MAY 27, 1997



The Ellettsville, Indiana, Town Council met in regular session at 7:30 p.m., Monday,May 27, 1997. Members present were Michael Cornman, President, Geraldine McIntyre, Vice President, and Donald Ashley. Mr. Cornman called the meeting to order.Donald Ashley gave the prayer.








Mike Cornman asked if there was a motion to approve minutes and claims?Geraldine McIntyre so moved.Donald Ashley seconded.Motion passed 3-0.






Rick Coppock said they have the appraisal for the tank site from First Appraisal Group.ATC consultants have completed the soils and size analysis of the site.They need an address for the site and logo (for tank).Do you just want to put Town of Ellettsville on the tank?

This is something they need to do in the near future.


Mike Cornman said he would like to see the Town seal put on the tank and maybe along with that the words Town of Ellettsville.Geraldine and Don had know problem with that.Jim Ragle will get a copy of the seal for Rick.


Mike Spencer said we do have the appraisal on the property and the question is how do we want to proceed.Mike Cornman said the land owner would like to have a meeting withhim, Mike Spencer, and perhaps Rick.


Rick wanted to know if Mike (Spencer) is going to drawl up the offer to purchase.There was discussion on this matter.Rick said just in case he doesnít want to sell.

Mike Spencer said what you are talking about really is a condemnationnotice, giving him his rights and saying we can condemn .Rick said right.Mike Cornman said he had lunch with him and he said he wants to talk with the town and see how we can work this out first.There was more discussion.Mike Spencer told Mike to let him look and see if thatís not the way we should proceed.Mike Cornman said okay.




Mike Cornman read Ordinance 97-6 by title only.Mike said we are taking the Police Officer part time and changing the salary ordinance for part time range from $7.00 and hour to $10.00 an hour, this is the second reading.

Mike Cornman asked if there was a motion to approve this?Geraldine McIntyre so moved.Donald Ashley seconded.Motion passed 3-0.




Mike Cornman read Ordinance 97-8 by title only.


Mike Spencer saidrefresh my memory on what the money is for.Mike Cornman said the money is going to be used, up to the amount of $8,000, to facilitate a part of a matching grant, a Department of Commerce Grant, for a Planning Grant.Mike Spencer asked planning for what?Mike Cornman said including but not limited to infrastructure and comprehensive land use plan, thatís two major things.Mike Spencer said the planning grant will directly or indirectly benefit the Utilities Department?Mike Cornman said yes probably the biggest part of it would effect that.Mike Spencer said he spoke with Patty Zelmer and she sent up a proposed Ordinance------------------------and after the meeting we would passthat one.Mike said he spoke with her again today because the Ordinance she sent to him anticipated borrowing, in other words the Townís general fund would be borrowing.Mike Spencer said you and I talked about that and your understanding was that we would not be borrowing just be transferring.Mike Cornman said correct.


Mike Spencer said he went back over the statue and yes the money can be transferred from the reserve fund.There is a way of doing it, and the way of doing it is, it can only be done in the year in which it was budgeted.Itís got to go through a budgeting process.The budget is in July, the money would have to be budgeted for July and you can only use the amount that was in the account on June 30th of that year.There has got to be the amount of money in the account and then in July you can budget it and then the money can be transferred.The other way to do it would be to borrow and that is the ordinance she sent to him.She (Patty) asked him whatís the money for?Mike Spencer told her it was a planning grant and it is his understanding the Utility Department would benefit directly or indirectly from that.There was more information.


Mike Cornman said the conversation he had with Charlie Pride of State Board of Accounts was for this Planning Grant this was the mechanism to transfer to the general fund.Mike said he was the one that directed him to the Indiana Statue, which said you declare a cash reserve then transfer to the general fund.He (Charlie Pride) said utilities could not fund a matching part of a grant so they could not directly do that even though it would effect them.Mike said in speaking with him he tried to convince him that probably 50% or more will be direct benefit of the utilities.Mike said Mr. Pride stated you canít do that, this is the only way you can do that is to transfer out into the general fund.†† Itís a lengthy process, ordinance readings, the second ordinance reading, then an additional appropriation, if it is not budgeted.Mike said that is how he explained it to him.


Mike Spencer said the Ordinance before you, simply creates the reserve fund.Mike Cornman said which is first things first, we definitely need to do that, it shows our commitment to the planning grant.


Mike Spencer said when do you anticipate the need for the money for the planning grant?Mike Cornman said this fall.Mike Spencer said you could go through the budgeting process?Mike Cornman said yes, traditionally the Utility Budget doesnít fall until October or November, but they can do it earlier.


