The City of New Castle, Indiana

COMMON COUNCIL 

FEBRUARY 16, 2010     7:00 P.M.

 

THE PLEDGE OF ALLEGIANCE WAS GIVEN BY EVERYONE IN ATTENDANCE.

A PRAYER WAS GIVEN BY JERRY INGALLS, PASTOR OF THE FIRST BAPTIST CHURCH.

MAYOR SMALL OPENED THE  MEETING OF THE COMMON COUNCIL.

 

ROLL CALL:

SANDY YORK                                             PRESENT                  

ANGIE GOODMAN                                     PRESENT

JAMES KIDD                                                PRESENT

MARY MALONE                                          PRESENT

MARK KOGER                                             PRESENT

VAUGHN REID                                            PRESENT

RICHARD HAHN                                         PRESENT

 

           PRESIDENT YORK MOVED TO PASS THIS RESOLUTION.     COUNCILMAN REID: SECOND

DISCUSSION: MAYOR SMALL SAID THERE IS A 4 MILLION DOLLAR CAP BETWEEN THE LINE OF CREDIT AND STORM WATER.   COUNCILMAN REID SAID A CONCERN THAT POPPED UP THE FIRST TIME WAS THAT THE CITY WAS BORROWING 6 MILLION DOLLARS.  THE CAP IS AT 4 MILLION PER OUR CURRENT ORDINANCE CAPS THAT AT.  AFTER OUR DISCUSSION WITH UMBAUGH A COUPLE OF WEEKS AGO, THEY SUGGESTED THAT WE BORROW FROM OURSELVES BEFORE BORROWING FROM THE BANK. 

           COUNCILMAN KIDD ASKED IF THIS HAD TO BE PAID BACK AT THE END OF 2010.

           PRESIDENT YORK SAID YES, THE WHOLE 2 MILLION TO STORM WATER.

           COUNCILMAN REID SAID THE ONLY CONCERN HE HAD WAS IS THE CASH FLOW ISSUE.  IT WENT UP ONE-HALF MILLION DOLLARS THIS PAST YEAR.  ARE WE GOING TO BE AT 2 MILLION NEXT YEAR ON CASH FLOW PROBLEMS?  IT IS CHEAPER TO DO IT THIS WAY THAN FROM A BANK.

           COUNCILMAN KIDD SAID HE AGREED IT WAS CHEAPER BUT IT ISN'T GOING DOWN.  JUST PAY BACK AND BORROW 2 MILLION MORE.  WE MUST END THIS.

           PRESIDENT YORK SAID WE ALL AGREE THAT IT HAS TO STOP.  WE ALL HEARD THE SAME THING FROM OUR CONSULTANT.  SHE SAID EVERY COUNCIL MEMBER IS WORKING ON THINGS TO GET READY FOR THE BUDGET THIS YEAR.

           COUNCILADY GOODMAN SAID THAT THE REASON FOR THIS IS THE PROPERTY TAX CUT.  SHE SAID THE GOVERNOR MOTION TO SHIFT MONIES THAT NORMALLY FUND GOVERNMENT LOCALLY, FROM PROPERTY TAX REVENUE, WE ARE BEING PUT INTO A SITUATION WHERE WE NO LONGER RECEIVING THE TAX DRAWS, COMBINATION OF THE STATE ABSORBING  ONE, BECAUSE OF THE RECESSION, PEOPLE ARE NOT PAYING THEM SO WE ARE IN DEBT BECAUSE OF THAT.

           MAYOR SMALL SAID WE HAVE HAD A MAJOR CUT IN PROPERTY TAX CAUSED BY LEGISLATION FOR THE STATE.   WE ARE GOING TO HAVE TO CUT BACK FURTHER OR RAISE OUR INCOME. THAT IS WHAT WE ARE GOING TO BE DOING.  USING THE INFORMATION THAT WE GOT FROM THE WORKSHOP, WILL BE THE BASIS TO HELP US.

           COUNCILMAN REID GAVE AN ANSWER TO THE QUESTION.  WE ARE LOOSING 25% OF OUR ANTICIPATED TAX, PROPERTY TAX ON PAPER, DUE TO THE PROPERTY TAX CAPS.  DEPARTMENT OF LOCAL GOVERNMENT FINANCE HAS US PREPARE A BUDGET BASED ON WHAT WE WOULD GET BEFORE PROPERTY TAX CAPS OR ANYTHING.  IT DOESN'T TAKE INTO ACCOUNT THE REALITIES OF PROPERTY TAX CAPS OR PEOPLE NOT PAYING THEIR PROPERTY TAXES.  WE ARE LOOSING 25% OF WHAT COULD BE TAX REVENUE DUE TO THE TAX CAPS.  HE SAID IN HIS OPINION, THE STATE LEGISLATORS ARE MORE INTERESTED DOING WHAT IS POLITICALLY POPULAR THAN WHAT IS GOOD FOR THE CITIZENS OF THE STATE IN THEIR EFFORTS TO TRANSFER THE BURDEN OF PAYING TAXES AWAY FROM PROPERTY TAXES WHICH ARE STABLE ACROSS ECONOMIC DOWN TURNS.  THINGS LIKE INCOME AND SALES TAX; THEY DIP THE SAME TIME THE ECONOMY DIPS.  THE STATE OF INDIANA IS EFFECTIVELY MAKING IT IMPOSSIBLE FOR LOCAL GOVERNMENTS TO MEET THEIR NEEDS OF its CITIZENS, PROVIDE THE SERVICES THAT ARE REQUIRED.

