Published: November 09, 2009 10:47 pm      

Headaches mount over Clark County funding

Council continues to examine stretching funds, revenue options

Cutbacks were apparent at an unusually warm County Council meeting held Monday.

The air conditioning was left off in the Clark County Government Building — in the unseasonably warm weather — as the building authority is attempting to cut costs any way it can.

The operations budget, which has not been included as a county cost before, has been folded into the county’s 2010 general fund. Costs to operate the building for 2008-09 equaled $869,000, but additional funds were requested at the meeting to get the authority through the rest of this year.

The amount asked for was $178,000.

Building authority Director Mark VanGilder was asked to trim his operating budget by 30 percent like all other county department heads.

“If you ask me to cut 30 percent, I have cut $101,000 out of supplies [and] that is as deep as I can get into it,” VanGilder said. “The rest has to come out of labor, which is $248,000.”

Although the building authority is not alone in cutting employees and the expectation is that services may suffer, another problem remains. The council at its last meeting began seeking an additional loan to complete improvements that have begun at the government building.

Options for the council included a $2 million public works loan or a $2 million general obligation loan — which may produce a more favorable interest rate repayable over 10 years.

Scott Lewis, the council’s attorney, has contacted Ice Miller LLP — an Indianapolis-based law firm that specializes in government financing — to determine which loan would be more advantageous for the county. An answer has yet to be offered by Ice Miller on which it recommends.

The additional appropriation of $178,000 for the building authority’s operations was unanimously approved.



In other business

• An approval of appropriations was sought to pay for a tax study on the recently passed Local Option Income Tax, or LOIT. The study will be conducted by Umbaugh and Associates to make sure the county council is implementing the tax in the most effective way possible.

Because of the short window the council had to approve the tax, it was initially passed, with the money received to be distributed generally among local municipalities.

“I’m assuming that your intent, to the extent possible, would be to keep the total taxpayer burden as close to the same as it is,” said Greg Fifer, attorney for the county commissioners. “But look at, under that mix, how the county comes out relative to the other taxing entities and how [money] gets distributed.”

In order for the county to receive the most benefit from the tax, it can request changes be made starting in April and through July.

Clarksville Town Council President Greg Isgrigg and Jeffersonville Mayor Tom Galligan have expressed willingness to participate in paying for the study, as both municipalities will receive revenues from the LOIT, Fifer said.

No contract is in place, but both have pledged $15,000 to help pay for the Umbaugh study. Sellersburg and Charlestown have yet to be contacted by the county.

The county council approved up to $25,000 paid on its behalf to conduct the study, for a total payment equaling up to $55,000.

• David Lewis, attorney for Superior Court No. 2, submitted a letter to attorneys for the county council and county commissioners in response to the court receiving no money for its general fund.

“Essentially, if there is no funding, that will dismantle the probation department,” Lewis said.

A request that the money come out of the court’s Probation User Fee Funds, at $90,000 to $95,000 annually, was not possible. Nearly $90,000 of the probation user funds is committed as the court’s portion of a local grant to keep probation and drug court services going, David Lewis said.

• Commissioner Mike Moore attended the meeting on behalf of the drainage board in hopes it could designate the surplus expected at the end of 2009 — $13,900 — to five county offices for payroll needs.

A designation was not able to be specified to go to the payroll, but would instead roll back into the county’s general fund, because the county is operating in a deficit.

• Councilman Chuck Moore made a motion to cut his own salary by 30 percent and evenly redistribute the money to the five county departments’ payrolls. Moore’s annual salary is $13,243, which would equal a $3,973 pay cut.

Chuck Moore receives benefits through the county’s insurance program, but said this was his way of doing his part for asking the other departments to cut budgets.

The motion was approved 5-0, with Moore and Councilwoman Jackie Dickman abstaining.





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MORE INFORMATION:



Clark County Council funds

• Rainy-Day fund — $2.7 million remaining at the beginning of Monday's meeting.

• Obligated during the Monday meeting from the fund:

— $178,000 to the building authority

— $25,000 appropriated to the county commissioners for phone bills

— $500 appropriated to the county commissioners for office supplies

— $25,000 appropriated for the Umbaugh tax study

• Total remaining at the end of the meeting — $2.47 million

• Riverboat funds remaining — $65,000

— Clark County Council