Dunkirk is in money crunch (08/12/2008)

DUNKIRK - A financial crunch continues to plague city officials.

The crunch is hitting especially hard in the water department, which faces hefty bond and interest payments, and the expense of numerous water main breaks in recent weeks.

At Monday night's council meeting, water department superintendent Dace Mumbower asked permission to another employee for his department, either part-time or full-time, to meet the demand for increased service and repair work.

"I know we're in a hiring freeze," but more help is needed in this department, Mumbower said.

However, council member Judy Garr was quick to point out, "Right now we're in a financial crunch." Bond payments totaling more than $100,000 are coming due soon for prior water department projects, and currently there is only $110,000 in the water department's operating fund.

"Right now, we're behind on one bond payment and have another coming due," said Garr, whose suggestion later in the discussion for a loan to the water department fund was passed by the council.

Garr added that a water rate study has been authorized by the council, and she expects the Indianapolis accounting firm of H.J. Umbaugh and Associates to make its report Sept. 8.

The last water rate increase was in 2001, Mumbower said. A more recent move resulted in a "flip-flop" of some water and sewer rates keeping the total overall rate the same, but that move is "just barely keeping us afloat," the superintendent said.

Also complicating the city's financial situation is the delay in receiving property tax revenue this year. Residents still have not received 2008 property tax bills, and no one is sure when the tax distribution will be made.

"We're trying to make do with what we've got," Mumbower said.

"I don't know when we'll get any tax draw funds," city clerk-treasurer Jane Kesler said. She added that in July water department expenses totaled $114,000, as compared to $110,000 in the current water department operating account.

The $60,000 loan to the water department will come from a fund for renovations on city hall.

The loan was approved with the understanding that all city departments should keep spending to a minimum in the meantime.

In other business at Monday night's meeting, council members:

•Were informed that a representative of the Indiana Department of Environmental Management, office of water quality, conducted an inspection of the Dunkirk water department recently.

Findings included a need for better maintenance and painting of the city's elevated tank; the continued need of a backup power source in case of a power failure to supply residents with water; and "additional personnel may be needed."

The IDEM report also indicated that residents were continuing to complain about iron in the system.

A response to the IDEM letter must be submitted in the next 30 days, according to Mayor Ron Hunt and Garr, the council member in charge of the water department.

•Heard a report from Hunt that work is proceeding on the renovation of city hall, 131 S. Main St. He added that he expects the next council meeting will be held in the refurbished city council chambers Aug. 25 at 7 p.m.

•Heard a complaint from local resident Larry Brown, representing the Quality Consignment Shop, 127 S. Main St., about the need to locate and repair a water main leak behind the store which is turning the limited parking area there into a muddy mess.

Brown said that if water department workers were too busy to repair the leak, he would appreciate some stone or gravel being added to the site so that persons could park cars there and utilize the shop's back entrance while the road construction work continues in the front of the building.

Brown said the situation was adversely affecting business at the store. Garr asked Mumbower to fix the leak as soon as possible.

•Agreed to set a probationary period of 90 days for a new employee that the wastewater treatment department is planning to hire. The starting wage for this position will be $9.51 an hour with an increase to $11.51 an hour after successfully completing the 90-day period.

•Approved changing deputy city clerk Jacinda Jarvis' status from salary to hourly pay. However, her weekly pay will remain the same. For a 35.5 hour week, she will earn $16.10 an hour, according to the new arrangement, approved by council members Monday.

•Learned that the city pool will close for the season on Sunday, Aug. 17, as school will be starting next week.

•Approved hiring GAI planning consultants of Fort Wayne to prepare a new five-year park plan which will be helpful in obtaining grants for the park system. Councilman Tom Johnson recommended this, with the fee for preparing the plan set at $10,500. "This should be a fairly thorough study," Johnson said.[[In-content Ad]]DUNKIRK - Armed with statistics, Police Chief Dane Mumbower updated city council members Monday night about the local department's speeding ticket efforts in the Ind. 167 (Main Street) highway construction zone.

At the last Dunkirk council session, local businessman Bill Blankenbaker voiced a concern that too many of the $400 tickets were being issued in the construction zone. He said that the survival of local businesses should be taken into consideration and police officers should use "more common sense" in issuing the expensive tickets.

On Monday night Mumbower explained that state statutes were used in determining the amount of the traffic fines which start at $300 for a first time offender. Added to that figure are court costs of $114.50, plus an additional fine of $1 for every mile over the speed limit.

The construction zone speed limit is 20 mph, 10 miles lower than the normal limit in that area of 30 mph. This limit was authorized by the Indiana Department of Transportation, Mumbower said. Also the chief said that state law authorizes enforcement of the lower speed limit 24 hours a day.

Mumbower said that for the period of May 2 through July 25, he separated the 128 speeding citations issued by his department in the construction zone, according to speed figures.

Mumbower said that all 128 tickets were issued for speeds above 30 mph.

The speeding figures ranged from three tickets at 31 mph to one at 64 mph.

Most of the 128 tickets (116) were issued for speeds between 31 mph and 45.