 

DISCUSSION ABOUT THE STUDY AND THE WORKSHOP WITH UMBAUGH ASSOCIATES CAME ABOUT, WHY WE HAD TO HAVE THE STUDY AND PAY $30,000 FOR THE STUDY.

           COUNCILMAN REID SAID THEY HAVE THE EXPERIENCE DEALING WITH GOVERNMENT FINANCES.

           COUNCILMAN KOGER SAID HE HAD RAISED THE SAME QUESTION.  HE SAID WE ARE IN TIGHT BUDGET RESTRAINS.  ONCE WE APPROVE THE BUDGET, THE ADMINISTRATION HAS THAT PREROGATIVE TO GO AHEAD AND SET UP MEETINGS LIKE THIS.  HE SAID THE COUNCIL WAS ADVISED BY THE ADMINISTRATION AND LEGAL COUNCIL THAT OTHER CITIES HAVE DONE THIS AND CAME OUT WITH GREAT IDEAS.  DID WE HAVE THE MONEY?  NO YOUR RIGHT, WE DON'T.  WAS IT MONEY WELL SPENT? AFTER SITTING THROUGH 6 HOURS, HE FOUND OUT A LOT.  IT WAS VERY INFORMATIVE.

           MARY LOGAN, RESIDENT OF NEW CASTLE, SAID SHE ATTENDED THAT MEETING AND BASICALLY, HER ASSUMPTION WAS THAT THERE WASN'T NOTHING DISCUSSED AT THAT MEETING THAT HAS NOT BEEN DISCUSSED IN COUNCIL MEETINGS EXCEPT FOR THE INITIATION OF THE FIRE FIGHTERS FEES.  SHE SAID THAT WAS THE ONLY THING THAT HAD NOT BEEN DISCUSSED BY ALL COUNCIL MEMBERS IN THE PAST.  SHE SAID WE HAVE DISCUSSED TRASH FEES, AND INCREASING BUILDING COMMISSIONERS FEES.  SHE SAID THE ONLY THING THAT THE INTELLIGENT SEVEN  COUNCIL MEMBERS WAS THE FIRE HYDRANT FEES.  SHE SAID SHE CAME AWAY FROM THAT MEETING WAS, A MEMBER OF THE PUBLIC, WAS THE FACT THAT AN INCREASE THE TAX PAYER BURDEN.  SET A FIRE HYDRANT FEE ON OUR TAXPAYERS, A TRASH FEE ON OUR TAXPAYERS, SHE SAID IT WOULD NOT BE A GREAT HARDSHIP ON HER BUT SHE HAS ELDERLY NEIGHBORS, THAT $20.00 A MONTH MEANS FOOD IN THEIR STOMACHS OR MAYBE KEEPING THEIR LIGHTS ON.  IT MAY NOT MEAN ANYTHING TO ME OR YOU BUT IT DOES TO THEM.  SHE SAID SHE THOUGHT $35,000.00 COULD HAVE BEEN BETTER SPENT IN OUR COMMUNITY THAN TO PAY A CONSULTANT FOR SOMETHING THAT HAS BEEN DISCUSSED BY ALL OF YOU IN THE PAST.

           COUNCILMAN REID ASKED WHAT DID WE LEARN FROM THIS.

           MAYOR SMALL SAID IT CONFIRMED OUR SUSPENSIONS WITH FINANCIAL DOLLAR FIGURES, WE ARE IN DIRE TROUBLE.    WE SURMISED IT AND WE HAD AN EXPERT COME IN, NOT ONLY FOR THIS YEAR OR NEXT YEAR, BUT DOWN THE ROAD, IF WE DON'T DO THESE THINGS, WE ARE IN VERY SERIOUS CONDITION BY THE YEAR 2012.

 

ROLL CALL VOTE: SEVEN VOTES AYE               PASSED AND ORDERED.

 

PRESIDENT YORK YIELDED THE FLOOR TO MAYOR JIM SMALL.

