Mayor Campaigns for School Board - and Wins

Mayor Campaigns for School Board - and Wins
 
This was the headline I suggested for the Dayton Daily News article that ended up being titled "Huber mayor's flyer blasted".  Here is the information that makes my suggested headline much more appropriate than what was chosen (I list points first then I back them up with references later in the artice).
 
1.  Back in May as part of the 2025 plan council decided they needed to create a TIF at the edge of Parktowne claiming it was needed in order to build a new Firehouse.
 
2.  On May 27, 2014 I sent an email to the Bethel School Board and Courtesy Copying our City Manger letting them know that I believed we already had the funds to build the Firehouse, that I did not believe the TIF was appropriate and inquiring if they could provide a reason why they would support a TIF there.
 
3.  Later that day on May 27th the rest of Council was provided that email reinforcing my already verbally conveyed concerns.
 
4.  Over the next couple weeks there was much publicity about my opposition to the TIF with council considering taking some sort of action against me for interfering with Council business.
 
5.  On Dec 1, 2014 the City sent Bethel Schools notice that Council intended to create a 75% to the City / 25% to the Schools TIF on or after 15 December 2014. 
 
6.  At the Administration Committee meeting Dec 2, 2014, staff briefed that we were going forward with the 75/25 TIF for 10 years but hoped that the School Board could be talked into a 30 year TIF.
 
7. Monday Dec 7, 2014  I sent an email to Council stating again that I had not been provided any compelling reason why we should be creating a TIF and taking School money to do a project that we could do without taking the School's money
 
8. Tuesday Dec 8, 2014 I attended the Open Public Meeting of the Bethel School Board and had about a 25 minute conversation with School Board Members and the general public that was in attendance. 
 
9.  Wednesday Dec 9, 2014  I sent another letter trying to engage Council by writing out additional arguments why we did not need to take school money to pay for the Firehouse. 
 
10.  Saturday and Sunday I distributed Flyer mentioned in the Dayton Daily News article.
 
11.  Tuesday Dec 16, 2014 I learned from a School Board member that the City had changed their mind and decided to create a non-school TIF.  The City actually had sent this notice out at 3 pm Friday Dec 12 but didn't bother to let me know.
 
12  Wednesday Dec 17, 2014 at the Administration Committee meeting Council asked me to redact the Flyer. 
 
Next I'm going to reproduce the twelve points above this time I'll incorporate supporting documentation:
 
1.  Back in May as part of the 2025 plan council decided they needed to create a TIF at the edge of Parktowne claiming it was needed in order to build a new Firehouse.
 
The 2025 plan is available on the City Website.  http://agendaquick.hhoh.org:8081/docs/2014/AD/20140506_888/886_Administration%20Committee%20Minutes%20-%20050614.pdf  TIF discussion starts on the 29th page of 78.
 
2.  On May 27, 2014 I sent an email to the Bethel School Board and Courtesy Copying our City Manger letting them know that I believed we already had the funds to build the Firehouse, that I did not believe the TIF was appropriate and inquiring if they could provide a reason why they would support a TIF there.
 
From: McMasters, Tom
Sent: Tuesday, May 27, 2014 9:27 AM
To: Bethel School Board Members
Cc: Schommer, Robert
Subject: 
Gentlemen,
 
I suspect a representative of the City may contact the Board to discuss creating a TIF district at the end of Parktowne Blvd.  The city representative that briefed this plan to council members suggests that a 70/30, City/School split of the school's money is the target agreement the city will seek.  
 
My first impression of this particular proposal is that it is not appropriate.  The first reason is because the developer has already committed to the project and is not seeking any infrastructure improvements for that piece of property.  The second reason is because the residents of the City have already paid for the infrastructure improvement, the firehouse, that the city proposes will be built using the TIF revenue.
 
I have been seeking for more than a year now to find anyone that can argue effectively that my understanding of TIF is faulty.  If the board is inclined to assent to the 70/30 split please let me know.  I would also appreciate your providing the logic behind the inclination.
 
Sincerely,  
 
Tom McMasters
Mayor of Huber Heights
937 985-6275 (H) 937 985-6431 (D)
 
 
3.  On 27 May the rest of Council was provided that email reinforcing my already verbally conveyed concerns.
 
From: Schommer, Robert
Sent: Tuesday, May 27, 2014 2:04 PM
To: McMasters, Tom
Cc: Dale, Lu; Kaleps, Karen; Dudley, Tracy; Campbell, Mark; Vargo, Jan; Lyons, Ed; Starline, Tyler; Blankenship, Judy; Alan B. Schaeffer; Rodgers, Anthony
Subject: Re: 
Mayor,
 
Since you brought up this topic, it is good timing to give a brief update to the rest of Council regarding the proposed expanded TIF and the potential project.
 
