By Mandy McFarland Editor
NAPPANEE — City Clerk-Treasurer Kim Ingle has had her work cut out for her these past two years when it comes to preparing the city’s annual budget. A combination of tough economic times and state legislation has made it increasingly difficult for those in Ingle’s position. When she presented the 2010 budget during the Monday evening, Aug. 17, Ingle said she was not able to guarantee anything.

Ingle said that for 2010 most departments “changed very little, if at all.” Ingle pointed out several areas where there would be a few changes. First, she said, she was not certain as far as city employee health insurance is concerned, and that there was an increase in areas where there are a lot of employees.
Probably the biggest change, Ingle said, pertained to the Board of Public Works and Safety budget, which is a general fund item and up until now has paid for all contracts for the city departments and the refuse collection contract. Ingle pointed out that for the last two years she has voiced concerns that someday refuse collection would no longer be able to be a part of that budget.
“We’re to that point,” she said simply. “We cannot pay it.”
After a lengthy discussion with Mayor Larry Thompson, she said, it was decided that the city would have to start charging residents for trash collection. However, the city will have enough in their county economic development income tax budget to pay for trash collection out of that for 2010, and put off charging residents for one more year. This would also lessen the burden in January when the next scheduled sewage rate increase is set to take place.
“It would come at the same exact time that we would hit them with the refuse collection fees, and we just really do not want that to happen,” Ingle said.
Another change will be to the cumulative fire fund, which in the past was used to buy fire trucks and other equipment. Ingle has suggested eliminating that fund and instead taking the cumulative capital development fund, which in the past was divided between the parks department and EMS, and instead dividing it between EMS for ambulance purchases and the fire department for fire truck and equipment purchases.
TIF (Tax Increment Financial) district funds will go toward some major projects, including C.R. 7 upgrades, the extension of Lincoln Street and drainage in the West Industrial Park. Before the creation of the Citywide TIF District, three separate districts existed in Nappanee. Two of them, the Heritage Farms and West Industrial districts, had already accumulated funds. Even after the districts were combined, funds generated had to stay in their respective districts. Thus, TIF money from the Heritage Farms district will go into the C.R. 7 project, while funds from the West Industrial Park district will go into the drainage improvements.
“That’s why we put those TIF districts together, so we feel that is very appropriate,” Ingle said.
According to Ingle, 2009 is the first time circuit breaker credits will be reduced off the budget. She said they cannot be certain about anything until the actual tax bills have been prepared. Because Elkhart County does not have actual tax bills, only estimates, she cannot be certain about anything.
“I have some real concerns about the budget that I’m advertising and what the circuit breaker credits will end up doing to it,” Ingle said.
The proposed budget passed on first reading. A public hearing will take place Monday, Sept. 21 at 7 p.m. at the city council chambers, at which time the budget will undergo its second reading.