Seven members agree on ordinances
Co. Council moves to eliminate inventory tax
Mary Margaret Moorhead - Staff Writer

Ripley County Council members with motions by Ed Armbrecht and seconds by David Simon adopted two ordinances which would eliminate the inventory tax and increase the economic development income tax (EDIT) at their Tuesday, March 16, meeting in the County Annex.

In attendance to explain the process and the advantages of eliminating early, David Bottorff of the Indiana Association of Counties spoke to council members Armbrecht, Bill Dramann, Simon, Juanita Bauer, President Donald Dunbar, Lawrence Nickell, and Dephane Smith, several other county elected officials, and a room mostly filled with supporters of the ordinances.

After giving the audience the background of the Indiana Legislature's actions, Bottorff explained that the inventory tax will be totally eliminated by 2006-2007, but counties have the option of taking earlier action.

He noted that the process is actually different for every county; however, in 2002-2003 the state had already eliminated a certain amount of the inventory tax.

You can make some kinds of inventory exempt in 2005...and you have the option of increasing the EDIT. The reason you want to do this is the economic advantage to eliminating early. Thirty-two counties have already done it; other counties are considering it," Bottorff said.

Reminding his audience to "look at it as to whether it is a good eco
nomic development," Bottorff fielded questions from the council members as well as the audience during the discussion time.

Some reference was made to the fact that it is a tax "shifting. You are shifting the burden from property owners to all people who pay income tax."

Several felt the elimination of the inventory tax would be a boost for farmers in the area. Joe Menchhofer said, "It would be a no brainer to eliminate the inventory tax and increase the income tax."

Council Member Armbrecht said, "With reassessment a lot of older homes got hit hard. Owners will benefit if this is changed to an income tax. There is an advantage to helping the home owners as well as economic development."

County Attorney Neil Comer told the council members there were three options: "You can do nothing and the state will do it in 2006-2007; you can speed up the inventory elimination one year and next year increase EDIT; or you can do it tonight."
Pam Sander, economic development director for Ripley County, explained that if the elimination is going to take place in 2005-2006, the council would have to take action by March 30 of this year.

The two ordinances prepared by County Attorney Comer passed 7-0 to put the wheels in motion for the elimination of the inventory tax and the increase of the county's EDIT.

For the first, Council Member Armbrecht moved "to allow a deduction for assessed value of inventory for assessment for the year 2005."

In the second, he moved "to increase county EDIT (Economic Development Income Tax) from .25% to an amount not to exceed an additional 1.3% to mitigate the increased ad valorum property taxes on homesteads resulting from the deduction of the assessed value of inventory in the county for assessment year 2005."

Council members signed three copies of each of the two ordinances before continuing with other business.

Civil Defense/Emergency Management Director Jerry Fry received approval for Ripley County Auditor Mary Ann McCoy to issue checks for grants the department has received.

The first was for $15,901.73 for a Local EMA Planning Grant for work done on the update of the Ripley County Comprehensive Emergency Management Plan.

The second for $25,000 from the Office of Domestic Preparedness under the State Homeland Security Grant Program is for the purchase of an Incident Response Vehicle to replace the 1991 Chevrolet Caprice now in use.

Council Member Smith moved approval of both requests with seconds by Council Member Nickell and Council Member Dramann.

Under new business, Sheriff Bill Davison updated council members on the condition of the Inmate Medical & Dental Account, which has resulted in expenditures of approximately $7,000 per month. "We try every way we can to keep the money here, but our costs are over $5,000 for prescriptions every couple of months in addition to all the medical bills. By next month we are going to need an additional appropriation in that account."

Speaking for the Rising Sun Regional Foundation, Ted Spurlock presented council members with the annual report and noted the county has received approximately $1 million each year for a total of $6.4 million since the grant process began.

For technology programs at the county's schools, Rising Sun Regional Foundation has spent $360,000.

We are also being proactive in economic development in both Ohio and Ripley counties. Presently we are working on a comprehensive plan and provide implementation which will help put the plan into action," Spurlock said.

He also reminded council members that the Rising Sun Regional Foundation grants are above and beyond the Revenue Sharing the county receives. "This is grant money for not-for-profit organizations."

Later in the meeting President Dunbar's suggestion to write letters of appreciation to both riverboats - Grand Victoria and Belterra - for revenue sharing was unanimously approved. The letters will also list the expenditures for 2003 and the plans for the revenue in 2004.

A request by Judge James Morris tabled at the February meeting to correct a minor mistake in the salary ordinance was taken off the table and approved with motions by Council Member Bauer and seconds by Council Members Nickell and Simon.

Since there is no fifth deputy, Judge Morris asked for a correction to make the salary ordinance refer to the third deputy.

Prior to the closing of the meeting, Council Member Dramann expressed concern over the county's EMS units going into Franklin County.

EMS Director Scott Melling responded that the situation has only occurred a couple of times.

Council Member Armbrecht said, "If we're going into Franklin County, they should be contributing. However, this is a matter for the commissioners to decide. The authority rests with them."

Commissioners John Little and Chuck Folz, who were present for the meeting, responded that they were talking to Franklin County.

MARY MARGARET MOORHEAD PHOTO

David Bottorff from the Indiana Association of Counties explains the state legislature's plan to eliminate the Inventory Tax in 2006-2007 and the county's options prior to that. Speaking to members of the Ripley County Council, Bottorff answered questions from others in the audience in an open forum.