NAPPANEE — If there’s an upside to inflation, the City of Nappanee is finding it as recent inflationary times has given small boosts to the municipality.
One way it has helped is via an increase in the amount of mileage reimbursement — from $0.58.5 per mile to $0.62.5, effective July 18.
“It’s an IRS modification mid-year because of inflation,” Nappanee Mayor Phil Jenkins said.
The council passed a resolution reflecting that increase in mileage reimbursement for July 18 through December 31 for employee and elected officials.
CLERK-TREASURER REPORT
Clerk-Treasurer Jeff Knight went over the June 30 report with the council and pointed out an increase in the ending balance from the month before to $21 million from $17 million because of the receipt of property tax disbursements.
He provided the council with a breakdown of the property taxes and license excise taxes and the funds that they are disbursed into. The total of property tax received was $2,566,359.81 and the total of license excise tax was $121,651.81. They also received a Tax Increment Financing disbursement of $940,074.38. So the city received $3.6 million ($3,628,086.00) the end of June.
“That’s about $200,000 more than last year,” Knight told the council.
He also pointed out to the council two Certificates of Deposit that he spoke to them about at the last meeting that total about $1.5 million. He shared that he did break the contract like he told the council he was considering in order to take advantage of higher interest rates. He said there were only a few months left and the CD’s were generating about $750 a month.
He moved the CD’s to BMO Harris and they went from 40 bases points to 300 bases points. They were at 4/10th of a percent interest to three percent.
“So we should see some income pretty quick on over $1.5 million,” he said.
Knight said in the future they’ll see the CD’s combined. He also shared the money market account is now at 1.56% and it was at 18 bases points.
“We’re starting to see returns generated and additional revenue which will be beneficial in the long run,” he said.
MAYOR’S REPORT
Council Member Dana Hollar asked the mayor if they hired someone for the Elder Haus and he explained that they hired Kim Howenstine and she was sworn in last week. However, COVID hit the staff and the senior center is temporarily closed.
Jenkins said they are still providing transportation.
“We’ll reopen as soon as it’s safe — hopefully the end of this week,” he said. “We want the environment to be as safe as possible and unfortunately COVID is still with us.”
Council Member David Kauffman commented about South Park improvements.
“I’m so happy to see South Park — there was a ton of kids there the other day,” he said. “As a parent, there are some neat elements for the kids so thank you for that.”
Jenkins agreed that it’s good to see an all-inclusive playground and nice basketball courts.
“I’m happy for the neighborhood,” he said. “We’ll have an official open house soon. It’s good to see an investment above the ground. It’s all necessary but it’s nice to see projects coming together.”
Denise Fedorow is a columnist and correspondent for the Goshen News. Readers may contact her at [email protected]. Follow Denise on Twitter @DeniseFedorow