1993-07-15 Resolution 79 - Laserfiche WebLink

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RISKS TO BONDHOLDERS (1) The principal of and interest on the Taxable 1993 Bonds aze payable only from the Pledged Funds including Lease Rental payments received by the Trustee on behalf of the Authority from the Commission pursuant to the Lease. The Authority has no taxing power. The Authority has no source of funds from which to pay debt service on the Taxable 1993 Bonds except moneys held in the Pledged Funds. If, for any reason, the Project (including the Improvements) is damaged or destroyed and unavailable for use, the Commission would no longer be able to pay Lease Rental. The Commission is required by the Lease to maintain rental value insurance in an amount equal to full rental value for a period up to two (2) yeazs. In addition, the proceeds of any property and/or casualty insurance claim for the Project (including the Improvements) would be used either to reconstruct the Project (including the Improvements) or to retire obligations issued to finance the Project (including the Improvements). To the extent that the damaged or destroyed Project (including the Improvements) is not replaced or repaired or is unavailable for use beyond the period covered by the rental value insurance, the Commission will be unable to pay the Lease Rental attributable to the damaged or destroyed Project (including the Improvements), and the Authority would have insufficient funds to pay debt service on its outstanding Taxable 1993 Bonds. (2) In the event of delayed billing, collection or distribution by the County Auditor of ad valorem property taxes levied in the District, sufficient funds may not be available to the Commission in time to pay Lease Rental when due. This risk is inherent in all property-tax supported obligations. PROCEDURES FOR PROPERTY ASSESSMENT. TAX LEVY AND COLLECTION Real property in the State of Indiana ("State") is assessed each year as of March 1st. On or before August 1st each year, the County Auditor must submit to each underlying taxing unit a statement of (i) the estimated assessed value of the taxing units as of March 1st of that year, and (ii) an estimate of the taxes to be distributed to the unit during the last six months of the current budget year. The estimated value is based on abstracts delivered to the Auditor by the township assessor or its designee on or before July 15. The estimated value is used when the governing body of a local taxing unit meets to establish its budget for the next fiscal yeaz (January 1 through December 31), and to set tax rates and levies. By statute, the budget, tax rate and levy must be established for second class cities no later than September 30th. The budget, tax levy and tax rate aze subject to review and revision by the State Board of Tax Commissioners which can lower, but not raise the tax levy or tax rate (with the exception of increasing any debt service or lease rental levy as may be required.) In order to levy an ad valorem property tax in the District, the Commission must, on or before July 15th, estimate the amount of Tax Increment it expects to collect in the subsequent calendar year. If this estimate is less than the amount needed to pay the Lease Rental due in the 12-month period beginning on July 1 of the following calendar year, the Commission must include a levy on all taxable property in the District in its budget for the subsequent calendaz year. The Commission is required by IC 36-7-14 and the Pledge Resolution to levy this tax. On or before December 31, the County Auditor prepares and delivers the final abstract of property taxes. The County Treasurer mails tax statements the following April (but mailing may be delayed due to reassessment or other factors). Property taxes aze due and payable to the County Treasurer in two installments on May 10 and November 10. If an installment of taxes is not completely paid on or before the due date, a penalty of 10 % of the amount delinquent is added to the amount due. On May 10 and November 10 of each yeaz thereafter, an additional penalty equal to 10% of any taxes remaining unpaid is added. The penalties are imposed only on the principal amount of the delinquency. Property becomes subject to tax sale procedures after 15 months of delinquency. Pursuant to State law, real property is valued for assessment purposes at its "True Tax Value" as defined in rules and regulations promulgated by the State Board of Tax Commissioners. "True Tax Vaiue" does not mean fair market value. Current regulations define the "True Tax Value", generally, as the reproduction value of property based on actual material and labor costs prevalent in the State of Indiana in 1985. The local assessor may subtract from the reproduction value, an amount for normal depreciation, as provided in the regulations, as well as amounts for functional or economic obsolescence, as the assessor deems appropriate in accordance with the regulations. The assessor is required to assess annually projects under construction to allow taxes to be levied on partial assessment. -9-