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Dear Editor:
Carmel mayor Sue Finkam’s letter (“Protecting Carmel taxpayers,” published Feb. 15) precisely stated the city’s position on property tax reductions.
The mayor indicated a responsible, balanced approach to tax reform.
The mayor opined:
“Carmel didn’t become one of America’s most livable cities by happenstance.
“It has been built by residents and city leaders on bold leadership, smart planning and a relentless pursuit of excellence.”
She omitted:
- Carmel has a $1.6 billion debt and no articulated plan to get out from under it.
- Carmel has tapped out its traditional growth in property taxes as population stagnates and the most recent property tax revenues to the city (2023 annual financial report) show an actual decline in revenue ($46.6 million in 2022 and $45.6 million in 2023).
- City spending totaled $505 million in the most recent year reported – most of which came from borrowing, not tax revenues.
In short, Carmel’s financial situation is compromised by borrowing and spending, not faulty revenue streams.
Like her Federal counterparts, the mayor needs first to cut spending and pay down debt, then worry about revenues.
Bill Shaffer
Carmel
I wonder if the city were to “lose” the amount stated ($20 million/3 years), does that impact the city’s ability to pay the interest due on that $1.6 billion (both City and the CRC debt)? That assumes public safety, parks, streets, which the city is supposed to provide are not cut. I believe, unless extra-ordinary steps would be taken, that taxpayers would be on the hook for it (AKA Special Benefits Tax). Of course, I also struggle with how something is “lost” if it hasn’t been received. I think it was forecast to be, but forecasts change depending on the conditions. We may have ourselves in a jam if the tap is turned off. Maybe that’s saying the quiet part out loud.