Mayor skips meeting as TH City Council copes with questions

By Lucy Perry
Indiana Central News

Mayor Duke Bennett was conspicuously absent at last night's Terre Haute City Council meeting, with lengthy discussions surrounding ongoing topics about the budget and police pensions.

Councilman Earl Elliott opened up the meeting with concerns about recent findings that the state is demanding the city cut $8 million in the general fund. Elliott said he realized what was going on while he was reviewing financial documents from February. What bothers him and others on the council is that the administration reportedly knew of the situation several months ago and  kept them in the dark.

He explained  that he looked into the matter and learned that, until spring of 2016 , local governments did not have to consider property tax caps in revenue pojections. 

"That was the issue that came up to cause the cut in the budgets. That with the impact of the property tax caps in those funds, that would cause those funds to have a projected deficit balance. So, they just reduced expendentures, so the projected cash balance would be zero," Elliottt explained to the council.

More financial questions loomed as the police pension fund was discussed, without Bennett or City Controller Leslie Ellis present to offer answers. 

"This is a real dilemma," Elliott said at one point. "We don't have anyone from the administration to ask;  I thought we would this evening."

Councilman George Azar was surprised about the need to slash so much and hopes the council can demand answers fast.

"This is a case where I believe that we’ve kind of been, for lack of a better word, duped,” Azar said.

Several retired city police officers expressed distrust in the handling of pension funds, which state law mandates be set aside specifically for them -- and not be pooled with other funds. Many in the audience had questions regarding the handling of the budget, which several council members expressed disappointment they could not answer at the meeting.

"Once again, there are questions that need to be answered and the people who can answer those questions are not here," Councilman Don Morris said, with other council members in agreement.

The group's attorney, Noah Gambill, said he does not envy the council's predicament.

"It's easy to keep the helm of a ship in calm storms, but it's a whole lot harder in the middle of a storm -- and we're in the middle of a storm right now. A lot of things are coming to a head," Gambill said.

One audience member, a retired city officer, said the group did not trust the mayor to abide by the law, which he said is why the pension amendment was before the council. Ultimately, the council tabled action on the ordinance after approving the amendment for the pension fund.

​Facing the reality of a bleak financial outlook and transparency and accountablilty in question, Councilwoman Martha Crossen said-- being the fiscal body for the city--  the council can no longer "kick the can down the road." She sadded that a reduction in personnel might be the only way to make the significant cuts in the city budget.

Elliott mentioned that he also recently stumbled on information related to Phase II of the Wastewater Treatment Plant.  He said the sanitary board just passed a resolution on an $85 million bond, which is double what is needed for the project. Elliott noted that he reached out to City Engineer Chuck Ennis and Bennett for more information and was told an accountant would present further information at a special meeting to be held next month. He worries that the city will be asked to raise fees again.

"That's the million dollar question. There seems  to be a strong correlation between Umbaugh (and Associates) presentations and raising revenue," Elliott said.

In other business, the council approved:

• Resolution supporting the placement of Terre Haute City Hall on the National Register of Historic Places.
• General ordinance to amend city code for leak adjustments.
• Appropriation of $85,851 from EMS to training academy.
• Appropriation of $392,351 from EDIT to Margaret Avenue corridor .
• Special ordinance rezoning property at 1120  Beech St.
• Resolution of $16,000 in EMS to budget
• Resolution to designate 1450 Wabash Avenue  and 1151 Eagle St. (former Lighthouse Mission building) as an Ecomic Revitalization Area for the purpose of a 9-year tax abatement for Miller Parrot Lofts.

The council tabled a resolution to transfer $140,000 in the CCD fund.