WARSAW — It was a light agenda Monday evening, May 2, for the Warsaw Common Council with only three items of business.

For the benefit of new council members and the audience, Jeremy Skinner, city planner, briefly explained tax abatements before the council voted to continue abatements for Flexaust and Whimet. Skinner noted the tax abatement is given on real and personal property.

Personal property is equipment while real property is the real estate. Skinner stated the city’s guidelines for a tax abatement are not set in stone and can be adjusted. He stated normally the number of years approved for an abatement is based on the dollar amount spent on personal property and for real property including job creation and money spent in expansion or new construction. The number of years can range up to 10 years.

Additionally Skinner stated the amount of abatement is based on assessed value and decreases each year. The first year may be 100 percent while year 10 could be 10 percent. “We set our own schedule,” He said adding most cities, towns and county government follow guidelines set decades ago. He also pointed out the abatement on real property does not change drastically and is more predictable than personal property, which includes depreciation of equipment. He also pointed out only the amount of funds spent are given the abatement, not what was expected to be spent.

Skinner stated the tax abatement is an incentive for existing businesses to remain in the community and new businesses to move to the city.

Council members approved continuation of three tax abatements for Flexaust — one in its ninth year, two in its fourth year and one in its second year — and an abatement for Whimet Inc. in its sixth year.

Compliance review forms were provided to council members showing the dollar amount spent in real and personal property improvements since filing the Statement of Benefits at the onset of the abatements. The number of new employees added is also shown. Both companies met or exceeded the number of employees added.

The only other matter of business was the approval of an amendment to the traffic control ordinance, lowering the speed limit to 35 miles per hour on CR 225E between Old Road 30 and the city limits.

While not officially needing to vote, the council did vote favorably to an amendment to the city’s materiality policy. On March 7 the council approved the polity on materiality; however, on April 7, Lynne Christiansen, clerk-treasurer, received an amendment clarifying questions the State Board of Accounts received. That clarification is that any known misappropriation of public funds require written notice to the State Board of Accounts and the local prosecuting attorney.

It was noted the original policy referenced IC 5-11-1-27(j), which required a policy for reporting irregular variances, losses, shortages and theft, but did not go further. The amendment is to include IC 5-11-1-27(I), which required written notice to the State Board of Accounts and local prosecuting attorney.

Mayor Joe Thallemer invited council members to attend a Stellar Community partner meeting from 4:30-5:30 p.m. Wednesday, May 4, in the council chambers.