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November 25, 2008

TH City Council votes to approve 2009 budget

By Arthur E. Foulkes

TERRE HAUTE — The Terre Haute City Council voted unanimously Monday evening to pass the city’s 2009 budget.

The council voted 7-0 in favor of the budget, which spells out around $73 million in spending for various city departments and functions.

“It’s a fundable budget, not a balanced budget,” said Mayor Duke Bennett, who spoke to the council just before the vote. The city has not had a balanced budget in “many, many, many years,” Bennett said. “I’d like to move toward that over the next few years. That’s the goal,” he said.

Bennett told councilmen he was pleased the budget included pay raises for city employees, but said raises may be harder to come by next year. “It’s going to be tougher to do that in the future,” Bennett said. “Much tougher.”

The city is facing about $1.8 million less in revenue from property taxes next year, Bennett said. The loss of property tax revenue is expected to be at least that great the following year.

The budget includes around $11.8 million in funding for the city’s fire department. It also includes around $11 million for the police department, about $4.7 million for the Board of Public Works and Safety, around $3.6 million for the city Park and Recreation Department and around $4.9 million in spending from the Economic Development Income Tax.

Other departments funded by the budget include Animal Control ($324,386), the City Engineering Department ($842,304), the Legal Department ($633,491), the City Court ($154,736), the Cemetery Department ($906,112) and the Information Technology Department ($933,905).

While the city’s budget totals more than $73 million, around one-third of that is paid for through user fees, licensing fees and other service-related charges. Much of the remaining portion is funded through property taxes.

At Monday evening’s special meeting, Councilman Neil Garrison, D-5th, asked the mayor what the council needs to do to make sure the city’s new firefighter training center on North Brown Avenue is able to generate revenue in the future. In the past, Bennett has said he favors allowing the city to charge some users to train at the center; however, a new city ordinance would need to be passed to permit that, Bennett said.

“I guess what I’m saying is when we’re sitting here next year that we will see some revenue beginning to be generated from that center,” Garrison said.

Bennett said he will bring the necessary ordinance to the council early in 2009. He also said he hopes to make the fire training facility a separate item on the budget so that city officials can better calculate the costs associated with the center.

Garrison also asked about a new item on the 2009 budget – a $4.1 million item called Waste Water Capital Improvement. A small rate increase could be necessary to help pay for this, Bennett said. “It needs to be small,” he said.

Councilman George Azar, D-at large, moved that the budget be approved. All councilmen present, Jim Chalos, D-at large, Don Morris, D-at large, John Mullican, D-6th, Council President Todd Nation, D-4th, Turk Roman, D-2nd, and Garrison voted to approve the budget without a dissenting vote. Councilmen Norm Loudermilk, D-3rd, and Rich Dunkin, D-1st, were not present at the special meeting of the council, which lasted just under six minutes.

The council conducted a special meeting last month to discuss the city budget. It also conducted a public hearing on the budget on Nov. 13.

Bennett, who is finishing his first year in office, said he is pleased to have had his first budget approved. Next year’s budget, because of an even greater expected loss of property tax revenue, will be more difficult, he said after the meeting Monday evening in City Hall. The city’s many public employee union contacts will also be up for renegotiation next year, Bennett said.

Garrison, who is also finishing his first year on the council, agreed that passing next year’s budget will be more difficult. “I think it’s going to be tight,” Garrison said. “I really do.”

Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.

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