Cloverdale council gets good news as Food and Beverage Tax becomes law

CLOVERDALE -- The Cloverdale Town Council had a lot to take on during Tuesday night's monthly meeting. The council, which has been battling financial issues, once again was plagued with the ongoing problem of how to get things accomplished and stay on top of its finances.

Cloverdale got some welcome good news from Don Gedert as he informed everyone that the Food and Beverage Tax has passed both the Indiana House and the Senate and is now a law.

The new law goes into effect July 1 and Cloverdale will begin working to enact this tax, which will likely happen after Sept. 1.

"A system has to be in place to transfer the funds to the town," said Town Attorney Alan Yackey. "There's stuff that needs to be checked as this goes along."

This new law will be a one percent tax on anything that has two or more food ingredients mixed or combined on site. This does not include if one purchases a bag of chips or a pop from a vending machine for example.

"This is not automatic, self executing," said Yackey. "It helps if everyone is aware of it."

Clerk-Treasurer Cheryl Galloway came before the council with another idea on how the town could save money. This time, she suggested that the town begin charging vacant properties for a sewer bill.

"These homes have been sitting empty for that long and nothing has been done with them," said Galloway. "If these homes are not being lived in and the animals are living in them or (peopule are) using them for storage then we need to come down on them. We need to either have them pay to help encourage them to sell their home or to fix them up so they are livable or have them pay some sort of utility. I'm just trying to think of something to help the residents in our town not have to pay such high water bills."

Galloway presented the council with a list of more than 100 potential properties from 1997-2011. However, her enthusiasm for potential income was met with opposition from board members, Vice President Gary Bennington in particular.

"I don't think there should be anything done," explained Bennington. "If there's no water going through the meter you can't charge them. It's immoral."

Bennington's concern was matched with concern from the community to make Cloverdale more user friendly. After recent increases in water and sewer rates, another potential charge to residents does not have much support.

Galloway also came before the council and was granted permission to transfer dormant funds, $2,528.01, into the general fund. The council made the motion by passing resolution 2013-06.

With Interim Town Marshal Charlie Hallam absent the council once again decided to table the issue of the police cars.

"If we use our capital and something happens in the middle of the year, we will be in trouble," Galloway said.

Although, in a previous meeting permission was given to Hallam to purchase the two new police cars, the council has since decided that it would be better to lease them.

Council President Don Sublett also informed the community that the search for a permanent town marshal is still going on. The council has narrowed it down to three candidates, which they will be taking a closer look at.

Galloway however, got permission to take $20,000 from EDIT funds for Building Inspector Mark Cassida to demolish one home and two barns.

The money was given to Cassida due to lack of money in his budget.

Utility Manager Rich Saucerman came before the council to once again talk about the water pay station.

The basic machine along with parts comes to a total of $7,050.02.

Saucerman stated that the rate the town sells water is a variable rate. Depending on how much water one buys, it is cheaper than buying a small amount.

Saucerman was asked last month to talk to several people including the Cloverdale Township Volunteer Fire Department as well as the phone company about a location for the pay station.

After talking with Fire Chief Kerry Shephard, Saucerman told the council that putting the water pay station on that property was allowed since the town owns that lot.

"He did not have a problem with us putting it on the west side," said Saucerman. "The trucks will come in there one way and go out the other way. I think it would be a place for easy access."

It is estimated that it will take two and a half years for the town to make up the money spent for the pay station.

"We've been fighting it for a long time," said council member Dennis Padgett. "By now, we probably could have paid for it four times over. That's a good location where people could easily access it."

The council approved placing the water pay station on the fire department lot.