Councillor Scales Reacts to New Funding Mechanism for Avondale-Meadows

Councillor Christine Scales, co-sponsor of the proposed expansion of the Fall Creek TIF she had hoped would be used for the benefit of Avondale-Meadows residents, reacted on Facebook to the news the Councillors Talley and Robinson would introduce a proposal with an alternate funding mechanism.  Scales is a Republican, while Talley and Robinson are Democrats.  Here is her post:

News to Me: Talley&Robinson coming to aid of Avondale Meadows It would have been helpful for any of the committee members who voted against the Avondale Meadows TIF to have shared their concerns with me before the MDEC meeting, when it was voted to be tabled. The co-sponsor, Councillor Steve Talley never shared any misgivings with me. It was obvious through Talley's prepared statement, and the ready agreement by others who opposed the TIF, that they never intended to consider testimony given during the meeting. The decision to oppose was made prior to the meeting's start. Now,Talley and Robinson are sponsoring a new proposal in my district without any discussion first with me, the councillor, representing the Avondale Meadows District. I have to mention that the TIF was needed not just for a grocery store but to advance further revitalization in the area. I don't need to be psychic to know that whatever these two D's propose will pass. There will be no record of them ever having voted against the TIF, as the proposal will die due to tabling. The D's will get credit for "helping" the neighborhood and no Republican will receive any credit for years of committed work in the Avondale Meadows area-which was the D's motive for not supporting the Avondale Meadows TIF all along."

Different Funding Mechanism To Be Proposed for Avondale-Meadows Area

Councillors Steve Talley and Leroy Robinson will introduce a proposal to the Council on January 28, that will include alternate funding to substitute for the failed Avondale-Meadows TIF proposal. 

The Metropolitan & Economic Development committee tabled indefinitely (AKA - killed) Prop 349 Monday night.  Prop 349 was passionately presented and championed by Councillor Christine Scales (see "Case for Meadows TIF")  That proposal included an expansion of the Fall Creek TIF to assist the Avondale-Meadows area in attracting a grocery store.  The TIF would exist for 25 years, even though the grocery store project bonds likely would have a term of only 10 years.  Deputy Mayor for Economic Development/Director of the Bond Bank Deron Kintner, doing financial calculations on the fly, estimated that the $3 million bond would take $10 million to pay off in 10 years.  Why a bond would have to have these terms is totally beyond reason - but that's what Kintner said.

Talley and Robinson, who voted against the proposed TIF, will introduce a proposal with alternate funding to meet the goals of the Avondale-Meadows area residents to attract a grocery store - which is absolutely critical for the residents to have available healthy, normally priced food.  They are now subject to the absurdly high prices and paucity of fresh food from convenience stores and the like.

I look forward to reviewing the new proposal once it is introduced.  And, I am glad that something is being done to provide the good folks of the Avondale-Meadows area with critical tools to lift up their quality of life.

Case for Meadows TIF

At last night's Metropolitan & Economic Development committee meeting, Councillor Christine Scales, sponsor of the proposed Meadows TIF, summarized the work that has been going on in the neighborhood and made the case for a TIF, needed to entice a grocery store that is 'waiting in the wings'.  Here are her opening comments:

The TIF for Snobs Passed the Committee, the TIF for the Needy Failed

We are truly a morally bankrupt City when our elected officials give to the rich and keep from the poor.

While I will have more to say, this pretty much sums it all up.

Most Intelligent Comments of the Night

Norman Pace, representing the Warren Township Development Association and the Marion County Alliance of Neighborhood Associations, had the most intelligent comments during last night's Metropolitan & Economic Development committee's meeting on the Mid-North TIF.  Here is the WCTY video of Pace's statement:



See Children? Extortion Works !

How do you get the Council Ds to agree to three tax increases, and to funneling money to City coffers from sources never intended to prop up the City budget?  Why you do exactly what Mayor Vaughn did - you slash funding for essential services not controlled by Republican office holders.

Of course, some Ds don't care if we raise taxes and funnel money that is intended for other uses, and some Rs just might privately disapprove.  Not that their vote will count.  Not that your voice and opinion in these matters will be of interest when the legally required hearings are held for show.

Here's what the press release has to say about the deal:

– Indianapolis Mayor Greg Ballard today announced an agreement with City-County Council President Maggie Lewis and the leadership of both caucuses on the framework of a long-term budget plan for the City. Pending approval by the full City-County Council, the agreement will result in the restoration of approximately $32 million in funding to county offices and cut the proposed budget deficit for 2014 to only $6 million.

 

According to the agreement:

 

• The Mayor and Council agree to restore $32 million in County Option Income Tax (COIT) revenue to the County General Fund.

