Line of credit returned (5/17/05)

Portland City Council members learned Monday that $580,000 of the city’s economic development income tax funds are being returned.[[In-content Ad]]Portland City Council members learned Monday that $580,000 of the city’s economic development income tax funds are being returned.

Portland Mayor Bruce Hosier said the funds will be returned by Friday. The EDIT funds were put into a CD account to establish a line of credit so that president and CEO of Community Home Improvement Inc. Mike Mazur could get a $900,000 loan through First National Bank for his lumberyard and home improvement store. The store opened in December of 2004 and is located at 1605 N. Meridian St., Portland.

Jay County Development Corporation executive director Robert Quadrozzi said this morning the city’s money could only be held in the bank for up to six months. That term expires on Friday.

Mazur was waiting for the United States Department of Agriculture to guarantee the loan, Quadrozzi said. The USDA guarantee did not come through, so the money must be returned to the city, he said. Quadrozzi said Mazur currently is reviewing his other funding options.

Mazur was not available for comment this morning.

Also Monday, council members approved the 2006 payroll ordinances on first and second readings, increasing the annual salary of city officials by 3.5 percent and city department heads by 3.5 percent, plus an additional $1,000.

The increase raises the mayor’s annual salary to $41,648 from $40,239. The clerk-treasurer’s salary will increase to $40,914 from its current level of $39,531.

With the increase, each city council member will make $3,105 per year with a one-time payment of $110.34, instead of $3,000 a year with a one-time payment of $106.60. The city court judge’s salary will increase to $12,371 from $11,953.

The 3.5 percent pay increase and the additional $1,000 sets the salaries of the street and park department superintendent, the fire chief, the police chief, the water department superintendent and the wastewater treatment superintendent all at $39,335 in 2006. In 2005, these department heads will make $37,039 per year.

Hosier said giving the department heads the extra $1,000 shows the city appreciates all of their hard work and efforts.

City clerk-treasurer Barbara Blackford said this morning the mayor felt the 3.5 percent pay increase was fair. Last year’s pay increase, she added, was 4 percent. The pay hike is based on the current consumer price index, which is 3.1 percent, she said. The 3.5 percent increase should not affect the city’s 2006 budget very much, Blackford said. She did not have a figure for the impact the pay increases will have on the budget.

There currently is an extra $5,000 in the budget to cover the additional amount paid to department heads, she said Monday night. The money is left over from the 2005 budget and was rolled into the general fund. Blackford said this morning this is the first time in 10 years that the $1,000 salary additions have been given. Blackford said this is probably the only year they will be paid.

Before the council approved the ordinances, an amendment was made. Council members voted to add a 10th holiday, Veterans Day, to the list of paid holidays city employees and officials will observe.

The idea to add the holiday originally was proposed by Hosier in December of 2004, but was shot down by the council.

In other business, council members unanimously voted to have city attorney Bill Hinkle create an ordinance to lower the speed limit on Tallman Street and change the street’s yield sign to a stop sign.

The ordinance will reduce the speed limit on Tallman Street to 20 mph from 30 mph, and change the yield sign on the street — at the intersection with Jack Street — to a stop sign. A portion of Tallman Street currently has a 20 mph limit when children are present because it runs past East Elementary School.

Before council members voted, council president Glen Bryant suggested the speed limit be lowered. He said lowering the speed limit would make the area safer for children who live near the street and play outdoors during the summer.

At the April 4 meeting, Tom Holcomb of Jay-Randolph Developmental Services asked the council to consider replacing the yield sign with a stop sign. Holcomb said he would like a stop sign there so drivers would slow down and be more aware of their surroundings, making the intersection safer.

Also Monday, council members:

•Watched two demonstrations by Portland Police Sgt. Steve Schlechty and K-9 Roy.

Schlechty showed the council a training exercise for the dog. He hid a bag of marijuana in a box and had Roy search for it. Then Portland Police Chief Bob Sours put on a “bite sleeve,” and Schlechty commanded the dog to attack Sours. Schlechty said he has done several similar demonstrations at all of the schools in Portland.

•Learned that next week is Municipal Government Week.

To celebrate the week, there will be an open house at Portland City Hall on Tuesday, May 24, from 11 a.m. to 1 p.m. At the same time, there will be a cookout behind city hall. Hosier invited council members and the public to attend these free events.

Also, there will be a Northcentral Mayors Roundtable on Thursday, May 26, at 11:45 a.m. at the Portland Golf Club. Hosier invited the council members to attend.

Hosier also announced that the mayor’s essay contest is currently being held. The essays are due Friday, May 27, and the winners will be announced Monday, May 30.