Council President Kennedy, members of the Kokomo Common Council, elected officials, distinguished guests and citizens of Kokomo, welcome. I would especially like to welcome my wife Kelli, and my family and friends who took the time to be here tonight.
Our community has faced so many challenges over the past few years. More challenges than any of us could have imagined four years ago. Like most cities, foreclosures plagued Kokomo's neighborhoods. A depressed economy hit our automotive sector very hard. Our two largest employers went through bankruptcy reorganization, and many national commentators wrongly assumed that Chrysler would cease to exist.
Property tax reform, while a positive for homeowners, threatened to decimate our local government finances by placing a cap on property taxes at the same time that assessed values for all properties were plummeting. This led to permanent, sharply reduced revenues, during a time of increasing community need.
Think about it. Think about the challenges our city, our businesses and our citizens have faced. So many of us found ourselves battling against fiscal issues, global financial crisis, and local apathy.
It's almost no wonder that some people also assumed Kokomo was a dying city. A city with no future.
But those people didn't count on something: they didn't count on the dedication, commitment and ingenuity of this community. They didn't count on our willingness to stand together, and face our problems head on.
Most in the general public - small businesses, families and community groups -understood what needed to be done by city government. They understood we had to assess our current situation, take a long-term evaluation, analyze our choices, whether difficult or very difficult, and unfortunately, sometimes make some tough decisions. They understood that we could not simply be caretakers, content to preserve the status quo and leave the big problems to future leaders, our children and our children's children.
And so, when you look at what we faced as a community, it's plain to see that despite these unprecedented challenges, 2010 was a truly amazing year for our community. By confronting these challenges, we managed to do extraordinary things during extraordinarily difficult times. Consider all we have accomplished together in the past year alone.
2010 was a year we should all be proud of in Kokomo. It was the year we showed the world that we have no intention of dying, or fading away. It was the year we showed the world that we are innovative. That we are resilient. And that we are moving forward together as a community.
2010 was the year we finally began to turn downtown around, improving infrastructure, removing privileged parking, removing signage and converting one-way streets to two-way. Local businesses responded with more than 700 thousand dollars of private sector investment. Over a dozen new businesses made downtown their home, and we worked with several of our local banks to create a loan pool for renovation of downtown properties. This is an area on which some had even given up. But most refused to, and our efforts are being recognized. This past year, Kokomo received state-wide recognition from both Indiana Main Street, an organization overseen by Lt. Governor Becky Skillman, as well as the Indiana Association of Cities and Towns' Community Achievement Award.
2010 was the year we finally expanded Kokomo's public transportation options. The City Line trolley service launched in September, providing fixed-route bus lines to Kokomo residents. Ridership for this free service has quadrupled even our most optimistic goal, and has increased every single month since its inception. It now averages more than 500 riders a day.
2010 was the year we launched the Novia Health Care Clinic for City employees. This will save taxpayers over 350 thousand dollars in the first twelve months. The clinic also increases employee productivity. It encourages preventative care, and leads to early diagnosis, which reduces costs down the road, and increases savings to the taxpayers.
At the same time, City employees' families saved about 100 thousand dollars in our first year of operation, through savings on co-pays, lab fees and prescription medications. We accomplished all of this while reusing an existing public building. Furthermore, our clinic now partners with Howard County government, the Taylor School Corporation and the Kokomo Housing Authority, saving even more taxpayer dollars throughout the county.
2010 was the year our local businesses and industries committed to invest more than 1.4 billion dollars in our community. To put this in perspective, the entire city of Indianapolis had 935 million dollars committed during the same period. Kokomo's investment exceeds our states largest city by 465 million. Everyone should be proud. But what's important is the type of investment we're receiving, because it demonstrates the commitment our largest employers have to growing in our community. Delphi Electronics & Safety is building new facilities on its Lincoln Road campus and is expanding its presence on the north side of our city. Meanwhile, Chrysler is investing over a billion dollars in new equipment, to prepare for the company's future in Kokomo. As Chrysler CEO Sergio Marchionne said during his recent visit, "I saw all I needed to see. We will be fine. Watch."
