18th, 2024.

We have a very special guest, the director of housing strategy for the Indianapolis Neighborhood Housing Partnership, Jeff Hauser, who is thrilled to be leading us in the Pledge of Allegiance.

Please rise.

Thank you, sir.

Pledge allegiance to the flag of the United States of America and to the Republic for which it stands.

One nation under God, indivisible, with liberty and justice for all.

Thank you.

Thank you, Jeff.

Members of the Commission, uh, last week you had the minutes from the December 4th meeting delivered to you for review.

Are there any additions or deletions to those minutes?

Hearing that, I'll accept a motion to approve.

Thank you.

May I have a second?

All those in favor signify by saying aye.

Those opposed.

Moving forward, every year by statute, we have to have a presentation of TIFF.

And today, uh Abby, I see a controller is here.

Abby, are you giving the presentation?

Uh Commissioner, it'll be myself and Deputy Controller Jake McVay.

Please introduce yourself.

Absolutely.

My name is Lucas Anderson.

I serve as CFO for the Department of Metropolitan Development.

Great.

Jake McVay.

Thank you.

Jake McVay, Deputy Controller, Office of Finance and Management.

Gentlemen, you're on.

Go.

Good afternoon, Commissioners.

Um today we'll be presenting to you on the city's tax increment financing or TIFF allocation areas and subsequent activities pertaining to fiscal year 2023 as we are statutorily required.

The first slide you're viewing is the specific section of Indiana Code IC 36-7-25-8 that outlines this reporting requirement.

We will specifically be speaking to TIFF budgets, long-term planning in the impact to local taxing units of the city's TIFF allocation areas.

For this next slide, I want to take a moment to reflect on what a TIFF is and its use as an economic development tool.

The concept behind the establishment of a TIFF is to capture the increase of assessed value or AV, and that is generated from new development or redevelopment.

Before a TIFF allocation area is created, it is required to pass the BUT 4 test, which essentially poses the question that if a TIFF did not exist, or to say the infusion of public dollars into a project was not invested, then a project would not move forward.

After passing the BUT 4 test requirements test, uh a TIFF allocation area is established and is able to capture new AB moving forward.

TIFFs are generally used to remove impeding obstacles to development, such as a lack of public infrastructure, environmental issues, or land cost.

For a refresh of the process that must be followed to create a TIFF, a resolution is brought before this body.

If approved, the city county council must also approve the establishing resolution with a final approval being required by the MDC.

This slide, um the next slide is generally helpful in understanding the revenue capturing lifespan of a TIFF.

Any AV that exists prior to a TIFF's creation remains available to base taxing units.

After the creation, the new incremental increase in assessed value is captured by the allocation area.

Once the TIFF terminates, the incremental AV is released to base taxing units.

We plan to continue to invest dollars into significant redevelopment efforts, public infrastructure improvements, affordable housing, workforce development, and environmental remediation.

Ultimately, any utilization of TIFF requires approval from this body.

As annually required under statute, I will be addressing the annual TIFF budgets and the impact to local taxing units.

This has been submitted to the Department of Local Government Finance.

Available at the front of the table are handouts with detailed information for the 35 individual TIFFs that's off financial activity in 2023.

Expenses are broken out between debt service spending, which is principal and interest payments on our outstanding debt obligations and non-debt service spending, which relates to one-time activities.

I do want to make note that all these expenditures, whether debt service payments or or one-time transactions require approval from this body.

No expenditures are made without that approval.

To give a better idea of the type of expenditures that occurred in 2023, this table you see here shows expenses by category.

The top three categories, debt service payments, infrastructure, and land acquisition account for 95% of TIFF expenditures in 2023.

And speaking to the impact of TIFFs on local taxing units, we take two hypothetical approaches that are illustrated on this slide.

The first gray bar in this hypothetical illustrates the scenario that all TIFS that have been established passed the necessary but for test, which means the investments made in these areas would not have occurred without TIFF and local units would have seen no benefit or impact.

The second gray bar illustrates that if investments would have occurred naturally without the assistance of TIFF, the impact to local units would be in a range of 0 to 64 million dollars for 2023, which is equivalent to all TIFF increment revenues being released to the base taxing units, with the important caveat that the impact would be in the form of circuit breaker relief.

More information on this scenario can be found on the in the handout, but I do want to note that at the maximum of that range, the impact to the city county would be $30 million.

All this information as well as additional pertinent detail to the TIFS are required to be submitted to the Department of Local Government and Finance annually by April 15th, and this information is available on the Indiana Gateway TIFF viewer page noted on this slide.

And with that, we take any questions.