Despite the pandemic, the town was able to break the innkeepers tax record, sewer infrastructure and public safety are the town's top funding priorities in 2022, and COVID testing/vaccinations continue.
On this week’s installment of Ask The Mayor, Nashville Municipal Consultant Dax Norton addresses these issues and more. Listen to the full conversation with Indiana Newsdesk anchor Joe Hren by clicking on the play button above, or read some of the questions and answers below. A portion of this segment airs 6:45 and 8:45 a.m. Wednesday on WFIU.
This conversation has been edited for clarity and conciseness.
Hren: Let's just start by taking a look back at 2021. What was some progress the town of Nashville was able to make in 2021?
Norton: I think we made some good progress, especially in the areas of planning. To move forward with projects, we received a substantial grant from the IFA for some sewer utility work. I think it was a successful year from a business perspective. And we had the business grants that we were able to obtain.
And then I think just the general organization of moving forward with plans for bicycle pedestrian master plan, we talked about comprehensive planning. We've talked about utility planning and what needs to happen next, to make sure that utility is viable into the future.
Talked about workforce talked about affordability and housing, talked about READI Grant. But really came out of that with a sense of good collaboration, to really start to talk about things and forming partnerships and groups to get things accomplished.
I mean, it may sound small, but one of the bathroom buildings was was paid off, the finances were very good at the end of the year. So once again, the council showed fiscal responsibility.
Also, a joint effort between the county and the town on the formation of Human Relations Commission. It was a busy 2021.
Hren: Could we follow up on extra funding, such as the American Rescue Plan Act money or infrastructure bill?
Norton: No, to answer your question on ARPA. Probably likely that money is going to go predominantly to water and sewer projects on the town side. Because we're looking at anywhere from think I told the utility service board last night $15 to $20 million worth of just really maintenance work to make the utilities whole and working properly.
Then you have the new infrastructure bill. You know, Joe, it's a moving target. There's a lot of money coming into the state $750 million in the next five years, for water and sewer projects. There are a lot of new programs. A lot of this will be in loan monies, but it's going to be incredibly competitive. So one of the goals this year and I wrote to the council is to have ready projects. So we need to really quickly in February, pick our priority projects and make sure that they are 'readiness to proceed' worthy for any of these grant dollars.
Hren: What would be the town's funding priorities in 2022?
Norton: Right now our sewer infrastructure from the town's perspective, would be the main priority. Now on the tax side, your public safety is probably the biggest concern because the biggest spend. The fire department is well underfunded. Town Council is going to probably go through studies to find out if the police department is underfunded, over funded, or funded just fine.
And then you have pedestrian infrastructure I think is top of mind for the council as well. You know sidewalks connectivity, safety of the pedestrians to not have to walk on or in the street. Those will be pretty interesting topics of how to fund those projects as we move forward. I know that there's a now a joint effort between the county and the town for bicycle pedestrian master plan. We've looked at ways to connect State Route 46 to Old State Road 46 via walking path.
Hren: Do you have any numbers on the fall tourism season and how it compares to other years?
Norton: I've heard business owner said it was their best year ever. I can tell you that looks like food and beverage came in - I don't have the final number - but it was coming in just as much as it was in 2020, which we were all surprised which is higher than 2019. So that's a good indicator of visitation.
Hren: Also I read in the Brown County Democrat the local innkeepers tax reported more than $1 million this past year and that was without December. What does that say about Nashville and Brown County?
Norton: It's just a great place to go and so if people had scaled back their their traveling to just more local or regional travel, it's an excellent location to do that. You have interesting tourist opportunities with the shops and restaurant offerings are starting to grow and obviously we have some some beer and spirits being produced in the county by multiple entities.
Hren: So where does that money from the innkeepers tax go?
Norton: The Convention and Visitors commission, I think it's called CVC, which is the county. County then gives a portion of that to the CVB and gives a portion to the music center and I'm not sure where else it goes. But those are the two major portions where innkeepers tax goes by statute. That's what's supposed to be used for CVB to market to get heads in beds.
And then a special deal which is the music center, to provide that service for the music center. But you know, there's a bill in the Senate that would sunset all food and beverage taxes and innkeepers taxes in 20 years, and we don't want that to happen. But we understand legislature, we'd like to see at least some more discussion on that before it has a final passage because innkeeper taxes are so important to a place that is so reliant upon tourism.
Hren: When you hear about the state wanting to cut a billion dollars out of the budget with a lot of tax cuts, income tax, business personal property and so on, while we talk about crumbling infrastructure and unfunded mandates, is that frustrating for you?
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Norton: Yeah, I think it's frustrating for all municipal executives in the state of Indiana to have levy controls. The inability to raise enough revenue to maintain 2022 infrastructure. We have 1950 infrastructure in 2022 and we don't have 2022 revenues, or methods to pay for that. You can't go into too much debt because of constitutional debt limits, so you're kind of stuck.
So when I say a number like $15 to $20 million needs to be spent at the utility, there's only one way to raise that revenue to pay that debt. And that's raised rates. Nobody wants rates raised. But how else are we going to do this? So streets, the bridges the same... there will be some money in the infrastructure bill. But it's going to go quick.
So it's probably not going to go as far to places like Brown County in Nashville. So we still have to be as creative as possible without getting in too much debt.
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