          MAYOR SMALL SAID TO THE COUNCIL, THAT THEY HAD THE BLUE LINE VERSION OF WHAT WAS GIVEN TO YOU SOME DAYS AGO.  THIS IS AN OUT GROWTH OF MANY DISCUSSIONS BETWEEN THE EXECUTIVE BRANCHES OF THE CITY AND COUNTY, WITH IMPUTES OF YOUR REPRESENTATIVE TO THE EDC BOARD AND ALSO THE COUNTY COUNCIL'S REPRESENTATIVE TO THE EDC BOARD.   THE TWO GOVERNMENT ENTITIES HAVE COME TO A PRETTY FIRM CONCLUSION OF WHAT YOU SEE IN FRONT OF YOU NOW, REGARDING HOW WE THINK THE EDC SHOULD BE FUNDED AND HOW IT SHOULD BE CONSTRUCTED AS FOR AS THE BOARD OF DIRECTORS.  THE EDC IS RELUCTANTLY IN AGREEMENT WITH MOST OF THIS.  HOWEVER,  THE MAJOR ISSUE, THAT IS STILL HANGING RIGHT NOW IS THAT THEY FEEL THAT IT IS NECESSARY TO HAVE A LEGAL AGREEMENT FROM US TO PROVIDE $75,000.00 A YEAR FOR THE NEXT 4 YEARS, WITHOUT US NOT KNOWING WHAT OUR FINANCIAL SITUATION IS GOING TO BE.  HE SAID THERE IS WORDING IN THERE, THAT ALL FOUR OF OUR ENTITIES, THE COUNCIL, HIMSELF, THE COUNTY EXECUTIVES AND THE COUNTY COUNCIL APPROVE OF. 

MAYOR SMALL SAID, THE CITY AND THE COUNTY ADDITION TO PROVIDING STAFFING ASSISTANCE, AGREE TO PAY EQUAL AMOUNTS TO THE EDC FOR THE EDC'S OPERATION FOR THE YEAR 2010.  THAT SUM SHALL BE $75,000.00 AND PAID SEMI-ANNUALLY.  IN SUBSEQUENT YEARS, THE CITY AND COUNTY WILL PAY THAT AMOUNT UNLESS EITHER OF THEIR RESPECTIVE GOVERNMENTS, EXECUTIVE AND LEGISLATIVE BRANCHES CONCUR THAT A LESSER AMOUNT SHOULD BE PAID TO EDC BECAUSE OF FINANCIAL IMPRACTICAL ABILITY.

HE SAID THERE ARE TO BE MANY MEETINGS DOWN THE ROAD.  THE COUNTY COMMISSIONERS WILL BE VOTING ON THIS AFTER WE HAVE VOTED ON IT.  THE COUNTY COUNCIL WILL VOTE ON IT AND THEN PRESENTED TO THE EDC.

 

          PRESIDENT YORK YIELDED TO COUNCILMAN REID, WHO READ THE AGREEMENT

BETWEEN THE CITY, COUNTY AND THE NEW CASTLE/HENRY COUNTY ECONOMIC DEVELOPMENT CORPORATION. .  THE AGREEMENT WAS ESTABLISHING HENRY COUNTY ECONOMIC DEVELOPMENT ALLIANCE.

           COUNCILMAN REID SAID THAT THE SAME AGREEMENT WAS PRESENTED TO THE COUNTY COMMISSIONERS YESTERDAY.

           MAYOR SMALL SAID YES.

           COUNCILMAN REID SAID THERE WAS DISCUSSION AND THEY CHOSE NOT TO VOTE.  HE SAID THE EDC MADE THE STATEMENT THAT THIS WAS CLOSER TO SOMETHING THEY COULD LIVE WITH BUT STILL NEEDED MORE WORK.  THAT WAS THE HEADLINE IN THE COURIER TIMES.

           PRESIDENT YORK ASKED WHY THE 3 MONTH NOTICE WAS CHANGED TO 12 MONTHS NOTICE.

           COUNCILMAN REID SAID AT THE EDC BOARD MEETING LAST THURSDAY, IT WAS MENTIONED BY SEVERAL BOARD MEMBERS THAT THE PREVIOUS VERSION OF THIS THAT WAS PRESENTED WAS JUST A 3 MONTH AGREEMENT AND THEIR PERSPECTIVE FROM WHAT HE UNDERSTANDS, THERE MIGHT BE SOMEBODY FROM EDC WHO COULD BETTER ENLIGHTEN US, THEY WANT A 4 YEAR AGREEMENT.  THE CONCERN ON THE BACK SIDE OF THAT IS THAT THEY WON'T BE ABLE TO RECRUIT AN EXPERIENCED LEAD ECONOMIC DEVELOPMENT OFFICER TO RELOCATE TO THE COMMUNITY WITH ANYTHING LESS THAN A 4 YEAR COMMITMENT. 

