Redkey finances are tight (05/16/08)

REDKEY - Cash flow problems continue to play havoc with town finances.

Clerk-treasurer Sandy Kirby said at Thursday night's council meeting that spending should be kept to a minimum for the next few weeks, pending the receipt of the next round of property tax draw money.

"I don't want to keep sounding like a broken record," Kirby said, but state officials have yet to approve Redkey's 2008 budget figures and because of delays in sending out spring property tax bills, the town's revenue from them will also be delayed.

Kirby said the balance in the town's general fund was less than $15,000. The Rainy Day fund totals about $9,000, she added.

After the meeting Kirby said that there is money in other town funds that could be transferred to the general fund on a loan basis.

She said a bank loan might be needed in the near future.

In March, town officials approved a resolution to borrow $50,000 from the sewage separation fund and transfer it to the general fund in order to meet payroll and other expenses. Still outstanding, that loan needs to be paid back by the end of 2008.

Kirby cautioned Redkey council members: "Don't buy anything that's not really necessary."

The clerk-treasurer added that she and town council president Doug Stanley recently discussed the idea of placing a "moratorium" on spending for the next couple of months, but no decision was reached. Stanley and fellow council member Dottie Quakenbush were not present Thursday.

In other action, council members voted to reduce the brightness of street lights throughout town from 22,000 lumens apiece to 9,500 lumens, saving the town $4,088 a year.

Some of the town's street lights are already at that level and it seems to be working fine, Taylor said.

She explained that this seemed to be a better solution than the alternative idea of turning off every other street light in town. This way all the street lights will be left on, but they will not shine as brightly, she said.

Indiana Michigan Power Company recently notified the town of an upcoming 21 percent increase in rates for electricity.

Councilman Charles Noble said that well-lit streets and park areas serve as a deterrent to vandalism and other types of crime. He said that vandalism was always a major concern in the summer months.

"It's a quandary but I feel like we need the light," Noble said.

"But we can't afford to pay for it," said Taylor, who chaired the meeting in the absence of Stanley. She added that keeping all the street lights in operation but with a lower level of illumination was "a much better idea than shutting every other light off" which had previously been discussed by town council members.

The vote to reduce the overall street light illumination was unanimous with Noble joining Taylor and councilman Phil Philebaum in voting for the change.

In other business at Thursday's meeting, council members:

•Agreed to increase the water service reconnection fee for delinquent water bill accounts from $25 to $50.

•Discussed problems with stray dogs and cats roaming the community and bothering residents. Taylor said that current budget problems were preventing the town from taking action to deal with this issue satisfactorily.

•Noted that there had been numerous incidents involving vandalism to park grounds and equipment in recent months. Several residents said they thought the police should patrol the park areas better. Park board member Terri Heston said she is looking for volunteers who might be interested in helping repair playground equipment and make other improvements at Redkey's Morgan Park.

•Noted that the town's annual Independence Day fireworks display will be Friday July 4, with a rain date of Saturday July 5. Fire Chief Randy Young said his department is accepting donations to help pay for the fireworks and an account has been set up at the MainSource Bank branch in Redkey.[[In-content Ad]]