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REGULAR MEETING
<br />FEBRUARY 13, 2017
<br />occurred in that River West development area, but really every part of the City has seen some
<br />kind of substantial investment.
<br />Mayor Buttigieg continued, This is a good place to comment on a statistic that is often cited,
<br />which is that forty percent (40 %) of the landmass of the City is in a TIF area. I just want to
<br />emphasize that that does not mean that forty percent (40 %) of the assessed value is in a TIF
<br />area —that number is considerably lower. Referencing the image shown before the Council and
<br />public, he stated, A lot of that landmass in the upper -left corner of the screen is the area around
<br />the airport, because, for example, all that land just in between the runways counts as landmass.
<br />But, as you can see, a considerable amount of the City is eligible for TIF spending because it
<br />falls into one (1) of our five (5) major TIF areas. I want to thank the Council for its attention to
<br />water funding and the challenge of making sure that we are balancing affordability with our
<br />obligation to provide clean and safe drinking water. I do want to stress that the team has
<br />identified $88,000,000 in capital investment needs over the next five (5) years. While there is a
<br />one (1) time transfer of $1,000,000 for the purpose of just keeping us sustainable this year, this is
<br />something that cannot be met without some look at revenue in the very near future. I wanted to
<br />offer some perspective on the comparative water rates, here in this community. We benefit from
<br />a highly competitive water rate. Referencing a displayed chart illustrating various water rates in
<br />the region, Mayor Buttigieg stated, The bar on the left— that's the unit cost: $7.95 is the average
<br />that you would expect among utilities in Indiana. The next column tells you what we are
<br />currently at: $221 for 1,000 gallons. The proposed increase that the department has asked for
<br />would move it to the column on the right, at $317 —still considerably below what most of our
<br />competitors are charging. I do want to acknowledge that even that would not be enough: it would
<br />fund about one -fifth (115) of the capital investment needs that the department has identified, but
<br />it would speak to the most urgent ones. Just to give you a sample, those include a new well that
<br />we need. If we don't have a new well soon, there is some concern that we will have to shut down
<br />the one we have at the north area —Well 1 -A. We sometimes get calls about discolored water.
<br />We could need a $110,000 investment to change out a filter in the north area and a pressure
<br />vessel where we are having issues with the filter medium. There is some interest in the tour we
<br />took of one of the Water Works facilities where you could also see the corrosion that is literally
<br />eating the ceiling of the building. That is happening partly because of the lack of a
<br />humidification unit. That is another example of one of these investments where, if we don't
<br />make it soon, we will be penny -wise and pound- foolish because we will be paying for major
<br />repairs. I know the Council is very conscious of the importance of doing something quickly. I
<br />wanted to mention that it is increasingly top -of -mind as this Administration tries to meet its
<br />obligation to provide clean, safe drinking water to everybody in the community.
<br />Mayor Buttigieg continued, Road funding is another hot issue. This is one for which I am
<br />actually pleased to say there is a good sign of hope in Indianapolis, and I don't often say that. We
<br />are concerned about —in a business -as -usual scenario — approaching a $3,400,000 shortfall in
<br />road funding. 2016 was the first year where the expenses have overtaken revenues, and we think
<br />that pattern is going to continue. Even in a relatively merciful winter so far, from a snow
<br />perspective, this is a real concern. The good news is that the State is actually contemplating
<br />doing something to enhance revenue for road funding, so I would urge anybody who cares about
<br />the quality of our roads to encourage State legislators to back a plan that would give us
<br />meaningful road funding into the MVH, the Motor Vehicle & Highway funds. Speaking of
<br />revenue, I know the Council made a decision that may not have been easy to adjust rates for
<br />solid waste. I just wanted to let you know what the results of that decision have been. Now,
<br />sixty -two percent (62 %) of our fleet is converted to containerized natural gas that saves taxpayer
<br />money over the long run, and it makes us a cleaner and greener City. We have our new yard
<br />waste program up and running. Perhaps the thing that I am most pleased with is when you look
<br />at that 311 data, you see a lot fewer calls about trash misses. We got that down by thirty -nine
<br />percent (39 %), and part of that is by being able to better manage the assets we have because we
<br />have adequate revenue. We are also becoming a lot more efficient on account of those extra yard
<br />item pickups. So, if you look again at those revenue expense charts, you will see that, thanks to
<br />the authorization from the Council, we have been able to get that blue bar back up. We are still
<br />replenishing reserves that went dangerously low, so that will be the use in the near -term for any
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