           PRESIDENT YORK SAID SHE UNDERSTOOD THAT.  SHE SAID SHE DIDN'T THINK THAT WAS THE INTENT OF THAT.  SHE THOUGHT WE HAD TO GIVE THEM TERMINATION NOTICE OF 3 MONTHS, NOT A YEAR.

           ATTORNEY COPENHAVER SAID THAT THIS IS A POLICY QUESTION.  IN YOUR FIRST DRAFT, IT WAS 3 MONTHS.  THEY CAME BACK AND SAID NO, 12 MONTHS.  HE SAID HE THOUGHT IT WAS FOR THE REASON COUNCILMAN REID SUGGESTS AND THAT MAKES IT A MINIMUM A 2 YEAR AGREEMENT.  THAT WOULD GIVE THEM 12 MONTHS AND THAT IS WHAT THEY WANT.  HE SAID IT WASN'T FAIR   AS THE COUNCIL WENT THROUGH THIS, TO THINK OF THEM AS ADVERSE PARTIES.  EVERYONE IS WORKING FOR A COMMON GOOD.  YOU HAVE TO DECIDE IF THAT IS SOMETHING YOU COULD LIVE WITH.  THESE ARE PEOPLE WHO WANT THE VERY BEST FOR NEW CASTLE, JUST LIKE YOU ALL DO.

           COUNCILMAN REID SAID THAT THE COUNTY WOULD APPOINT A PRIVATE SECTOR PERSON AND THE MAYOR WOULD APPOINT A PRIVATE SECTOR PERSON.  HE THOUGHT THAT THIS SHOULD BE BETTER EXPLAINED IN THE CONTRACT.

           ATTORNEY COPENHAVER SAID THAT COULD BE DONE.  ONE MEMBER FROM THE PRIVATE SECTOR APPOINTED BY THE MAYOR AND ONE MEMBER FROM THE COUNCIL RESPECTFULLY.  THAT WOULD MAKE IT CLEAR.  HE SAID IF THE BY-LAWS SAY THEY HAVE A THREE YEAR TERM, AT THE END OF THREE YEARS, YOU WOULD HAVE TO RE-APPOINT THEM, OR SOMEONE ELSE.

           PRESIDENT YORK ASKED UNDER SECTION ( C ), FINANCIAL SUPPORT,  THE SUM SHALL  ( B) $75,000.00, SHE THOUGHT THE COUNCIL HAD ASKED NOT BE, AND IT HAS BEEN STRICKEN, BUT DOES THAT OPEN US UP THAT THEY CAN ASK FOR MORE MONEY?

           ATTORNEY COPENHAVER SAID YOU CAN ALWAYS ASK.  YOU CAN'T CONTROL A REQUEST.  YOU ARE OBLIGATED BY THIS CONTRACT TO PAY $75,000.00. 

           COUNCILMAN REID SAID THAT ONE OF THE BOARD MEMBERS HAD REVIEWED THIS AND SAID THAT THE CONCERN WAS SHALL NOT EXCEED $75,000.00. IT WOULD PREVENT EITHER ORGANIZATION FROM PROVIDING MORE MONEY TO THE EDC IF THEY WANTED TO PROVIDE IT.  THAT WAS THE OBJECTION RAISED.

           ATTORNEY COPENHAVER SAID AN AMOUNT NOT TO EXCEED $75,000.00.  IT COULD BE $10.00.  THAT GIVES THEM NO COMMITMENT.  TO EXPECT SOMEONE TO COME HERE TO WORK AND NOT KNOW WHAT THEY ARE GOING TO BE PAID%u2026

           COUNCILMAN REID TALKED ABOUT THE LEDO SELECTION.  THERE WAS CONCERN THAT, WHAT HAPPENS IF, AFTER INTERVIEWING, THEY CAN'T FIND A QUALIFIED PERSON TO PERFORM THE JOB, THE AGREEMENT REQUIRES THE HIRING OF SOMEBODY IF THEY CAN'T FIND MEETS THE CRITERIA IN HERE, THEN WHAT HAPPENS?  THERE WAS SOME CONCERN THAT CONTINGENCY ISN'T DISCUSSED IN THE AGREEMENT.  IS THAT A FAIR SUMMARIZATION OF THAT?

           BRIAN CATRON, BOARD MEMBER OF THE EDC, SAID THAT HE AGREED.  IF A HASTY DECISION IS MADE IN HIRING SOMEONE JUST TO FILL THE AGREEMENT.  WE WANT THE QUALIFIED PERSON.  WE WANT THE DEAL TO CONTINUE EVEN IF WE CAN'T FIND SOMEBODY SO THAT WE CAN PURSUIT IT.

           COUNCILMAN REID SAID SO THERE WAS DISCUSSION ABOUT THE LANGUAGE IN THE CONTRACT.