2010 was the year the City of Kokomo and Howard County finally came to an agreement on merging dispatch, after literally decades of failed efforts. Consolidated dispatch went into effect January 1 of this year, improving efficiency and saving city taxpayers over half a million dollars per year. Think about that. That's a 5 million dollar savings over the next decade. I appreciate the Citizens Consolidation Committee's efforts to make this a reality. Moving forward, we will continue to partner with the county on a number of other projects, including infrastructure improvements and other initiatives.
2010 was the year our main library re-opened following a 3.7 million dollar renovation, involving a complete remodeling of the library's interior. This project included etched glass from local artisans, and gave the library more space to publically display its large collection of artwork. It also expanded the children's section, the computer lab and the genealogy department.
2010 was the year we were recognized, around the globe, for our efforts and our successes. The city was featured on the BBC and in CNN Money, among numerous other outlets. Kokomo was the only city in the state of Indiana to be selected for Harvard University's Bright Ideas program. Northwest Park was named "Most Outstanding Park" by the National Softball Association. We were also honored with visits from Chrysler CEO Sergio Marchionne, and Indiana University President Michael McRobbie.
And, of course, 2010 was the year the President and Vice President of the United States visited our city, and recognized us as an example of a community on the rise. As Vice President Joe Biden said, "Kokomo is in the forefront of it all. And nowhere is it written that Kokomo can't be the hub of innovation in emerging industries of the 21st century -- like it was in the 20th century." The President also spoke of our legacy, and our extraordinary potential. President Obama said "This is a city where people came to invent things and to build things, to make things here in America; to work hard in the hopes of producing something of value and something that people could be proud of."
They were right. We are proud. Proud of what we've produced; proud of what we've achieved; proud of our community.
The extraordinary thing is, this is nowhere near a full list of our accomplishments in just the last year. I could also talk about parks improvements, about the creation of Kokomo's first TIF district, about the formation of the Kokomo Arts League, and on, and on. I could talk about our fiscal accomplishments; the fact that, between 2008 and 2010 we reduced the budget by more than 2 million dollars, and reduced actual spending by more than 4 million dollars per year. Or I could talk about the groundwork we laid for future accomplishments. The groundbreaking on our new southside fire station, which has been needed for over a decade, or our partnership for an 8.5 million dollar housing project at the old Kingston factory site. The Kingston project will stabilize the neighborhood, removing blight for future generations on a 3.5-acre parcel that has been abandoned since 1989. Or we could mention zoning changes to allow a private company to build housing for Indiana University Kokomo students, a project that could further enhance it as a regional destination campus.
How were we able to accomplish so much? By facing our challenges. By not shying away from the most difficult issues facing our community. By working together to solve problems that have confronted our community for years. By understanding that our tax dollars are limited, and should go toward the things our residents expect and enjoy. We didn't shirk. We didn't put in fees, or raise taxes, as some suggested and as many other communities did. We used our heads, not your wallets. We used innovation, not taxation.
Looking forward....in 2011 there are two challenges we must focus on. Two challenges we have ignored for far too long. These two challenges are vital to our future, and they won't be solved in just two or three years. They will require a long-term strategy. To our City Council, and to myself: This is our responsibility. Our position in the community mandates that we face these two challenges head on. Current and future generations are depending on us.
The first ...is improving the educational level of our community. Currently, less than 15 percent of our adult population has a college degree. That's less than only one in every six people. That is less than both the state and the national average. By comparison, 30 percent of the adult population in Columbus has a college degree. In Lafayette, it's 24 percent.
Education is important not just to us as individuals, but to us as a community. It is vital to our economic development efforts.
And let me be clear: this is not a judgment against those who lack a college degree. I, myself, fall into that category. But let's be honest: we all know the workplace is changing fast. I don't have to tell you that. Many of you see it in your jobs, every day.
If we want to attract diverse jobs, and all of us do, we need a diverse workforce. If we want to attract high-tech jobs, and all of us do, we need a high-tech workforce. And education is essential to making that happen.
Education creates a stronger workforce; it helps meet the needs of our businesses and industries; and it makes us a more attractive community to a wide range of economic development prospects.
