Rochester City Council was unanimous Tuesday in its decision to bring its portion of County Economic Development Income Tax revenues under its own control.
The council’s decision – via repeal of an earlier resolution – was announced to the Fulton County Council later that night by Mayor Ted Denton, who said city officials feel that after 25 years “it’s time to change the program a bit.”
The resolution, approved on Dec. 30, 1991, authorized the county to retain the city’s portion of CEDIT revenue and determine how those monies are allocated.
City officials’ choice to look into the resolution, as Denton pointed out, came on the heels of a county budget announcement in which more than $850,000 of CEDIT revenue would be used to fund various county departments in 2018.
That announcement came the same day county officials denied a request of $10,000 in CEDIT funds for the renovation of the former Baileys Hardware Building at 712-714 Main St.
“Twenty-five years ago, the game was entirely different. Those funds could only be used for economic development purposes,” Denton said. “There was legislation 6-7 years ago that said those funds could be used to help balance budgetary shortcomings. I know that the county has taken advantage of that … possibly to the tune of $857,000.”
Meeting in special session on Oct. 19, city council members noted Rochester and other incorporated towns have been left without a say in the use of CEDIT revenues.
“We want to participate in the use of those CEDIT funds again,” Denton told the county council. “It’s time we sit down and come up with a different agreement. Nobody leaves their money with the same broker for 25 years and doesn’t sit down and get some attention regarding it.”
Denton recommended various members of the county council and county commissioners meet with him to discuss how the city will continue funding its portion of Fulton Economic Development Corp., Fulton County Area Plan Commission and the sewer lift station project at Indiana 25 and Fourth Street, which created shovel-ready industrial land for development.
“The money that we have used for budgets was our own part of the CEDIT income – to the tune of about $500,000 a year that we had squirreled away.” said County Council President Jim Widman, who clarified that the city was not shortchanged of its portion of the funds. “And, what we funded with that does pertain to economic development.”
He went on to say that the county offices to be funded in 2018 with CEDIT funds are essential for economic development. Those offices include the recorder’s office, surveyor’s office and assessor’s office, as well as the drainage board, weights and measures, the soil and water conservation office, emergency management and the extension service.
“You wouldn’t have any economic development if you didn’t have those different offices,” he said.
“I have given this a lot of thought myself and have reached the same decision that you have,” he told Denton. “I think it is time to pull the rug out from underneath this whole agreement because there are just a lot of things that have changed … I’m sure as we get into the future negotiations, I think we’ll be looking at an agreement that will be calculated in a different way than what the old system was.”
Denton responded: “We welcome that. The sooner the better.”