From the Indianapolis Star:
Mayor Greg Ballard Wednesday outlined a crime-fighting plan that calls for a preschool program designed to keep kids off a troubled path, more police officers and a crack down on gun crimes.
Supporters of the mayor hailed the proposal as visionary, but critics saw it as a first strike in the 2015 mayoral campaign that is likely to focus on public safety and the city's rising violence.
The centerpiece of the proposal is a $50 million in public-private investment to make high-quality preschool available to 1,300 4-year-olds in low-income Indianapolis families for each of the next five years.
Roughly $40 million of the early schooling investment would go toward voluntary preschool scholarships and $10 million for grants to help program providers reach the top tiers of state ratings.
The city would provide half of the $50 million through the elimination of a homestead tax credit while private donations would provide the other $25 million. Axing the tax credit would cost 40 percent of the city's homeowners about $2 a week.
The mayor's proposal also calls for providing educational opportunities for students who have been expelled from school and are locked up in juvenile detention.
Much of the rest of the plan is a re-iteration of strategies that Ballard's Republican administration has previously proposed — and the Democratic City-County Council president said it doesn't include enough new police officers.
"We already know that number is not sufficient," Lewis said. "It doesn't get us where we want to go. This is just kicking the can down the road."
Ballard would pay for the new officers by raising the public safety income tax from 0.35 percent to 0.5 percent to collect $24 million annually to pay for the additional officers
The tax bump, which needs council approval, would cost a taxpayer earning $42,000 a year $5.32 per month, or about $64 a year.
The tax increase would pay for 360 new officers by 2018, for a net gain to the force of 112, after attrition.
...
http://www.indystar.com/story/news/crime/2014/07/30/ballard-announce-crime-plan/13354545/
Showing posts with label Local Tax News. Show all posts
Showing posts with label Local Tax News. Show all posts
Thursday, July 31, 2014
Monday, July 28, 2014
Truth Reports Elkhart Reconsiders CTS Tax Abatement
From the Elkhart Truth:
A well-received tax abatement request from one of the city’s oldest employers has quickly fallen apart in a matter of days.
A representative of CTS Corporation appeared before city council on July 7 to formally request tax breaks over a seven-year period in exchange for expansion of a new production line that would result in 14 jobs paying on average about $50,000 a year.
Reaction at the time was congratulatory as one city official called it one of the better requests the city has ever entertained.
But than two weeks later, city council’s outlook turned sour after officials learned the company was cutting 14 upper management jobs.
Council members were quick to take action after they learned the company had eliminated the positions from the Elkhart facility.
About ten of the positions are being eliminated while the other workers are being offered a chance to relocate to a facility in Illinois.
News of the job cuts came 11 days after council took the initial step in seeking tax abatement.
With the job cuts, paperwork submitted to the city is considered to be inaccurate and invalid, according to councilman David Henke.
Council had taken the first of three steps to approve the abatement request, but on Monday, July 21, reversed course amid concerns and used the rare move known as a “motion to reconsider.”
...
Journal & Courier Reports Lafayette Approves Abatement for GE Aviation
From the Lafayette Journal & Courier:
The Lafayette Redevelopment Commission on Thursday approved a 10-year tax abatement plan for GE Aviation and its leasing company, Pure Development.
"It's moving quickly, and we hope we can move it quicker," Eric Mattison, a GE Aviation representative, said to the commission.
The tax abatement plan would allow GE Aviation, the world's largest jet engine manufacturer, to pay no taxes on the assessed value of the property, which is currently valued at $53 million, on the first year and by the 10th year pay 90 percent of taxes, according to city documents.
GE Aviation will sign a 15-year lease with Pure Development, an Indianapolis-based real estate development firm, for what will be a 300,000-square-foot building at Park 350, a business park near U.S. 52 on Lafayette's south side, where ground was broken this week.
The abatement plan would free Pure, as owner of the building, from paying taxes on $38 million of assessed value in the first year; by the 10th year, it would pay 95 percent of the taxes.
The initial assessed value is likely to change, as the Tippecanoe County assessor has the final say on the total value of property, said Dennis Carson, director of the city's economic development department.
...
http://www.jconline.com/story/news/local/2014/07/24/ge-aviation-tax-abatement-approved/13131701/
The Lafayette Redevelopment Commission on Thursday approved a 10-year tax abatement plan for GE Aviation and its leasing company, Pure Development.
"It's moving quickly, and we hope we can move it quicker," Eric Mattison, a GE Aviation representative, said to the commission.
The tax abatement plan would allow GE Aviation, the world's largest jet engine manufacturer, to pay no taxes on the assessed value of the property, which is currently valued at $53 million, on the first year and by the 10th year pay 90 percent of taxes, according to city documents.
