Some thoughts on the Stimulus Bond

When Congress approved the stimulus funding package this year, it included a local bond option.  These tax bond provisions of the American Recovery and Reinvestment Act of 2009, among other things, create new bond programs to fund capital projects.  The County Commissioners have already taken the first step – they have declared the entire County as a Recovery Zone.   Within the Zone, private companies may receive low-interest loans (based on the issuance of bonds) for capital expenses.  Monroe County has a maximum bond allocation of $15 Million.  While the county is not the guarantor of the bonds, they may issue them to induce low-interst loans from (local) banks.  The cost to create, process, and distribute bonds is very high.  When the Redevelopment Commission met last week, the assumption was made that a company would need to borrow at least $5 Million in order to make the bond issuance cost effective.   However, as I suggested at the meeting, this minimum loan amount means that this program is feasible only for major corporations & large companies.   This means that the small business entity and the small local farmer do not have access to low-interest loans courtesy of the ARRA.   Would it be possible to create a consortium of small business and agricultural interests in the County?  If a local bank would serve as the holder of the large loan amount, isn’t it possible that there are 50 small business / agricultural enterprises that need a $100,000 loan in order to purchase equipment, fixtures, land, a building or to refurbish a building?   I know this is a long-shot, and there are more questions than answers, but if it is possible to do this, the local economy would benefit greatly with more local people hired and jobs retained. 

Ironically, Print Pack could apply for a low-interest loan to utilize in their construction project.

When the Redevelopment Commission sets the priorities for loan recipients, I hope that they note their preference for a small-project consortium (agriculture and small businesses), green businesses, and projects which refurbish / reuse existing buildings vs. those which construct new buildings on green fields.

TIFs, Tax Abatements, and PrintPack

PrintPack has requested a tax abatement from the Council – really, from the taxpayers of Monroe County.   The property in question is on West Vernal Pike, west of Curry Pike.  Both the Chamber of Commerce and the Bloomington Economic Development Corp have suggested we approve it.   The first vote – taken over a week ago – showed most of the Council agreed (5-1 vote, with my vote as the sole ‘no’ vote).

The property in question is within the boundary lines of a TIF (tax incremental finance district).  This means that all property and personal (in this case equipment) taxes do not go to County General, they go to the TIF’s fund.   The money is used for improvements in infrastructure development.  In fact $900,000 was spent from this TIF’s fund to build a road and bring utilities and sewer service to the property PrintPack purchased for their building.

A tax abatement would allow the company to pay nothing in taxes in year one, and then gradually increase to 100% payment of  taxes within 10 years.  Again, any tax dollars paid in a TIF go to the TIF, not to the County’s General Fund.

Tax abatements – even outside of a  TIF – are problematic.  A company will claim that they will leave the area if they are not granted a (major) relief from their taxes.  Who are we competing against?  The threat may be real or imagined.  And why do we then blame the government if a company leaves?  Isn’t the company responsible for the decision?  A tax abatement is a legal form of extortion.

Why the ‘no’ vote?  Here are my top five reasons:

1. A tax abatement should not be made in a TIF.   This company has already requested the benefit of a road and sewer – and received a $900,000 benefit from you, the taxpayers.  A tax abatement is, in essence, a second bite of the apple.  And one is enough.

2. The PrintPack situation did not come to the attention of the Council until very late in the game.  The decision to tear up green space and build a new factory is presented to us as a “done deal”.   The possibility of refurbishing an existing building (there are so many vacant buildings on the west side!) has been dismissed.  In addition, there is an opportunity for PrintPack (or any other company in the County) to attain a low-interest loan as part of Federal Stimulus funding.  This could be used to refurb an existing facility – and would save them a great deal of money.   However, they want a new facility. As a result, their existing facility (within the city limits) will be abandoned and a green field will become another industrial lot.

