A Reasonable Alternative
Although support for the Mayor’s current plan to privatize parking in downtown Indianapolis has hit a stumbling block, I think there is a viable alternative to moving forward which would accomplish the main goals of modernizing parking and building infrastructure.
Instead of privatizing the parking, I politely suggest the city can keep control of it and float revenue bonds tied to the meter revenue as a way to repair streets. Due to the administration’s good fiscal management Indianapolis has a AAA bond credit rating, so it should be able to get a good rate on the bonds. With new hotels coming on-line and tourism continuing to grow there will be a steady stream of clientele using the meters, and the local companies that would be helping the city in the original deal can still stay involved.
And since money from parking meters by law must used in the areas where the meters are, the city doesn’t have to use revenue from the Citizens Gas deal for areas where there are meters and instead the meter revenue can be a self-generating fund. And to make sure no one plays games with the dollars, the City could create a trust fund similar to major moves.
Now the city would still have to overcome a couple of hurdles. It would have to convince potential bond buyers that the parking meters could generate the necessary revenue to cover their investments. In the past, the parking meters have brought in about $1 million annually. The city could float general obligation bonds, but that would put property tax payers on the hook.
Oh, and rates will still have to go up. They have stayed the same since 1974 and I can guarantee you the costs of maintaining the streets and sidewalks hasn’t. And for the business people who may have an issue with the rate increases, I have to ask you if you are still charging the same prices from 36 years ago?
I think this is a viable alternative to the current proposal, which has caused more of a stir than I frankly think it is worth. The city can achieve its goals of fixing infrastructure without relying on property taxes and keep full control of its parking meters.
If this doesn’t work for you, I’ll be glad to post your suggestions.
