Councilman Lindsey Introduces Resolution to Handcuff the Redevelopment Commission’s Ability to Borrow Money

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City Councilman Al Lindsey

ORDINANCE – G-2012-13 SPONSOR: LINDSEY
COMMITTEE: ASD

AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY
OF EVANSVILLE, INDIANA, AMENDING CHAPTER 2.50
ADDING SECTION 2.50.041 OF THE EVANSVILLE CITY CODE

WHEREAS, the City of Evansville, Indiana, has previously established the Evansville Redevelopment Commission; and

WHEREAS, the Common Council of the City of Evansville, as the fiscal and legislative body of the City wishes to affirm its role of fiscal oversight while assisting the Evansville Redevelopment Commission in continuing its redevelopment efforts,

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Evansville, Indiana, that:

SECTION 1.

Chapter 2.50 of the Evansville Municipal Code shall be amended to add the following Section:

“Section 2.50.041 Redevelopment Commission

A. The following definitions apply throughout this section.

1) “Affiliate” means any person, board, body or entity subject in any manner to the direct or indirect influence, control, appointment or direction of the Redevelopment Commission.

2) “Obligation” means any bond, note, warrant, lease, synthetic lease, agreement, swap, derivative, hedge, installment purchase contract, grant, either directly or through a third party or other structure or instrument under which money is borrowed, or revenue is leveraged.

3) “Public Funds” means all fees, payments, tax receipts and funds of whatever kind of character coming into the possession of the Redevelopment Commission.

B. The Redevelopment Commission may not enter into any obligation, directly or in combination with or through any affiliate, payable from public funds, secured by public funds or guaranteed by public funds without first obtaining the approval, by Ordinance or Resolution, of the Common Council of the City of Evansville.
C. The Redevelopment Commission may not enter into an obligation payable from public funds, unless the Redevelopment Commission first obtains the approval of the Common Council of the City of Evansville as provided in subsection B. The approving Ordinance or Resolution of the Common Council of the City of Evansville must include the following:

1) The maximum amount of the obligation.

2) The maximum interest rate or rates, any provisions for redemption before maturity, and any provisions for the payment of capitalized interest associated with the obligation.”

SECTION 2. The sections, paragraphs, sentences, clauses and phrases of this Ordinance are separable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional, invalid or unenforceable by the valid judgment or decree of a court of competent jurisdiction, and such unconstitutionality, invalidity or unenforceability shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance.

SECTION 3. In construing or interpreting this Ordinance, the construction or interpretation that resolves any doubts, ambiguities or conflicts shall be applied and adopted which resolves all questions of application, authority or oversight in favor of the Common Council of the City of Evansville and preserves or extends the Council’s authority.

SECTION 4. This Ordinance shall be effective after its passage by the Common Council, signature of the Mayor, and such publication as is required by law.

RELATED ARTICLESMORE FROM AUTHOR

20 COMMENTS

  1. Excellent Resolution Mr. Lindsey. You have certainly been an unexpected surprise with your recent common sense and taxpayer first votes on the City Council. Keep up the good work.

  2. Thank you mr. Lindsey for all the work and services you have done for the community , I’m in the 6th ward and you have done more for the city then that last 6 th ward guy I think his name was bj mosby

    • I’m thinking more like 6-3 up we know that the stooges will not vote for more control unless someone tells them they have to vote that way, I see the council president being against it for similar reasons….either way it’s a much needed step in the proper direction and Mr Lindsey should be commended for introducing it, as they say no guts no glory!

      JMHO

  6. Outstanding political move AL. My kin folk live in 6th Ward and they told me the other day how pleased thet are with you as their Councilman

    This resolution is “Good Public Policy” at it’s best.

  7. This all sounds well and good, but the fact of the matter is that the majority of the debt that the Evansville Redevelopment Commission has run up has been approved by a vote of the City Council.

    So, if there had been any political will to “hold the line” fiscally on items coming before the city council, they could have done so.