           COUNCILMAN HAHN ASKED IF THE CITY AND THE COUNTY WAS GOING TO BE WORKING TOGETHER OR TWO DIFFERENT ENTITIES.  HE SAID IT LOOKS LIKE THE CITY IS GOING TO REPORT TO THE LEDO ON ANY NEW BUSINESS TRANSACTIONS OR NEW DEVELOPMENTS OF ECONOMIC DEVELOPMENT RESPECTFULLY, AND THE COUNTY IS GOING TO TALK TO THE LEDO TO KEEP FULLY INFORMED OF THEIR RESPECTIVE.  IS THAT TRUE?  TWO DIFFERENT ENTITIES OR THE CITY AND COUNTY GOING TO WORK TOGETHER WITH THAT LEDO PERSON IN THAT OFFICE.

           MAYOR SMALL SAID WORKING TOGETHER AT THE REQUEST OF THE LEDO, THE LEDO CAN SUGGEST JEANA CAN YOU HELP PENNY ON THIS COUNTY PROJECT?   COMMISSIONER CRONK HAS AGREED TO THE SAME THING.  WE WILL SHARE.

           COUNCILMAN REID SAID, MAYOR, ONE OF THE THINGS YOU MADE VERY CLEAR

WAS THAT THIS WOULD BE 3 SEPARATE ENTITIES WORKING TOGETHER TOWARDS A COMMON SET OF GOALS.  BUT, WHEN IT COMES TO WHO'S EMPLOYEE IS WHO'S, JEANA WOULD BE YOURS, SUPERVISED BY YOU AND PENNY WOULD BE SUPERVISED BY THE COUNTY AND THE LEDO WOULD BE SUPERVISED BY THE EDC.  IT IS NOT A SINGLE ENTITY.

           COUNCILMAN HAHN SAID IF THERE IS NO VALUE TO THIS, NOT WORKING TOGETHER, WE ARE NOT GAINING ANYTHING.

           COUNCILMAN KOGER ASKED WHY THIS WAS NOT VOTED ON YESTERDAY AT THE COMMISSIONERS MEETING.

           COUNCILMAN REID SAID HIS UNDERSTANDING WAS THE COMMISSIONERS WERE GOING TO VOTE ON IT, THAT IS WHY THEY HAD A SPECIAL MEETING.  NOT ONLY TO DISCUSS IT BUT TAKE A VOTE.  HIS IMPRESSION WAS THEY ARE STILL WORKING THINGS OUT BUT STILL HAS A WAY TO GO. 

           PRESIDENT YORK SAID SHE WANTED TO SEE WHAT THEIR PROPOSAL IS BEFORE SHE GAVE HER APPROVAL ON THIS.

           COUNCILMAN REID WANTED TO SEE A FINALIZED AGREEMENT BEFORE THE COUNCIL VOTES.

           ATTORNEY COPENHAVER SAID THERE COULD BE A JOINT SESSION.  YOU COULD HAVE A JOINT SESSION, SAME TIME AND SAME PLACE AS THE COMMISSIONERS DO, TO TALK ABOUT THE SAME THING.  THAT IS ALLOWED BY LAW.  YOU HAVE TO HAVE A NOTICE 48 HOURS IN ADVANCE.  HE SAID HE WASN'T RECOMMENDING IT, JUST GIVING THEM AN OPTION.

           COUNCILMAN REID MADE THE MOTION TO MOVE FORWARD WITH A JOINT SESSION BETWEEN THE CITY COUNCIL, THE COUNTY COUNCIL, THE COUNTY COMMISSIONERS AND MAYOR SMALL.  THIS WOULD BE A PUBLIC MEETING TO  GO OVER THIS AND IN THE MEANTIME MAYBE WE CAN COME UP WITH ANOTHER DRAFT.

           PRESIDENT YORK SAID MAYBE WE COULD HAVE WHAT MR. HAYES IS TALKING ABOUT, WHAT THEY WANT, SEND IT TO THE COUNTY OR CITY AND THEY WILL SHARE IT.  SHE SAID SHE DID NOT FELL COMFORTABLE.  SHE SAID SOMETHING MADE THE COMMISSIONERS UNCOMFORTABLE.

           MR. CATRON SAID HE THOUGHT THE TERM WAS ONE IN QUESTION.  EITHER A ONE YEAR OR A FOUR YEAR TERM.  THAT IS A DETAIL THAT NEEDS TO BE WORKED OUT.  HE SAID THERE WERE DETAILS THAT NEEDS TO BE APPROVED BUT NOTHING THAT CAN'T BE WORKED OUT AND MOVE FORWARD.

