Paybacks are costlyExtra payment leavescounty with a billBy PAT HUGHESSiai sun reporter

Few would disagree that IJ12.000 is onewhopping tax bill.

With the financial problems plaguing Dela-ware County the last several years, that muchmoney could have been put to good use. Butit's money that Delaware County is going tohave to pay back.

Officials of Associates Leasing of Dallasrealized last year that Associates and

Uurlington Motor Carrier*, whose rutioiulheadquarters are in Daleville, had each paid1093 taxes on property Uurlington leasedfrom Associates. Associates filed for a refundtlus year.

Buddy Hop|HT, manager of the pn>|>ertylax department fur Associates, which leasescars, (rucks and construction equipment, toldThe Star in May that the mistake was "just anerror thai happened."

"We paid, and the client paid," Hopperexplained. "We did not have knowledge ofthat until we started billing the client, andthey said they already paid. Basically, it

See TAX on Page 3D

Taxeswould be double assessment anddouble taxation."

Associates could havedemanded that the refund be paidall at once — with interest, accord-ing to Donna Patterson, a deputycounty auditor.

But because Associates madethe mistake, the company agreedto waive the interest and allow thecounty to pay the refund over 3years.

Attorney Gregory Huffman, whois local counsel for Associates, saidhe had discussed the situation withJeffrey Bouldin, the director of acompany in Texas that files taxesfor Associates. Huffman said Boul-din was concerned over the impactthe refund would have on DalevilleCommunity Schools and the townof Daleville.

"He didn't want to inconve-nience the taxing authority unnec-essarily," Huffman said.

According to the agreement, thecounty will deduct $70,000 fromthis year's December tax draw and

186.000 each from tax draws in1906 and 1907.

Daleville Schools will be hithardest by the loss of revenue: Theschool system's share makes up 51percent of the total. This year,Daleville schools will lose 135,867in anticipated revenues.

But even so, Supt. Teresa Eine-man said the school system wouldbe able to deal with the loss. Thefact that the money will be paidback over 3 years has lessened theimpact

"We will not see an impact oneducational programs," Einemansaid.

The 1906 school budget will be 1percent less than ' !<"> to make upfor the lost revenue. The total bud-get is $5 million; $3 million is in thegeneral fund

In addition to the schools' lossof almost $36,000, the town ofDaleville will lose $13,400; thecounty, $19,000; Salem Township,$613; the solid waste district, $439;the county airport, $147, and thestate, $50.

The county will split the loss of$19,000 among 12 funds.

• Star staff reporter Kim ZollmanRendfeld contributed to this report

An even-bigger billcould await county

By PAT HUGHES /Star tun r«fx*Mr /

An agreement for DelawareCounty to pay Associates Leasingof Dallas a $242,000 tax refund ihinstallments rather than a lumpsum has helped to lessen the finan-cial impact

But the terms might not be sofriendly when the county has torepay nearly $500,000 in taxes paidby ABB Power T&D Co. and PitneyBowes Credit Corp.

A misunderstanding betweenABB and Pitney resulted in bothcompanies paying the same tax onpersonal property Pitney Bowesleased to ABB in 1992-93. ABB hasfiled a request for a refund of$418,000, and Pitney has asked fora refund of $74,600.

Delaware County officialsdenied the refund because theoverpayment was not the county'sfault. The companies filed anappeal with the State Board of TaxCommissioners, and a ruling onthat appeal is expected within afew weeks.

If the state decides the countymust make the refund, the countymight have to pay 6-percent annualinterest, which on $492,500 wouldamount to $29,500 a year. Themoney would be deducted fromthe December tax draw.

Last year, the December taxdraw was $5.5 million. MuncieCommunity Schools receives thehighest portion of the tax draw.The school system stands to lose$170,000, plus interest on themoney.

The city of Muncie would losemore than $128,000, DelawareCounty more than $113,000 andthe Muncie Sanitary District morethan $35.000.

