Happy Easter to everyone!!! It has taken me awhile to get back and I am sorry for the delay. I, along with other council members have been given a lot of information to digest. The main concern that I and some other members have is that we have not been given all the necessary information concerning the raise in the sewer rate that the administration is asking for.

1. If we now have delinquent sewer bills, how many more customers will become delinquent with a sewer rate increase ? One of the problems the sewer board and bond council has raised is the amount of revenue that is brought into the sewer dept. With the economy in poor shape and people working for less or not at all, this will create an additional burden for some who may not be able to handle the additional burden. It stands to reason if the economy grows, so will the stream of revenue. 

2. If E.M.C. is going to lower the cost of their contract, why couldn't we use that money for the additional projects? Why wasn't the contract reduction explored sooner than wait till now? 

3. The bond council at a recent meeting used a pie chart to show where the money for the sewer dept. was going. In that chart, it showed that the City of New Albany"s Debt service was several percentage points higher than the national average,( Well over 10%). It also showed the  percentage  that we were overpaying for debt service was the same amount that we were underpaying for project work. One could come to the conclusion we are paying too much for the attorneys and the bound councils to keep borrowing monies that we don't need. If we don't borrow money, the attorney's for the city and the bond councils DO NOT make money. WE CAN pay for the needed improvements ourselves without borrowing money, therefore reducing our debt, therefore reducing rate increases.

4. How much of the loan is new money and how much is going to refinancing? While it is true that we will be lowering the percentage of the interest on our current debt, will this offset the charges and the percentages that our attorneys and the bound council will be paid to structure the refinancing? This question was asked by Jeff Gahan,  but was answered with double talk. No real figures were ever given.

5. I talked Friday with a gentleman who is currently working with one of the largest banks in the country. He is  very aware of what is going on in New Albany and is considered by many in the Louisville metropolitan area as one of the premier financial monetary advisors not only locally but nationally. According to him, from what he has learned, New Albany is not in default of their bond payments, and not at risk of having these bonds called in. These are the typical scare tactics that politicians and attorneys use to justify their positions.

6. Recently,  the Tribune, along with other members of our community, (the progressives). were calling on the council to raise the rate that was being proposed for at that time, 70%. Some of the council members wanted more information and after getting this information, felt that a rate increase of that size was not justified. Later, a proposed rate increase of 35% followed by a 19% increase followed by 4 years of additional 3 % increases approved by 1 council member. I then received a call from our Mayor and we worked on an alternate plan that brought the increases down to 19% followed by a 16% increase. I felt that it was possible to work further and maybe we could find more reductions. The point being is, with all the numbers floating around and the fact after working with these numbers we were able to reduce the proposed increase substantially in a short time. It is irresponsible for the local paper and these groups to try and pressure the council and or the administration to make a hasty decision that has an impact of this magnitude on our community. 

7. Mr. Gonder proposed a 3 dollar fee to be added to our sewer bill. After careful consideration, he was able to calculate the amount of money needed to generate to cover the cost to update and complete the desired projects that were being proposed. A flat $3 dollar fee per month seemed like a better proposal than we had received to date. While there were council members that felt that his idea merited consideration, (myself included), no one from the sewer board or bond council seemed interested in his proposal. This idea would save the ratepayers millions of dollars.

8. The fact that the E.P.A. is not mandating this work to be done at this time, along with the proposed fact by the engineers that we have accomplished reducing sso's by over 90%, then it is possible that we can accomplish our objective without borrowing the money that is being asked of us by a group of attorney's that stand to gain the most. We need to take care of our City's problems of fixing our lines and lift stations  instead of building new or updating lines to the county that benefits the developers at the cost of the current rate payers.

SPECIAL NOTE

We will have another Town Hall Meeting  6 p.m. to discuss concerns from our residents and a presentation  with Paul Haub and others to discuss the crime problems facing our city. Everyone with questions or concerns is invited to attend. For information, call Dan @ 502-797-8347 (cell) or home @ 949-1262.  Thank you and God Bless! 

Sorry, I put the wrong date. The correct date is Wednesday the 7th at 6p.m. 

Time for the TRUTH

Sorry I'm late for my weekly posting. Last week was hectic as some of you know. We had to deal with a sewer rate increase proposal.

I was contacted late last week with a proposal concerning a sewer rate increase that I felt was fair.  However, I then read in the paper that the administration is still pushing the $12+million parking garage. How can one justify to the taxpayers in our community that we need to increase taxes and rates when they're proposing to build another project under the guise of "economic development" when it is a giveaway of taxpayers money to a group of developers. It is time to use our tax money, whether it be EDIT, TIF, CDBG or any other revenue to benefit the community as a whole. Mr. Baylor told a councilman that he has "skin in this game",  referring to downtown. We, meaning our whole community, all have " skin in this game". We care about the city as a whole, not just a small area.Why do these few people believe the city as a whole must suffer for their greed? What and how many quality jobs will this investment produce.

I was appalled at the way the city's, (our)  property was advertised, ( the property that is to be developed) so that there would not be other qualified bidders to bid. I was contacted this Sunday, March 21st, by another group of developers that were also interested in this same property. If you are going to sell City property that is valued at over 1 million dollars in a prime location, please be wise enough to use other advertisements than just the Tribune. The internet is free and reaches millions of people. I use it for my business and reach prospective buyers throughout the country. I also find it amazing that a prime piece of property in a prime location is not worth as much as the Hoosier Panel site or equal to the Coyle site, ( of which the city has plans to buy).Seems like there maybe some favoritism involved.

