City of Knox Officially Pays off General Obligation Bond of 2010

Last Wednesday, Knox Clerk-Treasurer Jeff Houston informed city council members that the final payment for the general obligation bond of 2010 was made earlier that day.

Houston added that the bond was taken out to purchase a fire truck which is now officially owned by the city. Mayor Dennis Estok reminded members that paying off the bond contributed to the deficit of more than $30,000 in Knox’s CEDIT account for this year. Continue reading

Pulaski County Contributes $30,000 for Indian Trails Career Cooperative’s Pursuit of Matching Grant

Pulaski County has decided to chip in $30,000 to help the Indian Trails Career Cooperative upgrade its equipment and train teachers. Indian Trails requested $100,000 from each of the five counties it serves to apply for a Skill UP grant from the state. Any money committed locally would be matched three-to-one, if Indian Trails is selected.

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Winamac Town Council Members Approve Economic Development Income Tax Plan With a Vote of 4-1

Winamac Town Council members reviewed an ordinance detailing the EDIT Plan for 2018 and 2019 when they met this week.

Clerk-Treasurer Melanie Berger explained that the EDIT Plan outlines proposed projects that will utilize county economic development income tax funds for the next two years.

Town Attorney Justin Schramm added that State Code requires towns to spend 75% of what they receive. He said the figures provided for 2019 were estimated since they do not currently know how much Winamac will receive that year. Schramm said for the 2019 amount, he reduced next year’s amount by 20 percent to present conservative figures just in case they receive less. Continue reading

Pulaski County Legislation May Lack State Support

Pulaski County Economic DevelopmentEfforts that could potentially benefit Pulaski County’s economic development may have a difficult time gaining support in Indianapolis.

Pulaski County Economic Development representatives say there is language in the Indiana Code restricting use of County Adjusted Gross Income Tax, or CAGIT funds. Those restrictions specify that monies generated through the tax are to be used only for the maintenance and operations of the Pulaski County Justice Center. Economic Development Director Nathan Origer says the jail’s lease payment is about 260-thousand dollars annually, the balance of which comes out of the County Economic Development Income Tax, or CEDIT fund. He would like to see a change in the law to allow that payment to be made from the CAGIT fund instead. Continue reading

Pulaski County CDC Director Gives CAGIT Tax Update to Commissioners

Pulaski County Justice Center
Pulaski County Justice Center

Pulaski County Community Development Commission Executive Director Nathan Origer gave the commissioners an update on his discussions surrounding the changes in the CAGIT tax with the local legislators.

Origer had approached the commissioners at their earlier November meeting for support in overturning legislation to free up money for the CEDIT fund for economic development. He believes that the special CAGIT tax should be used to help pay the jail lease instead of the CEDIT fund. Origer argued that the CEDIT fund should be used for economic development projects and not just the jail lease. To do this, Origer needs to approach local legislators to change legislation allowing language to change the law to reflect his request.

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Starke County Council Amends Payment for Jail Suit Legal Fees

  
 
Starke County officials have agreed to pay the fees stemming from the jail overcrowding lawsuit from a different fund than previously announced. Last month the council announced plans to pay the $90,000 from the County Adjusted Gross Income Tax, or CAGIT, fund. Instead the commissioners revisited their action and opted to use money in the CEDIT, or County Economic Development Income Tax, rainy day fund. Council President Dave Perman notes the money in the CEDIT fund was set aside for a purpose such as that, and using it will allow the CAGIT money to be used to cover other expenses in the county’s general fund.

The public will get a first look at plans for a new jail east of Knox on State Road 8 during the July 22 council and commissioners meeting. That presentation is scheduled to take place at 5:30 p.m. at the county annex building.

State Rep. Gutwein Explains State CAGIT Concerns in Pulaski County

State Representative Douglas Gutwein explains the confusion regarding the CAGIT tax to the council and commissioners.
State Representative Douglas Gutwein explains the confusion regarding the CAGIT tax to the council and commissioners.

State Representative Douglas Gutwein visited Pulaski County this week to speak to the county commissioners and council during a joint session held Monday night regarding a revenue bill vetoed by Governor Mike Pence that could affect the county’s CAGIT moneys. Gutwein explained that a clerical error at the state level could force the county to pay taxpayers back millions of dollars that had been collected by the County Adjusted Gross Income Tax – money that had originally been collected to cover the cost of the jail – because the state claims that the county overcharged its taxpayers. The county still owes roughly $5 million on the jail facility.

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Counties to Receive Thousands, Millions from Found Money

The Department of Revenue Commissioner, John Eckart, has resigned after state officials found $205 million in local option income tax money owed to counties wasn’t distributed. State Budget Director, Adam Horst, blamed the problem on a programming error.

The problem with distribution of the local income tax money comes months after the state found $320 million in corporate taxes that were collected over four years but not transferred to the state’s general fund.

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Starke County Jail Meetings Planned for Later this Month

Starke County Jail

The Starke County Jail Committee will be holding informational meetings on the jail situation in the third week in January. Although dates and locations have not been established, the Committee has agreed to meet at three sites.

The meetings are being held in the early stages of the Committee’s work to provide Republican Representative Doug Gutwein, of Francesville, with more information to present to the state legislature. Gutwein has agreed to author CEDIT legislation that could fund, or partially fund, whatever is decided by the committee as the best remedy for the aged jail structure.

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