County council critical of 2008 EDIT spending plan

2008-07-16 / Front Page

By Debbie Lowe Staff writer

After seeing the 2008 Economic Development Income Tax (EDIT) spending plan recently adopted by the commissioners for the first time during their July 9 EDIT increase public hearing, Carroll County Council members took issue with some appropriation amounts.

Lack of site development dollars or allocation of funds to make land "shovel ready," which could invite industry into the county, was the common concern among council members. In addition, a concern was raised about for what additional EDIT funds would be used in the event the council voted to increase the tax. It was noted commissioners received approximately $218,000 in 2007 and had an approximate $219,000 balance from unspent funds.

Ron Slavens pointed out over half of the available 2008 EDIT dollars were allocated to building a county road extension to SR75, which is not in the county's immediate future. He said there was nothing put aside "for what is fact, which is the Hoosier Heartland Highway."

"Over one-half of the resources are going for a wish," he said.

Commissioners' president Loren Hylton said commissioners "put money into the Hoosier Heartland Highway in the past."

"I think INDOT is coming on board with SR75," he said. "We want this to happen. We're looking down the road to the future."

Carl Abbott said the community has heard many times the county needed to prepare "shovel ready" sites for industrial development. He questioned why commissioners dedicated only $39,000 for site acquisition and development compared to $230,000 to the road extension project. He noted the road extension was a valid goal, but it would not be built in 2008.

Auditor Beth Myers clarified EDIT funds did not roll over from one year to the next, but were re-allocated by ordinance. There were no funds accumulated for a project.

"What would you use an EDIT increase for?" asked Rob Baker noting taxpayer criticism of the purchase of road equipment, such as trucks and Durapatchers, by commissioners with EDIT money.

Hylton defended past spending decisions. He also stated the Carroll County Economic Development Corporation, in conjunction with the Carroll County Chamber of Commerce, developed a list of projects to fund from increased revenue produced with a tax increase.

"To have a plan is good," Baker replied. "But you don't have to follow it."

"We will have accountability to council and commissioners for what we do," EDC director Daryl Smith said.

Steve Ashby said the current EDIT funding was approximately five percent of the general fund budget. The tax increase, if adopted, would roughly equal 10 percent.

"People are getting tax sensitive," he said.

Ashby said taxpayers ask him weekly about where the wheel tax (LOHUT) is spent and he has no answer for them.

"We gotta show results," he said. "This tax would be a permanent thing. We've got to be careful. It (an increase) will take some scrutiny."

Jerry Hendress promised to be vocal about what EDIT funding should be used for as he advocated for an increase in the tax.

"The only way this county is going to grow is to have shovel ready sites," Hendress said.

Hylton replied Carroll County land is considered "shovel ready" for CAFOs.

"We have two (potential development) sites under contract," chamber vice-president Dick Bradshaw said in support of the tax increase.

When questioned, commissioners' attorney Barry Emerson said an EDIT increase could be repealed, but could not have a sunset provision attached to end it automatically on a definite date.

Slavens said county taxpayers could be significantly impacted financially by the council's action. He said if the council adopts a local option income tax as well as an increase in EDIT, those increases would be added to an expected increase in property taxes for 2009. He said it was necessary for council members "to be picky" and ensure as much as possible all taxpayer funding is well spent.

Ashby moved to table the EDIT increase. Slavens provided the second. Hendress was the only council member to oppose delaying the vote to in- crease. Council member Ann Brown was absent.

"I don't want this to not go through," Ashby explained. "I'd just like to do a little more homework."

In a follow-up interview, council president Nancy S. Cripe said the deadline to adopt an EDIT increase for this year is Aug. 1. The deadline to adopt a local option income tax is Dec. 31.

Other business

Myers reported treasurer Jane Brewington was given a tax collection date of Sept. 19. Taxpayers will have 15 days from when the bills are mailed to make payments.

In order to pay a bill for the costs of keeping juveniles, council approved transfers for $500 from miscellaneous, $500 from judge order/special, $241 from membership dues and $203 from retirement.

There will be a special meeting July 28 at 8 a.m. to vote on an EDIT increase.

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