Council Considers No-So Deal Tonight - Hold On To Your Wallets

The Indianapolis-Marion County City-County Council meets tonight, beginning at 7 pm, in the Public Assembly Room of the City-County Building. Their agenda again includes Prop 292. This is the proposal that would put the taxpayers in the banking business and loan $98, plus provide $40 million in actual taxpayer investment, to the proposed developer of the North of South project. Said developer only has to come up with $6 million for their part of the deal.

A number of proposals are being introduced tonight. These caught my eye:

Prop 46 -- Would approve a property tax installment plan for those who have homestead property in Marion County. After approval by the Council, the State Department of Local Government Finance would also have to approve the plan. Mike Rodman, County Treasurer, drafted the plan. The plan would be voluntary, and presumably appeal to those homeowners who either have no mortgage, or those whose mortgage company does not escrow funds for property tax payments.

Prop 47 -- Would establish a $100 cash fund so that the Assessors office could provide change to those who make small, cash payments for services.

Prop 52 -- Would amend the sign ordinance to allow two types of signs on IndyGo bus shelters and City-owned benches at bus stops - advertising signs and transit related signs. It is hoped that more bus shelters would be erected to City specifications by firms interested in selling ads for the City, and that the ads would bring in some additional revenue for the always struggling IndyGo.

Prop 62 -- Would add licensing requirements and regulation of flea markets into the ordinances.

Prop 77 -- Would give $2 million to the Indianapolis Parks Foundation for crime prevention grants. I assume that most, if not all, of this amount would be passed on to crime prevention grant awardees. But, the proposal as posted online, does not specify how much of this money is intended to be used by the Foundation for administration and evaluation of the grantee projects.

Council to Take Stand On Property Tax Dollars to Pacers

Tonight's City-County Council meeting will see final adoption of the various budgets for the City, County, and municipal corporations.

The CIB budget has become the poster child for how to glam up the usually boring budget process. Just try to pass $8 million of property tax money to a sport organization; that's apparently all it takes.

The rest of the budget should pass in with little excitement.

The CIB budget, however, is different.

It is time for the individual Councillors to take a stand on the movement of $8 million in property taxes from the consolidated downtown TIF to the Pacers, through the CIB. They can amend the proposed budget to redact the $10 million total gift, or just vote against the budget as it now stands.

If no new budget is approved, the CIB would have to live on the same budget as last year. Although the CIB cried wolf throughout all of their bailout hearings in 2009, they still managed to pad the 2010 budget enough so that there was an extra $10 million in it to give to the Pacers.

If you compare the proposed 2011 budget ($104 m) with the approved 2010 budget ($94 m), there is a request for $10 m extra dollars. But, if you compare the proposed 2011 budget ($104 m) with the amount expected to actually be spent in 2010 ($85 m) you find a huge increase, amounting to nearly $20 million in new dollars. And remember, that $85 m figure includes the $10 million 2010 installment of the Pacers gift from the taxpayers of Indianapolis.

As some Councillors will try to tie the IndyGo and Library budgets to their CIB vote, let me remind everyone that IndyGo got the budget it asked for and the Library got $800,000 less than it asked for. IndyGo's 2010 budget is $75.7 m, while its proposed 2011 budget is only $63.5 m; a $12.2 m reduction. The Library's 2010 budget is $49.5 m, while its proposed 2011 budget is only $45.2 m; a more modest, but still real, reduction of $4.3 m.

Isn't it time the priorities for how we spend tax dollars get put on services for Indianapolis residents, rather than on bailouts for sports teams?

It is time for the Council to say clearly to the Capital Improvement Board - "enough". We shall see how each Councillor votes tonight, after all of the hand-wringing and declarations of it being a hard decision are over. Remember folks - it is your money they are spending.

Muni Corp Committee To Move Forward on CIB, Library, IndyGo Budgets

Tonight, the City-County Council's Municipal Corporations committee will do the final review, revision, and vote to move all of the municipal corporations budgets out of committee. There are 5 municipal corporations - the Airport, Health & Hospitals, IndyGo, the Library, and the Capital Improvement Board.

The Airport and H&H budgets will enjoy little to no drama tonight. This is not the case with the other three.

Will Higgins reports in this morning's Indy Star, that there is a deal to replace all of IndyGo's and much of the Library's proposed shortfall appeal with money set aside when the United TIF was created.

What's a shortfall appeal? Its easiest to explain by starting with how a tax rate is determined. You determine a tax rate by dividing the amount of property tax requested in a budget, by the assessed value of all property that will be used to pay that property tax. The taxing unit, whether it be a school, a library, or the City, are bound by the property tax rate. If somebody doesn't pay their taxes, too bad. If the property owners appeal their individual assessed value, and win, then the total assessed value drops. This, too, reduces the property tax revenue that the taxing unit gets -- unless it files for a property tax shortfall appeal. If granted, the next year's tax bills will show an additional line for those properties that have not already hit the tax caps - raising those property tax bills.

