so this fund will only be used one time to park this money and keep track of it,” he said. Clerk-Treasurer Lynne Christiansen said the state distributed the money to the counties and the counties then had to distribute it on to its units. “I think they are just drawing down a reserve they had,” she said. She said the city’s distribution total from the County Option Income Tax is $602,370.82 and its County Economic Development Income Tax distribution is $165,807.49 for a total of $768,178.31. “So 75 percent of that, which is $576,133.73, will be put in this special fund, and then the rest, 25 percent, can go either into the general fund or rainy day fund or any purpose we use it for,” Christiansen stated. Thallemer said the 75 percent will have to be allocated so the city council will have to do an additional appropriation once those funds are in the special LOIT fund. Christiansen reported the county said the city will get its distribution May 27, and the county received it April 25. “They held it for about a month,” she noted. Councilwoman Diane Quance wanted to know how it would be decided which fund the 25 percent went into. Thallemer said it didn’t matter which fund it was placed into as the council would have control over the money. The council approved the resolution creating the special fund on first and second reading. City Planner Jeremy Skinner then presented continuation of tax abatements for Dalton Corp., 1900 E. Jefferson St., and Redwood IT, 501 Argonne Road. He recommended both be continued, and the council approved them. Dalton was granted a 10-year tax abatement on personal property in fall 2007 and this is its seventh year. The corporation estimated spending $5 million on personal property improvements and has spent about $4.4 million. Redwood was granted a 10-year tax abatement on real and personal property in fall 2015, and this is their first year of it. Skinner said the real property improvements include about $200,000 in renovations and an additional $30,000 in IT equipment. Redwood is in the process of completing renovations on the existing building and expects to be finished by the end of this year. In other business, the council: • Reviewed the Comcast Cable 2016 first quarter franchise fee to the city. Comcast’s revenue in the city for January through March totaled $474,499.24. The city receives 3 percent of the quarterly total, or $14,234.97. Christiansen said that’s $400 more than the first quarter in 2015. • Approved on first and second reading a request by Harvey and Lillie F. Hayes to vacate an unimproved street running between his properties at 977 and 985 N. Lake St. The Plan Commission on May 9 reviewed the vacation and approved a favorable recommendation for it to be forwarded on to the council, subject to the placement of a 20-foot sewer easement within the vacated street. There were no remonstrators against the vacation, which is for approximately 1.67 acres. • Approved resolutions updating the city’s Americans with Disabilities Act and Title VI coordinator and grievance procedures. City Planner Jeremy Skinner is the ADA coordinator for the city.