Make no mistake: We have many of the tools to improve our educational level. First, in Howard County we have excellent K through 12 schools, both public and private, to help prepare students for college and for life. For example, Taylor Schools recently launched Titan New Tech High School. This innovative program is built around project-based education, with students working in groups on assignments that span a wide range of disciplines.
Just last week it was announced that Northwestern High School and Western Middle School were among only 188 schools statewide designated as Indiana Four Star Schools for the 2009-2010 school year. Furthermore, Western High School has a graduation rate of more than 96 percent.
And some in our community may not realize this, but Kokomo High School is the highest performing urban school in the entire state. This fall the Kokomo Center School Corporation plans to open two International schools, which will further enhance its profile and its educational offerings.
These unique initiatives give Howard County students the tools they need to succeed in the 21st century. But even setting aside these programs, all of our schools easily stack up against any school of their size in the state.
In addition to our K-12 schools, we also have excellent colleges and universities. Ivy Tech has expanded its offerings in recent years, to meet the growing demand for higher education and workforce training. Under the leadership of Chancellor Steve Daily, Ivy Tech is also a strong partner in community development through a variety of efforts. Ivy Tech provides funding and resources to coordinate the Downtown's Farmer's Market. The college also oversees the community garden, by furnishing land and labor. The produce grown in the garden is given to local food banks. Also, Chancellor Daily is chairman of the Greater Kokomo Economic Development Alliance, assisting in our community's efforts to increase our level of quality jobs and business investment.
Indiana University Kokomo has been a part of this community for decades, and I look forward to its continued growth. The campus has an aggressive and innovative Chancellor in Michael Harris. The Chancellor, who also serves on the Alliance Board, recently said that IU Kokomo has the opportunity to transform our entire region, by providing strong leadership and by meeting the educational needs of our workforce. He is right, and we must partner with him in these efforts.
Our City's Development Department has begun doing this by making higher education more accessible and more affordable to our citizens. For example, we offer scholarships to attend our local colleges through both the Urban Enterprise Association and our Community Development Block Grant funds. We also offer grant money to employers, non-profit agencies and educational institutions, through the Reach Higher One Step Up program. This initiative encourages our stakeholders to develop pro-active and innovative approaches to educating our community.
And, of course, our City Line trolley service is a tremendous boost to lifelong learning in our community. It is well known that a lack of low-cost, readily available transportation is one of the toughest barriers facing adult learners. By providing a free and convenient transportation service, City Line helps break down that barrier and encourages our residents to pursue their educational goals.
As we tackle this challenge together, I ask all of you to share your ideas about improving our educational level.
The second challenge we need to face in 2011 is also ongoing, and may be even more troubling. In fact, many would say it's the single biggest issue facing our community, especially from an economic development standpoint. It's certainly one that has plagued us for decades. And if we don't face this challenge soon - if we continue to ignore it, and leave it for future generations - our community could very easily stagnate, and be a much lesser place.
I am speaking of the fact that 20 percent of our workforce do not live in this community. Every day, thirteen thousand of our workers drive into Howard County, to earn their paychecks. And every day, those same thirteen thousand workers get back in their cars, and drive home to their families in another county. They are driving to Zionsville. Or Indianapolis. Or Westfield. Or Noblesville. Or someplace else. The fact is, they are not staying here.
Let me repeat that number: Thirteen thousand. One out of every five workers. Twenty percent. Every day. Every week. Howard County, our county, is one of the worst in the state in retaining employees as residents.
Why is this a problem?
First, because they are earning income in our community, but spending it in others. Those 20 percent that commute earn 30 percent of the income generated in our community. In all, over 850 million dollars a year. That's 850 million dollars of spending power that is earned here and goes directly to other counties - each and every year.
If they lived here, they and their families would spend their income here. They would dine in our restaurants, shop at our stores, frequent our doctors, our dentists, our physical therapists. They would exercise at our health clubs and our YMCA. We're losing not only the worker, but the indirect jobs that come with a larger population - the restaurants and retail shops, the small local businesses that depend on our population, and fuel our local economy.
We are also losing out on tax dollars, through local income tax, some state and federal tax allocations, and the property taxes they would pay on a home in Kokomo. These funds could be going toward our parks, our streets, our police and fire departments. Instead, they are funding those same services in other communities.