Mike Spencer said it is his understanding of the way it works is that you have to budget it and then once it is budgeted the money would be transferred.It can only be in the amount that is in the account as of June 30th, so the money has got to be in that account by the end of June.That is the maximum that can be moved, the money that is in by June 30th.It doesnít mean you have to move it all, that is the maximum that can be moved.There is an exception in there for emergencies.There was more discussion on this.


Geraldine said we didnít vote on this last time, we only voted on the one.†† Mike Cornman said this is the first one we voted on, the second one was tabled, we did approve first reading at the last meeting.Geraldine said there are things in this one she doesnít like, # 5 is wide open, and # 4 retirement fund, she is not in favor of that.

Mike Spencer said he thinks number 4 is statutory language and he canít do anything about # 4, that is mandatory.Geraldine said she really has a problem starting this fund, she can go along with the one for the grant because she knows we need to match that grant.She has a problem with 97-8.


Mike Cornman said you knowthe only people that can make it happen is the Council?Geraldine said she knows.Mike Cornman told her you still have control over this.Geraldine said she knows but there will be things that come up,

Mike Cornman asked her if she had any suggestions on how to change that then?

Geraldine said she knows we are going to need money for annexation once we get started on that and she doesnít think we have it in the general budget and she doesnít think we will have it in the general budget when we do the new budget.


Mike Cornman said Diana did we not, when we did our budget, keep in mind that we would be doing aggressive annexation for professional fees.Diana said she thinks we increased that.Mike Cornman said we did increase because of our anticipation of annexation.Diana said yes.


Geraldine said how are we going to come up with the money for a part time person to do the mapping and stuff?Mike Cornman said for the planning person to have?Geraldine said yes.Mike Cornman said we have 3 years to put that person on staff and also we are working out, what you told me about, with the County assisting us with an effort.Geraldine said they are not going to pay the full price, part of it.Mike Cornman saidthere are certain things you have got to do to get things going and that is one of them.

Mike Cornman said he will ask again do you have a suggestion to go around this or amend this.Geraldine said no.


Don said he doesnít have a problem with Ordinance 97-9, but Ordinance 97-8 he doesnít understand why that is in there.That is not the purpose of what they are trying to do.

Mike Cornman said Indiana Law requires you to do this first, 97-8.


Mike Spencer said basically you have to create a reserve fund, that is a requirement.You canít move money from the Utilities Fund to the General Fund unless you create the reserve fund.The majority of that Ordinance is based upon statutory language.Meaning it defines what reserve funds are essentially.Reserve funds are these, moneys in excess of those items specified in there, and that is taken out of the statue.You canít have the second ordinance unless you have the first ordinance because there is no reserve fund.What you do with the money in the reserve fund is up to the board and that is what the function of the second ordinance is.To saywe are going to use this part of that reserve fund money to match a grant with.


Don Ashley said you are using 97-8 to move the money and you are using 97-9 for what you are going to use the money for.


Mike Spencer said 97-8 doesnítreally move the money it just creates a fund within the Utilities Department.The next one does the actual transfer of the money from Utilities Department to the General Fund.It is the second one we probably need to wait on until it is properly budgeted, goes through the budget process. The second one really does not need to be passed, it doesnít need to be considered at this point and time.


Don Ashley said he thinks he and Geraldine apparently have the same idea.We thought that these are for 5 other thingsthat you have listed here.Mike Cornman said you have to make sure those 5 things have been met before you can do that.Mike Spencer said right.Mike Cornman said those have been met according to Ty Connor of H. J. Umbaugh and Associates.Don said he understands where you are going with that now.


Mike Spencer said what he could have done which would have been perhaps simpler was just say surplus earnings as defined in Indiana Code and he would have put one through five.The reason he put that in there is because he anticipated the Council members wouldnít know what was required for funding.†† Those 5 items are required.If we donít have enough money to pay that, then there is no reserve funds.He thought it was

important that the Board members realize the things that had to be funded before we could have any reserve fund.There has to be money to fund those 5 items before there is any reserve fund.You have to have enough money to fund operating expense, depreciation replacement, bond and interest, retirement fund, and any other priority fund required fixed by law.Those things have to be met first.He put that in for informational purposes so you would know and have an idea what a reserve fund would be.It means money in excess of those requirements.Section one is simply the language right out of the statue.Those 5 items are copied right out of the statue.Now you have an idea what must be funded first.Once those are funded and you have some excess money then that is surplus earnings.Then you can move the surplus into the reserve account.


