Some Marion council members balk at private meetings with financial consultants

In an email, Miller said his objection is over the fact the meetings were designed in a way to purposely avoid being public meetings.

“After considerable thought and conversations with people whose advice I trust, I cannot in good conscience participate in the closed meetings on Monday with Umbaugh & Associates and Ice Miller representatives,” Miller wrote in an email to city officials and council members. “While I agree that the format for the meetings meets the letter of the Open Door Law, I feel the meetings fall short of the intent and spirit of the Law.”

Miller and Henderson’s decisions to not attend came after the Chronicle-Tribune reported last week members of the council will meet in pairs with Umbaugh and Ice Miller in separate 90-minute private meetings from Nov. 6-9  to discuss the city’s tax increment financing districts, financial issues and the concerns both firms have regarding the city.

Umbaugh and Ice Miller will be paid for their time in Marion this week, though city officials did not say at what hourly rate it would be at. City Controller Julie Flores said last year a financial services firm like Umbaugh is paid anywhere between $135-$450 an hour.

Council President Jim Brunner said he organized the meetings to allow the council to ask the advisors questions about the city’s most pressing issues, something the council has expressed a desire to do. Originally, the meetings excluded Councilwoman Johnson and Henderson, but they were later invited.

While some council members are not going to the meetings, some will be attending.

Councilman Dave Homer, Brad Luzadder and Brunner said they will be attending the meetings because they have numerous questions they would like to ask. Council members Don Batchelor, Henry Smith and Deb Cain did not return messages asking whether or not they would be attending. Johnson said she is undecided and is in talks to try to make sure the meetings are recorded.

“I would like to have some expert information so we as a council people are making informative decisions,” Luzadder said.

The meetings come at a time where some on the council disagree with the city administration over possible excess tax increment finance revenue in the city’s Dollar General TIF district, concerns about other TIF districts and ways to raise more revenue for city services. It’s a disagreement that has continued now for months.

Mayor Jess Alumbaugh said Friday the meetings will be a chance for council members to receive information about TIFs outside of research done by Henderson and Johnson.

“It’s an opportunity for everyone to hear why we don’t agree [with Henderson and Johnson],” Alumbaugh said, adding that he wants to make public what is discussed, possibly presenting it at the Nov. 21st city council meeting.

Past TIF mistakes in base assessed values and other aspects of TIF, including allegations of fraud in disbursement of TIF revenue for the Old YMCA renovation project, have created skepticism about the city’s current TIF districts among some council members.

Alumbaugh said that mindset is possibly hindering future development and possible future TIF deals. Despite several past failed TIF deals that have added to Marion’s debt, Alumbaugh said TIF can be a good tool if done correctly, a notion that Umbaugh and other mayors in the state have told him.

“We are so scared of the past,” Alumbaugh said. “We can’t live in constant fear that TIF is an evil tool.”