Abatements approved

Two new tax abatements have been approved.

Portland City Council on Monday approved abatements for new equipment at both Pioneer Equipment Leasing and Pennville Custom Cabinetry.

Travis Richards, executive director of Jay County Development Corporation, told council both abatement requests had received positive recommendations from the city’s tax abatement advisory committee.

Pioneer was seeking a three-year abatement on $1.62 million in new equipment to help automate its processes to keep up with the volume of its business. The abatement is expected to save the company about $42,000 in taxes while generating about $127,000 in taxes over a 10-year period.

Pennville Custom Cabinetry asked for a one-year tax abatement on $356,000 in new equipment to modernize and automate its processes. It is expected to save the company about $4,200 in taxes while generating about $33,000 in taxes over a 10-year period.

Council members Kent McClung, Janet Powers, Michele Brewster, Matt Goldsworthy, Mike Aker and Dave Golden, absent Don Gillespie, approved the abatements.

They also approved compliance forms for existing tax abatements on the recommendation of the tax abatement advisory committee. Business with existing tax abatements are Pennville Custom Cabinetry, FCC (Indiana), Fisher Packing, Fort Recovery Industries, IOM Grain, Joyce Dayton, Priority Plastics, St. Henry Tile, Stay Jay Hotels (Holiday Inn Express), TLS by Design and Tyson Foods.

The compliance forms are required annually to ensure that companies are fulfilling the terms of their abatement agreements.

In other business:

•Council approved payment of claims for the month after hearing a question from Powers regarding overtime. She noted that there has been about $40,000 in overtime over the last three months, asking why the number has been high. Clerk-treasurer Lori Phillips indicated reasons include Portland Water Park staff, with the facility opening in late May, summer labor and end-of-quarter payments. Powers said she wants to make sure the overtime is accounted for during the budget process.

•Golden thanked Powers for her foresight regarding semis going off approved detours during construction projects. With several major road, sewer and bridge projects coming, Powers had pushed council to increase the city’s fines being off the designated route in order to deter semis from driving illegally on city streets. Council in April increased the fine from to $275 from the previous $25 for the first violation and $500 for each additional violation. Golden said he’s seen a lot of semi drivers being ticketed.

•Following a question from Powers, Portland Mayor John Boggs said the start construction on the Meridian Street storm sewer project is still a few weeks away.

•Goldsworthy passed on a question from Jay County High School teacher Zach Keller, who oversees homecoming activities, regarding this year’s parade route as the Meridian Street storm sewer project is likely to be under construction. Boggs said city officials would work with the school corporation on a new route.

•Boggs briefly reiterated thoughts from his State of the City address last week, saying he feels the year looks bright for Portland. The mayor also thanked the Jay County 4th of July Committee for its efforts on the parade and free celebration at Jay County Fairgrounds.