Hammond council passes 2020 budgets
Financial plan pushed through amid tension over power outage, other issues
The Hammond Common Council approved five 2020 budget ordinances at Monday evening’s meeting, but not before tensions mounted.
Some of that tension arose from the power outage at Hammond City Hall that began about 10 a.m. Monday caused by high winds. With elevators not working, council members and other staff had to walk up several flights of stairs to reach the council offices. Eight of the council members attended the two scheduled meetings with Councilman Anthony Higgs, D-3rd, absent.
Council President Robert Markovich, D-at-large, initially sought to postpone the caucus and regular meetings until Tuesday because of the power outage. However, City Controller Heather Garay said council signatures were needed on all budget documents by Monday, so the budget could be submitted to the state before Wednesday’s deadline.
Usually caucus meetings are held in the council’s meeting room, but the council-as-a-whole caucus meeting was moved to council chambers where emergency lights were set up.
During that caucus meeting, Garay explained key points in the 2020 Hammond Budget Proposal sponsored by Mayor Thomas McDermott Jr. as well as the salary ordinances for the city employees, firefighters and police. Hammond city employees will receive a 2 percent salary increase, she said.
The city’s overall budget of $102.6 million represents months of work with city department heads and the mayor, Garay said.
The city expects to lose a minimum of $5 million in revenue in 2020 because of the State of Indiana’s expiration of the exempt debt that allowed Lake and St. Joseph counties to charge additional property taxes. Once that expiration takes place in 2020, the tax caps fully go into effect. That means all Lake County taxpayers will see a reduction in their property taxes and that the extra money government entities have been receiving will be reduced.
Tax caps definitely represent a hit to the budget, Garay said. All of the expected revenue garnered from property taxes and other funds total $83.5 million. However, projected property tax collections will equal $32.3 million, creating a shortfall of $53 million, she said.
Money from gaming will provide $92.11 million to the general fund, and while in past years, each district has received $3.5 million from those funds for infrastructure projects, the districts now only receive $1.75 million annually.
Electricity was finally restored to City Hall before the caucus ended. When the council met for its regular session at 6 p.m., the five ordinances came up for a vote.
Councilman Mark Kalwinski, D-1st, cast the only vote against the 2020 city budget. In a conversation with the Post Tribune, Kalwinski said he objects to the cuts for infrastructure projects and park projects that now go to help balance the general fund and he gets regular complaints from residents in the 1st district that their streets aren’t being redone.
The loss of revenue also will result in job eliminations in the city clerk’s office and the closing of the Hammond City Court by year’s end.
After the vote, Garay and McDermott thanked the council for passing the 2020 city budget. The four other budgets passed unanimously.
More tensions arose at the end of the regular council meeting during the “new and unfinished business” portion.
A shouting match erupted when Councilwoman Janet Venecz, D-atlarge, made a motion to reopen the application process for a secretarial position in the council office “to let people within the city who are losing their jobs, particularly in the court” apply for that position.
Council President Bob Markovich, D -at-large, strongly objected to the motion being made and a verbal exchange began with Venecz calling for “a point of order” and stating to Markovich, “You are not to engage in comment.”
As other council members objected to Markovich’s effort to open up discussion, he threw down the gavel saying, “Take the floor. I’ll step down!” and moved to Councilman Dave Woerpel’s seat while Woerpel, D-5th, took over the council meeting.
When the motion to reopen the application process was finally taken, Markovich and Councilman Mark Kalwinski, D-1st, cast “no” votes.
In other business, the Hammond Common Council unanimously approved a resolution appointing Hammond resident Laurie Czulno as a commissioner of the Hammond Historic Preservation Commission. Czulno has been active in urging flood protection during years of meetings with the Little Calumet River Basin Development Commission, noted resolution sponsor Councilman Bill Emerson, D-4th.
The council also voted to change the dates of the November meetings because of two holidays. The Hammond Common Council will now meet at 6 p.m. on Nov. 4 and at 6 p.m. on Nov. 18 at Hammond City Hall, 5925 Calumet Ave.