Mayor Gahan shares comments on "MUST" before Statewide Conference begins

Mayor Gahan shares comments on "MUST" before Statewide Conference begins

This week, Accelerate Indiana Municipalities will bring leaders from across the state together for its annual Ideas Summit. As they discuss the future of local government, including the Municipal Unit Strategic Taskforce process known as MUST, I want New Albany’s experience to be part of that conversation.

MUST grew out of Senate Bill 1, a piece of state legislation that cut property taxes and changed how local income taxes will be distributed. The governor ran on cutting property taxes, and they were determined to get them through, no matter the cost to cities, towns, and schools across the state.

Property tax relief sounds good, but the state must be honest about what happens when it reduces the money local governments rely on to provide essential services and infrastructure. Police officers, firefighters, emergency medical workers, streets, and parks all are now in jeopardy. If the state cuts local resources and forces cities to reduce critical services like police officers and firefighters, then that is clearly a bad solution for residents.

Here in New Albany, we know what responsible local government looks like. For more than 15 years, we have kept our budgets balanced, maintained an A+ financial rating, and delivered improvements without raising taxes. We have invested in public safety facilities, strengthened city services, expanded our parks, and continued building the New Albany Shoreline. Our residents can see what their city government delivers.

That record is why we take proposals to combine city and county resources so seriously. Past shared service agreements with Floyd County have left the City paying more than its share. We also remain concerned about a nearly $45 million difference between Floyd County financial records identified in their most recent state audit.

No responsible person would enter into a financial entanglement with a group that has a $45 million discrepancy in their financial audits.

We knew at this point that we needed to participate so that the concerns and pocketbooks of New Albany residents would be protected. We participated in the MUST discussions to learn about the proposal and make sure New Albany had a voice. We appreciate the county officials who took the time to meet and communicate with us. After considering what was put forward, however, we voted no.

We voted no because New Albany residents depend on strong city services. We voted no because our police officers, firefighters, and emergency medical workers are essential to their safety. We voted no because our past experience tells us that merging city and county services would hurt city residents. And we voted no because we will not support a plan that pressures local officials to raise taxes to make up for poor decisions made at the Statehouse.

MUST agreements are currently nonbinding, and the new local income tax structure has been delayed until 2029. That gives state lawmakers time to listen to cities and towns and change course. We have shared our concerns with county and state officials, and we urge our statewide officials to not abandon the local services that residents count on.

It is not too late to stop this action in its tracks. I encourage you to reach out to your state-wide elected officials and let your thoughts on this be known.

In the meantime, New Albany will keep showing up for these discussions, and we will also keep standing up for the people of New Albany.

NEW ALBANY VOTES “NO” ON FLOYD COUNTY’S “MUST” PROPOSAL

NEW ALBANY VOTES “NO” ON FLOYD COUNTY’S “MUST” PROPOSAL

“New Albany would be supportive of a fair system, but Floyd County’s MUST proposal is harmful for the people of New Albany and our surrounding area,” stated Mayor Jeff Gahan. “This NO vote is NOT a rejection of cooperation, but it reflects our responsibility to protect New Albany residents, taxpayers, and essential services until state legislators can provide clear data, local accountability, and enforceable safeguards.”

We are voting NO for the following reasons:

• NO to Merged City/County Governments:

  • As proposed, the MUST process weakens our city and reduces accountability of local government with less representation, more taxes, and less services for city residents. A City-County merger would be a tremendous setback for the people of New Albany and the entire region.

• NO to increased Taxes:

  • The MUST process would force unnecessary tax raises on the people of New Albany. We have not raised taxes on the people of New Albany for over 15 years and we see no reason to now.

• NO to Reduced Services:

  • The MUST process would reduce services, including public safety services like police and firefighters. This is not acceptable for the city of New Albany.

To see the full technical analysis from our financial advisor, click HERE

MAYOR GAHAN: NEW ALBANY TO CAUTIOUSLY CONTINUE PARTICIPATION IN MUST DISCUSSIONS

MAYOR GAHAN: NEW ALBANY TO CAUTIOUSLY CONTINUE PARTICIPATION IN MUST DISCUSSIONS

The MUST process was created following the passage of Senate Enrolled Act 1 (SEA 1) as an attempt to help local governments address the negative impacts of the new law. However, the taskforce's recommendations are not binding and cannot be enforced.

