The city of Jeffersonville will pay the Utica Township Fire Department approximately $240,000 — half this year and half next year — as a result of last year’s annexation.
The payment, which was agreed to late last summer, covers the income that the Utica department lost when Jeffersonville took most of its taxing district, according to Jamey Noel, Utica Fire Commissioner.
Jeffersonville will not receive any fire protection from Utica as a result of the deal. Instead, the money will be used to pay down debt that the department created to purchase a new truck and build a new firehouse prior to the annexation. Attorney Larry Wilder said the city had to agree to the payments or risk costly litigation and potentially scuttling the annexation all together.
He explained that Utica’s budget was substantially decreased when about 60 percent of its taxing district was brought into the city in January of last year. The city entered into an agreement where it would give the department the amount of money it was losing.
“The amount they requested to supplement was the exact amount they would lose,” he said.
Wilder also said it had to be done quickly: A Department of Local Government Finance attorney contacted the city 48 hours before it was to approve its budget.
Because Utica had made an objection to the annexation, there was a question as to whether Jeffersonville’s budget would be approved, Wilder said.
The DLGF could have decided to overturn the annexation based on the objection, he said.
“We would have lost the excess levy appeal,” Wilder said, alluding to the $3.1 million that the city was allowed to tax over the maximum levy in order to pay for annexation services.
Despite the hurriedness around the decision to make the payments, Councilman Ron Grooms said in an interview Thursday he was comfortable with it.
“I thought it was the best that we could hope for,” he said. “It was fair to everybody.”
Grooms is head of the city’s budget and finance committee.
Noel points out that state statute specifically notes that annexing cities are responsible for such payments.
Specifically, it says that if the fire protection district from which a municipality annexes territory is indebted at the time the annexation is effective, the municipality is liable for that indebtedness.
“We wanted to make sure the taxpayers in Utica that weren’t annexed weren’t unduly burdened,” Noel said.
The agreement will expire in two years, at which time, Noel said, the district’s debt will be paid.
Clark County
City to pay Utica fire $240,000 for losses
Annexation could have been scuttled, city’s attorney says
-
-
Appeals court hears Covered Bridge case
The Indiana Court of Appeals heard the respective oral arguments on the town of Sellersburg’s effort to annex the Covered Bridge Subdivision and the Willows on Wednesday. Covered Bridge appealed the trial court’s ruling that the town’s annexation preceded the subdivision’s effort to incorporate into an independent town and that, in exchange for sewer service, the residents would agree to not remonstrate against the annexation attempt.
Continued ... -
Redistricting on tap again for Jeffersonville
Though they just did so last year, it’s already time for the Jeffersonville City Council to start thinking about redistricting again.
Continued ... -
JEFF Fest set for June 9
The Jeffersonville Entire Family Fun Festival, better known as JEFF Fest, will
Continued ...
be held from 11 a.m.. to 4 p.m. June 9 in Jeffersonville’s Preservation Park, 150 W. Market St. -
Charlestown encourages Realtors and developers to help it grow
he city hosted a showcase for about 200 developers and Realtors at Charlestown High School on Tuesday. The purpose of the showcase was to pitch the city as a place that is expected to prosper, especially in light of the continued development at River Ridge Commerce Center.
Continued ... -
Jeffersonville mayor vetoes two council acts
“It’s a meaningless resolution. It carries no weight. I think it’s political posturing and I’d as soon not be a part of it,” Moore said. “I will not be brought into a political discussion that’s already been decided.”
Continued ... -
Bridges project specifics emerging
Valentine outlined that incentives will be part of Kentucky’s contract with the winning bidder.
Continued ...
He explained that once construction begins, the expected cost of construction per day will total about $80,000 and the contractor can earn incentives for finishing early and penalties for finishing late. A completion date is set for June 30, 2018. - News and Tribune briefs for May 23, 2012
- May 22, 2012
-
Gregg picks Simpson for Dems ticket
Gregg got his biggest applause from the crowd Tuesday when he played up their joint support for women’s access to health care, which has become a national talking point for Democrats.
Continued ... -
TARC OKs rate increases
Contrary to its monetary situation, the amount of people riding the public transit system has increased about 10 percent, Barker said.
Continued ...
But the transportation service had not raised its fares, aside from express routes, in four years. -
Miss Clark County 2012 entrants sought
The contest is based on interview, evening gown and professional wear competition. Any Clark County young woman between the ages of 16 to 21 is eligible to participate.
Continued ...
-
Appeals court hears Covered Bridge case
