Urban Renewal: Trick or treat?
John Austin | Hagadone News Network | UPDATED 13 years, 2 months AGO
Maybe it is the spirit of the season but it seems we're having a devil of a time these days discussing urban renewal. Some people claim taxes are going up because of it while others are steadfast that urban renewal is "revenue neutral" to the taxpayer. So, "witch" claim is right? Let's look at the issues for the answers:
Issue No. 1: Whose taxes are paying for urban renewal projects like McEuen Field? Answer: Owners of property in LCDC's Lake District, including parts of Midtown, Downtown and Northwest Boulevard, are the only ones paying for a portion of McEuen Field. But, that is from taxes they'd have to pay anyway just like anyone else. There is no special levy or assessment for McEuen Field. The other 90 percent of the city's taxpayers who do not own property in those areas pay NO taxes for McEuen Field or any other LCDC project.
Issue No. 2: Can the city and county raise taxes since money is going to LCDC? Answer: By law the city and county can only raise taxes 3 percent each year, even if they need more than that to balance their budgets. The fact is neither of them has taken any increase in taxes in recent years. That should indicate that they are getting along just fine without the funds flowing to LCDC.
Issue No. 3: Are services reduced elsewhere because of money going to LCDC? Answer: While the taxes from a few taxpayers are diverted to LCDC, they are not significant enough to impact services. If they were, the city and county would certainly raise taxes by the full 3 percent allowed to them.
Issue No. 4: Why spend money on McEuen when schools are in need of funding? Answer: Schools are no longer funded from property taxes, except when they receive voter approval for supplemental or plant facility levies, so they are not impacted by urban renewal. If anything a point can be made that the rest of us pay LESS taxes because of urban renewal, since those properties pay a portion of the special levies, thereby reducing the impact on everyone else.
Issue No. 5: Why won't the City Council allow a public vote on McEuen Field? Answer: There is no law allowing a binding vote on that project since no special levy or assessment is required to fund it. If taxes were going up to pay for it, a vote would be required and two-thirds of those voting would have to approve it.
The bottom line is that urban renewal has no tricks or gimmicks associated with it, despite the complexity of its funding. Instead we are left with the many treasures we've come to know and love. Joining the library and Kroc Center, the Ed Corridor and McEuen Field upgrades will show the best treats are yet to come.
John Austin is a former finance director for Kootenai County and the city of Coeur d'Alene and can be reached at john@pacni.org.
ARTICLES BY JOHN AUSTIN
McEuen: How we got here
With the initial unveiling of the new McEuen Park on Saturday, I thought I'd reflect on the remarkable, if not so easy process that got the city to this point.
Urban renewal and outside influence
My Turn
A funny thing happened to Silver Valley residents on their way to a decision on whether or not they want an Urban Renewal Agency (URA) in their county. They've heard from their neighbors to the west, including two elected officials angry over Coeur d'Alene's agency and its investment in McEuen Field.
No foolin': Urban renewal is not that complicated
I'm asked all the time why urban renewal is so hard to understand. Some claim their taxes are higher because of it while others say not so much. Critics say the money going to urban renewal agencies (URAs) would be better used for something else. And, of course, issues about McEuen Field top the list.