           MAYOR SMALL SAID THAT MR. HAYES WAS TO COME BACK WITH THE COUNTY'S COUNTER TO THIS.  HE SAID HE WAS HOPING TO RECEIVE SOMETHING TODAY, BUT WE DIDN'T.

           AGAIN, COUNCILMAN REID REPEATED HIS MOTION WHICH WAS, THE CITY COUNCIL WORK WITH THE COUNTY COUNCIL, COUNTY COMMISSIONERS AND THE MAYOR'S OFFICE TO SET UP A JOINT SESSION BETWEEN THOSE FOUR ENTITIES TO HAVE A SPECIAL MEETING TO GO OVER A FINALIZED VERSION OF THE CONTRACT.  HE ASKED A COUPLE OF WEEKS BE GIVEN SO THERE IS TIME TO WORK THROUGH A COUPLE OF MORE REVISIONS TO THIS.  E D C WILL BE INVITED TO THIS MEETING.

           AGAIN, COUNCILMAN REID REPHRASED HIS MOTION.  HE SAID HE MADE A MOTION THAT THE COUNCIL WORK TO SET UP TWO SPECIAL MEETINGS BETWEEN THE CITY COUNCIL, COUNTY COUNCIL AND COMMISSIONERS, AND THE MAYOR'S OFFICE AND INVITE THE E D C BOARD.  FIRST WE WOULD GO OVER THE EXPECTATIONS FROM  E D C, AND HAVE THEM GIVE A PRESENTATION, FOLLOWED BY A REVIEW OF THE FINALIZED AGREEMENT, WHERE EACH WOULD PROVIDE INPUT, ANY CHANGES WE WANT MADE.  THE SECOND SESSION, IF NEEDED, WE VOTE TO APPROVE OR DISAPPROVE OF THE FINAL AGREEMENT.

           MARY LOGAN ASKED THE COUNCIL TO DO WHATEVER IT TAKES TO GET A QUALIFIED DIRECTOR FOR E D C AND WHO CAN BRING JOBS BACK TO NEW CASTLE.

           BRIAN CATRON SAID THAT THEY ALREADY HAVE VERY QUALIFIED APPLICATIONS.  IT WAS BROUGHT UP, A YEAR'S CONTRACT.  WE CANNOT GO WITH THIS.  YOU WON'T GET A QUALIFIED DIRECTOR TO MOVE TO NEW CASTLE FOR A ONE YEAR CONTRACT.  IT WILL HAVE TO BE A FOUR YEAR CONTRACT.

 

COUNCILMAN KIDD: SECOND. 

ROLL CALL VOTE: SEVEN VOTES AYE                PASSED AND ORDERED.

 

COUNCILMAN REID ASKED THAT A MEETING BE SET BETWEEN THE ENTITIES FOR 6:00 P.M..  HE SAID HE COULD LIVE WITH THIS AGREEMENT.  HE DIDN'T KNOW IF HE COULD AGREE WITH A FOUR YEAR AGREEMENT BECAUSE OF THE FINANCIAL STATUS OF THE CITY.  HE SAID HE WAS FLEXIBLE.

           COUNCILMAN KIDD SAID HE WAS IN FAVOR OF THE FOUR YEAR AGREEMENT.

           COUNCILADY MALONE AGREED WITH COUNCILMAN REID.  SHE SAID IF WE DON'T HAVE THE MONEY, WE DON'T HAVE THE MONEY.

           PRESIDENT YORK STATED THERE WAS A 12 MONTH TERMINATION CLAUSE.  THIS IS A TWO YEAR AGREEMENT.

           COUNCILMAN REID SAID THE OTHER PART OF THE AGREEMENT IS THIS COUNCIL HAS NEVER BEEN INVOLVED IN CONTRACTS.  MOST CITY CONTRACTS EXPIRE AT THE END OF THE MAYORAL/COUNCIL TERM.  WHAT THE COUNTY PEOPLE HAVE SUGGESTED, AND HE THOUGHT IT WAS A GOOD IDEA, THIS THING BE STRUCTURED SO IT DOES NOT EXPIRE THE FIRST YEAR OF THE NEW ADMINISTRATION TERM.  HE THINKS THAT THIS HAMPERS CITY GOVERNMENT.

BUT, WE'VE ALL SEEN THE CONTRACTS THAT EXTEND PAST THE TERM.

           COUNCILMAN KIDD SAID IF WE CAN'T COME UP WITH THE $75,000.00 A YEAR, WE MIGHT AS WELL CLOSE THE DOORS AND GO HOME IF WE ARE GOING TO BE IN THAT BAD OF SHAPE.

           COUNCILMAN KOGER SAID IF IT TAKES THE $75,000.00 TO BRING IN MORE ECONOMIC DEVELOPMENT, THEN FOUR YEARS IS WHAT IT IS GOING TO TAKE.

