2/22/2001
Media Contact:
Steve Campbell, 317-327-NEWS
Jo Lynn Garing, 317-327-NEWS |
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2001 State of the City Address
February 22, 2001
Indianapolis Children's Museum
Let me begin by thanking the citizens of Indianapolis for giving me the opportunity to serve and entrusting me with the responsibilities of public office in the greatest city in America.
When General Electric's legendary CEO Jack Welch met with his top-level managers several years ago, they complained that despite GE's emphasis on managing for the long-term, they were under too much pressure to produce short-term results. In response, Welch told them, "Anybody can manage short. Anybody can manage long. Management is balancing those two things."
The City of Indianapolis is not GE. Instead of producing jet engines or appliances, we spend much of our time and money responding to snow, chuckholes, and trash. But to get ahead in an ever-changing world, we have to operate like a successful corporation - thinking far into the future while addressing the challenges of today. Like Welch says, you can't prosper long-term, "if you can't eat short-term." But the reverse is also true. Which means we must focus on where we want to be - not next week or next year, but a generation from now; long after my tenure as mayor is over - even as we deal with the pressing problems of today.
Despite our challenges, in many ways Indianapolis is a city poised for greatness. We're drawing praise from across the country and even around the globe for our vibrant downtown, our outstanding quality of life, and our increasingly diverse economy. But to capitalize on our success, my long-term vision is for us to excel in these five areas: the new economy, arts and culture, sports, diversity, and education.
By that I mean I want Indianapolis to become an idea capital - a city where new economy businesses thrive. I want us to become an arts and culture destination city - known nationally and even internationally. We've already established ourselves in the world of sports - let's build on that foundation and achieve even greater successes. I want us to be known as "a city too busy to hate," a city that celebrates diversity. And I want us to be the city that made public education work.
To achieve this vision, we must not just survive today and tomorrow, we must take mighty strides forward each year. And that will be my primary focus tonight - the distance we can and must travel together in 2001.
The first challenge is getting our financial house in order. Sound fiscal policy is the foundation of any thriving city. Significant tax increases only spur urban flight - decreasing the tax base and amplifying a city's problems. That's why we've held the line on taxes.
The disparity in our public safety tax rates already discourages individuals and businesses from locating within the center city. Unigov - which consolidated the old City of Indianapolis with the rest of Marion County in 1970 - also consolidated most, but not all, of the taxing districts countywide. People in the center city pay for the Indianapolis Police Department and the Sheriff's Department, while most people outside the center city pay only for the Sheriff's Department. What's more, IPD's taxing district has far less taxable property value, in no small part due to the large amount of tax-exempt property downtown - including the parks, monuments, and public buildings so many of us enjoy.
The logical, and I believe necessary, next step in Unigov is not to merge IPD and the Sheriff's Department but to create a unified public safety taxing district across Marion County. The existing IPD and Indianapolis Fire Department taxing districts are irreparably broken because of the crushing burden of police and fire pension costs and a flagging tax base.
The bottom line is: if you believed in Unigov, you should believe in this plan. But we need to do this without raising taxes. In the coming months, I'm going to work with Council members, community leaders, and other experts to seek a solution to this major structural problem.
Merging the taxing districts would help solve our on-going police and fire pensions problem, but more immediate assistance may come from our work with the Indiana General Assembly. Just this month, the Indiana Senate and the Indiana House passed separate measures to increase the amount of funding the state provides to cities with pension shortfalls. If either bill becomes law, it will give us essential short-term relief. Near-term remedies and a long-term commitment to fiscal responsibility have helped us maintain our triple A bond rating with the Standard and Poor's Rating Service - which means lower costs for taxpayers on capital projects and improvements.
Another financial challenge we've faced is the Tax Increment Financing - or TIF - district that lies at the heart of downtown and encompasses many recent developments, including Circle Centre Mall. These developments have helped make downtown the jewel of our city, but the debt issued to pay for them will continue to challenge us, especially over the next few years.
Because property tax appeals in the TIF District and a razor-thin coverage margin on the debt have left the city's coffers vulnerable, I've taken aggressive steps to address the problem. First, we are seeking to combine the downtown TIF district with an adjoining development district that is on sounder financial footing. Second, we have proposed to the City-County Council a sophisticated refinancing mechanism that will allow the City to benefit from current low interest rates. I appreciate the Council's willingness to work with my administration in an open and bipartisan way to resolve this complicated problem.
To help in our efforts to set the city's finances on an even better course, I directed the members of my cabinet to look for ways to run their departments leaner. They obliged my request to the tune of $25 million. That's over 5 percent of the city's overall budget that we were able to return unspent. My office alone saved close to a half-million dollars. More of the same belt-tightening is likely in store for 2001.