• The Mayor and Council are committed to reducing 2013 operational spending by 5%.  The Mayor and Council will meet with agency directors and elected officials for individual budget reviews with the goal of introducing fiscal ordinances reducing 2013 appropriations accordingly in February.

• The Capital Improvement Board (CIB) will pay the city $5 million for public safety in 2013. The money is currently budgeted for the cost of repairing the Capitol Commons Garage.  In exchange, the City, via the downtown TIF, will fund the cost of repairs.

• The Mayor and Council will approve increases of 2% and 4% respectively in the car rental and admission taxes, effective March 1, 2013.
• An amount equal to 100% of the revenue from the first year of the increase will be directed to public safety (approximately $6.7 million).
• After the first year and beyond, an amount equal to 25% of revenue from this action (up to $3 million per year) will be directed to the City for public safety.

• The Mayor and Council will form a bi-partisan commission to make a recommendation on the elimination of the Homestead Credit Subsidy as part of the 2014 budget. This action, if approved, would generate approximately $9 million in funding for the city.

• The Mayor and leadership of both Council caucuses will hold monthly financial meetings.

• The Mayor and Council will continue working toward the implementation of a Public Safety Foundation by the end of 2013.

These actions taken together will produce a $12 million annual increase in general fund revenue beginning in 2014, leave the City with a manageable $6 million gap between estimated spending versus revenues for 2014, and leave $42 million in operating reserves at the end of 2013.

 

Let's look at the details a bit.  The Council has agreed to raise the admissions tax and the car rental tax - both of which are being introduced tonight.  No sense voicing your opinion in these matters when they go to committee in mid-January.  The Councillors won't even be able to feign interest.  These tax increases were authorized by the State Legislature as part of the CIB bailout package.  However, the City is taking all of those revenues this year and 25% of all subsequent revenues from these increases in future years.  I will be interested in what legal maneuvering they use to launder the funds from the CIB to the City.  It would be a hoot if they use a PILOT.   Hope at least one Legislator is totally pissed at this turn of events.

The CIB is, through the looking glass, going to compensate the City for police and fire protection this year to the tune of $5 million.  In return, the City will use property tax revenues from the Downtown TIF to pay for the $5 million renovation that was going to be the responsibility of the CIB.  So, the Downtown TIF is really giving $5 million to the City.  Just as a reminder, that money is being kept from IPS, IndyGo, IMCPL, and Health & Hospitals.  Sorry children, travellers, readers and sick people.

But, on the bright side, the Mayor's office will start to talk with the Council leadership on a regular basis.  And, they agreed to study a tax increase in 2014 from the elimination of the Homestead Credit.  Surely the Council will stop thinking for itself and just present the Mayor with a rubber stamp instead of doing the people's work.  Surely they will not actually recommend the Homestead Credit continue in 2014.  Because if they don't eliminate it next year, Mayor Vaughn will just slash the County budgets again.

Yes Virginia, extortion works.

Council Meets Tonight

The City-County Council will hold its first meeting of the year tonight.  Hold on to your wallets.

The agenda is posted here.

Two Mayoral vetoes will be taken up last : Prop 362, which would allow RebuildIndy funds to be used for Police and Fire recruit classes, and Prop 372, which are the Democrat drawn Council district maps.

Next to last is the Council funding ordinance proposed by the Republicans, which does not contain money for legal action on Council district maps - Prop 450.  Curiously, Prop 447, which was proposed by the Democrats and did contain the additional funds, is nowhere to be found.  It was listed on the public notice for the Admin & Finance meeting, but is not mentioned in the minutes as having been considered.  It also has been omitted from the list of pending proposals. 

No action is to be taken tonight on the eviscerated budgets of the County Offices.

An appeal of an MDC decision on a zoning matter in Washington Township is set for hearing by the full Council.  Unfortunately the City's webpages that list zoning petitions has been cleansed of matters prior to December, so I cannot tell you what issues are involved except to say it involves a request to allow a 90 unit apartment complex to be built on 6 acres at 8845 Township Line Road.

Two new taxes are being proposed this month - Prop 23 would increase the event admissions tax from 6 to 10%, making your visits to the IRT and other entertainment that much more expensive. Prop 24 would increase the car rental tax from 4 to 6%. [edited to add: a recent article by IndyStar reporter, Jon Murray, says that the car rental tax would to from 15 to 17%]  These revenues would go to the CIB, which had enough spare change to send a gratuitous $5 million to the Pacers just last month and will send another $5 million this month.  But, should they pass you can enjoy your family time at sporting events, concerts and plays even more, knowing you are all that stands between the Simons and a soup line.  They are being assigned to the Admin & Finance committee which next meets on January 15.  These taxes must be approved before the end of February, or the authority to raise the taxes vanishes.