Mayor: Terre Haute must invest in itself to keep growing

“We cannot let ourselves be held back because people do not want to invest in our community,” he said Wednesday at a Chamber of Commerce breakfast. “Quality of life initiatives are what we need to stay focused on in order for our community to grow.”

Bennett used his annual “City Update” to the local business community to support a local public safety income tax before the Vigo County Council, as well as state legislation for a food and beverage tax and a casino in Terre Haute. 

A casino’s 750 positions and another 500 indirect jobs would be “a big hit” for the local economy, he said. He suggested a casino, if approved, would likely be built on the city’s east side.

The mayor noted the county’s current income tax rate of 1.25 percent is below the state average, which he said is 2.25 percent. 

However, the average rate is actually 1.52 percent, according to the Indiana University Public Policy Institute. An additional public safety tax would fund a new Vigo County Jail, help the city finance a new police station and enable the city and county to pay for 911 services without relying on property taxes. 

The city of Terre Haute cannot adopt is own local income tax. Under the state taxing structure, because Vigo County has a County Adjusted Gross Income Tax, only the County Council can impose any new local income taxes. 

Such a set-up for an urban county is rare, according to Larry DeBoer, an economist at Purdue University; in most urban counties, city councils — rather than county councils — hold the power to adopt local option income taxes. 

The Vigo County Council chose the adjusted gross income tax option in 2003. Days later, the Terre Haute City Council declined to replace it with the more common urban tax format.

A food and beverage tax would fund renovation and expansion of Hulman Center, including the addition of a convention center. Bennett said the city must now turn away convention business because it does not have adequate facilities.

Recapping 2016, the mayor took note not only of several student housing projects begun or announced during the year, but also the construction of 23 single family homes at 29th and Hulman streets.

The city also completed a $135 million wastewater treatment plant project and began the first south side redevelopment project in 12 years to bring new streets, sidewalks, curbs and storm drains to the 13th and Hulman Street neighborhood.

He said the city’s year-end general fund deficit is now projected at $8.2 million, a $700,000 improvement over 2015. Total cash balances were at $35.9 million, a $15.5 million increase. 

Crime declined to a 23-year low, the city’s fire insurance rating improved, and Bennett participated in 50 ribbon cuttings, he said. 

“It’s pretty amazing,” he said of the number of new businesses that opened in Terre Haute -- a record for his nine years as mayor. He called small businesses “the backbone of the community.”

For 2017, Bennett projected a further reduction in the general fund deficit of $1 million but cited incorrect assessment of commercial property and “pockets of residential areas” as well as a possible business personal property tax break 

City infrastructure projects during the coming year will include:

-- An additional $43 million in sewer improvements;

-- The $700,000 reconstruction of Seventh Street between Poplar and Washington;

-- Installation of left turn lanes and a tree-lined boulevard on First Street between Spruce and Farrington;

-- And reconfiguration of the intersection of First Street, Hulman Street and Prairieton Road.

Bennett said he would welcome passage of a proposed state motor fuel tax increase since it would allow the city to do more street improvements.

The mayor said potential dark clouds on the financial horizon include a continued decline in the city’s assessed valuation, incorrect assessments of commercial and some residential properties, and possible elimination at the state level of business personal property taxes.

While recognizing that his business audience might appreciate the tax break, the mayor said such a move “would be devastating,” costing the city about $5.5 million per year at a time when its finances are improving.