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HomeMy WebLinkAbout2016 Continuing Disclosure - Indiana Bond BankCity of South Bend, Indiana Indiana Bond Bank $29,140,000 Special Program Refunding Bonds, Series 2011A (South Bend TIF Districts) CUSIP Base 454624 (Dated December 29, 2011) Annual Information for Compliance with SEC Rule 15(c)2-12 DISTRICT City of St. Joseph Year South Bend County 1960 132,445 238,614 1970 125,580 244,827 1980 109,727 241,617 1990 105,511 247,052 2000 107,789 265,559 2010 101,168 266,931 Labor Force 132,924 Employment 127,760 Unemployment 5,164 Unemployment Rate 3.9% St. Joseph South Bend - Mishawaka Year County Metro Area 2012 9.5% 9.5% 2013 8.7% 8.7% 2014 6.5% 6.5% 2015 5.0% 5.0% 2016 4.5% 4.5% 1 The boundaries of the South Bend Redevelopment District (the "District") are coterminous with the boundaries of the City of South Bend (the "City"). The South Bend Redevelopment Commission is the governing body of the District. LOCATION The City is located in St. Joseph County in north central Indiana near the border of the State of Michigan. It is approximately 140 miles north of Indianapolis, Indiana and approximately 90 miles east of Chicago, Illinois. GOVERNMENT The City has eleven elected officials: the Mayor, the Common Council, including council members covering six districts and three council members at large, and the City Clerk. South Bend-Mishawaka Metro Area The South Bend Police Department consists of 233 sworn officers and 48 civilian employees. The South Bend Fire Department is comprised of 11 fire stations and employs 250 full-time firefighters in four divisions. POPULATION EMPLOYMENT (As of March 2017) AVERAGE ANNUAL UNEMPLOYMENT RATE Source: Indiana Business Research Center. Data collected as of May 18, 2017. CITY OF SOUTH BEND Employed Percent of Labor Force Services 78,049 49.51% Wholesale and retail trade 23,926 15.18% Manufacturing 15,657 9.93% Government 14,487 9.19% Finance, insurance and real estate 11,200 7.10% Construction 6,750 4.28% Transportation and warehousing 4,183 2.65% Information 2,163 1.37% Farming 718 0.46% Other* 263 0.17% Utilities 244 0.16% Total Nonfarm Employment 157,640 100.00% Approximate Number of Employees 7,088 5,825 2,724 1,380 1,334 1,274 1,200 755 694 641 Sources: The South Bend Region Economic Development, company websites, and company personnel. Parks and Recreation: The park system consists of 71 local parks and facilities. COMMUNITY DATA Hospitals: There are two major hospitals in the South Bend area, collectively with approximately 800 beds: Memorial Hospital of South Bend and St. Joseph Regional Medical Center. Cultural:The City is the home of a minor league baseball team affiliated with the Chicago Cubs with games played in the Stanley Coveleski Regional Baseball Stadium (a 5,000 seat facility). The St. Joseph River runs through the City providing boating acitivities. The East Race Waterway is a 2,000 yard man-made rafting and kayaking course which flows adjacent to the St. Joseph River. Other attractions include the South Bend Symphony, Morris Performing Arts Center, Broadway Theater League, Potawatomi Zoo, College Football Hall of Fame Project, Studebaker National Museum, Northern Indiana Historical Huseum, Copshaholm Historic House Museum, Morris Conservatory, and the Century Center (a 225,000 square foot convention and exhibit center). Other activities are also available at the major colleges and unversities in the area. 2 Financial institution CITY OF SOUTH BEND EMPLOYMENT BY INDUSTRY MAJOR EMPLOYERS 1st Source Bank Health care Higher education Public education Higher education County government City government Mfg. automobiles & military vehicles Mfg. aircraft and automotive parts Health