By Cheryl Splain, KnoxPages.com Reporter

MOUNT VERNON — City Council members received two pieces of disappointing economic news when they met on Monday night.

Mayor Richard Mavis told council that the EPA is close to signing off on the cleanup of the ANC property. However, the company that was going to take over the property, Blight to Bright, said it is no longer interested in the property because solar energy is no longer possible.

The plan was to generate electricity that could be sold to Rolls-Royce; Rolls-Royce has since sold to Siemens Energy, and Siemens is cutting production. Rio Tinto owns the property; according to the agreement, if Blight to Bright backs out of the project, the city takes possession of all 44 acres. The city will retain 16 acres along the dike way and the Madison drainage ditch; it will look to sell the remaining acreage, possibly to the Area Development Foundation.

The other piece of disappointing news is that under City Auditor Terry Scott’s 2017 tax budget, the general fund will come in around about $500,000 less than 2016. The $9 million tax budget estimates revenues and is what the appropriations are ultimately based on. Scott said that most of the revenue for the general fund comes from the city’s income tax; after calculating the loss stemming from Siemens’ layoffs, Scott estimates income tax collections will be about $600,000 less. Council passed the budget as an emergency.

Council members gave a first reading to a bill that would appropriate future revenue: $3,000 from the Community Foundation of Mount Vernon & Knox County for the Knox Lab Project and $1,500 from the VFW Post 4027 for purchase of a patrol bike.

Council commemorated the 50th anniversary of Ariel Corp. by adopting an ordinance adding Ariel Way signs to all existing street sign locations on Mechanic Street from West Sugar Street to Phillips Drive. Council also passed several other pieces of legislation:

Modifying the city’s codified ordinances

Granting an extra $1 per hour to the head lifeguard who schedules guard staffing

Setting the hourly pay for the third probation officer at $18. Seventeen dollars is paid through the Probation Improvement and Incentive Grant and $1 through the Probation Service Fund.

Authorizing Scott to transfer funds and pay bills.

Granting easements at 107 Cassil St. and 308 E. Vine St. due to encroachment of a garage on each property into the city’s right-of-way

Mavis said extensive damage has been done to the ANC property by users of ATVs. City Law Director Rob Broeren said anyone caught damaging the property may be charged criminally and asked to forfeit their ATV.

The city purchased the corner of the vacant lot at 100 N. Main and Chestnut streets for $32,875. Nothing is to be done in the near future, but the plan is to widen the intersection similar to what was done at Sandusky and Chestnut streets.

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