GE Aviation will sign a 15-year lease with Pure Development, an Indianapolis-based real estate development firm, for what will be a 300,000-square-foot building at Park 350, a business park near U.S. 52 on Lafayette's south side, where ground was broken this week.
The abatement plan would free Pure, as owner of the building, from paying taxes on $38 million of assessed value in the first year; by the 10th year, it would pay 95 percent of the taxes.
The initial assessed value is likely to change, as the Tippecanoe County assessor has the final say on the total value of property, said Dennis Carson, director of the city's economic development department.
...
http://www.jconline.com/story/news/local/2014/07/24/ge-aviation-tax-abatement-approved/13131701/
Friday, July 25, 2014
Tully: Marion County Commuter Tax is Fair
By Matthew Tully in the Indianapolis Star:
I’ve found that having a calm discussion about the issue of a commuter tax is nearly impossible. Even the mention of one leads to immediate, angry responses from those who either hate taxes in general or, quite understandably, don’t think their income taxes should be captured by a county other than the one they call home.
A man wrote me a couple of years ago to protest the very idea of a commuter tax, which has been both discussed and stalled for decades around here, and his protest summed up the opposition well: I moved out of the city, he told me, to get away from its problems. And one of those problems, he said, was the cost of paying for the city’s many other problems.
So I come today in peace, understanding the built-in opposition about commuter taxes but hoping to raise a few questions and start a conversation. It’s an important one because the numbers make clear that something must be done to improve Marion County’s financial situation, and it is inherently unfair to have the residents of the county accept alone the cost of funding public safety officers and road paving, and so much else, when those things clearly improve the lives of suburban residents who rush in for work five days a week.
So to the questions:
•If we were creating a tax system from scratch, would we really create the current system — one in which only the home county of a worker receives income tax revenues generated by the worker’s job, regardless of where the job is located? Or would we consider it fair to keep at least a portion of the taxes in the county that hosts the workplace, that provides public safety for that workplace, and that has built roads, sidewalks and sewers to serve that workplace and its workers?
The proposals on the table do not suggest that Marion County should receive all of the income taxes generated by jobs insides its boundaries. Not even close. What is being discussed, in the most preliminary stages, is perhaps a quarter of one percent of income tax staying in the county where the job is located — whether that job is in Hamilton County, Marion County or anywhere else.
•Aren’t we a region that depends on mutual success? What happens in Indianapolis has a great impact on the quality of life throughout Central Indiana, and if Indianapolis cannot afford the amenities that help attract jobs and young workers, because basics such as policing and infrastructure gobble up every available tax dollar, that will have dire consequences across the region.
•Is it fair that Indianapolis subsidizes jobs but then often fails to enjoy the income taxes generated by them? If you work at the Statehouse or a local hospital, you benefit by working on tax-exempt property in Indianapolis. And the large amount of tax-exempt property in Indianapolis has a significant impact on its bottom line.
If you work at a stadium, convention center or many other buildings and work sites, or if your job is tied to them, you benefit from the tax breaks Indianapolis provided to create your job. Quite often, Indianapolis provides property tax breaks that allow companies to locate, expand and create new jobs, but then the city loses the income taxes generated by those jobs when employees settle in the suburbs.
Here’s one outsized example: Indianapolis has spent hundreds of millions building and upgrading the basketball arena that houses the Indiana Pacers. But if team executives or players live in Hamilton County, all of the local income taxes they pay on their seven-figure incomes stays in the suburban county. That is clearly unfair, and past studies have shown that roughly 200,000 workers commute into Marion County each week from surrounding counties.
•Finally, doesn’t it make sense to make sure that the economic engine of Central Indiana, and of Indiana, continues to grow and improve?
The current tax system is simply unfair. And it’s added to a serious problem.
...
http://www.indystar.com/story/opinion/columnists/matthew-tully/2014/07/24/tully-commuter-tax-fair-like/13090375/
I’ve found that having a calm discussion about the issue of a commuter tax is nearly impossible. Even the mention of one leads to immediate, angry responses from those who either hate taxes in general or, quite understandably, don’t think their income taxes should be captured by a county other than the one they call home.
A man wrote me a couple of years ago to protest the very idea of a commuter tax, which has been both discussed and stalled for decades around here, and his protest summed up the opposition well: I moved out of the city, he told me, to get away from its problems. And one of those problems, he said, was the cost of paying for the city’s many other problems.