In the case of IndyGo and the Library, a shortfall appeal cannot be submitted to the State Department of Local Government Finance without the prior approval of the Council. If granted, the additional tax would be applied to next year's tax bill -- just in time for the reelection campaigns for Mayor and City-County Council. And, none of those folks want to HAVE to be explaining how its REALLY NOT a tax increase.

This alone would be incentive enough for the 'deal' that seems to have been struck by the Council leadership. Higgins reports,

A bipartisan group of council leaders on Monday agreed to recommend adding $1 million to the library's 2011 budget, partially offsetting the library's property tax shortfall appeal request for $1.8 million.

The group's plan also would provide IndyGo with the $1.5 million it initially sought in its shortfall appeal.

...

The money would come from a fund created in the 1990s to service debt from a tax-increment financing district that helped finance the former United Airlines maintenance hub at Indianapolis International Airport.

Under the proposed deal, the funding source would be recurring for the library but a one-time-only fix for the bus service.

This deal would not increase the proposed budget for either IndyGo nor the Library - and actually would decrease the Library budget by $800,000.

The drama with the CIB is still bubbling. I think we can be sure that the deal struck on the IndyGo and Library shortfall appeals will be played, behind the scenes of course, as a sufficient trade to allow the $10 million gift to the Pacers in the CIB budget. The question is, who will bite? Council President, Ryan Vaughn, has been quoted in previous Star reports by Jon Murray, as tying the two issues together. He quotes Vaughn as saying,

Members of both parties say they are reluctant to approve the CIB's budget. Council President Ryan Vaughn, a Republican, says it's a tough call when the library and bus systems' long-term fiscal health is in question.

"I think people are open to passing it as long as we are finding solutions to the library situation," Vaughn said in an interview. "We want to work hard to send the right message to the public."

We shall see what happens tonight. Will the Councillors on the committee think that not cutting the proposed IndyGo budget and cutting the proposed Library budget by only $800,000, is sufficient trade for $10 million to the Pacers in the CIB budget. If they do, then Councillor Vaughn is correct - if that deal is struck, the Councillors WILL BE FORCED to "work hard to send the right message to the public." I say that because I don't think the public is that dumb or ill-informed.

Councillors serving on the Municipal Corporations committee are: Republicans, Barb Malone (Chair), Jeff Cardwell, Bob Lutz, and Angel Rivera -- and -- Democrats, Maggie Lewis, Dane Mahern, and Jackie Nytes. The meeting begins at 5:30 in room 260 of the City-County Building.

Catching Up - 2 Days of Public Notices

Yesterday's Indianapolis Star had public notice of the 2011 budget hearings for Rocky Ripple and Homecroft, as well as the announcement of a preliminary hearing by the Indiana Utility Regulatory Commission on the sale of the water and sewer utilities.

Rocky Ripple officials estimate a total budget of $100,707, with an estimated maximum property tax levy of $24,261, down a smidge from this year's $24,443. The will hold a public hearing on September 14 at 7:30 pm at 930 W 54th Street. They expect the Common/Town Council will vote on the budget on October 19.

The 2011 budget for Homecroft is estimated to be $239,454, with a maximum levy of $90,000, up from this year's $75,132. The Common/Town Council will hold a public hearing on September 28 at 7:00 pm, at 4925 S Shelby Street (Perry Township Government Building). They expect to adopt the budget on October 26.

Both of these budgets will go to the City-County Council for a non-binding review. The Municipal Corporations committee will hold its own public hear on these budgets at their September 28 meeting that begins at 5:30 pm in room 260 of the City-County Building.

The IURC has a public notice of their public 'Prehearing Conference and Preliminary Hearing' about the utility sale. The text, from the IndyStar website says:

