Carmel Mayor James Brainard wanted to raid a number of city funds to bail out the city's general fund, which got drained before year's end when revenues failed to match budget estimates. Without an infusion of cash, the City would not be able to meet payroll or bond payments due before year's end. Three outgoing council members said no, blocking Brainard's Plan A.
Brainard rolled out Plan B, which reluctant council members are now prepared to support. The City's general fund will borrow $5.4 million from the Carmel Redevelopment Commission, which gets property tax revenues from Carmel's TIF district to finance the generous crony capitalism Mayor Brainard rewards to his campaign contributors.
According to an Indianapolis Star report, the CRC will have just $800,000 in reserves after loaning the money to bail out the city's general fund. The City will be required to repay the interest-free loan within 60 days. Mayor Brainard isn't sweating it. He says the City still has $8 million in its rainy day fund, a reserve bond issuers expect the city to maintain in order to retain a good credit rating. Brainard blames disgruntled, outgoing council members defeated in this year's election for painting as bleak.
8 comments:
Barnes & Thornburg to the rescue!
Proved in Carmel, IN, as in Indianapolis, IN, by RINO Republican mayors: the continued existence of City Councils, in the contemporary age, is completely obsolete and serves "the people" in no effective or meaningful way.
Why does just about any city or town have a City Council anymore? Why must taxpayers continue to write paychecks for pretty much nothing?
Interesting king Brainard blamed overestimated property tax projections for most of the shortfall, but the CRC which is funded by property taxes (via tif districts) has enough cash to bail out the city? He also blamed the shortfall on his own water and sewer utilities missing a $1.2M PILOT payment. Sounds like water and sewer rates need to go up to pay for more Paladiums and roundabouts.
Good pickup there Anon 10:00 on the bail out source & Tax Incre-mental Fascism...
The first of many Carmel train wrecks coming down the line, I fear. Property owners will have to pay for the excesses, and it won't be the powerful and mighty. This is Indiana. That's not how we do things here.
Anon 8:12pm. I actually agree with Rick Sharp and the other two who switched votes. No risk to the city and all the risk to the crony TIF.
Low information voters in Carmel think this solved the problem. Do you think Brainerd will reduce 2016 spending by $5.8 million to pay this back? LOL
Hardly John. The bobble heads of 2016 will forgive this "loan".
Post a Comment