Knowledge will forever govern ignorance; and a people who mean to be their own governors must arm themselves with the power which knowledge gives. James Madison
Please take a look at Muncie’s financials.
These two reports ran in January 2016 and February 2016. The latest report shows a debt increase of $10 million.
Muncie revenue received for the years 2011 to 2015. The revenue sources includes property taxes, federal taxes, state taxes, local taxes, fees, donations and grants.
Detailed Receipts 2011 to 2015
If you would like to look at the revenue streams the reports below give details. As you can see, property taxes have been on a decline since 2011. This should have been the first clue.
When revenue begins to decrease while debt increases it would be wise to consider the cost of debt and what it means. The first cost was public services which could only be fully funded with a tax increase. The second cost is economic development and it will only partially be funded with the recent tax increase.
You do need to consider the cost. If the debt can not be met, and there are no more taxes to increase what then? Fees? Fines? You don’t need to be in the dark when it comes to Local and State government finances any longer. In fact, it is imperative, for our future, to be well informed.
James Madison was a wise man giving wise advice which is still relevant today.
On Thursday the Muncie newspaper reported on the purchase of a property by Muncie Sanitary District. The District purchased the property for $395,000.
On Friday, the newspaper reported the property was appraised by unlicensed appraisers.
I would like to point out the quote from Mayor Tyler:
Mayor Dennis Tyler said Friday he wasn’t familiar with The Star Press report about the purchase of the flea market building in the 1700 block of East Main Street.
“All I know is that the city of Muncie and sanitary district have to get those levees recertified,” Tyler said. “It’s an expensive process they’re going through.”
In December 2014, the State of Indiana audited the District finding eight projects paying over the quoted prices. The lowest percentage was 22% and the highest was 822%. The total amount over the quoted prices was $300,763. Knowing an expensive process is in the making, perhaps Mayor Tyler needs to be more cognizant of how tax money is used. Read the rest of this entry »
There is no doubt in anyone’s mind Delaware County Economic Development is a hard area to follow. Both financial and in practice.
Today, Larry Riley, a regular columnist in the local newspaper lays it out for us. I’m not sure anyone could have done a better job at explaining. Nevertheless, here it is in all her glory. Enjoy.
TIF Districts, two job openings in Delaware County all rolled into one opinion column. Nice transition.
House Bill 1018
Introduced House Bill (H)
Authored by Rep. Robert Cherry.
Tax increment financing. Provides that if a redevelopment commission adopts a declaratory resolution or amendment after June 30, 2015, that establishes, renews, or expands an allocation provision or area, the base assessed value used to determine the amount of allocated tax proceeds for the redevelopment district must be increased each year so that the incremental assessed value is 50% of the incremental assessed value in the allocation area without the increase. Provides that for the allocation area in Marion County that is identified as the Consolidated Allocation Area, the expiration date for the allocation area is June 30, 2026, or the last date of any obligations that are outstanding on July 1, 2016, whichever is later.
You may be asking why the dislike of Tax Increment Financing. Used properly, it has the potential for economic impact. Unfortunately, too many Redevelopment Commissions have abused the funds. Read the rest of this entry »
“Are you feeling lucky, citizens? Well, are you?”
Making a play on words from Clint Eastwood’s famous movie, Larry Riley’s column continued with an outline of the debt the City of Muncie has accrued over the past few years. Read the rest of this entry »
But we need to acknowledge the extent to which we’re banking, literally, on the success of the development now that the city of Muncie is the primary financial investor in the project — to the tune of $30 million. Larry Riley – Muncie goes all-in on hotel Star Press
Riley’s column took me off guard because there was no warning. Certainly borrowing $30 million is newsworthy. Yet, the paper didn’t report on Muncie City Council’s vote. With the additional borrowing, the grand total of debt accrued since June 2013 has reached $55 million. I’m sure there is more, good luck in researching it, though.
An on-line commenter said it shouldn’t have been a shock. He had presented over the summer to City Council regarding the bond. I went to the City of Muncie’s website to review city council’s minutes. Unfortunately, the last minutes posted – June 2014. Muncie Redevelopment Commission minutes most current is 2010, too.
He went on to post the financing was a done deal, just taking longer than expected. And if the financing didn’t go through, the City of Muncie would own the hotel property. Initially we were told the private financing was a done deal. Ground was broken and no mention of the financing problems, no mention city would be the sole financer. How can we be assured of something proving to be unstable financing? We simply can’t. Read the rest of this entry »