Redkey cuts, but still needs to trim $52,000 (08/31/06)

REDKEY - While council members came to Wednesday night's special meeting here, prepared to trim 2007 budget expenses with paring knives, they soon discovered that a meat cleaver might be more appropriate.

After patiently going through budget documents for the various Redkey town departments page by page, and reducing totals by a few hundred dollars here and a few more hundred dollars there, town council president Dottie Quakenbush turned to clerk-treasurer Sandy Kirby and asked for an approximate figure of just what the overall budget cuts needed to total.

When Kirby responded with an estimate in the $50,000 range, there was a long pause.

The maximum estimated funds to be raised from property taxes for the 2007 Redkey budget proposal currently totals almost $234,000, compared with an estimated maximum levy limitation of $181,609, Kirby said.

She added that this means roughly $52,000 needs to be cut from the overall budget with approximately $47,000 of that amount coming from the general fund alone. The general fund covers operating expenses for most departments including police, fire and the city clerk-treasurer's office.

"So you've got some thinking to do," Kirby summarized, between the Wednesday night budget workshop session and next week's public hearing on the proposed 2007 budget which is scheduled for 6 p.m. Thursday, Sept. 7, in town hall.

In essence Kirby pointed out, "We are broke," noting that the fact that the town's 2005 budget was overspent by $32,000, which was a major contributing factor to Redkey's current dilemma.

Kirby was appointed clerk-treasurer shortly after previous clerk-treasurer Brenda Adkins abruptly resigned from that post in October, 2005, while Indiana State Board of Accounts auditors were in the midst of reviewing Redkey financial records. Since that time Indiana State Police have been investigating Redkey's finances, and recently a special prosecutor requested that a grand jury be convened to review the matter.

Meanwhile during Wednesday night's budget workshop, proposals for cutting costs included such options as trying to get a better price on the town's liability and property insurance, perhaps from another firm; having town employees share some of the expenses for individual health insurance costs; trimming about $3,000 from the $6,500 in the parks budget; and saving money on gasoline expenses for the police department by limiting the use of the department's four-wheel drive pickup truck-patrol vehicle or replacing it as soon as possible with a more conventional and fuel-efficient police car.

As the hour-long budget workshop concluded, Quakenbush asked the other council members to take home the financial materials, provided by Kirby, and study them further.

"Sept. 7 is D-Day. We've got to do something," Quakenbush said.

Besides discussing the 2007 budget proposal Wednesday night, council members also took action on a more immediate matter.

In a unanimous vote they decided to pay $2,475 to Leary Construction Co., Inc., of Greenfield, to repair the most recent leak in the town's 1920s-era water tower.

Previously Leary offered to cover that cost if the town wanted to enter into a 10-year maintenance agreement with the firm on the tank for an annual fee of $6,900. Leary also offered Redkey a five-year maintenance contract on the tank for $9,600 a year Wednesday night.

However, council members elected to pay the one time repair cost of $2,475 instead, while realizing that future leaks in the tank would still be a possibility. Quakenbush said, "I for one, say ... let's take our chances."

Councilman Darrell Smith, added, "I think we ought to gamble."

Quakenbush asked Kirby to check with Ami Davidson, community development director for Jay County, to see if any funds available which might be used to help with the tower repairs.[[In-content Ad]]