Floyd County Thoroughfare Plan - Floyd County Indiana - State of ...

Floyd County, IndianaFloyd County Thoroughfare PlanSection 5–Implementation and Next Steps• Disadvantages- Fees may not cover the total infrastructure costs.- Improvement needs must be identified as well as the proposed solutions andimplementation costs. Continual long-term upkeep is required on various segregatedaccounts.- Fee revenues depend on the rate of development, and the amount of revenues collectedfrom year to year may fluctuate.C. Tax Incremental Financing (TIF)As part of the procedure for implementation of a Tax Incremental Financing District, a RedevelopmentCommission must be created. Any city, town, or county may establish a Department of Redevelopmentcontrolled by a board of five members. The five members of a county Redevelopment Commission areappointed by the County Commissioners.The Redevelopment Commission must utilize county personnel and/or outside consultants in order toprepare a Redevelopment Plan. The plan will provide evidence to support the findings that theRedevelopment Commission must make by statute, describe the redevelopment or economicdevelopment activities to be undertaken, and provide other information required by the State Tax BoardTIF regulations.After the Redevelopment Plan is completed, the Redevelopment Commission passes a DeclaratoryResolution which describes the blighted or economic development area, makes this area an allocationarea, adopts a plan of redevelopment for economic development, and makes required statutoryfindings. A “redevelopment area” must be a “blighted area”, which is defined as an area in which normaldevelopment and occupancy are undesirable or impossible because of any of a number of factors.The basic purpose of TIF is to provide for the allocation of increased tax proceeds generated byincreases in assessed value resulting from redevelopment within the TIF boundaries. TIF permits citiesto use increased tax revenues stimulated by redevelopment to pay for the capital improvements neededto induce the redevelopment. Redevelopment Commissions can exercise this power in “economicdevelopment areas,” the establishment of which does not require a finding of blight. Thus, TIF bondscan be issued to fund development activities in non-blighted areas the promote job opportunities.The advantages and disadvantages of Tax Incremental Financing are listed below.• Advantages- TIF makes the costs of infrastructure upgrades because of redevelopment self-financed.- TIF is highly flexible because no petition approval is necessary (unless, in the case of unitsother than Indianapolis, special taxes are to be levied in addition to the increment), there islocal control, and no debt limitation applies.- Shifts the risk of redevelopment from taxpayers to bondholders.Prepared by Strand Associates, Inc. ® 5-9KRH:pll\S:\@SIECO\001--050\046\008\Wrd\Thoroughfare Plan\Draft 07-19-07\S5-Implementation and Next Steps 07-19-07.doc\072007