Mayor tells City Council $500,000 revenue loss 'not a fiscal crisis'

The remainder of 2004 may have the city tightening its belt in the face of a substantial revenue loss. \nNevertheless, Mayor Mark Kruzan was optimistic at Wednesday evening's city council meeting. In the near future, he said Bloomington will receive about $500,000 less in property tax revenue than had been earlier projected.\nThe loss will result from legislation passed by the Indiana General Assembly in 2002 which will change in the city tax structure and establish a New Venture Capital Investment Tax Credit.\nInterim Controller Susan Clark also stated at the council meeting because the Senate bill was enacted last year as a law, Bloomington cannot recoup the losses.\nKruzan urged the council to give input and let the public know not to worry about a crisis.\n"This is not a fiscal crisis ... there will be no job loss, this is not a situation where people will be laid off," Kruzan said. "I hope this situation will lead to a statewide debate on what is causing this problem. We need to implement cuts or dip into reserves or even a combination of the two. I think dipping into reserves should be a last option because they don't replenish themselves. I think it would be a huge error to rely on reserves. Immediate steps are to have full public disclosure and let people know what is happening. Next is to have council input and how to solve this problem and get your opinion."\nDistrict VI Representative Steven Volan questioned when city officials became aware of the problems. Clark responded that the city found out Jan. 30, which was too late to react to the potential problem. Clark said the budget order was received March 5, when a concrete figure of the loss was calculated.\nDistrict IV Representative Dave Rollo asked if there was any way to prevent this situation from happening again. \n"In 2002, with restructuring, this one did not hit out radar screen," Clark said.\nKruzan also commented with new developments he won't be able to implement as many things as he had intended.\n"I am optimistic that we can pull together and do this," he said. "There are a lot of things I want to do that might not be able to get done in the city."\nThe city council also passed three resolutions concerning development around the city. \nIn a unanimous decision, the council passed a resolution to allow the $1,010,000 project allows Bloomington Paint and Wallpaper a tax abatement for five years and allow for the construction of apartments and a carpet store at 1116 S. Walnut Ave.\nRon Walker, director of economic development said the two-story facility is great for downtown area.\n"This project will create job growth, we think this is a fantastic project and will give great entryway into Bloomington downtown."\nCouncil members also unamimously passed a resolution to authorize agents to accept pension liability on behalf of the Bloomington.\nThe final legislation of the evening was to provide a lease for the Utility Board for another space at 501 North Morton since its offices were destroyed in a fire occurring earlier this year.\nVickie Provine, program manager said the lease was only temporary, but an agreement is imperative.\n"Since this is being brought to you under state law, certain steps must be taken to enter into a lease. We need a petition to go forward -- it needs your approval," Levine said. "This is a temporary lease arrangement because of the fire that destroyed the building downtown. Its certainty time for us to formalize the arrangement. We will go from approval from the council to a forum on April 5." \nMayer said the petition needs to be looked at and other concerns still remain.\n"(The Showers Building) is one of the options that is being looked at," Mayer said. "There is a time and money issue, and things are moving forward and the committee is consolidating"