3. PrintPack will employ the same number of people in the proposed facility as they do  in the existing facility, with the possibility of adding 4 or so additional  jobs.  Of the 151 employees, 53 live in Monroe County.   The abatement request totals $ 2.3 Million.  This is a very high price to pay for 53 county residents’ jobs. And the rest of the employees who reside in other counties?   This county’s residents will be paying for the jobs of other county residents.

4. Is it a coincidence that PrintPack is at the end of a 10-year tax abatement with the city?  This is an old trick utilized by Wal-Mart across the country – get a tax abatement in one entity, and when that runs out, move a mile or two away – into the next entity and another abatement.

5.  While PrintPack will pay nothing into County General, they will receive all of the services and benefits the County has to offer.  For example, law enforcement, fire, road maintenance, etc.  Let’s look at the fire department, for example.  PrintPack is a manufacturer of packaging, including products like bread bags.  Plastics are toxic – whether they are the air, water, or land.    Will the local fire station need to spend time training firefighters on dealing with plastics as hazardous materials?  Will they need to purchase new equipment?  The taxpayers of this County will pay for all of this.  Not PrintPack.

I think PrintPack pays their employees well and they provide benefits and bonuses.  This is great.  But while they have won a few awards for creating environmentally friendly products, let’s remember they are producing plastic products.

Last week, someone suggested that a ‘yes’ vote shows support for free enterprise.  There is no free enterprise in corporate welfare.

I am pro-business.  I own a business.  I support green businesses, small businesses and those which re-use existing buildings rather than building on green space.

This is another example of our shrinking available farmland being utilized for new industrial development.

We can do better.  We can do much better than this.

Long days at work…

Things are hectic at the Monroe County Courthouse!   At a special budget meeting held last night (3/31), the potential severity of a drop in County revenue was discussed.  From losing interest on County money (from 8% on investments to under 1% on investments), to the drop in fees collected by both the building and planning departments (new construction & home improvements are down) the County will be bringing in less money this year than was thought last summer (when the 2009 budget was set).   Nearly all of the predicted revenue shortfalls can be attributed to our depressed economy.

The department heads that were present at last night’s meeting were asked to meet in 2 teams to determine whether the budget cuts that will most certainly happen on this year’s appropriated spending will be decided by the Council, or will be based on suggestions from the departments working in teams.

I encouraged the departments where I serve as a liaison to be creative and to think boldly.  Of course the Council has the final decision.  But I would much rather have the departments decide the best way to save money rather than the Council.  The department heads know their side of County business.  While I have learned a great deal about County operations, I cannot claim to know best where and how department appropriations should be allocated and then spent.  I would, if it’s possible, much rather see the Council divide up appropriations by department (ensuring that the statutory [essential] functions of County government are done AND tying parts of department budgets to the revenues they collect).

With a watchful eye and with regular check-in with each department, the elected or hired departmental leadership would need to adjust their costs and spending as the year progresses.  They have the knowledge, experience, and understanding of the most vital aspects of their department and can make the best decisions about any cuts they may need to make.

Well, if being elected to the County Council were not enough, Cartridge World is now downtown!  Despite the fact that the crappy economy has hindered my ability to sublet my previous space (College Mall Road, in the Shoppes), I have a great deal more space here at the downtown.  I have always wanted to be downtown, as the merchant network here is fabulous.  Almost all of the businesses on and near the square are locally owned and operated, and the fact that the store is located within walking distance to many businesses and homes creates a very sustainable model for business operations.  Moving the store took a lot of people, time, energy, and patience.  I am incredibly grateful to everyone who has helped.  Getting the store set up was an even larger task (it seemed), and that process is on-going.  After working 23 consecutive hours on Sunday (in addition to the work and stress of moving) has left me exhausted.  Somewhere, deep down, I am thrilled to look out of the front window of the store and see one of the busiest thoroughfares in the city.

Stop by!  We’re at 114 S. College Ave – between 4th and 5th, 1/2 block south of the square.