All these things will help shore up our city government's financial future. But the growth of the Indianapolis economy is a far more important factor for our long-term success. As I said earlier, I want Indianapolis to become an idea capital. We have long relied on our prowess as a manufacturing hub. But the cargo of the 21st Century is ideas. Innovation. And information.
Fortunately, we're uniquely positioned for the new economy because of our strong business climate, our high quality of life, the convergence of the fiber optic cables of the next generation Internet in our city, and the stable of knowledge-based businesses that now call Indianapolis home.
As shown in a recent survey by Cyberstudies - reported in the Indianapolis Star - we have some work to do based on our 1998 numbers. But in the past two years, we've made great strides in fostering the things we need to become a technology leader. We've seen a great influx of venture capital into central Indiana, thanks in part to seed money from the state's new 21st Century Research and Technology Fund. We're using incentives more strategically to lure high-growth, high-wage companies. And lately we've been hitting some high-tech home runs. What's more, we are recognized nationally as a top city for "baby gazelles," - the young growth firms at the heart of the knowledge-based economy. And we've developed a consensus - reflected in the design of our economic development organizations and even in the language of our daily discourse - that Indianapolis can be the Midwest leader in the New Economy.
But to keep ourselves on the cutting edge, we must strengthen our infrastructure - which is why I announced on Monday that we're building a new midfield terminal at the Indianapolis International Airport. The new terminal will enable us to play an even greater role in the national and international air transportation system. In fact, the airport, with the new terminal and other developments, will be our region's economic engine for decades to come, enabling more people and more freight to travel more efficiently. As an added benefit, the terminal project itself will mean hundreds of jobs in construction and related fields, injecting hundreds of millions of dollars into the local economy.
To further bolster our new economy initiatives, we're also working this year to increase the number of non-stop flights to and from Indianapolis - so that people in technology hotspots aren't deterred from traveling to our city; and vice versa. And with our leading-edge agreement to install fiber-optic cable to downtown businesses through sewer lines, we're making our city an even more compelling location for high-tech businesses.
But to become an idea capital, we also have to actively sell outsiders on what we already know: Indianapolis is a great place to live, work, and raise a family. That's where the arts and culture come in. They enrich our lives and they affect the bottom line, especially where high-growth, high-wage employers are concerned. They also help lure tourists to our city.
Thirty years ago, most wouldn't have thought Indianapolis could ever become the amateur sports capital of the world. But look at us today. Likewise, many don't recognize Indianapolis' potential as a world-class arts and culture destination. But this very facility is widely considered to be the premier children's museum in the world. Experts rank our International Violin Competition at the top of all music competitions worldwide. The cultural foundation is here. It's time to build upon it and market it effectively.
That's one reason why I requested a 33 percent increase in arts funding. It's also why we are working in partnership with community organizations on a "cultural tourism" initiative to market our arts and cultural amenities. This spring we will unveil a detailed, 10-year strategic plan for enhancing cultural tourism in our city. The plan will identify how we can maximize the cultural tourism experience for existing tourists; how we can grow Indianapolis as a unique cultural destination; and how we can build the human and physical infrastructure to support cultural tourism.
Our downtown is already the site of many of our great cultural attractions. But a key element for downtown's long-term prosperity is residential development. This year will usher in a number of exciting residential projects. Some of these projects began during my predecessor's tenure. We continued these projects because they made sense - just as future mayors will carry out things begun during my tenure. Good ideas shouldn't wither on the vine just because of a change of administration.
Consider this. At the corner of Market and Illinois Streets stands the old Block's building - which the city owns. For at least a decade, the upper floors of this downtown landmark have stood empty. This summer, a developer - working with the city - will begin turning the Block's building into spacious apartments encircling a glass atrium.
Residential real estate like this will help bolster downtown's stability. And the demand for downtown homes and apartments continues to exceed supply. In fact, Firehouse Square, north of Market Square Arena, has over 400 people on the waiting list to buy the 56 townhomes being developed there.
In the next few weeks, we'll select the company to develop the final piece of available property surrounding Circle Centre Mall at the corner of Washington and Illinois. On what is now a plot of grass will stand one of several proposed developments, all of which include at least some housing component. And the new building will connect the Artsgarden to the Circle with a public indoor walkway.
In addition, the land on which Market Square Arena now stands will also open up for development. Right now, we're selecting a consultant to analyze the area's land use potential so that we can make the most of this real estate once the arena is gone - further extending downtown's vitality. Citizens and businesses are also working with the city in the North Lockerbie and Massachusetts Avenue area to further enhance the appeal and usability of this historic downtown community.
