Lower rate will save Redkey $

REDKEY — The town will be receiving an even lower interest rate than it had hoped for a loan for its sewer separation project.
Mitch Hansel of Fleis & Vandenbrink, the engineering firm for the project, informed Redkey Town Council on Thursday that its interest rate will come in at 1.375 percent, saving it more than $1 million over the life of the loan.
Council also adopted the 2017 budget, approved a downtown revitalization study, heard a formal complaint about a council member and made changes to town ordinances.
Hansel informed council about the lower interest rate for the loan, saying it will result in savings of $27,000 per year — a total of $1.08 million. The United States Department of Agriculture approved the town for the $3.8 million loan, then estimated at 2.5 percent interest, as well as a $3.9 million grant to pay for the $7.9 million sewer separation and wastewater treatment plant renovation project.
In August, Hansel had told council it could lower the interest rate to 1.625 percent by acting quickly. In order to receive the new, even lower rate, the loan will have to be closed by the end of the year, he told council members Thursday.
He said he hopes to close by Dec. 1, and then the sewer separation project can begin.
“The day we sign the papers is the day the contractor gives the notice to proceed,” Hansel told council.
Originally 3 miles of sewer lines were slated to be separated, but it has been reduced to 1.2 miles in order to keep the project within its budget.
“”We’re taking care of the worst problems that we’ve identified,” Hansel told council.
Council members Ted Friddle, Doug Stanley and Mike Wright voted to approve the 2017 budget on second, and final, reading after hearing no comment during a public hearing. Council members Charles “Red” Coons and Dave Dudelston abstained because they are members of Redkey Volunteer Fire Department, which is funded by the town budget.
The budget includes general fund spending of $391,365, which is up from $387,745 for this year.
Jay County Community Development director Ami Huffman informed council about the process of completing a downtown revitalization study.
The study will look at downtown market conditions, building stock, streetscape, marketing and branding and will involve working with business owners, local leaders and members of the community and then developing a list of projects that grants can be applied for in the future.
Huffman said to begin the study the town has to become an Indiana Main Street community. The program through the Indiana Office of Community and Rural Affairs provides technical assistance and educational opportunities to participating communities during the revitalization planning process.
Council agreed to move forward toward a revitalization study by applying for a grant, asking for economic development income tax funds and organizing a steering committee of downtown merchants and members of the community.
Stanley volunteered to be part of the steering committee.
“This is a long process. It’ll probably take about a year,” Huffman said.
Redkey Town Marshal Todd Miller discussed an official complaint against Dudelston for an incident Oct. 4 at town hall.
Dudelston was upset about a resident parking in an alley, which is against a town ordinance, and verbally abused clerk-treasurer Debbie James and Miller about the situation, Miller said.
“I’d like to ask the board what they are going to do to prevent this from happening again,” Miller said.
Miller suggested that Dudelston resign from council, adding that as a town employee he would have been disciplined if he had behaved the same way. There is no policy in place regarding discipline for council members.
Council agreed to have town attorney Wes Schemenaur write a possible addition to the personnel policy about how to handle grievances against council members.
Council members also approved an ordinance that prohibits the use and consumption of alcohol on public property. Other ordinance changes approved Thursday included regulating parking, prohibiting use of golf carts on sidewalks and rights of way, regulating electrical boxes and addressing abandoned vehicles, trash and weeds and personnel policies and procedures for employees.
In other business, council:
•Heard deputy Monty Shrack is currently off work after injuring his leg in the line of duty.
•Heard Miller and other volunteers cleaned up tires at a property at 234 E. High St.
•Heard line-up for the Halloween costume contest is at 5:15 p.m. Oct. 31, with the contest at 6 p.m. Trick-or-treat hours will be 6 to 8 p.m.
•Approved Scott McCaffery as a full-time utility worker for the town. McCaffery was previously a part-time employee.
•Learned James made the final payment of $2,787 to the Redkey Economic Development committee to pay off a loan from 2010 for street repairs.
•Agreed to check on the procedure of selling old street signs.
•Said town employees will check streetlights that aren’t working after hearing a request from business owner Bert Quakenbush.
•Approved purchasing used back pump for $500 to use for all departments, a bearing, coupler and flange for the sewage department not to exceed $3,000 and three pallets of salt for the street department at a cost not to exceed $700; and paying $455 for a back-up chlorine pump for the water department.
•Approved water bill adjustments for four properties totaling $967.09.
•Approved claims totalling $114,841.90.