Local News
Good rate of return
County has spent $400,000 on bankruptcy cases
Through November, Howard County has spent approximately $400,000 on legal fees in efforts to collect back taxes owed by Delphi and Chrysler as a result of their bankruptcy filings.
According to Howard County Attorney Larry Murrell, the county has spent approximately $199,000 in attorney fees on the Delphi bankruptcy this year and $159,000 on the Chrysler bankruptcy case.
But for every 3.2 cents spent on attorney fees by Howard County, it is receiving $1 in return as an agreement was reached with Delphi to pay $6.4 million in taxes owed.
The county is negotiating with Chrysler Group LLC in an effort to collect $25 million in personal property taxes owed by Old Carco, the former Chrysler LLC.
A federal bankruptcy judge in New York approved the settlement with Delphi in August. The company agreed to repay $4.6 million in property assessed in 2005 by March 1, 2011, and real estate taxes for 2005 in the amount of $1.8 million.
Dick Miller, president of the Howard County Council, said what was spent with the Indianapolis law firm of Barnes & Thornburg was a bigger concern for people not close to the process.
“I honestly believed it was the responsibility of the county to do all we could,” he said. “Some people might have viewed it as throwing good money after bad.
“It is worth 3 cents to pick up a dollar bill,” Miller said. “Delphi is following the court order.”
Miller said he understands the money was owed to Howard County, but in a normal bankruptcy the amount of return sometimes is nothing or a low percentage of the actual amount.
“Some of the money owed to us was not in a priority clause,” he said. “We worked to convince Delphi it was the right thing to do. We hope they continue to be a successful business.”
Miller said county officials believed they had a reason to expect to be successful.
Hiring a national bankruptcy firm was the only way for the county to protect itself, Murrell said.
“There was a large amount of money involved and we needed a competent firm, otherwise we would have been steam-rolled,” he said.
Murrell said the county is still negotiating with Delphi on the interest rate that will be paid on the amount owed.
Miller said county officials have not approached the other taxing units about being reimbursed for the cost of the attorney fees.
“There was a discussion about that,” he said.
Miller said it has not been determined when or if county officials will ask to be reimbursed for the legal costs.
The other taxing units include the city of Kokomo, Center Township, Northwestern and Kokomo-Center schools and the Kokomo/Center Township Public Library.
• Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com
- Local News
-
-
In the know on the new bus service
Local radio personality Allan James and Kokomo Mayor Greg Goodnight are expected to be among the dignitaries gathered for Kokomo’s first public bus ride in more than 40 years Tuesday, and Kokomo is abuzz over the new red-and-green trolleys.
-
Putting the pinch on Spice
A synthetic herb mixture that is sold as incense is causing quite a stir with state and local legislators.
State lawmakers are preparing to present legislation that would ban the synthetic marijuana substitute known as K-2 or Spice, which is generating public health concern across the country.
-
County ups GM's assessed tax value
The Center Township Assessor’s office has notified General Motors that it has changed the personal property assessed value on equipment the company filed in May.
-
Educators working to meet new reading requirement
One wall at Western Intermediate School is covered with Post-It notes. Each note represents a student and his or her progress in reaching reading proficiency.
-
Kokomo council to decide on 2011 budget this week
More than $1 million in federal grants will allow the city of Kokomo to cut local spending while maintaining staffing levels for police and firefighters, according to Kokomo Mayor Greg Goodnight’s proposed 2011 budget.
-
Kokomo to host hundreds of visitors this month
There will be hundreds of visitors to the Kokomo area throughout the month of September with the first of several events taking place this weekend.
- Public eye - Sunday, Sept. 5, 2010
-
Taylor celebrates grand opening of the Titan New Tech High School
Freshmen in Steve Dishon and Justin Palmer’s Taylor High School digicom class sit at tables of four, rather than desks, and each student has a laptop computer in front of him or her.
-
Chrysler deal aids budget process
The settlement with Chrysler over the assessed value of personal property taxes has changed the area financial landscape as local taxing units finalize the 2011 budgets.
-
Area schools receive stimulus money
Howard County public school corporations received nearly $2.7 million in stimulus funding, as part of the Education Jobs Fund recently passed by Congress.
- More Local News Headlines
-
In the know on the new bus service