Donald Ashley said he understands.Geraldine said she understands it now.Geraldine said you are saying if we pass this, then we have to wait, and canít pass this one now.Mike Spencer said no because it has to go through the budgeting process or he will have to come up and use the proposed Ordinance sent down by Patty Zelmer that provides for borrowing.It is his understanding that the money is not going to be borrowed but simply going to be transferred.You have got to get it budgeted first.Mike Spencer said the critical thing that you need to keep in mind, you donít fund the reserve account before June 30th, if there is nothing in there on June 30th , you can budget all you want but you can only budget up to what ever is in the reserve account on June 30th .If there is nothing in there you canít budget it.You have to have at least, if you want to transfer,

$8,000,in the reserve account by June 30th.


Mike Cornman asked if there are any other questions?Mike Cornman asked is there a motion to adopt Ordinance 97-8.Donald Ashley asked, the other way of doing that is borrowing the money directly from the--------?Mike Spencer said no from the reserve account.Geraldine said we have to have a reserve account before we can borrow the money.Mike Cornman said budget or borrow.


Mike Cornman asked is there a motion for 97-8?Geraldine McIntyre so moved.Donald Ashley seconded.Motion passed 3-0.














Mike Cornman said this is for the proposed water storage tank and distribution lines and this is identically to your attorney fee agreement for the sewer plant?Mike Spencer said yes.


Mike Cornman said he suggest to the Council that we approve the attorney fee agreement.

Mike Cornman asked if there is a motion to that effect?Donald Ashley so moved.Geraldine McIntyre seconded.Motion passed 3-0.




Mike Cornman read the following Proclamation


WHEREAS, more that 9 million service club volunteers devote their time, talents and resources to making the world a better place to live for us all; and


WHERAS, these service club volunteers give back to their communities and counties, by rendering valuable service without compensation, through a variety of important programs and public awareness efforts;and


WHEREAS, International Volunteer Week is traditionally recognized during June 1-7, to honor the hard work of these volunteers; and more specifically, this year marks the second International Service Club Day, Monday, June 2, 1997; and


WHEREAS, several service clubs exist in the great community for the sole purpose of providing invaluable service to the citizens of the Town of Ellettsville;


NOW THEREFORE, The Ellettsville Town Council, Ellettsville Indiana, do hereby proclaim Monday, June 2, 1997 as International Service Club Day, a day to honor those significant individuals who so earnestly deserve acclaim for their diligent efforts of making this community a better place for us all;


AND FUTHER, we congratulate the service clubs for their continued success in assisting and educating our society on how to make life more enduring for each and every one of us.


ADOPTED by the Ellettsville Town Council on this 27th day of May, in the year of Our Lord, Nineteen Hundred and Ninety Seven.


Geraldine McIntyre so moved.Donald Ashley seconded.Motion passed 3-0.






Gina Kapsinski said she read in the HT that the State Budget on build Indiana Fund, that there might be $150,000 for Ellettsville, what is that going to be for?Mike Cornman said he received a call from Vi Simpson saying that it is for Ellettsville and he is suppose to have a meeting with her next week to discuss it further.Mike Cornman said other than that he doesnít know anything else.There was some discussion on this.




Mike Spencer saidin terms of this water tank we need to be able to fund that and as you know the process that we anticapate them using at this point and time is the ban which is a temporary process so that will give us the time to go through the IURC to approve the bond issue.He talked with Patty Zelmer today and asked her whether they do work to go before the IURC and she said they did.Mike Spencer said she indicated it would cost in the vicinity of $15,000 to do that.Mike needs to know for the board weather or not you want him to hire Ice Miller or do you want to get quotes or what you want him to do about that.Mike Cornman said Ice Miller has done it for us in the past, correct, from other work?Mike Spencer said yes Ice Miller-------the bond issue, she is a bond attorney so she will not be handling this it will be a different person.Mike Cornman asked if they facilitated the State Revolving Fund?Mike Spencer said yes.Rick Coppock said they are probably the top firm in the state.


Mike Spencer said he needs some kind of affirmative statement from the Council, some authority to--------deem it appropriate to go ahead.The Council has no problem with that.




Rick Coppock said we have been planning for the Council members going out to the plant some time.The next meeting is June 9th and they are looking at June 23rd to take a tour of the plant site.




Geraldine McIntyre made the motion to adjourn.Donald Ashley seconded.Motion passed 3-0.