And mark your calendars for our grand re-opening party on Earth Day (of course), Wednesday April 22.

Reflections on the Women’s History Month Lunch

What a beautiful gathering of women and girls (and their supporters) at the Convention Center yesterday!   I wish I could have chatted at length with everyone I saw there.  With many fleeting “hello”s and some wonderful (more in-depth) conversation with friends old and new, we enjoyed a lovely lunch together.  It is nothing short of awe-inspiring to see so many wonderful women in the audience.  Across the divide of race and class, we celebrated the strength of all women in our community.  Folks who work at our government offices, in the fields of medicine and education, women who love women, women with children, volunteers, activists, athletes, artists, etc.   What a powerful group!!   During the luncheon, we celebrated the woman of the year and we learned the story behind Rachel Carson (author of Silent Spring) – her life and what inspired her. 

For example, Carson believed that young children should be filled with the awe and wonder of nature at an early age – which will inspire curiosity and a thirst for scientific knowledge later in life.  This ties into Carson’s disdain for people who are afraid to ask questions because they wish to appear knowledgable.   I reflected on this idea yesterday, and thought about what that means in government and corporations today – from the federal to the local, from the multi-national to the corner store.  Our economic turmoil and the power-grab of former President Bush are evidence of the inability of the public and those in power to ask questions.  We lend authority to those who act as if they don’t need to ask questions, as if they know everything that matters.   I hope that our society will evolve and value the love of learning (which may come in the form of a question) in the corporate world and at every level of government. 

“Why?” 

“Why not?” 

I think Carson was right.  We should not be afraid to ask these “tough” questions – it is the basis of humility, growth, and creativity.

…and a Proposed Procedure

At the work session last Tuesday, the Council perused a new Procedure.  As part of Council responsibilities, we are charged with making some appointments to County Boards and Commissions (for example, the County Parks & Recration Board, the Board of Zoning Appeals, etc.).   Government needs to be democratic and continue to engage its citizens – they share in the responsibility, while the government gains from the experience, enthusiasm, and new ideas which citizen participants bring to the table.  Currently, we lack a procedure for making appointments to Boards / Commissions.  I saw a very different version of the procedure for such appointments at the Bloomington City Council.   I had applied (on-line, through a special web application) for an appointment to the Sustainability Commission  – they had just opened up two seats for County residents who don’t live in the city.   I was notified via e-mail that my application was received.  I was called to be interviewed, however I had to decline as the meetings of the Sustainability Commission occur on the same night as County Council meetings.

It was through this process, and finding out that someone had applied for an appointment the Council approved in February, but we had no procedure and their letter of interest was never brought to Councilors’ attention.  

The procedure is simple – we advertise all openings, gather letters of interest (hopefully, also on the web!), have 2 to 3 Councilors meet with applicants for interviews (the Council office will have to call and make these arrangements), the small group makes recommendations to the Council, and the Council makes a decision.  Simple and democratic.  I cannot wait to see what kind of citizen participation we will get in the future. 

Your thoughts?  Send them to councilorthomas@gmail.com.

A Proposed Resolution…

Yesterday, at the Monroe County Council Work Session, I brought forward two proposals. If I may, I would like to explain them here.

First, I am Chair of the Fleet Financing Subcommittee. The Subcommittee was formed a few years ago to look more closely at vehicle purchases in the County, with a focus on balancing fuel economy and utility. Last year, Councilor Sophia Travis was instrumental in pursuing a general resolution to ask all departments and employees to reduce their energy consumption in the next few years. The Fleet Financing Subcommittee, in the meantime, also took the initiative to create an inter-local agreement with the city to utilize their fueling stations rather than having all vehicles drive out to the airport for re-fueling (a waste of fuel and time!).

I’m back!

Thanks to FINALLY getting a new password, I am back to blogging.  

I have saved up a number of stories, but I will dole them out in bits (to avoid boredom and/or a 20-page blog entry)!

