BROWNSBURG (INDIANA) REDEVELOPMENT COMMISSION

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1 BROWNSBURG (INDIANA) REDEVELOPMENT COMMISSION Estimated Impact of Reducing the TIF Pass-Through Assessed Value May 10, 2016

2 Comparison of TIF and Tax Base Growth $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $ Brownsburg Schools NAV Town of Brownsburg NAV Proposed Pass-Through Change Brownsburg TIF Captured AV Note: Historical data per the Hendricks County Abstracts. The net assessed values are based on part growth trends, less $6.2 million for the decrease in pass-through. 2

3 Tax Rates and Levies(1) Taxing Unit 2015 Tax Rate 2016 Tax Rate % of 2016 Total Rate Annual 2016 Tax Levy Hendricks County $ $ % $25.66 million Lincoln Township % 74,190 Town of Brownsburg % 7.81 million Fire Territory % 6.56 million Brownsburg Schools % million Library % 1.27 million Total $ $ % $71.36 million State Funds(2) School General Fund $47.99 million (1) Per the 2016 Hendricks County Budget Order. (2) Per the Indiana Department of Education. 3

4 Town of Brownsburg 2016 Tax Rate (1) Library 2% 11% County Township 1% 23% Town 52% School 11% Fire (1) Per the 2016 Hendricks County Budget Order. 4

5 Taxpayer Circuit Breaker Tax Caps 1% cap Residential Homesteads 2% cap Rental Property, Agricultural 3% cap Commercial and Industrial 5

6 2016 Levies and Circuit Breaker Loss1 Certified Levy Circuit Breaker Loss Net Levy Hendricks County $25.66 million ($2.12 million) $23.54 million Lincoln Township 74.2 K (7.5 K) 66.7 K Town of Brownsburg 7.81 million (978 K) 6.83 million Fire Territory 6.56 million (768 K) 5.79 million Brownsburg Schools million (2.93 million) million Library 1.27 million (124 K) 1.15 million Total $71.36 million ($6.92 million) $64.44 million $7 million LOST REVENUE in 2016 due to Circuit Breaker Tax Caps Total County $18.35 million LOST REVENUE in 2016 (1) Per the Department of Local Government Finance. 6

7 Reduce Pass-Through and increase TIF: $6.2 million AV Overall Impacts Overall rate increase is $0.008 (less than 1 ) Levy decrease for all units is $22,000 Circuit breaker increase for all units is $80,000 Total loss to units is $102,000 Brownsburg Schools is about 60% of this loss and, of that amount, the bus replacement fund is impacted by $2,600 (assuming no growth in assessed value) TIF would increase by $178,000 TIF would be used to leverage millions in new private development in downtown Brownsburg Note: All numbers are estimated based on parcel analysis; holding all other factors constant. 7

8 Indirect Benefits to Overlapping Units Town s economic development efforts attract new businesses and grow the tax base, which increases jobs, income, and local spending The Town and RDC have used TIF and EDIT to leverage over $100 million of infrastructure projects Assessed value of the tax base has been growing TIF grows, but so does the tax base Tax rates have been decreasing If the Town had issued property tax bonds to fund its infrastructure projects (i.e. roads), then the tax rate would have increased significantly, affecting all taxpayers and increasing the circuit breaker losses to all units 8

9 TIF Funded Infrastructure (Non-TIF) Eagle Pointe Business Park Over $100 million assessed value in tax base growth 9

10 Comparison of TIF and Tax Base Growth $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $ Brownsburg Schools NAV Town of Brownsburg NAV Proposed Pass-Through Change Brownsburg TIF Captured AV Note: Historical data per the Hendricks County Abstracts. The net assessed values are based on part growth trends, less $6.2 million for the decrease in pass-through. 10