LEGAL NOTICE OF A PREHEARING CONFERENCE AND PRELIMINARY HEARING INDIANA UTILITY REGULATORY COMMISSION CAUSE NO. 43936 JOINT PETITION OF THE BOARD OF DIRECTORS FOR UTILITIES OF THE DEPARTMENT OF PUBLIC UTILITIES OFTHE CITY OF INDIANAPOLIS, D/B/A CITIZENS ENERGY GROUP, CWA AUTHORITY, INC., THE CITY OF INDIANAPOLIS AND ITS DEPARTMENT OF WATERWORKS AND ITS SANITARY DISTRICT FOR APPROVALS IN CONNECTION WITH THE PROPOSED TRANSFER OF CERTAIN WATER UTILITY ASSETS TO THE BOARD AND THE PROPOSED TRANSFER OF CERTAIN WASTEWATER UTILITY ASSETS TO THE AUTHORITY, INCLUDING: (A) APPROVAL OF INITIAL RATES AND RULE FOR WATER AND WASTEWATER SERVICE, AS WELL AS THE TERMS OF CERTAIN AGREEMENTS FOR WASTEWATER TREATMENT AND DISPOSAL SERVICE; (B) APPROVAL OF AN ENVIRONMENTAL COMPLIANCE PLAN UNDER IND. CODE 8-1-28 AND AN ADJUSTMENT MECHANISM FOR WASTEWATER RATES TO PROVIDE TIMELY RECOVERY OF COSTS NECESSARY TO COMPLY IN WHOLE OR IN PART WITH THE SAFE DRINKING WATER ACT AND/OR CLEAN WATER ACT; (C) APPROVAL OF PROPOSED ALLOCATIONS OF CORPORATE SUPPORT SERVICES COSTS AMONG AFFECTED UTILITIES; (D) APPROVAL OF AN OPERATING AGREEMENT BETWEEN CITIZENS ENERGY GROUP AND CWA AUTHORITY, INC.; (E) APPROVAL OF DEPRECIATION RATES AND OTHER ACCOUNTING MATTERS RELATED TO THE WATER AND ASTEWATER ASSETS; AND (F) ANY OTHER APPROVALS NEEDED IN CONNECTION THEREWITH Notice is hereby given that the Indiana Utility Regulatory Commission will conduct a public Prehearing Conference and Preliminary Hearing in the above-captioned Cause in the IURC Conference Center, Suite 220, Judicial Courtroom Judi cial Courtroom 222 of the PNC Center, 101 W. Washington Street, Indianapolis, Indiana,, commencing at 1:30 PM, EDT, on Monday, September 13, 2010. This hearing is open to the public. If the Prehearing Conference does not result in agreement among the parties acceptable to the Commission concerning all procedural and other preliminary issues which may appropriately be resolved prior to a hearing on the merits of the above-captioned proceeding, evidence may be heard on the above date on all such disputed issues. These procedural and preliminary issues may include but shall not be limited to, the jurisdiction of the Commission over the parties and subject of the proceedings; a representative test year for consideration of the valuation of utility property, operating expenses, and revenues from existing rates; accounting methods, standards and principles to be applicable to these proceedings; need for and time of prefiling testimony; dates and places for hearings on the merits of this proceedings; and issues related to prehearing discovery. Any party who has an interest in or who may be affected by the procedural and other preliminary issues which may be determined in the Prehearing Conference and Preliminary Hearing should participate. All parties will be bound by the procedural and other preliminary finds and determinations made pursuant to agreements or evidence received at the Prehearing Conference and/or Preliminary Hearing held pursuant to this notice. If an accommodation is required to allow an individual with a disability to participate in this meeting, please contact the Office of the Executive Secretary of the IURC at (317) 232-2709 or TDD (317) 232-8556 at least 48 hours before the meeting.
INDIANA UTILITY REGULATORY COMMISSION OFFICE OF THE EXECUTIVE SECRETARY (317) 232-2701 BY: IURC - (SCOTT STORMS) DATE: 8/24/2010 (S - 8/26/10 - 699757)

Today's Star has several public notices of budget hearings as well. Up are the Beech Grove Schools, Beech Grove Library, and three posts noticing hearings to be held by the City of Indianapolis for Health & Hospitals, IMCPL, and IndyGo budgets.

The Beech Grove Schools Corporation estimates a total budget of $29,378,233, with a maximum property tax levy of $14,031,380, up from $9,271,971 this year. The notice also includes their 3 year capital projects plan and bus replacement plan. The Board will hold a public hearing on September 20 at 6:00 pm in the board room of the School Corporation at 5330 Hornet Avenue. They expect to vote on the budget at their October 18 meeting.

The Beech Grove Library estimates a total 2011 budget of $1,163,400, with a maximum property tax levy of $1,115,000, down slightly from $1,116,091 this year. They will hold a public hearing on October 14 at 6:00 pm at the Beech Grove Library. They expect the Board will vote on the budget at their October 25 meeting at 4:00 pm.

The City-County Council has the statutory responsibility to review and vote on the budgets of all the Municipal Corporations. Public notice of the public hearing before the full Council on September 20 will include the proposed $46,800,000 property tax levy for the Indianapolis-Marion County Public Library, the proposed $26,470,154 levy for IndyGo, and the proposed $102,130,737 levy for the Health & Hospitals Corporation. The Council will vote on all of these budgets and levies at their October 25 meeting. The Municipal Corporations committee will hold its own hearing on these matters on September 27, beginning at 5:30 pm in room 260 of the City-County Building.

Public Notices -- Warren Township & IndyGo

Today's Indianapolis Star has public notice of two budget estimates.

Warren Township posts an estimated budget of $1,752,822, and an estimated maximum property tax levy of $250,000, down from this year's $276,097. The Board will hold a public hearing on September 14 at 5:30 pm at 501 North Post Road. They are expected to vote on the budget on October 26. The City-County Council's Municipal Corporations Committee will hold a non-binding review of all Township budgets, including this one, on September 28 at 5:30 pm, in room 260 of the City-County Building.

The IndyGo estimated 2011 budget amounts to $64,859,100 and they estimate a maximum property tax levy of $25,470,154, up from this year's $20,668,415. They note also that the maximum levy limitation is (only) $21,000,000. the IndyGo Board will hold a public hearing on the budget August 19 at 5:00 pm at 1501 W. Washington Street. The Board is expected to vote on the budget on August 30. The City-County Council's Municipal Corporations Committee will review this budget on September 27, beginning at 5:30 pm, in room 260 of the City-County Building. The full Council will hold a public hearing on all budget matters, including this one, at its September 20 meeting.