But the lost revenue is only part of the problem. Perhaps more importantly, we are also losing their intellect and their social contribution to our community. We are losing their presence on non-profit boards, as youth sports coaches, as scout leaders and as members of our religious congregations. If they were living here, their entire families would be involved in our community. Their children would take music and martial arts lessons from our local instructors. They would donate money to our charities, and to our churches. We are not capturing their volunteer hours, their care and concern, nor their passion for our community.
We can accept complacency and ignore this reality or we can find creative ways to turn this problem around.
Our City government, our County government and the Greater Kokomo Economic Development Alliance are all working hard to secure jobs and business investment for our community. We want more jobs. We all want more jobs. Who doesn't? But if we don't keep more Howard County workers, and their paychecks, and their brainpower, and their ideas, in our community, then we are not receiving a full return on our investment.
Many of these commuters hold leadership positions at their businesses, and could also be contributing those valuable skills to other areas of our community instead of another. Every single one of us has something unique to contribute. The contributions of these workers, and their families, would only make us stronger.
So, how can we showcase our great community, and help these workers recognize all that we have to offer? How do we show them that Kokomo is not only the best place to work, but also the best place to live, shop and go to school? Here are three ways to start:
One, by improving our quality of life. Two, by focusing on education and our schools. And three, by offering a new, innovative program to provide incentives for home ownership and leverage investment in our community.
We've worked hard on the first part, quality of life, by improving our pool, parks, walkpaths, adding bike lanes, beautifying our thoroughfares and strengthening our arts community.
We have all the tools in place to be seen as a first-rate community. Our housing stock is both attractive and affordable. We have numerous recreational opportunities, whether you're interested in taking a bike ride, joining a softball team, taking the kids out for a swim, or just going for a walk in the park. We have dog parks and skate parks. We have Kokomo Beach. We have quality hospitals and medical facilities and beautiful libraries. We have extraordinary arts organizations, whether you're interested in attending the symphony, a stage play, an art exhibit or a concert in the park. These amenities have seen improvement and need to continue improving.
The second part - education - we have already discussed. Our schools and their teachers are making a difference every day. Our schools are succeeding, statistically and anecdotally. It is happening. But we, as residents, are failing. We are failing to communicate these successes among ourselves and to the outside world. As a community... let's decide that instead of criticizing our schools, we will support our schools. Let's decide that instead of criticizing our students, we will support our students. And for goodness sakes, let's decide that instead of criticizing our teachers, we will support our teachers, and give them the respect and admiration they so richly deserve. Let's every single one of us agree that it is "ok" to brag about them once in a while. Boasting about the successes of our schools, our teachers, and our students must be accepted and, more importantly, encouraged.
So, how do we tackle the third part: providing a financial incentive to locate here, and to stay here? Most economists predict that fuel prices will rise dramatically in the coming years. The Associated Press reports that a gallon of gas will hit 4 dollars by this summer, and a report on CNN Money said we can expect 5-dollar-a-gallon gas in 2012. Although this is a national problem, it will have a negative impact on every community, including Kokomo. If this happens, our transportation patterns will change. Many people will take a closer look at their commuting patterns, and many will choose to live closer to where they work shop and go to school.
How will Kokomo prepare for these changes? Higher transportation costs could very well provide us with an opportunity to capture and keep the lost revenue and talent that leaves our community. But only if we are prepared. An opportunity means nothing, if we don't use it. If we don't build on it. To take advantage of this opportunity, we need to work together, as a community, and do all we can to attract new residents, and to keep the ones we have. We must reach out to our friends, our families, our college students and our workforce, and give them a clear choice between living in Kokomo and living elsewhere. No one will move here, or stay here, just because we wish it were so. Instead, it is up to us to welcome them, and to show them all what our community has to offer. Remember, at stake is 850 million dollars a year in spending power.
That is why, tonight, I am calling our community to action on this important issue. We will all have a role to play as we begin to face this long-term challenge.
Put simply - we need to fill up our vacant homes and properties. Our plan to do this is multifaceted, and involves many different sectors of our community.
It starts with leadership from the City Council. Soon, I will send this body a project proposal for an exciting, new program. We will need the council's consideration, input and funding approval.
