By VICKI URBANIK

The Porter County Council has cleared the way for new or expanding businesses in established districts to seek tax abatements.

The council unanimously agreed Tuesday to re-establish what are known as “economic revitalization areas,” which are certain areas in which tax abataments can be granted. In unincorporated Porter County, the ERAs are located in Westchester, Washington, Center, Morgan and Boone townships.

Porter County Council attorney Dave Hollenbeck said that for the first time in years, the county council has received a tax abatement request, from Sur-Tech in Washington Township. However, before the council can act on the abatement, he said the economic revitalization area must be reinstated, since all ERAs expired in 2005.

The council unanimously agreed to reinstate all of the ERAs in the unincorporated areas. The decision means that new or expanding businesses in those zones will be eligible to apply for the tax relief through 2011. The final decision on whether a business will get an abatement, and for how long, still rests with the council.

Typically, under a tax abatement, a buisness pays no personal or real property taxes on the higher assessed value resulting from a new or expanded operation during the first year. Then each consecutive year, the business pays more in property taxes until the final year, when the abatement expires and full property taxes are paid.

The council is expected to consider the Sur-Tech abatement application next month.

Tourism Rejected

The county council directed Porter County Convention, Recreation and Visitors Commission Executive Director Lorelei Weimer to return with a compromise next month, after members voted 3-2 to reject her request for salary hikes for her staff members.

Weimer sought the pay hikes during budget hearings last year but was rejected. She returned on Tuesday, saying that the salaries requested would bring her employees more in line with other tourism bureaus and would better reflect the duties that they are actually performing. For example, she said the director of finance is actually functioning as an asistant director, but is getting paid as an administrative assistant.

Weimer said in the seven years that she’s been director, there has been turnover in all of the positions, with the partnership development director and the public relations post turned over three or four times.

Council member Michael Bucko, D-4th, supported the pay hikes, saying that in order to keep the people on staff, the county has to maintain the salaries. “You have some people more marketable than others,” he said.

But council member Karen Conover, R-3rd, said the one pay increase of about $10,000 is excessive. “It’s a huge jump in salary with taxpayer money,” she said.

Bucko’s motion to approve the salaries sought died for a lack of a second. Council member Dan Whitten, D-at large, then made a motion, seconded by Conover, to deny the request in full. Carmichael urged that the council not reject the entire request but find a compromise. “A man can’t raise a family on that $34,000,” he said, referring to one of the salary levels.

But Whitten’s motion did pass, with Whitten, Conover and Poparad voting yes and Bucko and Carmichael voting no. Burge and Stevenson were absent. The council then directed Weimer to return next month with a compormise.

The council did unanimously pass a resolution, similar to the one passed by the Porter County Commissioners, rejecting the idea of merging the PCCRVC with the tourism bureau in Lake County, in the event that such legislation would ever be sought.

Overtime

Tuesday’s meeting was the first since the Porter County Commissiners eliminated compensatory time, the practice of giving county employees paid time off for hours worked beyond the standard, 35-hour work week. In its place, county dpeartments are to pay overtime.

Accordingly, the council dealt with a number of overtime funding requests. The biggest request, for a total of $40,000 for the Porter County Auditor’s office was cut in half.

“I’ve got a problem ante-ing up $40,000 in the second month of the year,” Poparad said.

Other departments that won funding for overtime were the council’s office, the prosecutor and the Center Township assessor.

 2/28/2008