Wednesday, April 11, 2012

Fort Wayne Council Debates Use of State Windfall


From the Fort Wayne News Sentinel:

Fort Wayne City Council members seemed eager Tuesday to spend an $8 million-plus windfall resulting from a state accounting blunder that shorted local governments by a total of $206 million in taxes this year and in 2011.

A majority of council members voiced support for putting the money toward street work, parks, police equipment and other needs that went underfunded because of a lean tax revenues and a flat city budget.

“It does appear $8.5 million, if that number is correct, would relieve some pressure on our city budget,” said Councilman Geoff Paddock, D-5th.

When the error is corrected, Allen County will receive about $15 million in local income taxes that were never distributed by the state, with about $8.5 million going to the city. The money includes county option income taxes and community economic-development income taxes.

While Councilman Glynn Hines, D-6th, called for a public hearing to get input on how to use the windfall, most council members didn't lack for ideas. Council President Tom Smith, R-1st, said the city should put $1 million into each council district for neighborhood improvements.

Councilman Mitch Harper, R-4th, noted that the city has fallen behind on $55 million worth of concrete street repairs, and Councilman John Shoaff, D-at large, suggested using some of the money to catch up on removing trees killed by the emerald ash borer.

http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120411/NEWS/120419951