A new layer of control (11/20/07)

In a little more than a year, county fiscal affairs in Indiana - specifically large capital projects - will come under tighter scrutiny, according to a presentation Monday to local government leaders.

Public officials working in Jay County received that information from a lawyer and certified public accountant they called on to help interpret legislation passed in the state Legislature. Attorney Sue Beesley and certified public accountant Gary Malone of Umbaugh & Associates addressed elected officeholders from Jay County, the city of Portland, several townships and the Jay School Board about some parts of House Enrolled Act 1478 and how it will affect capital projects beginning in 2009.

The legislation mandates a capital projects review board composed of municipal government officials and county residents to be established, Beesley said. Although the boards in each county will likely be different, the one in Jay County will look like this: one member each from Jay County Council, Portland City Council, Dunkirk City Council and the Jay School Board

The towns of Pennville, Redkey, Bryant and Salamonia will share a representative. The county auditor will be a member, but will only vote to break ties.

Two county residents with no affiliations to municipal governing bodies inside Jay County will be elected to the board in November 2008.

The board will be implemented as another layer to monitor construction and renovation projects, Malone said. Any project totaling $7 million or more that is funded by property taxes will be subject to approval by the review board.

"Before the board approves the project nothing can begin," Malone said.

"It's a very transparent process."

Board members also will have the authority to review, revise and reduce budgets, tax rates and levies of all political subdivisions within the county, Beesley said.

Also beginning in 2009, fiscal bodies of all political subdivisions in the county must prepare a capital projects plan covering a five-year period beginning with the approval of the plan. Beesley said plans must be completed before Oct. 1 of that year and new plans have to be created every two years. A public hearing also must be conducted to introduce plans.

Once capital project plans are drafted and approved by local fiscal bodies, they must be submitted to the county review board. Plans must include a general description of the political subdivision, details about the proposed project purposes and other information. Another public hearing must be held at this time.

After completing a review, the county board must provide a written report about its findings and recommendations on the plans and within 60 days after the plan was originally submitted.

If the board offers recommendation against a project included in the capital plan, that element cannot move forward, Beesley said, unless the political subdivision in question holds a public meeting to address concerns and explain why the element should be retained.

Then, she said, a plan for the individual project must be submitted in addition to the original plan. A feasibility study also must be included before the new plan is created.

After the public hearing, the municipal government body must adopt an ordinance or resolution requesting approval of the project. Before the county board can take action, it also must hold a public hearing on the project, where it can request more information.

At this point, the review board can either approve or disapprove the capital project. If a ruling is not issued within 90 days, the project is considered approved.

All orders must be filed with the Indiana Department of Local Government Finance. Capital projects plans detailing projected costs, uses and funding options also must be approved by the DLGF.

Projects that must be approved by the board include land acquisition, site and infrastructure improvements, construction of buildings or structures and "rehabilitation, renovation or enlargement of buildings or structures," according to information provided at the presentation. Acquisition or improvement of machinery, equipment, furnishings or facilities required for the operation of buildings, structures or infrastructure also are subject to approval.

However, some projects are exempt from approval of the board, Beesley said. They include, but are not necessarily limited to, the following:

•Wastewater treatment.

•Sewer systems.

•Water storage and distribution projects and other drinking water systems.

•Drainage and flood control.

•Highways, roads and bridges.

Jay County Commissioner Milo Miller Jr. noted that questions remain about how meetings will be conducted.

"It doesn't say who's in charge (of meetings)," he said.

Malone said some kinks need to be worked out of the legislation and once county boards are formed more formal procedures will likely emerge.

"This may need some tweaking," he said.

Jay County Council President Marilyn Coleman said she believes additional oversight could be beneficial and will add a variety of new local voices for approving capital projects. But, she added, as with any change in law, getting the procedures up and running is the hard part.

"It's just going to be difficult to get it started and get it started right," she said.[[In-content Ad]]Jay County Commissioners have named a Portland law firm to serve as their new legal counsel beginning next week.

Hinkle, Racster and Lopez Attorneys at Law received word of the appointment on Monday afternoon. The trio of lawyers will replace Brad Burkett, who served as commissioners' attorney for 20 of the last 22 years. Burkett announced last week that he intends to resign. The first meeting for commissioners' new attorneys will be Nov. 26.

The county received notifications of interest about the position from "four prospects" since last week, including one from outside Jay County, Commissioner Gary Theurer said.

After some discussion, he said, commissioners decided to employ the services of a law firm instead of an individual attorney. Theurer added that utilizing multiple lawyers will ensure someone with legal expertise is available at all times.

Responsibilities for the commissioners' attorney include drafting ordinances and contracts, offering advice, attending meetings and monitoring bids for county projects, commissioners said.

The position pays $16,967.71 a year with no increase scheduled for 2008.

Commissioner Faron Parr said one reason the Hinkle, Racster and Lopez law firm was selected because of its "experience working with government."

Firm member George Lopez currently serves as attorney for the Jay County Council. His partner Bill Hinkle serves as the attorney for the cities of Portland and Dunkirk.