Indianapolis attorney LarrySiroble, who represents ABB and

Pitney, said it was customary thatrefunds be paid in the year theywere ordered. He said he could notsay whether the companies wouldagree to take the refunds in install-ments, as Associates did, or waivethe interest

rayingfor itlaterExtra paymentof tax catchesup with townBy PAT HUGHES

UNDAY. MAY 14, 1005

PALEV1ULE — An accountingrrror thai had two companiespaying the same ux on the sameproperty has caused turmoil inthis small town in southwesternDelaware County.

Official* of AaMxiales Leasingof Dallas realized last year thatAsuonales and Burlington MotorCarriers, whone national head-quarters is in DaleviUe, had eachpaid in 1903 the same ux onproperty Burlington leased fromAssociates.

"It's just an error that hap-pened." said Buddy Hopper,manager of the property laxdepartment for Associate*,which leases cars, trucks andconstruction equipmentnationwide.

•We paid, and the client paid."Hopper vud. 'We did not haveknowledge of that until westarted hilling the client and theysaid they already paid. Basically,it would he double assessmentand double taxation.*

Hopper said Associates dis-covered the same thing had hap-pened with mayhe IS other com-mon earners in Indiana.

"We have already receivednumerous refund* from othercounties in the state," Hopper

He said Associate* had askedfor a refund of up to 1173,000 fortaxes paid twice in 1993 to Deia-wire County.

SM DALEVILLE on Pafl« 20

DalevilleContinued from Peg* 10

Paul James, president ami chiefexecutive officer for Burlington,said Burlington had no controlover accounting problems atAssociates

•We're not at the root of this."James said. "It's a decision Associ-ates UM.MIIK nude We ri-.illx i .mlcontrol what they do."

The accounting error has costDaleville 11.3 million in assessedvalue and has caused its 199ftproperty-tax rate to increase 6Ccents to 2.6247.

The drop IT. assessed value hasaffected all governing bodies of

. but it probably lias hit' Coiniiiuiiily Schools the

hardest.Supt. Tcics.1 Eincman estimated

tlut the schools recei\-ed $174.000less than they had expected inproperty lax revenue, a majorsource of local school fumli Theschool system lost that moneybecause Associates did not pay$102.661 in taxes due in 1994Associates did not file a lax returnthis year In Delaware County

It might seem logical that theschool district's revenues wouldincrease with the recent boom innew business, particularly from the$40-million Indiana Factory Shopsand $_' million Traders Country Vil-lage, wliK'h look at each othrr fromopposite sides of Interstate 6B justsouth of Ind 67.

But because both developmentsare in a tax-increment financingdistrict, which means lax revenuefrom those projects go to pay forroad and utility improvements, nei-ther the school district nor thetown will receive extra revenue

Any revenues over the originallax base generated in an area des-ignated a TIP district go to the TIPfund. Money from the T1K districtin Daleville will pay for the town'snew water and sewage systems No

property taxes paid by the resi-dents of I'.ilexilU- will be used topay for either project, which totalmore than 12 million.

bonds on IhoM* projects willlake up to 20 years to pay off. saidTown Council Vice President Rob-ert Huffman. After the bonds arepaid, he said, the tax revenuescould revert back to propertytaxes for Daleville. unless it choseto fund other infrastructureprojects with TIP funds He saidli.ilexille eventually planned to(mild Us own witter lower andtreatment plant

The drop In assessed valuationcaused a 66-cenl increase in I lietown's lax rale, resulting inDaleville having the second-highest tax rale in the county,topped only by the city of Muncte

The tax increase has also causedaccusations to fly among membersof the town council.

Council member David Miell.ibarger implied during an Apnlmeeting that the tax increase waspartially the fault of action takenby other council members.

Shellabarger. who has been onthe council sin. i- l''sj said It washis opinion that some board memben were working hard for thetown, while others were pulluig ona "tremendous amount of pres-sure" to raise taxes.