So I come today in peace, understanding the built-in opposition about commuter taxes but hoping to raise a few questions and start a conversation. It’s an important one because the numbers make clear that something must be done to improve Marion County’s financial situation, and it is inherently unfair to have the residents of the county accept alone the cost of funding public safety officers and road paving, and so much else, when those things clearly improve the lives of suburban residents who rush in for work five days a week.
So to the questions:
•If we were creating a tax system from scratch, would we really create the current system — one in which only the home county of a worker receives income tax revenues generated by the worker’s job, regardless of where the job is located? Or would we consider it fair to keep at least a portion of the taxes in the county that hosts the workplace, that provides public safety for that workplace, and that has built roads, sidewalks and sewers to serve that workplace and its workers?
The proposals on the table do not suggest that Marion County should receive all of the income taxes generated by jobs insides its boundaries. Not even close. What is being discussed, in the most preliminary stages, is perhaps a quarter of one percent of income tax staying in the county where the job is located — whether that job is in Hamilton County, Marion County or anywhere else.
•Aren’t we a region that depends on mutual success? What happens in Indianapolis has a great impact on the quality of life throughout Central Indiana, and if Indianapolis cannot afford the amenities that help attract jobs and young workers, because basics such as policing and infrastructure gobble up every available tax dollar, that will have dire consequences across the region.
•Is it fair that Indianapolis subsidizes jobs but then often fails to enjoy the income taxes generated by them? If you work at the Statehouse or a local hospital, you benefit by working on tax-exempt property in Indianapolis. And the large amount of tax-exempt property in Indianapolis has a significant impact on its bottom line.
If you work at a stadium, convention center or many other buildings and work sites, or if your job is tied to them, you benefit from the tax breaks Indianapolis provided to create your job. Quite often, Indianapolis provides property tax breaks that allow companies to locate, expand and create new jobs, but then the city loses the income taxes generated by those jobs when employees settle in the suburbs.
Here’s one outsized example: Indianapolis has spent hundreds of millions building and upgrading the basketball arena that houses the Indiana Pacers. But if team executives or players live in Hamilton County, all of the local income taxes they pay on their seven-figure incomes stays in the suburban county. That is clearly unfair, and past studies have shown that roughly 200,000 workers commute into Marion County each week from surrounding counties.
•Finally, doesn’t it make sense to make sure that the economic engine of Central Indiana, and of Indiana, continues to grow and improve?
The current tax system is simply unfair. And it’s added to a serious problem.
...
http://www.indystar.com/story/opinion/columnists/matthew-tully/2014/07/24/tully-commuter-tax-fair-like/13090375/
Evans: Tiny Tax Increase in Porter County Might Not Boost Tax Bill
By John Evans in the Northwest Indiana Times:
I know it is an election year and some officeholders are trying to score political points with the voters. But doing so with scare tactics does nothing but hurt Porter County's efforts to come together to solve our budget challenges.
Last week, the Board of Commissioners held a public hearing on the proposed rate re-establishment for the cumulative capital development fund. I would like to explain what we are doing, why we are doing it, and the impact it will have on taxpayers.
The county's general fund has faced massive pressures over the last few years, primarily because of tax caps. The County Council has been struggling to manage this pressure, yet we still face significant shortfalls.
Part of the council's efforts included commissioning the Umbaugh report, which offered several suggestions that would assist us. One recommendation in the Umbaugh report report was to take the action we considered last week. This is the same Umbaugh report that some council members have demanded we implement, including the council member who has been publicly critical of this proposal.
All we are doing is moving about $825,000 in annual power, water and sewage expenses from the general fund to the more appropriate CCD fund. This will free up that $825,000 in the general fund to help the council manage the budget shortfall.
The impact on taxpayers should be negligible. This action will raise the CCD rate by 0.4 cents per $100 of assessed valuation. For a home with an assessed valuation of $150,000 that has homestead and standard deductions, that translates to an additional 25 cents a month. And taxpayers who have already hit the property tax cap won't even pay the additional 25 cents.
For those who don't want to pay an extra 25 cents a month, we don't think you will have to. The county has paid off the juvenile detention center bond, and the annual assessment property owners have been paying for that bond will be gone. That should offset the 0.4 cents increase in the CCD fund we are proposing. In other words, that should negate the extra 25 cents a month more you would pay.
...
American-Democrat Reports Franklin County Considers Increase in Cumulative Capital Development Fund Rate
From the Brookville American-Democrat:
Franklin County Council member Rebecca Oglesby told commissioners the consultant council hired found a way to increase the county coffers by $200,000 and neither hurt the other funds nor increase taxes.
Commissioners were happy at the news but did not understand how that could happen.
Oglesby said she did not know but was relying on the consultant. That led to a call off Oglesby’s cell phone placed on speaker mode during the commissioners’ meeting Monday, July 21.
