The City of New Castle, Indiana

COMMON COUNCIL 

FEBRUARY 2, 2009       7:00 P.M.

 

THE PLEDGE OF ALLEGIANCE WAS GIVEN BY ALL IN ATTENDANCE.

PRAYER WAS GIVEN BY REV. DANNY DOUGLAS, PASTOR OF THE CROSS ROADS CHURCH.

 

ROLL CALL:

SANDY YORK                                              PRESENT                  

ANGIE GOODMAN                                      PRESENT

JAMES KIDD                                                 PRESENT

MARY MALONE                                           PRESENT

MARK KOGER                                              PRESENT                                     

VAUGHN REID                                              PRESENT

RICHARD HAHN                                           PRESENT

 

MAYOR SMALL MADE COMMENT ON WHAT A GREAT JOB THE CITY WORKERS, STREET DEPARTMENT, WATER DEPARTMENT, WASTEWATER DEPARTMENT AND THE CEMETERY DEPARTMENT DID REMOVING THE SNOW FROM THE STREETS THIS PAST WEEK.  HE SAID A RECORD WAS SET, WITH A MINIMUMAL NUMBER OF WORKERS, ALL THE CITY STREETS WERE PLOWED, AT LEAST A PATH, WITHIN A 24 HOUR SPAN.  HE SAID THE ONLY STREETS THAT WERE NOT GOTTEN AT THAT TIME WERE DEAD END STREETS AND CUL-DE-SACS.  HE SAID THEY DID AN EXCELLENT JOB.  A ROUND OF APPLAUSE WAS GIVEN BY THE AUDIENCE FOR THE EXCELLENT JOB PERFORMED.

 

 

 

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

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

 

PRESIDENT YORK MOVED TO PASS THIS ORDINANCE.  COUNCILMAN KIDD; SECOND

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

 

ORDINANCE #3563-AN ORDINANCE AUTHORIZING THE CITY OF NEW CASTLE, INDIANA, TO MAKE TEMPORARY LOANS TO MEET CURRENT OPERATING EXPENSES FOR THE  USE OF THE GENERAL FUND OF THE ISSUER, IN ANTICIPATION OF AND NOT IN EXCESS OF CURRENT TAXES LEVIED IN THE YEAR 2008, AND COLLECTABLE IN THE YEAR 2009; AUTHORIZING THE ISSURANCE OF TEMPORARY LOAN TAX ANTICIPATION TIME WARRANTS TO EVIDENCE SUCH LOANS AND THE SALE OF SUCH WARRANTS TO A LENDER AND APPROPRIATING AND PLEDGING THE TAXES TO BE RECEIVED IN SUCH FUNDS TO THE PUNCTUAL PAYMENT OF SUCH WARRANTS INCLUDING THE INTEREST THERE WAS READ BY TITLE ONLY ON SECOND READING BY SANDY YORK.

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

     DISCUSSION: ATTORNEY COPENHAVER ASSURED THE COUNCIL THAT EVEYTHING WILL BE DONE BEFORE THE MONEY FROM BANK IS GOTTEN.  HE SAID THAT THE CLERK-TREASURER, CITY ACCOUNTANT, THE MAYOR AND HIMSELF SPENT A GREAT DEAL OF TIME TALKING TO OUR FINANCIAL ADVISOR AND THE STATE BOARD OF ACCOUNTS.  WE WON'T BORROW MONEY FROM THE BANK UNTIL IT IS ABSOLUTELY NECESSARY.  THERE MAY BE SOME THINGS INTERNALLY; AS FOR AS BORROWING MONEY, ACCOUNTS THAT ARE INTEREST BEARING THAT WILL ALLOW US TO DELAY IN THE BORROWING OF THE MONEY FROM THE BANK.  THIS WILL BE REPORTED TO YOU ON YOUR MONTHLY REPORT.  THE FACT OF THE MATTER IS, THIS NEEDS TO BE PASSED SO THE COUNCIL UNDERSTANDS THERE IS A CASH FLOW PROBLEM.  THE STATE BOARD OF ACCOUNTS SAID THEY WANTED TO MAKE SURE THE COUNCIL UNDERSTOOD THAT OUR COMMUNITY, LIKE MANY OTHERS, IS EXPERIENCING CASH FLOW PROBLEMS.  WE WILL DO ALL WE CAN IN THE WORKINGS OF CITY GOVERNMENT AND HOW WE DEAL WITH THE ACCOUNTS TO DELAY THE BORROWING THE MONEY AS LONG AS POSSIBLE.