Developments like these are key to enticing more businesses and residents to move downtown and ensuring its continued vitality. But what's a vibrant downtown without thriving neighborhoods?
Reinvigorating our neighborhoods has been part of my vision for our city since I first set out on the campaign trail. My wish - at its most basic - is to make life better where people actually live. That means clean streets and safe housing. It means enforcing our health and safety codes. And it means stopping the flow of raw sewage into our rivers! To be world-class, our neighborhoods must be places people feel proud to call home.
One of our most exciting urban revitalization efforts should really take off this year. The Fall Creek Place Home Ownership Zone represents a partnership between the city, the federal government, neighborhood groups, and the private sector. We are finalizing the development plan and the plan to finance infrastructure improvements, and we hope to see new homes under construction in a matter of months.
On the northeast side, I-70 cut Martindale-Brightwood in half two decades ago. The area was originally conceived as a model industrial community. The residents of Martindale-Brightwood work every day to improve their community and bring back prosperity. The city recognized this area's prime location next to I-70 and its immense need for good-paying, easily accessible jobs. This summer, our goal is to open a 50-acre business park on former residential and abandoned industrial lands we've purchased, eventually creating about 1,000 jobs - and potentially $30 to $50 million in private investment - breathing new life - and new hope - into this community.
38th Street has a proud history as a grand corridor through our city. We're working with neighborhood groups, businesses, and cultural anchors to rejuvenate this vital artery for our city's lifeblood of commerce, culture, and community.
We're also putting into place the innovative policing strategies that have rebuilt confidence in cities across the country during the 1990s. The new police officers we're adding to IPD are already helping to make community policing really work in Indianapolis. They're out there every day - patrolling the streets, working with schools, churches, and neighborhood groups to cut crime off at its roots. They're helping our effort to step up the attack on crime in our city - to break the backs of the drug dealers - and to stop the cycle of domestic violence.
We've stepped up the war on drugs with increased police training to fight methamphetamine and a new Criminal Interdiction Unit to get tough on dealers. Our police department is educating retail businesses about the bulk products used to make meth. And we're attacking the demand-side of drug use through the new Demand Treatment Program to help identify addicts and get them into treatment faster.
We've also joined forces with the Marion County Prosecutor, the Sheriff's Department, and the Indianapolis Violence Reduction Partnership in a public awareness campaign to show violent criminals the serious consequences of carrying handguns.
Domestic violence shatters family security and creates long-lasting social problems. We are working with groups to help create more shelter space for domestic violence victims, and we've added a branch of the domestic violence unit to work out of the Julian Center. This year, we've expanded the curriculum at the IPD training academy to help officers handle domestic violence cases and we've added that curriculum for all officers' continuing education requirements. Also, IPD has worked to better connect the officers -- and those they assist -- to the community resources available through the countless advocates dedicated to this cause.
Our new police will help us achieve these goals. And thanks to a federal grant we received last year, we're chipping in only a little more than half of the cost of these officers for the next three years. We received another grant last month to continue funding for officers hired under the previous administration. All told, we've secured $14 million in federal funds for police officers since I took office.
A Mayor has no more important job than providing for public safety. I'm proud of the strides we have taken to improve public safety in Indianapolis, but I will never be satisfied when it comes to fighting crime.
Making people feel safer is a big part of improving the quality of life in our neighborhoods. But so is the very quality of the homes and apartments in which people live.
That's why we're cracking down on problem landlords. Just a few months ago, we cracked down on landlords who've racked up over 1,000 code violations on their rental properties. The violations are hard to stomach. Roaches. Trash. Toilets that leaked into kitchens or weren't even hooked up to the sewers. We used unique new legal tactics to pursue these landlords. And they were just the first.
Last month, the city shut down the Citizen's Lodge motel on East 38th Street. For the past three years, the motel has had the highest number of police runs in the entire IPD service district. On average, the police were called there at least once a day. Prostitution and drugs were rampant. So were code violations - from roaches and leaky ceilings to rotten floorboards and clogged pipes. We helped the residents of Citizen's Lodge find better places to live, and then we closed the place down for good!
Last week we improved living conditions for some of our most vulnerable residents.
Ninety-five percent of the residents living at Eagle Terrace Apartments are Latino. Many are new to our city and country. Many do not speak English. We had heard the apartments were neglected. But because of the language and cultural barrier, we were concerned that many problems were going unreported. 23 inspectors worked with eight interpreters to inspect nearly half of the more than 350 apartments. We were appalled at what we found. Raw sewage in the buildings. No heat. Mice. Missing windows. When the current owner learned of our efforts, he began fixing some of the problems. But we will not let up until all these problems are resolved.