County Council met tonight for our monthly work session.  We were shown revenue projections which show that we will likely take in $1.2 million in revenue this year than was projected in 2008.   While cash reserves will likely keep the County afloat this year, we are looking at a dire situation (budget-wise) for next year. 

I have great hope that the economy will turn around soon.  In the meantime, County government will have to tighten the proverbial belt.  But we  have essential services for County residents that we must maintain.  How do we do it while treating County residents & employees fairly?  Michigan Governor Jennifer Granholm said it best – “Government should be lean, but not mean”.  Creativity will get us through this.  I would love to hear your ideas!  Send them to CouncilorThomas@gmail.com

I am moving Cartridge World downtown at the end of March.  It’s very exciting, but it’s sobering to imagine that ALL of the fixtures, goods, and machinery will be moved in one weekend!   Why the move downtown?  Altho the folks on the Eastside aren’t too happy, the store will be closer for Westside residents.  And, hopefully, I will help contribute to a sustainable environment downtown – where locals (residents and businesses) won’t feel like they have to get into the car to pick up ink or toner. 

More on the move soon!

Inauguration-part 2 (and other adventures)

Inauguration day was incredible.  A sea of people as far as the eye can see.  We got off the train at the Metro station nearest the silver gate and we stood on the platform for 20 minutes.  This was after a typically 20-minute ridge turned into an hour, due to the high volume of rail traffic.  Once we were on the platform, the crowds waiting to board the escalator were massive.  Once we were at the silver gate, we stood with the crowd waiting to get in.  And waiting, and waiting.  We moved only very slowly.  From And everyone of them happy to be there, happy to be waiting to see history unfold before them.  We met a lot of folks – everyone had a story about what they did to help the Democrats win in their area, etc.  We arrived at the gate before the sun rose, but we didn’t actually get through security until 10:45 or so.  

We were beginning to think that we would not be able to get in at all.   The rumor in the crowd was that there was as security breach into the ticketed area.  Finally, it was as if the flood gates opened.  We began to walk quickly, then were were in a run.  When were were allowed to proceed through security, we saw a row of tables and officers under a long narrow tent – we dispersed and went through the line.  The security check was minimal as we were eager to run toward the front of the silver area.   After a series of jostling / maneuvering /re-positioning, we ended up about 15 feet behind the reflecting pool.  We could see 2 jumbo-trons, and with the telephoto lens, we could make out the staging area, although we could not see anything in detail.

My impressions of the Inauguration ceremony will stay with me, indelibly etched in my memory.  The John Williams piece, the swearing in of Biden and then Obama, the speech (I had tears in my eyes) - everything that happened on the “stage”.   But I will also remember being there with Jane, the people, the overwhelming feeling of optimism (dare I say, hope), the sense of community, the crowd singing “Hey Hey Hey, Goodbye” to W.  It was 12 degrees, but I was glove-less and hat-less.  The crowd had a warming effect, as did the ceremony we witnessed.  During President Obama’s speech, the crowd (a million plus) was silent.  Even from our vantage of the relecting pool, the sound was out of sync with the video on the jumbo-tron.   But in his pauses between sentences, the video rolled behind us – echoing down the mall.   The enormity of the crowd was palpable at the Metro platform and waiting at the gate.  When the sound carried behind us and we turned to see the crowd, it was unbelievable.  Being one in a million (plus) people felt pretty good.   The largest crowd ever!  WOW!

Here is a link to the photo album from our trip:  http://picasaweb.google.com/lh/sredir?uname=DrJulieThomas&target=ALBUM&id=5296428930825060209&authkey=Nq1iy6V_IsU&feat=email

Onto more current events – it was a beautiful snow this week!  It was wonderful to have a “snow day”, to be sequestered to the home.  On Thursday, our neighbor helped push my car out of the driveway, then came back later in the day and plowed the driveway.   Thank you!!!  Today, with 50 degree temperatures, it is lovely to be outside to watch the waterfall of melted snow cascade off the roof.   I am looking forward to the warmer temps predicted for later in the week.  I can only hope spring will arrive early this year.  I am eager to see the first blooms on the blueberry bushes, heralding the breaking of spring.

