Financial expert: Now is the time for the city to act

Terre Haute City Council/ICN Photo

"This issue needs to be addressed before those other financings can move forward."

--- Gary Malone, accountant 

A special meeting was held to discuss the city's financial challenges prior to the first Sunshine meeting of year for the Terre Haute City Council tonight at City Hall.
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Gary Malone, accountant from Umbaugh and associates, explained the recently completed 2014 city audit results to the council members, including newly elected Earl Elliott, Karrum Nasser  (Vice president) and Curtis DeBaun. They join council members George Azar, Neil Garrison, Todd Nation (president,) Martha Crossen, Amy Auler and Don Morris on the council.

​Malone says now is the time to act to establish a solid waste collection fee and increase user fees for wastewater because of a drastic need for new revenue sources in the budget.

The trouble, in a nutshell, amounts to about a $12 million decrease in funds---- a significant budget difference from seven years ago. Officials attribute a large portion of the deficit to property tax caps and assessed values. Mayor Duke Bennett says around $2 million is needed as a result of a trash contract.

Nasser noted remembering listening to budget talks last year,  before taking his seat on the council.

"It looks like you're telling us that timing is of the essence," Nasser said, and then asked about sanitary district bonds and bonds for the proposed new police station building in particular.

Malone replied that there aren't any other options at this time, and that governmental funds are hanging in the balance.

"This issue needs to be addressed before those other financings can move forward," Malone said.

Azar suggested forming a committee in attempt to work with the Vigo County Council in effort to partner with the city in hopes of remedying the financial woes.

"We are, as a council, very limited what we can do to raise revenue," Azar said, adding, "We are therefore, I guess -- without any better term -- at the mercy of the County Council, to hopefully help us in this situation where we need help."

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During the next regular City Council meeting, the council members will consider taking action on the following:

• A resolution to designate 451 E. Margaret Drive as an economic revitalization area for a potential business to build there with a possible 10-year tax abatement. Audience member John Kite spoke out against the requested tax abatement.
• A resolution for a 9-year tax abatement for Harrison Manufacturing.
• A special ordinance for rezoning of property located at 1251 N. Fruitridge Ave.
• An ordinance for vacating a portion of Fourth Street, between Chestnut and Tippeconoe Streets.
• A resolution authorizing a submission of the 2016 annual consolidated plan for grant application