Annual Presentation to Taxing Units Greenwood ...

Greenwood Redevelopment CommissionAnnual Presentation to Taxing Units

10/12/2021

greenwood.in.govMark W. Myers, Mayor

Annual Presentation to Taxing Units Criteria

Beginning July 1, 2018 there are additional reporting requirements applicable to Redevelopment Commissions within the State of Indiana per HEA 1242. Each redevelopment commission shall annually present information for the governing bodies of all taxing units that have territory within an allocation area of the redevelopment commission. The presentation must include:

1. The commission’s budget with respect to the allocated property tax proceeds.2. The long-term plans for the allocation area(s).3. The impact on each of the taxing units.

The governing body of a taxing unit that has territory within an allocation area of the redevelopment commission may request that a member of the redevelopment commission appear before the government body at a public meeting of the governing body. (I.C. 36-7-25-8)

1.) The commission’s budget with respect to the allocated property tax proceeds.

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2021 RDC General Fund Budget to Actual

Source:September 30 budget to actual reports.


2022 RDC General Fund Budget

● Pending Adoption by Common

Council.

● Department 651 within General

Fund.

● Used for member per diems, office

supplies, and non-TIF eligible

professional service fees.


2021 RDC TIF Appropriations by Area

● Approved annually by RDC.

● Subject to Public Hearing.

● Establishes the maximum annual expenditure level

of TIF funds.

● Budget calculated by the following estimates:

○ Year-end cash on hand (fund balance)

○ Plus: Forecast Tax Increment Finance Revenue

(“TIF”)

○ Less: Reserve portion of funds to meet debt

obligations

○ Less: Estimated “Surplus TIF” transfers

● Appropriates “Allocation & Surplus Fund”


Allocation Area Finances

Source: 2020 RDC Annual Financial Report. 2021 annual actuals not yet available.


Bond Information


Debt Service Information


Tax Rates by District

Tax District Code Tax District Description 2019 2020 2021 2022*

025 GREENWOOD CITY - CP SCH-PL TWP 2.9170 2.7753 2.6481 2.6481

026 GREENWOOD CITY - PLEASANT TWP 1.8846 1.9029 1.8698 1.8698

030 GWD CITY - CP SCH - CO LIB 2.8622 2.7246 2.5977 2.5977

040 GREENWOOD CITY - WHITE RVR TWP 2.0731 2.0525 2.0357 2.0357

041 GREENWOOD CITY -WR FPD -WR TWP 2.1339 2.1079 2.1435 2.1435

051 GWD CITY-GWD SC-GWD LIB-PL-MTE 1.2456 1.2288 1.2260 1.2260

052 GWD CITY-CP SCH-CO LIB-PL-MTE 2.2049 2.0688 1.9539 1.9539

CP SCH REF SCH POST09 .0993 .0993 .0993 .0993

*2022 rates not yet available. Used 2020 certified rates. Source: Department of Local Government Finance, Johnson County Budget Order 2021


2022+ Financial Forecast & Assumptions

• Actual Captured Assessed value growth - 11% (YoY)• Current estimates

• Total captured a.v. - $491.67M• TIF Revenue - $13.82M (2022 est.)• Available fund balances - $9.11M (9/30/21)• Annual debt service - $8.28M• Net Expected TIF Surplus: $5.54M• Outstanding debt - $63.33M (Jan 1st)

■ Forward DSCR’s:

● Eastside - 144%

● Fry Rd - 97%

● Central - 193%

2.) The long-term plan for the allocation areas.

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Summary of Economic Development Areas

• Authorized by Indiana Code

• Established by RDC & Council action

• First EDA established in 1997

• EDA’s est. potential boundaries for

allocations areas

• Greenwood currently has four

economic development areas

• Supports 17 district tax district

allocation areas


Long term plans for Allocation Areas

Each redevelopment and economic development area created by the Greenwood Redevelopment Commission has a plan associated with it. These plans may be revised and updated from time to time. Plans usually have a implementation date associated and generally the plans are 5-7 year implementation plans.

During the implementation of the plans, the Commission will evaluate its work and assess the next steps needed for the continued redevelopment of the individual areas. Adjustments of the plan may be necessary as plans unfold and projects are undertaken. Visit the City of Greenwood website for more information at www.greenwood.in.gov


Economic Development Plan Components

“to benefit public health, safety, morals, and welfare of City residents”

“increase economic well-being of City and State of Indiana”

“designed to promote significant opportunities for gainful employment”

“retain or expand existing significant business enterprises”

“provide local public improvements in the EDA”

“remove conditions that lower value of land”

“attract or retain jobs, increase tax base, and improve diversity of tax base”


Current Economic Development Areas

*TIF duration of 25 years beginning upon issuance of bonds.


RDC Capital Projects Summary


RDC Capital Projects by Area & Project

Source: October CIP Report

3.) The impact on each of the taxing units.

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TIF Effect on Overlapping Taxing Districts

The City of Greenwood's Redevelopment Commission traditionally uses TIF to pay for project related costs to enhance, upgrade, and construct public infrastructure improvements that otherwise would not be feasible.

Costs to complete such infrastructure improvements may include:

• real estate planning, acquisition, and development costs• architectural and engineering fees• legal, financing, and accounting fees• advertising and publication fees• expenses related to the issuance of bonds • bond payments, debt service, and other obligations• Other eligible expenses as allowed by Indiana Code


Impacted Taxing Units*

● City of Greenwood

● Greenwood Community Schools

● Clark-Pleasant Community Schools

● Center Grove Community Schools

● Pleasant Township

● Johnson County Council

● Johnson Co. Solid Waste Mgt.

● Greenwood City Library

● Johnson County Library

● State of Indiana

*Notice sent 10 days prior to meeting.


TIF Effect on Overlapping Taxing Districts

• Job creation brings new residents into the City and surrounding areas

• New City residents who work and live in Johnson County increase the amount

of Local Income Tax (LIT) collected and distributed

• New residents buy homes, pay property taxes, raise families, send their

children to schools, and get involved in their children’s schools

• New residents patronize local businesses, which drives up demand that attracts

new types of businesses to be created to serve those residents

• Private sector investment increases as a result of redevelopment activities


Understanding TIF Impact

Source: AIM - Building & Nurturing Quality Communities

http://www.youtube.com/watch?v=rhxi9X2918Q


Captured Incremental Assessed Value - Pay 2022


Avg. Captured Assessed Value Growth by TIF

Younger TIFs are growing at much faster rate. AV loss issue with County Auditor. Currently investigating

options to remove declining parcels.


2022 Captured Assessed Value by TIF

Central TIF now ranks second in total capture assessed value.

Southwest TIF has the largest year over year increase in growth.

Fry Road TIF continues to decline in AV due to retail property appeals. (i.e. Greenwood Park Mall)


Percent Change in Assessed Values

(2012-2022)10-Yr TIF CAGR - 7.17%

10-Yr City CAGR - 4.26%

TIF Growth Multiple -

10 Yr - 1.68x


Long-Term Impact of Tax Increment Finance (“TIF”)

10-Yr CAGR - 7.17%(2012-2022)

Captured Values along with Tax Rates drive future Tax Increment Finance revenues.


Additional Information

• City of Greenwood Website

• Monthly & Annual RDC Reports published online

• 2020 Comprehensive Annual Financial Report

• 2021 & 2022 City Budget

• Collaborative Projects partnership resolution & application process

Annual Presentation to Taxing Units Greenwood ...

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