According to Oglesby, the state was lowering the county’s Cumulative Capital Development Fund rate each year. In 2013, the rate was 0.1518, and that was decreased to 0.151 in 2014.
With this action, the CCDF will increase to 0.333.
CCDF is outside the levy, Oglesby and commission president Tom Wilson said.
According to the consultant through Oglesby, the county’s assessed values will increase by 5 percent each of the next two years.
But she said the taxpayers will still have a lower overall tax rate.
“That’s why I wanted a consultant because it’s confusing,” Oglesby said after the commissioners said it was confusing. “The whole workings are beyond my expertise.”
Commissioners will vote on passing a resolution to set the CCDF at 0.333 at their next meeting.
...
Wednesday, July 23, 2014
Tribune-Star Reports Two Companies Receive Abatements in Vigo County
From the Terre Haute Tribune Star:
Two companies received final approval from the Vigo County Council Monday for 10-year real and personal property tax abatements.
Verdeco Recycling Midwest Inc. will occupy a manufacturing-specific speculative building owned by Garmong Development at the Vigo County Industrial Park, 10535 James Adams St. The California-based company plans to install $5,701,329 in manufacturing equipment and $96,400 in information technology equipment.
Verdeco Recycling intends to start with 12 employees and have at least 24 workers by 2015 with an annual payroll of $986,000, plus benefits.
Casey’s General Stores Inc. plans to construct a 285,000-square-foot distribution center on 67.5 acres of land at the industrial park. The company, which will invest $22 million, is to employ 185 workers by the end of 2015 with a payroll of about $5,675,900 annually.
http://www.tribstar.com/local/x1027603061/Vigo-County-Council-OKs-tax-abatements
Two companies received final approval from the Vigo County Council Monday for 10-year real and personal property tax abatements.
Verdeco Recycling Midwest Inc. will occupy a manufacturing-specific speculative building owned by Garmong Development at the Vigo County Industrial Park, 10535 James Adams St. The California-based company plans to install $5,701,329 in manufacturing equipment and $96,400 in information technology equipment.
Verdeco Recycling intends to start with 12 employees and have at least 24 workers by 2015 with an annual payroll of $986,000, plus benefits.
Casey’s General Stores Inc. plans to construct a 285,000-square-foot distribution center on 67.5 acres of land at the industrial park. The company, which will invest $22 million, is to employ 185 workers by the end of 2015 with a payroll of about $5,675,900 annually.
http://www.tribstar.com/local/x1027603061/Vigo-County-Council-OKs-tax-abatements
Times Reports LP Film Company Gets Tax Credits for Expansion in LaPorte
From the Northwest Indiana Times:
A maker of high quality films used in advertising and products like wall decals is expanding in LaPorte.
American Renolit Corp. has been awarded tax credits on a $1.5 million expansion of its facility at 1207 E. Lincolnway.
The enterprize zone investment deduction credits are good for a 10-year period on the upcoming construction of 8,677 square feet of additional office space.
Mayor Blair Milo said the company had the option to apply for tax abatement instead, but decided to pursue the tax credits feeling it could reap more of a financial gain.
"It's a great investment in the community and I'm certainly happy to celebrate with them," Milo said.
...
Truth Reports Elkhart County Considering Income Tax Increase
From the Elkhart Truth:
Some county officials are hoping an increase in the local income tax could bring relief to the county’s suffering budget.
The Elkhart County Board of Commissioners are recommending that theElkhart County Council pass what’s called a property tax relief local option income tax.
While its mechanisms are somewhat complicated, the hope is simple — to recoup some of the losses wrought upon the county budget by property tax caps.
Here are six questions answered about the proposed tax:
Who decides whether or not to pass the tax?
While the county commissioners have given their recommendation, the decision is ultimately up to the Elkhart County Council, comprised of seven elected officials.
How would it affect my paycheck?
How would it affect my paycheck?
The rate for the proposed income tax would likely be 0.25 percent, according to Mike Yoder, county commissioner. It would be joined by a 0.25 percent public safety income tax, bringing the total rate to 0.5 percent.
That would raise Elkhart County’s collective income tax rate up to 2 percent, which currently includes a 1 percent adjusted gross income tax, a 0.25 percent economic development income tax and a 0.25 percent special jail income tax.
The proposed tax would be applied to workers’ adjusted gross incomes, according to a 2011 policy brief by Ball State University’s Center for Business and Economic Research.
So, for every $20,000 a resident earns in gross adjusted income, about $100 would go to the proposed tax.
Social Security payments would not be affected.
Why is this being considered?
Why is this being considered?
Elkhart County’s budget is largely funded by property taxes.