  1.  
It was our plan to have Don Jones reach out to the school board next week in accordance to the direction by Council, but we will jump that up to this week since you have already reached out to the board through your email.  In that meeting, we will discuss the original TIF plan first reviewed in August of 2012, and identify the fact that we have a potential project for the area.  That discussion is based on the school board's request to have us bring back to them any potential projects to expand the TIF district.  This practice/process falls right in line with the previous discussions in 2012 and with the City's plan to make improvements to the district.  As stated in the presentation to Council, the improvements to the district include a new fire house to benefit that area to include the district covered by Bethel Schools.
 
Specifically regarding the proposed project, the company has not yet submitted plans for a detailed development plan, and in fact the land has not yet been purchased.  They have only submitted for pre-application.  It is not a finalized proposal, and it is very timely to present this TIF expansion to Bethel Schools in accordance and respect to our discussion and agreement with them in 2012.
 
I will keep Council updated through discussions at future Committee Meetings.
 
Regards,
Rob Schommer

On May 27, 2014, at 9:27, "McMasters, Tom" <TMcMasters@hhoh.org> wrote:
Gentlemen,
 
I suspect a representative of the City may contact the Board to discuss creating a TIF district at the end of Parktowne Blvd.  The city representative that briefed this plan to council members suggests that a 70/30, City/School split of the school's money is the target agreement the city will seek.  
 
My first impression of this particular proposal is that it is not appropriate.  The first reason is because the developer has already committed to the project and is not seeking any infrastructure improvements for that piece of property.  The second reason is because the residents of the City have already paid for the infrastructure improvement, the firehouse, that the city proposes will be built using the TIF revenue.
 
I have been seeking for more than a year now to find anyone that can argue effectively that my understanding of TIF is faulty.  If the board is inclined to assent to the 70/30 split please let me know.  I would also appreciate your providing the logic behind the inclination.
 
Sincerely,  
 
Tom McMasters
Mayor of Huber Heights
937 985-6275 (H) 937 985-6431 (D)
 
4.  Over the next couple weeks there was much publicity about my opposition to the TIF with council considering taking some sort of action against me for interfering with Council business.
 
I'm not going to look this up now.  If you have the references pass them my way and I'll post them here. 
 
5.  On Dec 1, 2014 the City sent Bethel Schools notice that Council intended to create a 75% to the City / 25% to the Schools TIF on or after 15 December 2014. 
 
Huber Heights notification to Bethel of intent to create TIF
 
6.  At the Administration Committee meeting Dec 2, 2014, staff briefed that we were going forward with the 75/25 TIF for 10 years but hoped that the School Board could be talked into a 30 year TIF.
 
It will be interesting to see how the minutes read.  Also, I believe some of the residents may have recorded the meeting.  I don't have those tapes but if the minutes conflict too much with my statement I'll see if I can get a copy. 
 
7. Monday Dec 7, 2014  I sent an email to Council stating again that I had not been provided any compelling reason why we should be creating a TIF and taking School money to do a project that we could do without taking the School's money
 
From: McMasters, Tom
Sent: Sunday, December 07, 2014 10:39 PM
To: Dale, Lu; Lyons, Ed; Kaleps, Karen; Blankenship, Judy; Vargo, Jan; Starline, Tyler; Campbell, Mark; Dudley, Tracy
Cc: joseph.solch@wright.edu; slawsonhasket@aol.com; scott.hawthorn@lightstormresearch.com; mbvanhaaren@woh.rr.com; bmoorebethel@gmail.com
Subject: Miami County Parktowne TIF dissenting argument
Council Members,
 
I'm sure you are aware but I decided to write it out so it is clear.  In my view the creation of a TIF on the West side of Parktowne Blvd is not justified.  The stated purpose of the creation of the TIF; to build a Firehouse is not compelling because:
 
1.  The voters of Huber Heights approved a previous levy specifically for this purpose.  This levy has already generated enough funds to pay for this project and if used as intended could pay any further debt.
 
2.  If there were a deficiency in that levy fund it should be made up using the money received from the extensive TIF districts already in place before that money is/was pledged to other less critical projects.
 
Further, the cost of infrastructure improvements provided by the city in order to support the apartment complex is minimal compared to the expected revenue received from the TIF.  Most importantly the developer of this apartment complex was not attracted to this site nor was this development dependent on the city providing a significant infrastructure contribution.
 