This program would only be available to two specifically targeted groups: Howard County residents who currently do not own property and any out-of-county residents who decide to make Kokomo their home.
This 100,000 dollar pilot program would create a unique initiative that will offer forgivable loans for exterior improvements such as siding, windows and porch repairs to residents who purchase a home which has been sitting vacant for several months. Our plan would offer up to a 20 percent match on exterior improvement project costs, capping at five thousand dollars per home.
This plan would accomplish a number of goals at once. It increases our population in the short term, and helps to sustain it in the long term by bringing new families into vacant properties; it leverages private investment, at a ratio of four private dollars for every one public dollar; it provides new consumers for Kokomo's small businesses; it creates a business opportunity for our local contractors; it increases our city's tax base; it increases property values for Kokomo's current homeowners and property owners; and it helps stabilize all of our neighborhoods by improving these properties and the entire neighborhood in which they are located.
Let me be clear: This program would only be available to two specifically targeted groups: Howard County residents who currently do not own property and any out-of-county residents who decide to make Kokomo their home.
This incentive will allow us to help bring new residents to our community, while also encouraging our current residents, who do not own property currently, to stay here, and put down lasting roots.
The Greater Kokomo Economic Development Alliance must also play a role. I am calling on the Alliance to coordinate with its private stakeholders, and lead the effort to help these targeted new families see the best of what we have to offer. Through this initiative, we will need our local businesses to consider ways they can help, by offering deep, deep discounts to newly relocating residents on the most desirable products and services. Moving companies could offer discounts. Every single one of our utility companies could waive and forego those one-time hookup fees for these new residents and new homeowners. Health clubs could offer a free one-time multi-month membership. Our local restaurants and retail stores can offer special coupon books to our relocated residents. Our arts organizations can offer free passes to their events.
Let me be clear: I am not talking about routine savings on run-of-the-mill items. I am talking about substantial savings on big-ticket items and valuable memberships. I am talking about the type of discounts that will grab their attention, and make them realize how serious our community is about welcoming them home. I am asking you to make a short-term sacrifice for the long-term good of our community, and of your business. Today, they are targeted families. Tomorrow, they'll be our friends and neighbors. And by next year, they'll be a loyal and lifelong customer. Think back to the old Welcome Wagon. Our forefathers just might have had it right.
Our local Realtors will serve as our front-line ambassadors, showcasing our excellent schools, our wide range of restaurants, retail outlets and our entertainment options. And, just as other businesses are offering one-time discounts, I call upon our Realtors to at least consider offering reduced fees to these two targeted groups.
Also, our largest employers must support this effort, by encouraging responsible citizenry and community involvement. Chrysler, Delphi and Haynes; Saint Joseph Hospital and Howard Regional Hospital; Indiana University Kokomo; all of our largest employers benefit from City taxpayers, whether through tax abatements, infrastructure improvements, grant funding or tax-exempt status. In return for those benefits, I call upon these employers to support this community, by sharing our entire incentive packages with their workforce, and by encouraging their employees - including the highest levels of leadership - to live in our community.
And last, and certainly not least, our City departments have a role to play. Our street, engineering and parks departments are adding new bike lanes to our city's streets, and constantly improving our walk paths. These departments are developing plans to partner with private businesses along some of our most highly-visible thoroughfares to plant trees, and present an even more beautiful image to the public.
All of these things - and everything we do in City government, County government, and all units of government in Howard County - should be designed to move our community forward, and make Kokomo a more attractive place for both our current and new residents.
These are just a few ideas. I know that you can come up with many more. I know you can think of ways, large and small, to make our city more attractive to those workers who, in the past, have chosen to live elsewhere.
We have yet to bring all these elements together, to concentrate our efforts and push our community forward. In the coming weeks, I'll be talking about this more and more. So take the time to give us your input. Get involved. Help us make this happen. But don't drag your feet. Opportunities don't last forever.
Education and worker residency are major challenges. But despite our challenges, Kokomo is a City on the rise. We have proven in recent years, time and time again, that we can face down our challenges. Now, I ask you to face these challenges, together. Help us make Kokomo an even better place to work, and to live.
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