Since property tax caps went into effect in 2009, property owners have had more money in their pockets. On the flip side, the county has less money to pay for its government as well as cities, towns, townships, libraries and schools.
In 2010, cumulative losses from those caps totaled $13.15 million. By 2014, those cumulative losses had reached $42.63 million.
(Read more about property tax cap losses with reporter Tim Vandenack’s “Losses in Elkhart County to property tax caps mount, property tax funding going down”)
If the losses aren’t counteracted in some way, the county could be forced to cut back funding for public services, a concern echoed repeatedly by county officials in recent months.
At this point, it’s unclear which services would be affected.
...
See the full article here:
Tuesday, July 22, 2014
Tribune Star Reports Terre Haute's Eastside TIF Would Require New Entity
From the Terre Haute Tribune Star:
New road construction is planned for the city’s eastside tax increment finance (TIF) district, but it will likely be paid for using a newly created entity to help avoid breaching the city’s constitutional debt limit.
All Indiana cities have constitutional debt limits. One way to issue more debt than the limit allows is to create a special legal entity to issue the debt on behalf of the city, said an attorney for the Terre Haute Department of Redevelopment speaking to the City Council on Thursday night.
The special entity, with council approval, could issue debt that would be repaid by the Terre Haute Redevelopment Commission, which oversees the eastside TIF district. The money would be used for the next stage of road and other construction in the area, said Cliff Lambert, executive director of the Department of Redevelopment.
The plan would require the approval of the nine-member City Council. Lisa Lee, an attorney for the Redevelopment Commission, said she hopes to bring the matter to the council for approval in October.
There are several ways around debt limits allowed by the Indiana Supreme Court, and one is by creating a legal entity, such as a not-for-profit, that can issue debt on behalf of the city and then lease its services back to the city, Lee stated in a 2004 paper for the Indiana Association of Cities and Towns.
“If the Indiana Supreme Court strictly interpreted the constitutional debt limit, most municipalities could not fund their capital needs,” she wrote.
The constitutional debt limit in Indiana is an entity’s net assessed value divided by three and then multiplied by 0.02, Lee said.
Creating a leasing entity for the TIF district project is not necessary to avoid exceeding the debt limit, but it will keep the city safely below that limit, Lee said after the Thursday night meeting in City Hall.
http://www.tribstar.com/local/x611416870/Eastside-TIF-road-construction-would-require-new-entity
New road construction is planned for the city’s eastside tax increment finance (TIF) district, but it will likely be paid for using a newly created entity to help avoid breaching the city’s constitutional debt limit.
All Indiana cities have constitutional debt limits. One way to issue more debt than the limit allows is to create a special legal entity to issue the debt on behalf of the city, said an attorney for the Terre Haute Department of Redevelopment speaking to the City Council on Thursday night.
The special entity, with council approval, could issue debt that would be repaid by the Terre Haute Redevelopment Commission, which oversees the eastside TIF district. The money would be used for the next stage of road and other construction in the area, said Cliff Lambert, executive director of the Department of Redevelopment.
The plan would require the approval of the nine-member City Council. Lisa Lee, an attorney for the Redevelopment Commission, said she hopes to bring the matter to the council for approval in October.
There are several ways around debt limits allowed by the Indiana Supreme Court, and one is by creating a legal entity, such as a not-for-profit, that can issue debt on behalf of the city and then lease its services back to the city, Lee stated in a 2004 paper for the Indiana Association of Cities and Towns.
“If the Indiana Supreme Court strictly interpreted the constitutional debt limit, most municipalities could not fund their capital needs,” she wrote.
The constitutional debt limit in Indiana is an entity’s net assessed value divided by three and then multiplied by 0.02, Lee said.
Creating a leasing entity for the TIF district project is not necessary to avoid exceeding the debt limit, but it will keep the city safely below that limit, Lee said after the Thursday night meeting in City Hall.
http://www.tribstar.com/local/x611416870/Eastside-TIF-road-construction-would-require-new-entity
IBJ Reports Lowe's Offered Incentives for Investment in Indianapolis
From the Indianapolis Business Journal:
Home-improvement retail giant Lowe’s has a big project of its own planned for the northwest side, intending to invest a total of $20.5 million to purchase, renovate and equip an office building for a massive customer service center.
North Carolina-based Lowe’s said Tuesday morning that it expected to hire as many as 1,000 workers for the center by 2016. The announcement at Intech Park with city and state officials confirmed a report from IBJ on Monday.
The 140,000-square-foot office building at 6620 Network Way will support Internet sales, delivery services and repair services for Lowe’s customers across the nation, the firm said. Lowe’s expects to begin hiring immediately for the center, set to begin operations in early 2015.