One should look at the comprehensive plan that was recently passed for downtown. In this plan there was a passage that allowed the city to take 1/2 of the parking lot from the V.F.W. on Market Street It also stated that in the plan to remove the tank. No one from the V.F.W. was informed about this plan and how they might feel. It was also stated that where the city was to take 1/2 of the V.F.W. parking lot, the city would use that portion to build " Brown Stones", a certain type of housing that Mr. Rosenbarger is fond of. ( It must be noted that Mr. Rosanberger is a key part of the administration). When the members of the V.F.W. found out what was in the plan, those people responsible for putting this plan together were irate. While they should have apologized to the V.F.W. members  seeing how these are the people that suffered and died to keep our country free. Instead, they were irate that the members found out about their plan and wanted to know who told them. The people from the V.F.W. earned the right to keep their property as they see fit. Who are these cowards who hide behind the guise of government to try to deprive our veterans of their rights? Why would any elected official allow such people to stay in their appointed position?

Hello. I'm sorry it has taken me until Sunday night to get back with you.

I'll start out by saying I am sorry for not allowing any more comments. To those that have legitimate ideas and questions, call me at 949-1262, (my home phone) and I'll get them published. For those that want to spew their misinformation, sorry but the I don't have the time to waste. 

If you read in the Tribune the articles that the managing editor wrote, I want to give you the facts. As always, I hope the people will research what I and others tell them.

1. Not only can the City use EDIT money on sewers, we already do. $870,000 / year was earmarked back in 2002 for the life of the bonds.

2. We all ready pay the City Attorney $150,000 per year. The Sewer board attorney $25,000

per year plus an hourly rate. The City Council is a part-time position. Therefore it makes no sense to hire a full time Council Attorney.

3. You can contract out the grant services. Why pay someone a full time salary, with benefits when you have grant writers that do this same service for a percentage of the grant. All this administration has done is hire or try to hire more administrative people ( their friends) while the Police, Fire and Street Departments are asked to cut back. 

DID YOU KNOW?

Two appointed people in the administration account for over $250,000.00 It's time to roll back some salaries!

Jeff. You asked for information regarding TIF. Here goes.

Basic overview of Tax Increment Financing. In general, TIF provides for the temporary allocation to redevelopement districts of increased tax proceeds ( known as " increment) in an allocation area generated by increase in assessed value. Thus, TIF permits cities and towns to use increased tax revenues stimulated by redevelopment to pay for the capital improvements to induce the redevelopment.

Basic Theory of TIF:                                                                                                                                      1. Freeze property assessments at a pre-development level in a designated area. (Allocation area)                                                                                                                                                                 2. Issue municipal bonds to finance portion of redevelopment.                                                               3. As property values (and assessments) in an area increase, use increment in tax revenues to meet the debt service on issued bonds.                                                                                                       4. All public bodies benefiting from the redevelopment share the costs of public improvements associated with the redevelopment. When the redevelopment costs have been paid, the TAX ALLOCATION IS DISCONTINUED and all public bodies enjoy the benefits of increased property tax values.

Here is another way of describing TIF.

Tax Increment Financing (TIF) is an area with designated boundaries drawn on a map, ( can be city or county) and labeled as a TIF area. The taxes in the TIF  area are frozen at the time that TIF area is approved. The current property taxes continue to go into the City General Fund, and other entities such as the Library, School, County Government and others.  As new development comes to the TIF  area, those new taxes collected are used to finance improvements of infrastructure in that particular TIF area, or is also known as a TIF district. This is a way that one can use new tax money to improve an area and entice businesses to locate in that area. While this is a tool to help a community to fix an area of the infrastructure problems, this process is harmful when it is misused. The City of New Albany now has 10 such districts. The designation Of the TIF is to be removed when the work for the infrastructure is completed and the bonds are paid off. This would be a boon to the local Taxing District, except in the case of New Albany, they never pay the bonds off. Instead they keep borrowing more money. So while they are increasing the tax base, it is not helping the homeowners and taxpayers of our community. In my next article, I will post a copy of one TIF district to show how that money is used to benefit certain people or business at the expense of the taxpayer. 

In the future, I will also post pictures of how our tax money is being used to benefit a few while others are left to suffer. I hope this helps to answer your question Jeff. Again, feel free to call me.

                                                                                Thank You and may God Bless!                                                                                                                    Dan Coffey 1st District Council                                                                                                                     949-1262

 

Cause for Concern: Can They Really Justify a Sewer Rate Increase?

After reading this, you will understand why I, along with fellow council members, have cause for concern.  How can this administration justify a sewer rate increase or raising any taxes?  You will understand why I, along with Mr. Gahan, Mr. McGloughin, and the police and fire unions are pushing for this forensic audit.

I've made it simple for you to access the audit report.  Just click on the link below.  

Sincerest Thanks,

Dan J. Coffey

Councilman, First District

Working to keep you informed.

ANNUAL FINANCIAL REPORT 2008 CITY OF NEW ALBANY FLOYD COUNTY, INDIANA