In this morning's edition of The Journal Gazette, Amanda Iacone writes a news story of the response of Fort Wayne-Allen County Airport Authority regarding the shut down of the Kitty Hawk sorting hub. Her contact for the story was one of Mayor Richard's three board appointments. Michael Gouloff, board president, is never directly quoted but one is led to believe this he is the person supplying the information.
Increasing property taxes will likely be the last option airport officials consider to pay off a debt left by departing cargo carrier Kitty Hawk.
Fort Wayne-Allen County Airport Authority officials said Thursday they won’t know for a while how much of a $34 million bond the airport authority will have to repay. The airport authority issued the bond to lure Kitty Hawk to Fort Wayne International Airport.
Two weeks ago Kitty Hawk filed for bankruptcy and in all that time no one had considered checking to see how much of the bond was still outstanding? Bond payments go to one place. Either that person has the outstanding balance or the person who they may forward the payment to would. One could understand that it could take a couple of days to get the exact balance but over two weeks?
One has to wonder if the delay in releasing the information is more political? By releasing the figures would only provide Matt Kelty with additional ammunition of unwise government guaranteeing of bonds, for marginal private businesses.
By not releasing the numbers, Gouloff also makes Kelty's claim of some boards and commission of not being transparent to the taxpayers to be true.
Kitty Hawk's shut down its sorting facility Monday, putting 300 people out of work. The company filed for bankruptcy last month.
The airport authority borrowed the money to build the air cargo company an overnight cargo hub plus an aircraft ramp in the late 1990s. Lease payments were intended to cover the bond issue. But when Kitty Hawk announced it was closing its Fort Wayne location, it defaulted on a 20-year lease with an option for two five-year extensions.
The airport authority has a reserve fund set aside with one year’s worth of expenses. Officials will tap into that fund to cover bond payments for now, board President Michael Gouloff said after a board meeting Thursday.
The airport authority is setting on a "slush fund" of enough money to maintain a full year of expenses? The City of Fort Wayne does not even attempt to maintain a fund to maintain our police or fire protection for six months, let alone a full year. Again, this only offers for strength to Kelty's drum beat of some boards not being transparent to the taxpayers.
When an unaccountable board can build a "slush fund" of this size, one has to wonder how much additional revenue they bring in annually that is spent on other things? These are taxpayers dollars they are hoarding!
While they may claim it is money from tenants at the airport they would be wrong. Every property taxpayer in Fort Wayne contributes annually to the operation of the airport. If the airport was totally self-supporting, then their potential claim could be considered true. But currently it is not!
The courts will determine what relief the airport authority will receive, Gouloff said.
Gouloff should have told the writer that the airport authority is an "unsecured creditor." Which puts airport pretty far down the list of those who may receive any money. When it is all said and done, the amount left to the taxpayers will be well in excess of twenty million dollars.
Using property taxes to pay off the debt is an option of last resort. But if the airport authority had to raise taxes, the increase would be minimal, he said.
This is the exact thinking, that has in part, lead to the property tax crisis all across the state of Indiana. In Fort Wayne most property tax bills are composed of a composite of taxing units. This includes city government, county government, township government, school district, library, county redevelopment special tax, public transportation, and the airport authority. A "minimal" increase from each of these non-related eight taxing units becomes "massive" to the taxpayer.
This is one more sign of the arrogance that some appointed members of various boards have towards the taxpayers!
Gouloff is hopeful the airport authority will be able to fill what he called a great air cargo facility, including a 240,000-square-foot warehouse. Gouloff believes other companies will recognize the facility and be willing to use it, he said.
Gouloffs statements and thoughts should tell us he does not see Kitty Hawk returning in any form.
Oh well, one more case of wasted tax dollars.
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3 comments:
JQT:
I've said exactly this for YEARS....maybe someone will listen to YOU now.
Thank our lucky stars that WE at least "get it".
B.G.
Yet another example of why appointed boards should not be able to raise our taxes - period. It's a flawed form of government.
Jeff I will agree it is a much flawed part of our system. Anytime there is a raise in taxes it should have to go in front of the taxpayers - period! When it is a failed bond issue, it should have been backed by other financial resources, where we would know in advance what our options would be outside a tax hike. The whole airport authority system is a joke and at this time is a move to hold back information they have in front of them till after the election - judege for yourself.
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