News From Terre Haute, Indiana

Local & Bistate

Discussion

Welcome to our online comments feature. We welcome your thoughts and your opinions, including unpopular ones. We ask only that you keep the conversation civil and clean. We reserve the right to remove comments that are obscene, racist or abusive and statements that are false or unverifiable as well as posts that are attacking other users. Repeat offenders will be blocked. You may flag objectionable comments for review by a moderator.
comments powered by Disqus
December 14, 2012

Council tables two proposals

Money transfer, Cherry Street action will have to wait

Arthur Foulkes The Tribune-Star

TERRE HAUTE — The Terre Haute City Council wants more time to think about a major financial decision and a major traffic decision.

At their Thursday night regular meeting, the council decided to postpone votes on two important measures: The first would transfer $2 million from the city’s Economic Development Income Tax fund into the city’s critical general fund. The second would make downtown’s Cherry Street a two-way street.

The decision to table the EDIT transfer came as a setback to Mayor Duke Bennett, who had requested the move. It was one of three measures Bennett put forward seeking a total transfer of about $7.7 million into the general fund from three different sources: The EDIT fund, the “rainy day” fund and from the wastewater treatment utility in the form of a “payment in lieu of taxes” or PILOT.

The council passed the transfer of the “rainy day” and PILOT dollars, but had stronger reservations about transferring $2 million from the EDIT fund, which was designed to be used for economic development projects.

“You don’t eat your seed corn,” said Councilman John Mullican, D-6th. Economic development income taxes are “our seed corn,” he said. Mullican also said he worried the city was on a path to be in the same position next year. “I don’t see us doing things differently” in 2013, he said. “I think we need to make some changes in the way we’re doing business.”

Councilman Jim Chalos, D-at large, said the economic development income tax was sold to voters as a way to raise revenue for economic development – job-creating – projects. Therefore, he was reluctant to use it to pay the city’s ordinary bills, he said.

The vote to table the EDIT transfer was unanimous.

Had all three measures passed, the city would have ended 2012 with a positive balance in its general fund, Bennett said. It will now end the year with a $2-million shortfall in the general fund, something state auditors “red flag” in annual audit reports. Terre Haute ended 2011 with a $4.5-million shortfall in its general fund.

“It’s not horrible. It’s not the end of the world,” Bennett said of the council’s decision to table the EDIT transfer. “We came into this year with a deficit and we wanted to take care of that…I understand they have additional questions and we’ll just have to deal with that.”

Speaking after the meeting, which lasted about 20 minutes shy of three hours, Mullican said the decision to table the EDIT transfer reflected a mixture of concern over using EDIT money for daily bills and also a signal about the larger budget process.

“It was partly both,” Mullican said. “Consistently, we’ve been falling short and that’s how we got into this hole.”

Councilman Neil Garrison noted that the mayor said in a television interview in June that the city was in a position to pay all of its bills at the end of this year. “What changed?” Garrison asked.

Bennett answered that he planned at that time to use EDIT, rainy day and PILOT funds to bolster the general fund, adding, “We didn’t tell you [the council] about it until after that time.” Garrison said that highlights the need for better communication with the council and might show why the council is reluctant to pass the measures being requested.

• On the question of making Cherry Street a two-way street, the council also decided to delay a final decision until a later meeting.

Local officials, including Ron Hinsenkamp of the Metropolitan Planning Organization and Cliff Lambert of the Department of Redevelopment, expressed concern about the proposed move. Councilman Todd Nation, D-4th, and Diann McKee, an official with Indiana State University, expressed support.

Councilman Norm Loudermilk, D-3rd, said, given the city’s budget crunch, ISU should offer to pay for part of the cost of converting the street to two-way. “Until they are able to come to the table with an offer, we can’t look at this,” he said.

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

Text Only | Photo Reprints
Local & Bistate
Latest News
Community Calendar
Loading…
Events by eviesays.com
TribStar.com Poll
AP Video
Raw: Massive Funnel Clouds in Oklahoma Raw: Widespread Destruction in Moore, Okla. Raw: Rescue Workers Search Oklahoma School Raw: Tornado on the Ground in Oklahoma Raw: Aftermath of Massive Tornado in Oklahoma Huge Tornado Kills Dozens Near Oklahoma City Active Search for Utah Missing Mom Ends Raw: Rescuers Pull Tornado Survivors to Safety Voters Could Elect LA's First Female Mayor Raw: Japan's WWII Atrocities Under Fire in Seoul Oklahoma Gov: 'Hearts Are Broken' After Tornado Raw: Aussie Zoo Shows Off White Rhino Calf Raw: Walking in a Flattened Okla. Neighborhood MLB Hoping for Large Replay Expansion in 2014 Horse Saved From Slaughter, Goes on to Win Big Raw: Aerials Show Path of Oklahoma Destruction Raw: Suspects Butt Dial 911, Lead to Arrest Raw: Witness Describes Scene After Okla. Tornado Raw: House Burns After Massive Oklahoma Tornado Pug Life on Display at Wisconsin Festival
NDN Video
VIRAL: Baby makes epic soccer goal RAW: Massive tornado strikes Oklahoma Okla. tornado survivor finds dog buried alive under rubble RAW: Xbox introduces Xbox One Pickler's Dance Moves Cause A Stir Obama to tornado survivors: The country stands beside you Reporter Cries Over Devastation Sneak Peek: 'Modern Family' Says Good Bye Trailer: 'The Last Stand' Available on Blu-ray Disc, DVD, Digital Download IWitness Look at Moore, OK Tornado RAW: Moore, OK tornado touches down near school Robert Pattinson Moves Out RAW: Russian dash cam catches car 20 feet in the air Oklahoma tornado survivor: "Everything is gone" Khloe Lashes Out at Kim Kardashian's Critics Couple Argues As Woman's Lover Crawls Out Window RAW: Brad Paisley Forgets Lyrics To His Own Song Justin Bieber Gets Booed RAW: TV Staff Take Cover From Tornado New 'Anchorman 2' Trailer, Drake Joins List of Rumored Cameos
Parade
Magazine
Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -

     

    March 12, 2010

activity
Real Estate News