The Fishers COVID-19 testing program, health department and the finances of it all

What I have always loved about America is our ability to have a good solid discussion about public matters.  A good debate will bring issues to the public, and, after all, we elect the people making our major decisions in this nation.

I moved to Fishers in 1991 and wrote a regular local Fishers news blog from January, 2012, up to March, 2020.  I sat through more meetings than one could count.  That includes the City Council Finance Committee, as well as plenty of City Council Work Sessions about budgets, tax rates and any number of other issues.

Bottom line, I had a front row seat to most of what has happened in the town, and later, the city of Fishers, for more than 8 years.  When announcing in late March I was ending the regular news coverage I was very sincere.  But when the novel coronavirus hit, I felt compelled to remain engaged, maybe not to the extent I was before, but still engaged in what is happening in the community I have called home for 29 years.

The latest public debate in Fishers centers on Mayor Scott Fadness’ decision to create a city health department.  In this commentary, I will provide some of my views for your consideration, and sort through what the facts are and are not, in this public debate, in my analysis.

First and foremost, it is clear to me that without establishing a city health department in Fishers, the current local testing program would not be in place.  This is a very aggressive public health effort for a city of more than 90,000.

Anyone 18 and over can have a test scheduled, which will likely take a few days.  If you are a resident of Fishers, there is no charge for this test.  If you have symptoms, that test may be scheduled more quickly.  Test results are normally available within 48 hours.

I listened to the May 8th Fishers Board of Health meeting audio recording, and if you listen, I must warn you, it was virtual and audio only – it was very difficult to hear some of the session due to technical difficulties.  However, I discerned enough of the meeting to know that if a Fishers resident has a test through the City of Fishers, tests negative, and wants another free test, you need to wait 14 days if you have no symptoms.  If you develop symptoms after the negative test, you may be able to test sooner without charge.

Fishers business owners may use the city’s coronavirus testing system, but will be required to pay a fee to cover the cost for employee COVID testing.

The city’s new health department’s Medical Director is Dr. Indy Lane.  She will be in charge of all medical protocols within the department.  The department has a Chief Administrative Officer, Steve Davison, who is also an Assistant Fire Chief for the City of Fishers.  Fire Chief Steve Orusa serves as a member of the city health board.  The other board members are local health professionals.

The city is funding this testing program with $2 million from cash reserves.  After attending all those budget process meetings, I can tell you Scott Fadness has been adamant that the city keep its cash reserves well above what normal accounting rules or state law would require.  Sometimes it wasn’t easy to keep the reserves at that level, but the mayor’s budget proposals have always provided that extra amount in budget reserve.

It was the availability of those reserves that allowed Mayor Fadness to establish the COVID-19 testing program.

A lot has been said and written about why the city is funding the testing program with $2 million from reserves when city revenue is likely to take a hit in next year’s budget.  City officials insist this was considered.  Fishers has no food and beverage tax, so other cities in Hamilton County will likely take a hit on that revenue stream when Fishers, without a food and beverage tax, will not be impacted as much by the closure of restaurants.

Look at a city like Westfield, which relies heavily on out-of-town visitors to its massive sports facilities for revenue, will be impacted greatly by this economic downturn, where Fishers does not generally have much of a tourism revenue stream.

I have found a lot a comments around town about how the establishment of the city health department may impact the city budget long-term.  From everything I have found that is publicly available, and in talking with Fishers city officials, the transition from the county to city health departments will not have an impact on any part of the city budget.  That tax structure that supports the Hamilton County Health Department paid by Fishers taxpayers will now be funneled into the new city department.  There is nothing in the record I can find that indicates this will be anything but revenue neutral.

I have also read commentaries about how the new health department and COVID testing will have an impact on future city tax rates.  The way local property tax rates are determined in Indiana is a very convoluted system which is partially impacted by a municipality’s assessed valuation – in other words, the valuation of the property subject to tax within your city.  Cities normally do not have the final numbers until well into the budget process, which begins in the summer months and ends in October and November.

When a mayor wishes to increase the property tax rate, there is a very specific process for that.  For example, in recent years, Mayor Fadness proposed a property tax rate increase to finance a bond issue funding the first phase construction costs for the Nickel Plate Trail and some road construction projects.  The mayor revealed that proposal during the early budget process in the summer, there was a public debate, and the City Council approved the rate increase.

“Under Indiana law, when a second class city establishes a local health department, the county in which it resides can no longer tax the residents of the city for those services,” said Mayor Fadness in a statement sent to LarryInFishers.  “The city can then in turn establish a tax rate in their community to provide the services. In essence, instead of the revenue being collected being sent to the county to render services, it will be collected in Fishers and kept in Fishers.”

So, the mayor’s office says the establishment of the city health department will not impact the city’s property tax rate.  If the mayor and his staff are wrong, they would need to explain why to the city council and ask for their approval.  I can only say I have found the mayor’s office spot-on when projecting these tax rate issues in the past ever since Fishers became a city and before that, as a town.

This piece is already long enough so I won’t delve into any more details.  I will only say that as a long-time Fishers resident, I feel good that my mayor saw a need and did what he thought needed to be done, knowing that time was of the essence, with his community’s health at stake

Many will disagree with the mayor’s actions for a variety of reasons, and I find that healthy. This is America.  We need a good, lively discussion about any major public matter.

The new city health department and COVID testing regime are definitely serious issues worthy of debate.  I would caution all of us to check our facts carefully and accurately when discussing the issues at hand.

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