What the City of New Albany needs is jobs. Jobs generate revenue, revenue increases our yearly General Fund.
Over the next few weeks Freedom Of Speech will show you what is wrong with the City of New Albany and how to fix it.
Question Number 1: Do Tax Abatements help or hurt New Albany?
Tax Abatement:
The deduction is 100% in the first year and declines by a specified percentage every year thereafter. Tax Abatement is available for a one to ten year for real property, new manufacturing equipment, new research, new development equipment and JOBS!
We at Freedom Of Speech wonder why it's necessary for New Albany council members to approve so many tax abatements and do they produce as many jobs as they claim.
Thanks to our friends working in the City County Building we have something interesting to share with our readers.
The following company's re-applied for their 10 year Tax Abatements and look at what we found.
Number of Jobs created after the first year:
Kotter Development, Inc........N/A
Kotter Development, Inc........N/A
Kotter Development, Inc.........-40 Jobs
Lee Supply Corporation...........-2 Jobs
Sunnyview LLC........................-19 Jobs
Hitachi Cable Automotive.........-147 Jobs
Hitachi Cable Automotive.........-147 Jobs
Hitachi Cable Automotive.........-137 Jobs
Hitachi Cable Automotive.........-137 Jobs
L & D Mail Masters, Inc..............-9 Jobs
M & V Investments, Inc...............0 Jobs
Lumley Enterprises, Inc.............-2 Jobs
Rite-Way Industries, Inc............-24 Jobs
Samtec, Inc................................-78 Jobs
Ideal Door Division.....................0 Jobs
Uhl Properties,LLC.....................0 Jobs
The Grand..................................0 Jobs
Larry & Brenda Sharlow
St. Edwards Court, LP................0 Jobs
United Investment Group/
Insulated Roofing Contractors...N/A
Retailers Supply Co. Inc.............0 Jobs
Source: Carl Malysz
Freedom Of Speech would like to say:
Tax Abatements reduce the amount that should go into our General Fund that supports our city. If they don't pay their fair share of taxes, then we the taxpayers have to make up the difference out of our pockets.
If the County Council only gives 1 Tax Abatement a year why did the City of New Albany give the above list abatements?
Our final thoughts: After having a lengthily conversation last week with the head of the State Board of Accounts this is the answer he gave us:
"What is killing our City General Fund is Tax Abatements, TIF's, Police and Fire salaries and their contracts. When the City of New Albany goes into bankruptcy this will be why."
Source: Charlie Pride, State Board of Accounts @ 317-232-2521
