1994-05-17 Resolution 91 - Laserfiche WebLink

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The Lease also provides that in the event all or a portion of the facilities subject to the Lease are damaged • or destroyed to such extent that it is not practicable or possible to restore and reconstruct the same pursuant to the Lease, the lease rental payments will be abated during the period the damaged or destroyed portion of the facilities is unfit for its intended use. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS -- LEASE — Damage and Destruction of Premises" in Appendix C herein. The Lease requires the Commission to maintain rental value insurance to make such lease rental payments during the time the lease rental payments are abated, for a period of two years, in an amount equal to the full rental value of the facilities. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS— LEASE — Insurance" in Appendix C herein. However, if either (i) the cost of restoration or reconstruction of the facilities would exceed the amount of catastrophic insurance proceeds plus other money available therefor, or (ii) such restoration or reconstruction cannot be completed within the period of time covered by the rental value insurance, the catastrophic insurance proceeds will be applied to the redemption of outstanding Bonds pursuant to the Trust Agreement. See "DESCRIPTION OF BONDS — Redemption." Procedures for Property Assessment, Tax Levy and Collection, and Tax Abatement Real property in the State of Indiana (the "State ") is assessed each year as of March 1. On or before August 1 each year, the St. Joseph County Auditor (the "County Auditor ") must submit to each underlying unit a statement of (i) the estimated assessed value of the unit as of March 1 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 assessed value is based on abstracts delivered to the County Auditor by the various township assessors of St. Joseph County or their designees on or before July 15. The estimated value is used when the Common Council of the City meets to establish its budget for the next fiscal year (January 1 through December 31), and to set tax rates and levies. By statute, the budget, tax levy and tax rate must be established no later than September 30. The budget, tax levy and tax rate are subject to review and revision by the State Board of Tax Commissioners, who can lower, but cannot raise the tax levy or tax rate (with the exception of increasing any debt service or lease rental levy as may be required). • On or before March 1, the County Auditor prepares and delivers the final abstract of property taxes. The St. Joseph County Treasurer (the "County Treasurer ") mails tax statements the following April (but may be delayed due to reassessment or other factors). Property taxes are due and payable to the County Treasurer in two installments on May 10 and November 10, and are distributed to taxing units by June 30 and December 31, respectively. 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 year 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 Value" 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 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 local assessor deems appropriate in accordance with the regulations. The local assessor is required to assess annually projects under construction to allow taxes to be levied on partial assessment. The "Gross Assessed Value" is equal to 33 -1/3 % of the True Tax Value. "Net Assessed Value" represents the Gross Assessed Value less certain deductions for mortgages, veterans, the aged, the blind, economic revitalization, and tax- exempt property. The Net Assessed Value is the value used for taxing purposes in the determination of tax rates. -8-