He questioned how many pooceofficers and cars Daleville reallyneeded. He also said that Daleville( ' .ml l lM- UHal i "Si of i l l III . i l amihealth insurance and retirementbenefits for town employees Hesaid moot towns required employ-ees to pay part of thine costs

"If we could eliminate somesacred cows, ." Shellabargersaid.

Sharon Clymer. town clerk, saidthe board agreed in I!ml to pay thebenefits for employees in lieu of araise that year.

ShelUbarger's statements wen-an apparent response to severalaccusations made by Huffman dur-ing the council's March meeting.

Hutlln.in s < oinmelils li.nl followed lli<- publication of a leiu-i Inthe editor in local news|>apeisexpressing concern over thetown's high lax rale. The letter wassigned by Shellabarger and.moiliei council member. MikeMurphy

"If this pace continues. Dalcxill.will soon have the highest lax ralein the county." the letter said

"What Shellabarger and Murpl"would liaxe you U'hexe ~ lluflm.i:s,ud at the town's March meeting"is three memU-is of this boanlraised your taxes. That's not t rue "

He then recommended that bothMurphy and Shellabarger be votedout of offiiv. and he accused Slirlluhargcr of being on the councilpurely as a status symbol

It was an allegation Shellaharxeisternly denied tie also said that IN-had put many extra hours into tinjob. despite the (act that he win. -up to 10 hours a day at his regul.ujob

As tensions grow, the town w illfind its problems resulting fromthe accounting error are not over

Delaware County Assessor GaryI .11 urn had said the county wonMprobably deny Associates^ requestfor a refund He said Associatescould then appeal the decision tothe slate.

i aimii IurI said that the prubli in was not uiLsed by a matinmatical error on the part of thecounty, bul by Associates itself

He did say that it often was llu-position of the state that the bustMI-IS was entitled to a refund.

Aral if that happens, said DOHILIPatterson, a deputy auditor foiDelaware County, Daleville aimany other governmental agcm .that received a percentage of thosetaxes will luxe that amount sulitraded from whatever amount it isto receive in a December lax draw

Stilt reporter Kim tollmanRtndtfld contributed to this.

PICKING SLIPMcCARTY WHOLESALE LUMBER co., INC.

025195

PHONE(765) 284-4428

FAX(765) 282-6244

723-747 S. COUNCIL ST.P.O. BOX 2543

MUNCIE, INDIANA47307 - 0543

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DALEVILLE MUNICIPAL PARKBOARD MEETJJKL,

AUGUST 9, 1995̂

Call to order at 6:10 p.m. at the Daleville Town Hall. Roll call is takenwith all present except Mike Murphy.

Gary McManus from Historical Alliance submits a plan for the originalschool log house. Gary is going to contact Scott Zimmerman for additionalinformation, designs for outdoor displays and shape of building. He willcome back before the board at a later date with such Information.

Steve Ake asked for objections for moving the old Marathon Station, acrossfrom Steve Sargent's pole barn for remodeling. Steve Ake suggested goingto Findley, Ohio to the main Matathon company to get information onrestoring old building. Vote was made to move the building, all yes votes,one absent. Vote passed.

Official officers of Daleville Municipal Park are as follows. Jiggs Maddox,Chairman appointed by Daleville Town Council. Mike Baker nominated SteveAke for Vice-President. Herschel Musick seconded. Roll call vote wastaken, all yes votes, one absent. Vote passed.

Tammy Baker nominated for secretary. Roll call vote taken, all yes votes,one absent. Vote passed.

Steve Ake spoke with Joe Morrison from Burlington in reference to haveaccess to dirt and how much will be available for us. Steve will getback with the Board, once he knows how much dirt Burlington will allow.He has already made arrangements to have gravel for basketball courts,set, and dumped back behind town hall.

Discussion on fund raisers. Three options discussed. 1. Raffle offa trip. 2. BarberShop Quartet. 3. Basketball Tournament. Mike Bakeris checking into having tournement at school, and what arrangementsneed to be made. Will report back to the Board.

Meeting adjourned: 7:30 p.m.