“Indianapolis adds a strategic Midwest location to our [existing] network of customer support centers located in North Carolina and New Mexico,” said Don Easterling, Lowe’s vice president of contact centers. “We appreciate the support of both state and local officials that helped make this a win-win project.”
The Indiana Economic Development Corp. has offered Lowe’s up to $5.5 million in conditional tax credits and up to $100,000 in training grants based on the company’s job-creation plans. The tax credits are performance-based, meaning they cannot be claimed until the firm hires workers.
The city of Indianapolis also will consider tax incentives and funding for infrastructure required for the project, according to IEDC.
...
http://www.ibj.com/lowes-to-invest-205m-in-new-customer-service-center/PARAMS/article/48695
Home-improvement retail giant Lowe’s has a big project of its own planned for the northwest side, intending to invest a total of $20.5 million to purchase, renovate and equip an office building for a massive customer service center.
North Carolina-based Lowe’s said Tuesday morning that it expected to hire as many as 1,000 workers for the center by 2016. The announcement at Intech Park with city and state officials confirmed a report from IBJ on Monday.
The 140,000-square-foot office building at 6620 Network Way will support Internet sales, delivery services and repair services for Lowe’s customers across the nation, the firm said. Lowe’s expects to begin hiring immediately for the center, set to begin operations in early 2015.
“Indianapolis adds a strategic Midwest location to our [existing] network of customer support centers located in North Carolina and New Mexico,” said Don Easterling, Lowe’s vice president of contact centers. “We appreciate the support of both state and local officials that helped make this a win-win project.”
The Indiana Economic Development Corp. has offered Lowe’s up to $5.5 million in conditional tax credits and up to $100,000 in training grants based on the company’s job-creation plans. The tax credits are performance-based, meaning they cannot be claimed until the firm hires workers.
The city of Indianapolis also will consider tax incentives and funding for infrastructure required for the project, according to IEDC.
...
http://www.ibj.com/lowes-to-invest-205m-in-new-customer-service-center/PARAMS/article/48695
Daily Journal Reports Greenwood Offers Heftier Tax Break
From the Johnson County Daily Journal:
Greenwood used a tax break it had never used before when it enticed a cosmetics supplier to build a distribution center in the city.
The abatement provided bigger property tax breaks on equipment than on real estate and buildings and offered percentage discounts allowing the company to save more money over the course of the 10-year abatement than the city had ever offered in the past.
The state legislature approved the abatement formula, which allows cities to customize tax breaks for the companies they’re trying to attract, about two years ago.
Monday, July 21, 2014
Times Reports Hobart Approves Tax Abatements for Two Buildings
From the Northwest Indiana Times:
Real estate tax abatement requests for two buildings proposed for the NorthWind Crossings development received final approval from the City Council Wednesday.
One of the buildings will be an 18,000-square-foot facility for a Sunbelt Rentals location, said Paul Thurston, of Becknell Industrial, the developer of NorthWind Crossings.
About 45 construction jobs would be needed for the building. There would be 14 new full-time jobs established for operations of the business after the structure is built.
The other building planned for NorthWind Crossings would be a new 163,000-square-foot facility that could house two to three tenants.
Thurston said no tenants have been identified yet for that building, which would cost about $7.5 million.
NorthWind Crossings is located east of Mississippi Street and near Interstate 65.
Friday, July 18, 2014
IBJ Reports Carmel Panel Faces TIF Shortfall But Can Pay Debts
From the Indianapolis Business Journal:
New financial projections suggest the Carmel Redevelopment Commission will have enough annual revenue to pay its debts for the next 15 years before dipping into reserves.
But property taxes from the city’s two-dozen TIF districts could fall more than $1 million short as soon as next year—something City Council member Rick Sharp says is cause for alarm.
Municipal-finance adviser H.J. Umbaugh & Associates estimates the CRC will collect about $18 million in so-called tax increment in 2015, applying all of it to debt payments that total $19.1 million. The difference—plus about $630,000 that’s being called a “surplus”—is expected to come from other, much smaller income streams.
According to the analysis, prepared at the commission’s request, total revenue should exceed debt obligations by at least six figures every year until 2029, when the redevelopment areas begin to expire and tax revenue drops by $10 million a year.
By then, the CRC should have more than $27 million in a “special reserve” fund the Carmel City Council mandated in 2012, when it refinanced $184 million in redevelopment debt. More than $1.9 million a year is expected to flow into the account from an existing TIF district that is about to retire its debt.
