Porter Town Council members were advised Tuesday that the stimulus projects they submitted to repave Waverly and Oak Hill roads could end up costing them a lot more than expected.

That would prove a substantial blow because last night the council voted to move $245,000 from the town’s Major Moves road fund cutting its balance in half. Another $115,800 was moved from the CEDIT fund and a $445,000 loan approved by the Porter Redevelopment Commission --- all to cover town payroll and operating expenses through the end of 2009.

That’s the hope of Porter Clerk-treasurer Carol Pomeroy. She said the town is in the process of arranging an Indiana bond bank loan it definitely will need for 2010 but almost all accounts in the General Fund are depleted now.

The council borrowed internally $412,000 in May from the Rainy Day fund and $430,000 in July from CEDIT, the latter the town’s revenue from the Porter County economic development income tax. Porter County’s inability to get property tax bills out in 2009 and an outstanding settlement still owed from 2008 are creating havoc, said Pomeroy.

“I think we’ll have some (county distribution) by Dec. 31 but I’m not taking any bets. It’s a gamble. They’re putting everybody in jeopardy,” she told the council. All inter-fund loans made in 2009 need to be paid back by Dec. 31 unless an emergency is declared giving the council six extra months to come up with the money.

The stimulus news was a setback the council didn’t need. Town director of engineering Matt Keiser said three days before the road projects were to go out for letting this month they were pulled because federal highway officials wanted more information about the road base, which may be cracked slabs under the existing pavement.

R.V. Sutton currently is installing a $49,310 storm sewer at the Waverly/Oak Hill intersection and Keiser said a cross section of pavement there can be documented. If Porter makes the October letting, the repaving substantially could be done by year’s end and the Major Moves money needed to pay for it. Keiser said if the project goes to a December letting, the town could request leftover 2009 stimulus money to pay for any project increases but as of now, “It’s pretty much of a gamble at this point.”

Agreed council president Michele Bollinger, “We have a lot of ‘ifs’ going on.”

During Tuesday’s earlier Redevelopment Commission meeting where the $445,000 loan was approved, Bollinger told commission members, “Coming to you is not the first resort; it’s the last resort.” Pomeroy said the town would use the redevelopment funds last, probably in November, transfer the funds incrementally and pay them back first when new money is received.

The Redevelopment Commission only got 50 percent of its anticipated distribution from Porter County in 2008 and the 2009 budgets haven’t even been approved by the state, said Pomeroy. The commission has money invested but also has funds earmarked for two hike/bike trails with construction due next year although complications have arisen on both projects.

Redevelopment Commission member Bruce Snyder said by not paying boards like his their share of property taxes in a timely manner, Porter County is stifling economic development.

Bollinger told the commission the town is being fiscally responsible by cutting wherever it can. As of Sept. 30 when 75 percent of the budgets in a normal year would have been expended, Bollinger said the Police and General Funds each are at 60 percent, Motor Vehicle/Highway Fund and the Park Department each at 45 percent, and the Fire Department at 46 percent.

Public Works Superintendent Brenda Brueckheimer later said for the past two months she’s offered her employees voluntary days off without pay to save money. “It’s absolutely hurt our productivity.” She said no materials or shop supplies are being stockpiled, and three trucks including snowplows are down.

In other Town Council business Tuesday:

•Halloween trick-or-treat was set for Saturday, Oct. 31 between 5 and 7 p.m.

•Town attorney Patrick Lyp was asked to research other town ordinances that regulate golf carts on public streets. Porter resident Garry Campaniello said he is a responsible golf-cart operator and would like to use his on Porter side streets. Police chief James Spanier said he has no recommendation on the matter.

•The council agreed to ask Able Disposal if it can pick up trash along North River Drive on Monday, the same day it uses a smaller truck to serve Porter Beach. James Waggoner said Able won’t back up down dead-end North River and residents have to take their trash to U.S. 20; Able does come down with a smaller truck for recyclables.

•Brueckheimer thanked Mike Soflak of Fairmont Supply for 24 lids fitting the town’s 55-gallon drums. She also reported the Sept. 18 Porter Beach clean-up netted just over 58 pounds of assorted trash. She credited Porter Beach residents for the reduction over last year by helping keep the beach clean on a regular basis.

•The 2010 salary ordinance establishing maximum merit-pay caps with no increase over 2009 was adopted, as was establishing the salary for a new Stormwater Management Board secretary at $60 per meeting.

•The council approved spending $520 for a five-year warranty on new pagers and radios for the Fire Department.

•Lyp said the Porter Plan Commission scheduled a public hearing Oct. 21 on the draft Porter Beach zoning overlay. If the commission holds the matter over for more discussion in November, the council would get the new zoning requirements and standards for final action in December.

•All votes Tuesday were 3-0 with members Dave Babcock absent and Micheal Genger representing Porter at a Northwest Indiana Regional Development Authority forum in Valparaiso; Porter has a pending $19 million RDA grant application despite the fact Porter County has voted 4-3 to withdraw from the RDA, a move being litigated in court.

Posted 9/23/2009