The Council has a work session this Thursday at 5 pm in the Courthouse.  An effort is being made to ”broadcast” the audio from our meeting on the internet.   It’s great step forward.

Inauguration Adventure!

Let me begin by stating that I love WordPress (free blogging!), but sometimes you get what you pay for.  It has been very difficult to gain access to my account, thus the tardy entry.

I won’t write the entire Inauguration adventure story now, but I will tell the story in snippets.  I was one of four women from Bloomington who made the road trip to Washington D.C. for the Inuguration.  Honestly, with the pressures of work and my new job on the County Council, I had decided I would not travel to DC unless I was fortunate enough to receive tickets from Congressman Baron Hill’s office.  With the promise of two tickets, we rented a car and drove straight through to DC.  Fortunately, one member of our entourage has a very generous and kind friend – who opened her house to three strangers for three days!  

We left Bloomington at the very early hour of 4 am on Sunday.  On Monday, we arrived at the Rayburn Building to pick up our tickets.  We were greeted with a line that wrapped around the corner.  The crowd waiting in line was in a fabulous mood.  Although it was cold outside (and snow flurries were falling), we were standing in the shadow of the Capitol Building waiting to pick up the papers which would allow us to stand (sort of ) close to the proceedings on Tuesday.  We met folks from Mississippi, saw a TV anchor and camera operator from an Indianapolis statement, and swapped stories with others in line about how far we travelled, how thrilled we were, and how optimistic we are about our nation’s future.  Amazing.

Waiting for TIckets at Rayburn, January 19 2009

 

Preparations for the Inauguration, January 19

Once we picked up the tickets, we walked through the mall.  The crews were busy setting up the stage and seating for the Inauguration.  There were quite a few people wandering about as we were, but it was not terribly crowded.  We could see the length of the mall.  I imagined how full it would be the next day.  It is a lot of space to fill!  More on Inuguration day in a subsequent post.

In other news, I am contacting the County departments to which I am assigned as a liaison.  I look forward to meeting the various Department heads and to find out more about the department and the plans for the future.  I will also inquire about any concerns or issues they have.  The liaison relationship, as I have described in previous posts, is an important one.  I hope to foster a good working relationship with each department to which I am assigned.

Middle Way House New Wings and Other News

This community never ceases to amaze me.  In the midst of an economic downturn (tho we know it is much worse in other places outside of Bloomington), the community has dug deep – Middle Way House has met its financial goal.  The New Wings project WILL happen!  Actually, it’s already underway.  Just check out the great new building going up on South Washington.  The revitalization of the historic Coca-Cola bottling plant will continue as well.   Middle Way House (our highly-aclaimed domestic violence shelter and provider of rape crisis services) will move its operations from the big yellow house on Kirkwood and Madison.   New Wings will mean more shelter space, adequate office/administrative space, apartments, a kitchen incubator – for FoodWorks and for the community to utilize.  It is a great achievement – this community has a generosity that continues to inspire us all. 

After an interesting work session last Tuesday, the Council will meet on the 13thof January.  In addition to regular agenda items, the Council will be voting on the liaison posts each Council person will hold.   Council members serve as liaisons to multiple departments.  Throughout the year, the Council member keeps in touch withthe department head, and works with the department before the budget sessions of the summer months.  While this does not preclude other Councilors from contacting or working with other departments, it is a way to ensure that someone is in touch. 

It’s been a busy time back at work after vacation, and a case of strep throat does not help much. 

Congressman Hill has graciously provided me with two tickets to the Inauguration.  I am thrilled!   More details soon!