CRC President Bill Hammer said the report shows the commission is capable of meeting its obligations, avoiding a citywide special-benefits tax that would kick in if it missed a payment. The extra property tax was offered as a belts-and-suspenders fallback to get a better bond rating in 2012, he said.
“We never really intended to use that as the first source of payment,” he said. “And we think that given the projections of today, it will never happen.”
http://www.ibj.com/carmel-panel-might-face-tif-shortfall-but-can-pay-debts-report-says/PARAMS/article/48618
New financial projections suggest the Carmel Redevelopment Commission will have enough annual revenue to pay its debts for the next 15 years before dipping into reserves.
But property taxes from the city’s two-dozen TIF districts could fall more than $1 million short as soon as next year—something City Council member Rick Sharp says is cause for alarm.
Municipal-finance adviser H.J. Umbaugh & Associates estimates the CRC will collect about $18 million in so-called tax increment in 2015, applying all of it to debt payments that total $19.1 million. The difference—plus about $630,000 that’s being called a “surplus”—is expected to come from other, much smaller income streams.
According to the analysis, prepared at the commission’s request, total revenue should exceed debt obligations by at least six figures every year until 2029, when the redevelopment areas begin to expire and tax revenue drops by $10 million a year.
By then, the CRC should have more than $27 million in a “special reserve” fund the Carmel City Council mandated in 2012, when it refinanced $184 million in redevelopment debt. More than $1.9 million a year is expected to flow into the account from an existing TIF district that is about to retire its debt.
CRC President Bill Hammer said the report shows the commission is capable of meeting its obligations, avoiding a citywide special-benefits tax that would kick in if it missed a payment. The extra property tax was offered as a belts-and-suspenders fallback to get a better bond rating in 2012, he said.
“We never really intended to use that as the first source of payment,” he said. “And we think that given the projections of today, it will never happen.”
http://www.ibj.com/carmel-panel-might-face-tif-shortfall-but-can-pay-debts-report-says/PARAMS/article/48618
Times Reports Lake County Commissioners Approve Public Safety Share of Income Tax for Townships
From the Northwest Indiana Times:
Lake County Commissioners have voted to provide eight suburban and rural fire and emergency medical service providers a share of the county's public safety income tax revenue.
Commissioners Roosevelt Allen, D-Gary, Mike Repay, D-Hammond, and Gerald Scheub, D-Crown Point, agreed to distribute $313,136 to Cedar Creek, Center, Eagle Creek, Hanover, Hobart, St. John, West Creek and Winfield township trustees.
The money will help provide public safety services to the more than 36,000 residents living outside the county's 19 cities and towns.
Calumet, North and Ross townships are not a part of the agreement because North and Calumet are primarily covered by municipal fire and emergency medical services, and Ross has access to additional property taxes through the Merrillville Fire Protection Territory.
The money comes from a 1.5 percent tax last spring on the personal income of all county residents and workers. The state law authorizing the tax only permits distribution of its revenues to cities and towns. It raises more than $8.5 million that must be earmarked for public safety use.
Township officials who are responsible for fire and emergency medical services outside town and city limits asked the county late last year for a share of that money in proportion to their residents' population.
The County Council approved the money last week.
Thursday, July 17, 2014
Tribune Reports GM Seeks Abatement for Investment in Bedford
From the Kokomo Tribune:
General Motors has proposed investing $27 million at a southern Indiana casting plant for machinery, equipment and tooling needed to produce aluminum engine blocks.
The automaker filed a tax abatement request for the Bedford factory project, saying it would add about 40 jobs and raise the plant's employment to some 650 workers. Bedford Economic Development Commission chairman Patrick Robbins says the tax abatement would save GM $1.9 million over 10 years.
The commission recommended approval of the request Monday. It now goes before the Bedford City Council.
GM plans to start install the new equipment in November and finishing in March 2016.
GM announced last December it planned to invest $29 million in the Bedford plant to make parts for six- and 10-speed transmissions.
Wednesday, July 16, 2014
Journal-Gazette Reports Maplehurst Offered Tax Credits for Expansion in Brownsburg
From the Fort Wayne Journal-Gazette:
A central Indiana maker of frozen bakery products is planning a $78 million expansion that could add nearly 220 jobs in the next few years.
The Indiana Economic Development Corp. said Brownsburg-based Maplehurst Bakeries will renovate and equip a 180,000-square-foot plant in Lebanon to house its warehouse, distribution and manufacturing operations for cakes and cupcakes.
It said the new plant is expected to begin operations next March and that Maplehurst plans to begin hiring in December.
The IEDC said it offered Maplehurst more than $1 million in conditional tax credits and up to $200,000 in training grants.