           COUNCILMAN REID SAID HE DIDN'T WANT TO SEE, HERE IS $75,000.00, NOW LEAVE US ALONE.

           COUNCILMAN KOGER SAID WE HAVE ALREADY GIVEN OUR CONCESSIONS AND THEY HAVE AGREED TO A COUPLE OF MORE BOARD MEMBERS WHICH WAS A BIG STEP FOR US.

           PRESIDENT YORK SAID WE WANT THE FINAL VERSION BEFORE WE VOTE.

           COUNCILMAN VAUGHN REID WILL REPRESENT THE NEW CASTLE CITY COUNCIL

AT THE MEETINGS.

 

          PRESIDENT YORK MOVED TO PASS THIS ORDINANCE ON FIRST READING.  COUNCILADY GOODMAN: SECOND.

DISCUSSION:  ATTORNEY COPENHAVER SAID A $20.00 ADDITIONAL COST TO ANY GUILTY FINDING REGARDLESS OF WHAT DEPARTMENT DOES IT.  THE $20.00 WILL GO TO THE GENERAL FUND, NOT THE DEPARTMENT.

           ATTORNEY COPENHAVER WAS INSTRUCTED TO ADD THE FIRE DEPARTMENT TO THIS ORDINANCE.  IT WILL NOT CHANGE THE CONTENT.

 

ROLL CALL VOTE: SEVEN VOTES AYE.               PASSED AND ORDERED.

 

          PRESIDENT YORK MOVED TO PASS THIS ORDINANCE. PERTAINING TO FALSE ALARMS.

COUNCILADY GOODMAN: SECOND.

DISCUSSION: ATTORNEY COPENHAVER SAID OUR DEPARTMENTS ARE VERY LEANT WITH FALSE ALARMS.  A HEFTY FINE HAS TO BE IMPOSED.  YOU WON'T GAIN MUCH REVENUE FROM THIS.  YOU WANT TO HAVE ALARM SYSTEMS BUT YOU MUST KEEP THEM IN REPAIR.   THIS IS PREVENTATIVE.

 

ROLL CALL VOTE: SEVEN VOTES AYE.                PASSED AND ORDERED.

 

          PRESIDENT YORK MOVED TO PASS THIS ORDINANCE AND DELETE HAVING GREATER THAN 10 PAGES.   COUNCILMAN HAHN: SECOND

DISCUSSION: COUNCILMAN REID THOUGHT THE FEES WERE TO LOW AND SUGGESTED A FLAT FEE FOR A REPORT AND CHARGE A PER PAGE ON TOP OF THAT.  THIS DOES NOT COME CLOSE IN REIMBURSING THE COST.

          AFTER DISCUSSION ABOUT THE CHARGE, A SUGGESTION WAS MADE TO STRIKE

(WITH HAVING GREATER THAN 10 PAGES ) $5.00, NEEDS TO BE STRUCK.

           POLICE CHIEF NICHOLSON SAID YES.

 

ROLL CALL VOTE: SEVEN VOTES AYE                              PASSED AND ORDERED.

ROLL CALL VOTE: SEVEN VOTES AYE                     PASSED AND ORDERED.

 

          PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.   COUNCILMAN REID: SECOND

DISCUSSION: FIRST AID DIRECTOR BURNS SAID, CURRENTLY, RESIDENTS OF THE COUNTY ARE NOT BILLED.  IN ORDER FOR US TO STAY THAT AWAY, WE DON'T BILL FOR WHAT COUNCILMAN REID WAS ASKING ABOUT.  HE SAID THERE WAS AN OMISSION WHICH NEEDS TO BE AMENDED.  #3. ALS TRUE EMERGENCY, INTERCEPT FEE, IT IS NOT SOMETHING WE DO A LOT BUT OCCASIONALLY, WE TAKE THE AMBULANCE SERVICE AND PARAMEDICS TO AN OUTLINED AREA AND INTERCEPT WITH SOMEONE WITH AN ADJOINING COUNTY, THAT DOES NOT HAVE PARAMEDICS,   WE HAVE TO BE ABLE TO FUND OUR MEDICS THAT WAY SO WE ARE NOT SUPPORTING ANOTHER COUNTIES ALS SERVICE.  WHY THIS FEE IS SO MUCH LESS THAN THE OTHER, $250.00, ONLY THE TRANSPORT OF THE PATIENT CAN BILL THE PATIENT.  WE WILL DRIVE OUT TO THE WAYNE COUNTY AND INTERCEPT THIS OTHER AMBULANCE, OUR PARAMEDICS, TAKING OUR EQUIPMENT, AND GETTING ON THEIR TRUCK, THEN WE SEND THAT SERVICE A BILL FOR $250.00.   

 

ROLL CALL VOTE: SEVEN VOTES AYE.                    PASSED AND ORDERED.