The argument might be made that since the current Carriage Trails TIF diverts most of the property tax that normally would go to the City's Police and Fire Funds to TIF funds that perhaps these voters should pay for the new Firehouse.  However, the debt associated with the building of the Aquatic Center is currently scheduled to be paid entirely from the Miami County TIF.  This $9+ million dollar commitment dwarfs the expected collections from this proposed TIF.   
 
As such, there has been no compelling reason provided by the City to justify taking funds that rightly should go to supporting the Schools, the County and issues specifically approved by the taxpayers.  
 
Tom McMasters
Mayor of Huber Heights
937 985-6275 (H) 937 985-6431 (D)
 
8. Tuesday Dec 8, 2014 I attended the Open Public Meeting of the Bethel School Board and had about a 25 minute conversation with School Board Members and the general public that was in attendance. 
 

There is no reference for this other than to show the meeting was scheduled
 
9.  Wednesday Dec 9, 2014  I sent another letter tying to engage Council by writing out additional arguments why we did not need to take school money to pay for the Firehouse. 
 
From: McMasters, Tom
Sent: Tuesday, December 09, 2014 12:53 PM
To: Dale, Lu; Lyons, Ed; Kaleps, Karen; Blankenship, Judy; Vargo, Jan; Starline, Tyler; Campbell, Mark; Dudley, Tracy
Subject: Additional - Miami County Parktowne TIF dissenting argument
All,
 
I believe it is important for me to reiterate that I have not been convinced that the creation of any TIF district on the West side of Parktowne is in the best interest of the City.  Though it will take work, by evaluating the presentations prepared by staff and looking at council's recent actions, I conclude the risk of building a Firehouse now, using existing funds and revenues, is acceptable and probably lower than the risks associated with undertaking the building of the Music Center.
 
In addition to the points made in the previous email let me add these thoughts.  The most important considerations of people most likely to improve the tax base of a city when they chose a new place to live are the quality of the schools and the perception that the police and fire services will keep them safe.  These considerations almost always show as equals.  The next consideration is the cost of living, and the cost of the home and the amount of taxes are the two factors that people investigate most.  With that background in mind, it is better for the City as a whole to ensure the School district gets 100% of the school's portion of the expected money generated because of this development.
 
Concerning the building of the Firehouse and the risk of the City not being able to pay for it.  Even without this TIF the risk is no greater than when Council decided to build the Music Center.  In this case though, the Firehouse is a much more critical structure for the safety and well being of our residents.  Additionally, the presentations given by staff has council confident that once we identify a new project for the parcel once designate for Good Sports any further revenues due to development in the present Montgomery County TIF districts could immediately be allocated to pay for the Firehouse.  According to staff this is certain to happen in the next couple years which is also the earliest we would have to worry about bonds for the new Firehouse. 
 
Beyond additional TIF revenue due to additional development there are at least two other sources of revenue.  One is the possibility of additional TIF revenue generated by the passing of a new school levy.  This additional TIF revenue has not been addressed or allocated for any purpose.  An additional 5 or 6 mills of property tax collected on the existing valuation of the Montgomery County TIF will generate more than twice the revenue than the proposed West end of Park Towne TIF.  As a back of the envelope calculation, if the Montgomery County TIF valuations are about $100,000,000 then a 5 mill levy would increase TIF collections by approximately $100,000 a year. 
 
Finally, we know that the new TIF is being proposed to make up a $400,000 re-allocation of funds from Fire Capital to Fire Operation.  As briefed by Mr. Bell at last nights council meeting this years budget is projected to have a $300,000 surplus.  In reality, according to staff calculations, we could keep the money in the Fire Capital Fund and at the end of 2015 still have over $2 million dollars more in the City Operating Funds than we did at the beginning of 2013. 
 
Thank you for reading to the end.  I look forward to any reasoning you can provide that justifies diverting any money from the School System in order to create this TIF. 
 
Tom McMasters
Mayor of Huber Heights


 
10.  Saturday and Sunday I distributed Flyer mentioned in the Dayton Daily News article.
 
This is the Flyer I distributed (note the date of the Firehouse levy is wrong in the flyer - the levy was actually passed in 2005):
 
TIF Flier page 1
 
TIF Flier page 2
 
 
 
11.  Tuesday Dec 16, 2014 I learned from a School Board member that the City had changed their mind and decided to create a non-school TIF.  The City actually had sent this notice out at 3 pm Friday Dec 12 but didn't bother to let me know.
 
2nd notification to Bethel about Council's intention to create TIF
 
12  Wednesday Dec 17, 2014 at the Administration Committee meeting Council asked me to redact the Flier.  

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