NAPPANEE — A public hearing was held Monday evening at the Nappanee City Council meeting on the proposed 2013 budget. There was no comment from the public.

Council members then passed the proposed $8.16 million budget on second reading.

The proposed budget is less than the 2012 budget — an approximate 9.5 percent decrease or about $873,861 less. The reason for the lighter budget is a combination of a decrease in anticipated revenue from several sources and a decrease in expenditures from the removal of the 911 dispatch center.

Clerk-Treasurer Kim Ingle is estimating a decrease of approximately $300,000 from the police department budget for expenses involved in operating the dispatch center but she stressed that amount was estimated.

“I have no real way of knowing for sure at this point,” she said.

Other decreases in the general fund budget include $3,000 in the Board of Works budget created by a decrease in landfill fees; $776 from the senior center budget due to a full time employee retiring and being replaced by part-time employees bringing a reduction in benefits.

Increases in the general fund include $19,818 in the emergency medical services budget for increases in wages, including volunteers and subsequent increases in benefits and workmen’s compensation and a $20,000 increase in the unemployment reserve for those laid off as a result of the dispatch center closing.

A 1 percent across the board pay increase for everyone is also part of this budget — employees, department heads, council and board members, etc. will be receiving a 1 percent increase if the budget receives final approval.

The total general fund budget for 2013 is $3,911,864 versus $4,228,754 in 2012 — a $316,890 difference.

Anticipated decreases in revenue include a reduction of $12,485 for Camp Explore Day Camp fees. Ingle said in the past couple of years she’s anticipated the day camp to bring in revenue, but in actuality it hasn’t as participation has gone down. Ingle is also anticipating a loss of $50,000 in cigarette tax revenue and $15,000 in riverboat revenue sharing. There is no budget for the Tax Increment Financing District for West Industrial Park as funds have been disbursed, creating a difference of $255,004 from the 2012 budget. There’s also a big difference in the amount budgeted for the citywide TIF district — a $370,000 difference as $464,463 is budgeted for 2013 versus the $834,463 budgeted in 2012. That TIF budget will be used for the Walnut Street extension, pathway repair on U.S. 6 east, historic lighting, etc.

City officials plan to take the city’s refuse collection out of County Economic Development Income Tax funds in order to avoid having to pass that cost onto taxpayers in 2013.

The estimated tax rate for Elkhart and Kosciusko County for 2013 is 1.88 per $100 assessed value. Actual rates for 2012 were 1.49 for Elkhart County and 1.55 for Kosciusko County.

The total estimated assessed value for Elkhart County in 2013 is $199,995,569 and for Kosciusko County $9,927,303 for a total of $209,922,871. The actual assessed values for 2012 were $235,288,904 for Elkhart County and $10,809,728 for Kosciusko County.

The anticipated total levy from all funds for 2013 is $3.9 million compared to $3. 7 million actual levy in 2012. That is an increase of $281,220 but Ingle said she fully expects that amount to decrease,

Departmental reports

Department heads presented written reports to the council for September month end. Emergency Medical Services Chief Jim Sumpter Jr. informed the council that a correction needed to be made to his report, to include two motor vehicle accidents. Sumpter also told council members that September was “One of the lowest monthly totals we’ve had in years — which is a good thing.”

Council Member Jan Brown asked Fire Chief Don Lehman about the Muscular Dystrophy Association boot drive. She wondered if the $2,100 collected was more or less than previous years. Lehman told her it was more that in the previous year they collected $1,300.

In Street Department news the street resurfacing project was wrapping up. Mayor Thompson reported that the recycling center would soon be ready to move and be open in its new location. The mayor also reported that he and his wife would be hosting another movie night for city employees and department heads Thursday night.