Times Argues Income Tax Revenue Isn't a Catchall for New County Spending
From the Northwest Indiana Times:
The lines just keep getting longer for sectors of local government begging for a piece of the revenue generated by the Lake County local option income tax.
But this new stream of county and local government revenue isn't mad money. Local government must ensure the new revenue -- coming on the backs of county taxpayers via a 1.5 percent income tax -- isn't squandered on unsustainable propositions.
Danger for this exists in a push by Lake County government employees for an across-the-board pay increase -- something the government center's legion of 1,658 workers hasn't seen in seven years. The Lake County Council must guard against using the newly acquired income tax revenues, most of which are earmarked for public safety and economic development purposes, for county employee pay raises.
While it's true county government employees salaries haven't kept pace with inflation, neither have the paychecks of many private-sector employees living within the county. Those private-sector employees have learned to do more with less, and the local option income tax should not be used as a tool for redistributing their wealth to the paychecks of county government employees.
GOP County Councilman Eldon Strong, of Crown Point, seems to have offered a level-headed approach -- one that doesn't close the door on county government pay raises but also recognizes the need for county government to become more frugal.
Strong proposes a freeze on hiring more government employees, initiating a cross-training program so existing employees can take on more work across departments and adopting a pay-grade classification system to keep salaries of politically connected workers from becoming unfairly bloated above others doing the same work.
Strong also realizes the county has yet to eliminate all of the duplication and waste within its ranks before entertaining proposals of fattening employees' paychecks. He proposes closing down the satellite courthouses in Gary, Hammond and East Chicago to free up more money.
The county spends a collective $1.3 million annually -- not counting all employee salaries -- in maintenance, service and operations costs at those satellite courts alone, and it's a luxury we can no longer afford. The 2006 Good Government study recommended consolidating all of the county's courts into the main facility in Crown Point, but tired-out notions of political fiefdoms have foiled those recommendations.
County officials have argued in recent years they've taken the fiscal knife to previous government bloat, and we agree some strides have been made. But the county still has opportunities for greater efficiencies -- options that must be explored before considering employee pay raises or other new spending.
Times Reports Porter County Commissioners Approve Tax Rate Increase
From the Northwest Indiana Times:
The Porter County Board of Commissioners gave initial approval Tuesday to raising to the maximum level one of the tax rates used to fund county government.
Porter County Commissioner President John Evans, R-North, said in a prepared statement the increase of the cumulative capital development fund rate amounts to an additional 25 cents a month for a home with an assessed value of $150,000 that is receiving homestead and standard deductions.
He said those at the tax cap will not pay the increase and it will be neutralized for others by a juvenile bond that was paid off and thus no longer being charged to taxpayers.
While no clear opposition or support was voiced by the public during a hearing Tuesday, 50 or more affected taxpayers have 30 days to file a petition with the county auditor setting forth their objections to trigger a hearing before the Indiana Department of Local Government Finance, according to an official notice.
If there are no objections, the DLGF will consider whether to approve or reject the currently proposed tax rate increase.
...
Tuesday, July 15, 2014
News and Tribune Reports Sellersburg Council Votes on Four Abatements
From the Clark County News and Tribune:
The Sellersburg Town Council will vote on four tax abatements at its meeting at 7 p.m. tonight, July 14.
Dave Kinder, secretary treasurer for the town, said the agenda items are renewals of abatements that have already been issued but have not reached the years of limit.
Those abatements are for Larry G. Messina, Progressive Site LLC, Eagle Investment Partners, LLC and Boland-Taylor Properties LLC.
Other agenda items are listed as an ordinance revising language on tap fees for sewers, Sellersburg Celebrates donation money and the Sellersburg swimming pool.
The meeting will be in town hall meeting room at 316 E. Utica St. Sellersburg Town Council meets every second and fourth Monday of the month at 7 p.m.
http://www.newsandtribune.com/clarkcounty/x1736709955/Sellersburg-council-to-consider-abatements
The Sellersburg Town Council will vote on four tax abatements at its meeting at 7 p.m. tonight, July 14.
Dave Kinder, secretary treasurer for the town, said the agenda items are renewals of abatements that have already been issued but have not reached the years of limit.
Those abatements are for Larry G. Messina, Progressive Site LLC, Eagle Investment Partners, LLC and Boland-Taylor Properties LLC.
Other agenda items are listed as an ordinance revising language on tap fees for sewers, Sellersburg Celebrates donation money and the Sellersburg swimming pool.
The meeting will be in town hall meeting room at 316 E. Utica St. Sellersburg Town Council meets every second and fourth Monday of the month at 7 p.m.
http://www.newsandtribune.com/clarkcounty/x1736709955/Sellersburg-council-to-consider-abatements
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