    I am not one to look a gift-horse in the mouth though, so let me be among the first to applaud Councilman Lindsey and the other members of the council who have recently shown an interest in the city’s spending and the ability of the local tax base to service that debt and keep their own head above water at the same time.

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  8. MOODY’S ASSIGNS A1 RATING TO CITY OF EVANSVILLE’S (IN) $28.8 MILLION SEWAGE WORKS REVENUE BONDS, SERIES 2010
    Posted on: November 12, 2010, 4:03 pm

    NEW YORK, Nov 12, 2010 — Moody’s Investors Service has assigned an A1 rating to the City of Evansville’s (IN) $28.8 million Sewage Works Revenue Bonds, Series 2010. Concurrently, Moody’s has affirmed the A1 rating of the city’s $60.5 million outstanding rated debt, including the current offering…

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    City indebtedness as it stood on 2-18-2010:

    http://www.oldcars55.com/63010DebtReportingFormCityofEvansville8230102.pdf

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    MOODY’S AFFIRMS A1 RATING FOR CITY OF EVANSVILLE (IN) SEWER ENTERPRISE REVENUE BONDS
    Posted on: June 11, 2010, 5:10 pm

    NEW YORK, Jun 11, 2010 — Moody’s Investors Service has affirmed the A1 rating of the City of Evansville’s (IN) Sewer Enterprise Revenue Bonds, affecting $33 million in outstanding debt. The bonds are secured by a first lien on net revenues of the wastewater system. The affirmation reflects the enterprise’s consistent financial position with adequate debt service coverage and the expectation that operations will remain healthy despite additional expected debt issuance…

  9. Line 4 of this document:

    http://www.oldcars55.com/63010DebtReportingFormCityofEvansville8230102.pdf

    is truly puzzling. The city paid Three Amigos LLC $5.million for a building that had a very low occupancy rate at the time and major maintenance issues. The taxpayers probably got to pay for the building’s demolition also, I can not remember of the top of my head. That is the property where Vectren then built there new office building. Again, off the top of my head I can not remember the incentive package the city offered Vectren at the time but I am sure it was significant.

    That original $5.million in city debt occurred in 2002. Eight years later, 2010, only $500,000. had been paid by the city on that debt.

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    • Riverside One was originally built as the first phase of a seven part project…. was not designed as a stand alone building and it did not… after multiply bankruptcies and many years of serving as the millstone around the neck of downtown the City acquired it, took it down and sold the property to Vectren… at the last minute Vectren offered to throw in what became the North Side Soccer Complex named after a Vectren Officer …. we may not be good be we are sure consistent ……..

    • Taken down by Editor because information was not only incorrect but personal.

  10. I post this stuff to give some idea of how broad the debt issue is in the City of Evansville and to encourage members of the City Council to always look at the total picture of the city’s indebtedness when a vote comes up in council on another bond or other debt issue.

    The economy is not static and never will be, which, as we have seen, can cause well intentioned formulas for projected revenue to widely miss their mark. When that happens, it is the worst type of leadership that continues to spend like there is no tomorrow.

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  12. Way to go Councilman Lindsey. 6th Ward should be proud to finally have someone on the council to represent them and think of the citizens before politics. Too bad there are other wards (2nd) that do NOT have that kind of representation. Keep up the good work. I, being a 6th Ward voter, am very happy with my vote!

  13. Chicago Tribune

    Chicago Public Schools bond rating is lowered, raising costs for troubled school district
    Proposed budget and reserve fund depletion leads Moody’s to act
    July 10, 2012|By Noreen S. Ahmed-Ullah, Chicago Tribune reporter

    Moody’s Investors Serviceon Tuesday downgraded Chicago Public Schools’bond rating after the cash-strapped district proposed a budget that would deplete its financial reserves.

    Moody’s lowered its outlook for the district from stable to negative, citing its $5.9 billion in general obligation bond debt. The agency’s lowered rating means it will cost more for the CPS to issue bonds.

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