Saturday morning rambling: Hello LOIT. Where you been, Big Spender?

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Predicted in 2011, came true in 2015

In record time, may be a first, the Muncie City Council passed Local Option Income tax citing the decrease in property taxes.  Despite Mayor Tyler’s belief there was enough money should the SAFER grant of $2.5 million/year not be awarded.  He was adamant…NO LOIT.

The grant was denied- now there isn’t enough to fund public safety.  Not enough to fund Economic Development Income Tax (EDIT), it appears. Yet, we were assured there was enough money with or without the grant.

The question is really, how did nine council members and one mayor not notice the decrease in property taxes for three years?  I mean, the council works on a budget yearly, the mayor reviews it.  So, let’s say they did see the decrease, but felt confident enough to rubber stamp every request be it from the mayor, department heads or the director of Muncie Redevelopment? (Both Gregory and Polk did question at times.)

Recently, Mayor Tyler said it wasn’t the council’s fault it was the property tax caps.  Yet, despite the obvious decrease, it never crossed their minds to say no?  It didn’t raise a red flag back in 2012? Why the sudden concern?  In a span of two weeks the city realized it couldn’t afford public safety, held a public hearing and voted yes to raise your income tax 43%.

Let’s pull out the old excuse…Property Tax Caps.  Yet, if caps are the reason, and the elected officials use as en excuse all the time, why do they spend like there are no caps in place?  Imagine the possibilites if there were no caps.  Nothing at all to reign in their spending.   Because the city passed the 2007 budget with increased property taxes and spending, they themselves ushered in the push for caps.  We seem to forget our 2006 pay 2007 tax bills.  But, I digress…

Why were they so quiet for so many years when the figures were staring them smack dab in the face?  Why didn’t the mayor and council inform the public?    Did the controller send out smoke signals to the mayor or the council?  Do we pay the council members a salary of $15,000 per year to withhold information that affects citizens?  Looks like.

Not only do we have an additional tax, we are currently racing to a total debt of $65 million.  And this only if we never borrow another penny.  So we have graced the citizens with additional taxes and additional debt.

It’s interesting to note, property taxes only bring in about 10-15% of the total revenue  (roughly).  Sadly, no one seemed the least bit concerned about the renewal of the SAFER grant and their lack of concern gave  the impression it was all under control.  After all, we’re building canals, buying properties, forgiving property taxes, expanding TIF districts.  We are so prosperous, we can’t even fund public safety without additional taxes.  The appearance of prosperity is all paid for with borrowed money.

Some watched with concern, wanting to believe Mayor Tyler’s promises. We followed the revenue, and best as possible, the expenditures and found the figures to be disconcerting.   As far back as 2011, it was predicted Tyler would move to pass LOIT and the council candidates would vote to approve.  This is simply how they have always operated.

Below you will find the financials of the city.  I would like you to specifically look at 2011 property tax draw and compare it to the 2012 tax draw.  Nary a word to the unsuspecting citizens who cast a vote to keep them in office.  You would think the council would feel some obligation to those who trusted these candidates enough to secure their seats.

To put it in perspective, the amount of property taxes received for the General fund only:

2011 – $17,380,388

2012 – $13,708,276

2013 – $14,739,837

2014 – $14,560,426

The total amount of revenue including grants, fees, local, State and Federal taxes etc. The City of Muncie received:

2011 – $90,393,089

2012- $124,112,776

2013 – $100,696,634

2014 – $101,147,218

Source: Indiana Transparency Portal Report Builder: Government Financial and Tax Reports

2016_Levy_Freeze_Reports (pdf)

Muncie debt 9-23-14

Unit Total Debt 3-8-15 Muncie

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