Mayor Tom Henry faces big decisions about his plans for the $80 million from the lease and sale of City Light – and how to use the money is just one of them.
The more immediate question is of timing. As Benjamin Lanka reported Sunday, the Legacy Task Force that Henry appointed could well make its recommendations next month, perhaps six or seven weeks before the city elections. What happens next depends partly on how detailed or general the task force’s recommendations prove to be. Certainly, the mayor will want some time between receiving the recommendations and announcing his plans for the money.
One of the big questions: To the extent a specific project requires City Council approval, should he take it to the council before the election?
This question goes beyond the politics of influencing the election. A council faction has proven to be contentious to Henry’s proposals, and some members of that faction will feel no obligation to follow the task force recommendations. After Jan. 1, his chief council nemesis, Liz Brown, will be off the council.
On the other hand, so will one of Henry’s chief allies, Tim Pape. Another ally, Democrat Karen Goldner, is seeking re-election in a district long dominated by Republicans.
And there is no guarantee Henry will win re-election, either. Is it better to see who wins the various offices, and let them determine how the money will be used? Or is it better for Henry to start carrying out his plan immediately? His administration, after all, did negotiate the settlement with I&M that frees up the $40 million saved over the past 35 years and will bring in nearly $40 million more.
Perhaps the best plan for the mayor is to ignore the election and do what he would have done had the task force recommendations come a year ago. That will likely mean supporting the task force’s general directions, saving the money and not going to the council for a specific expenditure until an appropriation is needed.
In the bank?
City officials and attorneys are researching exactly how the city can save that money.
Indiana local governments are not allowed to invest tax revenues in stocks, bonds or most other investments that carry risks. But as anyone with a savings account knows, interest rates for the ultra-safe bank savings and money market accounts are at historic lows.
The Community Trust – where a big chunk of annual City Light lease revenues were placed – was exempted from the law requiring only super-safe investments. So it was able to invest in stocks, with oversight from a committee that includes the city controller, two finance professionals and a lawyer.
Now that state regulators have approved the final sale of City Light, city officials are reviewing the exact status of the Community Trust and exactly what will happen with future payments from I&M.