 

COUNCIL REPORTS:

PRESIDENT YORK - HAD A CALL ABOUT A PARKING PROBLEM ON THE CORNER OF SOUTH 14^TH ST. AND N AVENUE.  THE MUSIC STORE.  HE CLEANS OFF THE PARKING AND RESIDENTS ARE PARKING THERE FOR DAYS AT A TIME.  SHE ASKED FOR THE TRAFFIC COMMITTEE TO SEE IF A ONE OR TWO PARKING CAN BE ISSUED THERE ON THE NORTH SIDE OF THE BUILDING.

 

COUNCILMAN KIDD AND MARY LOGAN - SATURDAY MORNING, FROM 9:00 A.M. TO12:00 P.M., HOPE INITIATIVE WILL HOLD A POVERTY SIMULATION IN THE CHURCH STREET GYM.  SHE SAID EVERYONE WAS INVITED.  IT WILL SHOW WHAT EVERYONE WOULD HAVE TO GO THROUGH IN GETTING FOOD STAMPS, HOMELESS ETC..  YOU WILL SEE WHAT EXPERIENCE A PERSON HAS TO GO THROUGH WHEN NEEDING HELP.

 

COUNCILMAN REID - EXPLAINED THAT THE MAYOR, HIMSELF, JEANA, A COUPLE OF COUNTY COUNCILMAN, JERRY MANIS AND RICHARD BOUSLOG AND ATTENDED A MEETING WITH THE COUNTY ASSESSOR AND THEIR CONSULTANT.  HE SAID THEY TALKED ABOUT A WIDE RANGE OF THINGS.  ONE THING WAS, WE CAN EXPECT A 3 TO 5 PERCENT DECREASE IN OUR ASSESSED VALUATION, NEXT YEAR, COUNTY WIDE.  HE PRESENTED A CHART AND EXPLAINED.  HE SAID YOU HAVE NEW CASTLE AND HENRY TOWNSHIP.  THE GROSS ASSED VALUE, ALL NUMBERS ARE IN MILLIONS, THE AMOUNT OF EXEMPTIONS IN MILLIONS AND WHAT THE NET ASSESSED VALUE WAS.  THEN THEY TAKE THAT ASSESSED VALUE AND FIGURE WHAT OUR BUDGETS ARE GOING TO BE, THEN BACK OUT A TAX RATE FROM THEM.  LOOKING AT NEW CASTLE, 2007, OUR ASSESSED VALUE WAS 695.8 MILLION AND THEN 2009, OUR ASSESSED VALUE WAS 275.0, THE NET WAS 442 AND 333.9 RESPECTFULLY.  OUR TAX RATES IS GOING UP BECAUSE THE ASSESSED VALUE IS DOWN.  THAT IS WHY THE PROPERTY TAX CAPS ARE KILLING US, BECAUSE OUR RATE IS HIGHER.  LOOK OUT IN THE TOWNSHIP, THE GROSS RATES ARE 2.12.  WE ARE GETTING HIT BY THE TAX CAPS AND ALSO HIT BY THE ASSESSED VALUE.  DISCUSSION INCLUDED THE TAX SITUATION ON STATE ROAD 3.  THE COURT ACTUALLY UPHELD THE LAND VALUE.  HELD THE METHODOLOGY USED BY OUR COUNTY TO ASSESS THOSE VALUES.

ANOTHER THING THEY ARE SEEING IS FORECLOSURES AND BANKRUPTCIES IN NEW CASTLE AND HENRY COUNTY.  OUR HOUSING STOCK IS OLD.  ONE THING DRIVING DOWN VALUES IS  THE PURCHASING OF THESE FORECLOSURES AND TURNING THEM INTO RENTALS.  A FURTHER DEPRESSING THING IS ALL THESE HOUSING DEVELOPMENTS, WE HAVE A GLUT IN OUR 1940 -1950 STOCK HOUSES AND PEOPLE ARE GOING TO THE HOUSING DEVELOPMENTS.  THEY ARE NICER AND NEWER.  THE OTHER HOUSES ARE SITTING EMPTY AND NAKED AND THAT IS FURTHER DEPRESSING.  WE SHOULD KEEP THIS IN MIND IF WE GET ANOTHER HOUSING DEVELOPMENT REQUEST.  HE SAID OUR PROPERTY TAX ISN'T GETTING ANY BETTER BUT HE THOUGHT IT WAS IMPORTANT TO HAVE THIS INFORMATION.

 

PUBLIC:

MARY LOGAN - SAID SHE WANTED TO URGE ALL COUNCIL MEMBERS AND ADMINISTRATION TO MOVE FORWARD WITH THE E D C AS SOON AS POSSIBLE.

 

PRESIDENT YORK MOVED TO ADJOURN.

COUNCILMAN REID: SECOND