During Tuesday's meeting of the Common Council of the City of Brazil, a resolution was accepted approving the fiscal plan, and the ordinance for the annexation was introduced.
Umbaugh and Associates, Indianapolis, CPA Deen Rogers informed the council and concerned residents in attendance the proposed areas to be annexed add up to approximately 387 total acres, would bring about 74 people and an additional $9.2 million in assessed value into the city limits.
"While the city would be required to provide capital improvements, like water and sewage, within three years of the annexation to the specified areas," Rogers said. "However, these services are already present in most of these areas so it would be at a minimal cost to the city."
Rogers added the total net assessed value of properties in the city would go up to approximately $165.8 million, a 6 percent increase, and the tax levy could increase by about $79,200, or 5.9 percent more than the current total.
"Of course, the city may not necessarily receive all the tax levy they are allowed with the tax caps that are in effect," he said."
Clay County Council President Mike McCullough questioned how the annexation would affect the status of tax abatements for companies like PDF, Inc. and IVC, which are in the proposed areas and currently being overseen at the county level.
"We have looked into that and the city will honor the tax abatements," City Planning Administrator Stacy Gibbens responded.
Ken Maurer, owner of PDF, inquired what the advantage would be for his company to be annexed and if he would be able to receive some type of reimbursement for the cost his company put out to hook on to city water lines.
Rodgers and Sue Beesley, partner with Bingham and McHale, LLP Indianapolis, admitted they were not in a position to effectively answer all questions regarding the annexation as the issue at hand was the fiscal plan. However, Beesley added the all questions would be welcomed and answered during a public hearing to be conducted at 7 p.m., Tuesday, Oct. 13, in the Council Chambers at City Hall.
In other business during Tuesday's meeting, the council:
* Approved a resolution allowing for the potential reimbursement of preliminary expenditures associated with the water works projects, like engineering costs. Beesley explained a Bond Anticipation Note for the projects was sold to Riddell National Bank for an extremely low interest rate of 0.72 percent,
* Unanimously rejected a request from Rita Fortner to rezone her property from Residential (R-1) to Local Business. The city's planning commission provided a recommendation against the rezoning as well, and
* Appointed Gibbens to the Clay County Economic Development Commission. Pat Heffner made the motion, which was seconded by Bill Lovett. Both Steve Lamb and Brad Deal voted against the appointment of Gibbens, and with council member Sam Glover not in attendance, Mayor Ann Bradshaw cast the tie-breaking vote in favor of Gibbens.
Lamb also mentioned the city will be conducting a Ward 3 cleanup day starting at 8 a.m., Saturday, Aug. 29, behind NAPA Auto Parts.
The next meeting of the Common Council of the City of Brazil will be 7 p.m., Tuesday, Sept. 8, in the Council Chambers at City Hall. The council will also be meeting with department heads the same evening at 6 p.m., at the same location. The public is welcome to attend both meetings.