WASHINGTON — The city started its road towards annexing the I-69/U.S. 50 interchange Monday as the City Council introduced an ordinance to incorporate the property in the city.

During its meeting, the ordinance would move 1,676 acres and 37 homes from Washington Township to the city of Washington. The area to be annexed includes the future I-69/U.S. 50 interchange east to CR 300E and further south along the interstate for any development.

“One of the biggest concerns is the city be ready for I-69 and the potential development out there.” Mayor Joe Wellman said.

The council, in its annexation process, passed a three-year fiscal plan for the area. To build electric and water service to the area, it will cost an estimated $2.891 million, mostly paid through the utility.

John Seever, a CPA with Umbaugh and Associates, said if any additional personnel are needed like police or firefighters, they would be hired as needed.

The area would move from voting in county council to city council in District 1. Council members unanimously accepted the fiscal plan and voted to start the annexation process.

“I think we were looking to do this before, now we are,” Councilman Joe Fleck said.

But there are some potential problems with the annexation. Seever said there will be properties that have one owner, but are in both the city and county, and some land- and homeowners may see their property taxes go up because they are in the city.

Wellman said after the meeting it is not sure whose taxes will go up because of the tax circuit breaker law. But there was one person willing to have his home within the city limits. Richard Barker asked if his neighborhood on Ridge Court be annexed.

“I hope it is sooner rather than later,” Barker said.

The council will notify land owners on the annexation process and hold a public hearing on the annexation on Oct. 8. The ordinance then will be up for council vote on Nov. 12 with effective annexation in early 2013.

Cumulative Captial Development

The council did pass in shortened process the recreation of a cumulative capital development fund.

The fund, created earlier by the city but dwindling in funds, will charge homeowners 5 cents per every $100 assessed. Seever said this will cost homeowners around $2 a month in property taxes.

The collected taxes will then go into a fund not to exceed $50,000 and according to state law, can be used for any legal purpose of the city. Wellman said the fund will be used for capital development, like buildings or vehicles.

The mayor said after the meeting the fund is not a new tax, but the fund has to be maintained by cities to make sure the fund stays full.

The council passed the ordinances 6-0. Councilman Eric Bassler was absent. The fund goes to the state Department of Local Government Finance for approval. The DLGF will hold a hearing and remonstrance process, if needed.

Longevity Pay

Although their attorney said the ordinance is not technically legal, the council passed an ordinance rescinding longevity pay for elected officials.

“I believe that a literal reading of the statute would find the ordinance is not legal,” City Attorney Tim Dant said.

Dant explained that if he had to argue the merits of the ordinance in court, a judge could find in favor of the city for the intent of the law. The intent is to give back longevity pay for council members who are newly elected.

“If we have to go to jail for giving back money, then the one who wrote the law should go to jail,” Councilman Blake Chambers joked.

Curbside Recycling

Councilman Mike Singleton and recycling employee Angela Quast briefed the council on research into curbside recycling.

Singleton, who campaigned for it while running for council, said many of the cities he researched subsidize their programs with other government funds. Bloomington subsidizes its program close to $209,000 a year.

“I cannot sit here and recommend we do this at this time or charge another fee,” Singleton said. “As money gets tighter, we cannot start curbside recycling.”

Singleton also said many towns the size of Washington do not have curbside recycling services.

Quast, who runs the city’s recycling programs, then gave the council an overview of the programs it offers residents. She also gave financial data on how much it recycles and how much it brings into the city.

The most enthusiastic recyclers, Quast said, are young people. She holds several programs in local schools that are well attended and participated.

Street Closings

The Board of Public Works and Safety approved two street closings in August. The first was for Victory Tabernacle Church on Aug. 4 from 3 p.m. to 8 p.m. on N.W. 15th Street for a block party.

The Hispanic church Casa de Dios para las Naciones will hold outdoor services near its church on 800 W. Main St. from 5 p.m. to 11 p.m. on Aug. 10, 11 and 12.

Road Issue

Three property owners presented differing opinions on a proposal to vacate the ending portion of Wilson Street.

Building commissioner Chris Wimmenauer and City Engineer Ed Barnett gave a presentation to the council about where the street is located. One property owner did not like the idea and the issue was tabled.