From the Richmond Palladium-Item:
City officials appear headed for a showdown on the question of the city administration’s use of the Economic Development Income Tax (EDIT).
Richmond Common Councilwoman Misty Hollis on Monday voted to slow an ordinance that would have allowed the city to apply for a $2 million federal highway grant to rebuild a section of South E Street in the city.
The immediate issue is the city’s plan to use EDIT money for a local match for the grant. The grant match is $511,500. The bigger issue is the city’s use of EDIT money for grant matches, road work, building demolition and consulting.
Hollis voted to delay the grant ordinance, despite the fact that the city has applied for the grant.
“I just can’t justify using money for a project like this when it really doesn’t have anything to do with job creation or job retention,” she said. “We tell the taxpayers that we will spend their tax dollars wisely and is using EDIT dollars for street work in a neighborhood, is that really economic development?”
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But Mayor Sally Hutton, who oversees the use of the city’s share of EDIT funds, said the Indiana legislature recently broadened the categories for EDIT expenditures, adding infrastructure and community development projects.
“This is an infrastructure improvement project, a quality-of-life issue and a safety issue,” Hutton said. “This is one of our main roads in the city. We have the opportunity to get $2 million in federal money that could go someplace else.
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The city’s EDIT fund totaled $1.046 million totaled at the end of 2011. It is projected to have about $800,000 by the end of this year. The half-million to be used for the South E Street reconstruction match would be spread over four years.
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Read the full story here:
http://www.pal-item.com/article/20120607/NEWS01/120607009/Richmond-leaders-debate-how-best-use-EDIT-tax?odyssey=tab|topnews|text|FRONTPAGE