No one in our city should have to live in conditions like these. They're downright demoralizing.
I simply won't tolerate it on my watch!
The inspectors and administrators at the Health and Hospital Corporation - which includes the Marion County Health Department - did great work and showed tremendous cooperation during all of these enforcement efforts. They deserve our applause. And in the coming months, you will see more inspectors, more prosecutors, more education, and more crackdowns.
But we face other challenges to neighborhood quality too. Almost every time it rains, raw sewage from our century-old sewer system leaks into our streams and rivers - the same streams and rivers that run through our neighborhoods, the same streams and rivers in which our children play.
Federal law requires us to develop a long-term control plan to curb raw sewage overflows, but this is not just about regulations. This sewage is unhealthy, unsightly, and foul smelling. It's a condition unworthy of a world-class city. We will not tolerate it anymore.
That's why - after much study and numerous public meetings - we've begun the process of fixing our raw sewage overflow problem. And it will cost less than $2 a month for the average ratepayer to start fixing it. I have a proposal before the City-County Council to begin this process, and we are waiting on a hearing. But while we wait, we will continue to take this effort to neighborhoods across this city. Taking immediate action on this proposal and beginning the projects to modernize our sewers may be the most meaningful thing city government can do for its people this year.
Just as we protect our rivers and streams from raw sewage, we must keep our water supply affordable and reliable. Phone service problems, rising heating bills, and California's power crisis have brought the issue of utilities and utility ownership to the fore in recent months. NiSource's plan to sell the Indianapolis Water Company to the highest bidder brought this issue to our front doorstep. Presented with this challenge, we are not sitting idly by while distant corporate decisions adversely impact our precious resources. In partnership with the Council, we are aggressively pursuing local control of the water company. Public ownership, combined with private management, will help keep our water safe, affordable, and locally-controlled, for generations to come.
Let me set aside for a moment issues like sewers, crime, and economic development to talk about a less tangible, but equally important, challenge we face - ensuring dignity, equality of opportunity, and a seat at the table for all the people of Indianapolis regardless of their race, ancestry, religion, or accent. Racism continues to work its evil in our society and our city.
Yet each year, we grow even more diverse. We can view diversity as a burden - or as a great opportunity. I choose the latter because I believe diversity enriches our city. We need to celebrate it. It's in that spirit that I hosted the race relations summit last year. One of the summit's many outgrowths is Collage - the new call-in television program that the city launched last week on the government channel. Collage will keep the diversity dialogue alive and help us promote and understand our city's rich racial, ethnic, and religious heritage.
I'd like to conclude by focusing on education. For any city, education is the cornerstone of future prosperity. Yet, ironically, it is the one issue over which the mayor and the City-County Council have the least authority. As I said earlier, I want Indianapolis to be known as the city that made public education work. More than anything, the quality of our schools will determine the success of our city for generations to come. We need to enable our schools to be more innovative and creative. Indiana is one of only 14 states that has not adopted charter schools legislation. Last week I testified before the state legislature in support of charter schools. I intend to work through the remainder of the legislative session to get a strong charter schools law for Indianapolis's children.
There has been a lot of discussion about making the mayor of Indianapolis a charter school sponsor, with the approval of the City-County Council. This idea makes sense. A mayor is uniquely positioned to tap into the community resources necessary to make charter schools thrive. First and foremost, a sponsor must evaluate charter school proposals and hold the schools accountable for their performance. A mayor could do this effectively by doing what Indianapolis mayors have done forever: bringing together our city's top experts - in this case from our schools, colleges, and universities - to offer their advice.
A mayor could also get charter schools the assistance they need to be successful. When new charter schools struggle, it's usually because of their management and fiscal practices, not their academic design. I would tap into our community's broad-based management expertise to help charter school founders develop effective governance structures and sound financial plans.
To ensure that charter schools are truly full-fledged public schools, Indiana's law must enable the public to hold charter schools accountable. A mayor is accountable to the public for all decisions he or she makes - and decisions he or she might make as a charter school sponsor would be no exception. If given this responsibility, I would take it very seriously, exercising it to the best of my ability, while continuing my advocacy for the needs of traditional public schools.
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None of this is easy. We must pursue a vision for the future, and have the courage, wisdom, and will to attack our challenges today. My long-term vision for our city - making us an idea capital, an arts and culture destination, enhancing our sports reputation, celebrating diversity, and leading the way in public education - may seem like pie-in-the-sky in light of the all-encompassing nature of our current challenges. But while we're addressing the challenges of today, we must take ourselves to the next level as a city. We've got to manage short and long.
Because that's what effective leadership - of any company, or any city - is all about.
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