Redkey to shift banking location

Switching banks will earn Redkey almost 10 times as much interest each month.

Redkey Town Council decided Thursday to move its funds to First Bank of Berne, which has a location in Portland.

It also received an overview of economic development income tax (EDIT) funding from the executive director of the Jay County Development Corporation.

The town switched its banking to MutualBank’s Albany location after MainSource Bank closed its Redkey branch in 2013. Now, MutualBank has been acquired by Northwest Bancshares, Inc., a Pennsylvania company.

 “I’m just not comfortable with that for the town’s monies,” clerk-treasurer Debbie James said.

Currently, the town earns about $150 a month in interest from MutualBank. Switching to First Bank of Berne will significantly increase the town’s earnings.

“There is a very big difference,” James said. “They can give us $1,400 a month on our funds.”

Council agreed to begin the switch, which James said will take some time as she changes the electronic deposits from different funds.

As a result of the banking discussion, council also decided to look into providing direct deposit for town employees and switching to a biweekly payment schedule.

Council members also received an overview of how EDIT funds work from Travis Richards, executive director of JCDC.

Indiana allows counties to tax the adjusted gross income of its taxpayers at rates between 0.1% and 0.5%. The state collects the taxes, then disburses it twice a year to its counties. The money is typically used for economic and workforce development, housing and infrastructure.

Economic development corporations are in charge of the EDIT funds, and have the ability to buy and sell property with fewer restrictions than a city or town would have.

“They serve as a vehicle for development for your community,” Richards said. “They hold and distribute EDIT funding. A lot of cases, they serve as decision makers for how the money gets spent.”

In Redkey’s case, its corporation is made up of five board members — Randy Young, Don Knisely, Dottie Quakenbush, Doug Stanley and Mark Leavell. Young serves as chair and Knisely is vice-chair, while Richards holds the position of secretary/treasurer.

In other business, council members Terri Taylor, Gary Gardner, Randy May and Erik Hammers, absent John Pierce:

•Continued discussion on possibly purchasing a third vehicle for the police department. Council decided to buy a new vehicle in December. But with three new members in place following the new year, council overturned that decision in January. Council is seeking updated quotes on replacing the engine in one of the existing vehicles and will look again at the vehicle quotes provided last year.

•Approved a three-year contract with Best Way Disposal for the city’s trash service. The cost for the first year is $73,716.96, the rate the town is currently paying. It will increase to $75,952.80 the second year and $78,254.40 for the final year. Best Way was the only company to bid on the contract.

•Approved spending $375 for a new oxygen sensor for the wastewater treatment plant and $1,000 for gas detection calibration, both by Lesman Instruments Co.

•Purchased a bulletproof vest for Redkey Police Department for $800 from Brateman’s Inc. Also heard that one of the police cars had its brakes and a wheel bearing replaced.

•Wrote off $6,150.05 in unpaid fees from accounts that have been inactive for 10 years.

•Decided to take bids on mowing the town’s property. At Thursday’s meeting, council opened a bid from Kessler Excavating, but then decided to seek other bids in an effort to save money. 

•Rejected an adjustment request 3-1 for a leak that was not underground, a new policy as of Jan. 1. May was the only member in favor of granting the adjustment.

•Agreed to a suggestion by Hammers that council members not be informed of the names of people seeking adjustments for their bills, in an effort to avoid bias.

•Paid claims of $119,583.27.