Mayor: City needs funding

Mayor Ron Oler has an expensive project list.

His necessary items include replacing Fire Station 1, a new building at the police garage, new buildings and bandshell for Glen Miller Park, replacing the Richmond Municipal Building roof, and rebuilding the corridor from Interstate 70 to U.S. 40 along U.S. 35, Williamsburg Pike and North West and South West Fifth Street.

The problem, of course, is that there’s no money to get them done.

When the 2025 budget ordinance and salary ordinances were presented to Richmond Common Council for first reading Sept. 3, Oler spoke about the city’s need to replace funding lost because of property tax caps, and he essentially challenged council members to work with Wayne County Council to find new funding.

Other communities have implemented new taxes, such as the food and beverage tax, wheel tax or public safety tax, Oler said, but that has not been done in Richmond or Wayne County. 

He said that “it’s up to county and city councils to decide whether or not those are needed to restore essential services in our community to where it was before the tax caps, along with any quality of life activities such as improved parks, sidewalks and more blight elimination.”

In addition, Oler noted that he regularly meets with Jeff Plasterer, president of the Wayne County Board of Commissioners, and “recommend[s] city councilors develop the same practice with their fellow county councilors to share ideas for how to find new funds for first responders and other essential services.”

Oler said that before the cap Richmond averaged 1.57% property taxes on owner-occupied properties, but Hoosiers voted in the 1% cap that immediately cost the city $3 million. That loss for 2025 is expected to be $10 million, bringing the city’s total cap loss to about $100 million.

“Voters chose for Richmond and similar cities to receive less money each year to fight blight, less money for parks, less money for improved roads and streets and less money to support first responders,” Oler said.

Hoosier voters approved adding property tax caps to the Indiana state constitution in the 2010 general election with 72% indicating support for the measure. Then governor Mitch Daniels and many in the state legislature believed the change would increase household income, create jobs and relieve some burdens for working families. Opponents at the time argued that the change would harm communities having difficulty funding basic services and would remove critical funding from schools, first responders and government bodies.

Oler cited Carmel as a city that has taken on debt to solve its financial issues, while later mentioning the taxes that could be enacted. Oler said that he’s learned about deferred maintenance that has led to issues with buildings that become more costly each year, such as patching the city building’s roof.

Oler said a new fire station would cost between $8 and $10 million, and a new police garage building to house equipment would cost about $2 million. In addition, he said, the parks department has a wish list in the $10 to $15 million range.

The mayor cited the Freedom Fountain in front of the city building that has not functioned for several years. He said restoration or removal costs exceed two years of police car purchases.

The 2025 budget, Oler said, prioritizes essential spending, led by public safety, and provides a 4% raise for nonunion employees.

Oler has moved the code enforcement department into the mayor’s office budget from the Richmond Sanitary District budget and has combined two positions into one because of retirements. Greg Stiens, the director of public works and engineering, and Derek Hill, the chief code enforcement officer, have both recently retired. Oler combined those positions into a director of public operations and engineering position. 

An administrative assistant’s position has then been added, but Oler said that still saves money while providing the same services.

Council referred all six budget and salary ordinances to its finance committee.

Controller Tracy McGinnis told council members that required information about the budget and its public hearing would be posted Sept. 9 on the Department of Local Government Finance website, https://budgetnotices.in.gov/unit_lookup.aspx?ct=89000.