"MUST is a response to the problems created by SEA 1," Mayor Gahan said. "It is clear it should have occurred before the legislation became law, not afterward."

Mayor Gahan said once again the City will attend tonight's meeting alongside its financial advisor to better understand the options being discussed and to ensure New Albany's interests are represented.

"New Albany has consistently demonstrated responsible financial management," stated Mayor Gahan. "For 15 consecutive years, we’ve received excellent financial audits, and never raised taxes on our residents. It is important to maintain that record."

Mayor Gahan also emphasized that the City's participation in the MUST process should not be viewed as support for merging city and county governments or services.

"We have not committed to any option,” Mayor Gahan said. "History has shown that government consolidations often result in higher costs and fewer services for residents. Our priorities include protecting the quality of life of our residents, keeping decision making local, and providing the dependable public services that residents have come to expect."

Mayor Gahan Opposes City/County Merger

MAYOR GAHAN OPPOSES CITY/COUNTY MERGER

As Floyd County's Municipal Unit Strategic Taskforce (MUST) prepares for its third meeting, Mayor Jeff Gahan said New Albany will continue participating in the process but still has concerns about “MUST” and the problems that Senate Bill 1 and Senate Enrolled Act 1 have already caused for cities in the state of Indiana.

Most cities across Indiana are preparing for dramatic cuts to public safety and services caused by Senate Bill 1, but Mayor Gahan has said that the City of New Albany will oppose any proposal that reduces public safety funding or lowers the quality of life for city residents.

Mayor Gahan noted that New Albany enters the process with one of the strongest financial records in the region, having finished under budget for 15 consecutive years, maintained excellent financial audits, earned an A+ financial rating, and never raised local taxes.

By contrast, Floyd County's most recent audit identified an approximately $45 million accounting discrepancy that remains unresolved.

"It is difficult to negotiate the future when the county still cannot explain a $45 million discrepancy in its own financial records," Gahan said.

Mayor Gahan also raised concerns about the direction of the MUST process, saying it increasingly appears to be an attempt to move Floyd County toward a UNIGOV-style consolidation and merger of city and county services, all without the approval or consent of local voters.

“It’s clear that mergers like this do not work, and they typically result in decreased services for cities, and increased taxes for everyone,” stated Mayor Jeff Gahan. “That’s why we cannot support this.”

As it currently stands, the Floyd County-led initiative could lower public safety funding as well as other quality of life services that the people of New Albany rely on. Mayor Gahan reiterated that the city of New Albany will not support any proposal that lowers funding for public safety or quality of life services.

CITY COUNCIL PASSES MAYOR GAHAN’S NEW DATA CENTER BAN

CITY COUNCIL PASSES MAYOR GAHAN’S NEW DATA CENTER BAN

At the request of Mayor Gahan, the New Albany City Council has approved a 1 year ban on the construction of new data centers within the City of New Albany. The freeze will allow the City to study issues including utility demands and their potential effects on electric and water rates, environmental impacts, noise concerns, infrastructure needs, and other issues related to data center development.

Under the new law, no new data center can be constructed within the City of New Albany. The ban will remain in effect for up to one year and could be renewed after that.

Mayor Jeff Gahan is also encouraging Floyd County’s elected officials to adopt similar protections for residents living outside New Albany’s boundaries.

“We encourage Floyd County’s elected officials to follow New Albany and other cities and counties throughout the Midwest by enacting their own data center ban so families throughout Floyds Knobs and Floyd County are protected from unchecked data center development while these important issues are fully studied,” said Mayor Gahan.

Mayor Gahan first proposed the ban in June, citing the rapid growth of data center projects throughout the region and the need to ensure New Albany is prepared before considering future proposals. Councilperson Elaine Murphy sponsored the ordinance before the City Council.

“I believe it’s important to understand how data centers could impact our future,” stated Mayor Gahan. He also thanked members of the City Council and the New Albany Plan Commission for their quick, proactive work.

“As technology continues to evolve, great cities must also evolve, and this proactive step helps us better prepare for tomorrow,” Mayor Gahan said. “Our responsibility is to protect our families, conserve our natural resources, and make decisions that are in the best interest of our people. This action will allow us to do exactly that.”