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

 

PRESIDENT YORK MOVED TO SUSPEND THE RULES AND READ ORDINANCE #3563 ON THIRD AND FINAL READING.   COUNCILMAN HAHN: SECOND

     DISCUSSION:  COUNCILMAN REID ASKED IF THIS WAS AN EMERGENCY ACTION THAT NEEDS TO HAPPEN.

     PRESIDENT YORK SAID YES.

     CLERK-TREASURER LAVARNWAY SAID IT TAKES A MONTH TO GET EVERYTHING IN PLACE.

ATTORNEY COPENHAVER SAID THAT THE STATE BOARD OF ACCOUNTS INDICATED THAT YOUR PASSAGE OF THIS WILL RECOGNIZE THE CASH FLOW PROBLEM AND THEN ALLOW THE CLERK-TREASURER TO UTILIZE THE BORROWING MONEY FROM OTHER ACCOUNTS WITHIN THE GENERAL FUND TO DELAY IT.  HE SAID THIS IS DIFFERENT THAN BORROWING FROM A UTILITY.  WHAT WE ARE TALKING ABOUT HERE, IS BORROWING FROM FUNDS, IN THE GENERAL FUND TEMPORARILY AND THEN PUTTING IT BACKAS THE MONEY COMES IN.  IT IS ALL GENERAL FUND MONEY.  BY PASSING THIS, YOU RECOGNIZE THAT THIS CRUNCH EXISTS AND WILL ALLOW THE CLERK-TREASURER TO DO THIS.

     COUNCILMAN REID ASKED, WITH THE MILLION AND HALF THAT WE BORROWED

     COUNCILMAN REID SAID IT WAS HIS UNDERSTANDING THAT, IN ORDER TO BORROW FROM ONE FUND TO ANOTHER, REQUIRES ACTION ON THE PART OF THE COUNCIL.

     ATTORNEY COPENHAVER SAID THAT WAS CORRECT.  THAT IS WHAT THE STATUTE SAYS.  THE STATE BOARD OF ACCOUNTS INDICATED THAT BY THE PASSAGE OF THIS ORDINANCE, YOU ARE RECOGNIZING THAT THIS SITUATION EXISTS.  THEREFORE, MOVING MONEY TEMPORARILY BETWEEN ONE FUND AND ANOTHER, IS PERMISSABLE.  IT WOULD NOT RESULT IN A WRITE UP.  ANY MONEY THAT IS TAKEN FROM AN ACCOUNT HAS TO BE PUT BACK.  IDEALLY, WE COULD BORROW TEMPORARILY FROM A CAPITAL IMPROVEMENT FUND OR SOMETHING LIKE THAT, WAIT UNTIL WE GET OUR DRAW.  HE SAID HE DIDN'T THINK THAT WAS GOING TO HAPPEN BUT THEN WE COULD AVOID ALL INTEREST CHARGES.  THE COUNTY DOES THIS ALL THE TIME.  WE HAVEN'T DONE THAT UNTIL WE MADE SURE THAT IT WAS APPROVED BY THE STATE BOARD OF ACCOUNTS.

     ROLL CALL VOTE: SEVEN VOTES AYE             SUSPENDED

 

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

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

 

CITIZENS APPEARING BEFORE THE COUNCIL:

MRS. SANCHEZ, 1330 M AVE., APPEARED BEFORE THE COUNCIL, REQUESTING THAT DEMOLITION BE DONE TO A BUILDING AT 1521 S. 19^TH, THE TWILIGHT CLUB.  SHE SAID EVERYTHING HAD BEEN REMOVED AND SOLD.  SHE SAID PEOPLE ARE LIVING IN THERE AND THERE IS NO INSURANCE ON THE BUILDING AND TAXES HAVE NOT BEEN PAID ON THE BUILDING SINCE 2003.  SHE ASKED THE CITY TO PUT THE BUILDING ON THE LIST TO COME DOWN.

 

NORMA DISHMAN ASKED FOR AN UPDATE ON THE GARNER STREET PROJECT.

     DIRECTOR ENGLAND GAVE THE UPDATE ON GARNER STREET AND ANNOUNCED THAT GROUND BREAKING WILL BE IN LATE FALL, 2009, OR EARLY WINTER, 2010.

 

COUNCILMAN HAHN MOVED FOR ADJOURNMENT.  PRESIDENT YORK: SECOND