care consulting Indiana Univeristy South Bend St. Joseph County City of South Bend AM General Honeywell International, Inc. Press Ganey Associates, Inc. Employer Type of Business Beacon Health System University of Notre Dame South Bend Community School Corporation Source: Bureau of Economic Analysis and the Indiana Business Research Center. Data collected as of May 18, 2017. *In order to avoid disclosure of confiedential information employment figures are not available for the Forestry, fishing, related activities, and Mining Sectors. The data is incorporated here. (As of 2015) South Bend-Mishawaka Metro Area Highways: I-80/90 (Indiana Toll Road); U.S. Highways 6, 20, and 31; State Highways 2, 4, 23, 104, 331, and 933. Trucking: 43 trucking lines, 33 terminals. Air: South Bend Regional Airport serves the City with three carriers. Electricity: Indiana Michigan Electric Power Company. Gas: Northern Indiana Public Service Company. Water/Sewage: The City of South Bend Municipal Waterworks and Municipal Sewage Works. Total Estimated Total Estimated Total Estimated Total Estimated Year Permits Costs Permits Costs Permits Costs Permits Costs 2012 1,201 $33,828,699 179 $47,377,604 22 $7,520,338 23 $1,442,022 2013 1,332 31,451,737 152 27,783,419 28 9,942,291 20 744,411 2014 1,208 36,888,404 168 34,501,917 31 12,613,771 2 140,000 2015 1,102 38,003,597 199 88,037,686 22 52,698,109 2 54,590 2016 1,177 29,768,194 202 133,588,890 14 1,283,887 4 476,956 Source: St. Joseph County/City of South Bend Building Department. The following banks have deposits in the City as of June 30, 2016. Source: Federal Deposit Insurance Corporation Website (www.fdic.gov) The following banks have deposists in South Bend,but account for less than 3% of the market share: Lake City Bank, PNC Bank National Association, MutualBank, Horizon Bank National Association, First State Bank of Middlebury, and Woodforest National Bank. CITY OF SOUTH BEND TRANSPORTATION Market Share 1st Source Bank KeyBank National Association Fifth Third Bank 3 Railroads: Four rail lines provide freight and passenger service to the City and the South Shore passenger line runs from South Bend to Chicago. South Bend is also served by AMTRAK. Bus:A municipal bus service (Transpo) is provided within the City. Inter-City bus lines include United Limo and Greyhound. UTILITIES EDUCATION Colleges and Universities: Institutions of higher education in the community include the University of Notre Dame, St. Mary's College, Indiana University at South Bend, Purdue Polytechnic - South Bend, Bethel College, Holy Cross College, Ivy Tech Community College, and Indiana Tech. BUILDING PERMITS Residential Commercial/Industrial Public Other FINANCIAL INSTITUTIONS Insitution Bank Deposits in the City Public Schools: The City is served by the South Bend Community School Corporation which has a 2016/17 enrollment of 17,433. The School Corporation includes five high schools, ten intermediate schools, and eighteen elementary schools. $1,339,031,000 483,104,000 255,487,000 117,518,000 Wells Fargo Bank NA Old National Bank JP Morgan Chase Bank NA 102,578,000 94,589,000 3.93% 3.63% 51.36% 18.53% 9.80% 4.51% Year City of South Bend St. Joseph County 2013 $2,336,906,810 $7,671,151,787 2014 2,181,510,508 7,514,198,242 2015 2,230,375,068 7,864,008,472 2016 2,257,279,248 7,906,760,026 2017 2,317,096,240 8,201,203,024 2013 3.4% 2014 3.4% 2015 3.3% 2016 3.3% 2017 3.23% Cigarettes: Gasoline: Per 20 Cigarette Pack Per Gallon 2013 $0.995 $0.18 2014 0.995 0.18 2015 0.995 0.18 2016 0.995 0.18 2017 0.995 0.18 COUNTY ECONOMIC DEVELOPMENT INCOME TAX CITY OF SOUTH BEND CERTIFIED ASSESSED VALUATION SALE & USE TAX 7% tangible personal property except food and prescription drugs. INDIVIDUAL ADJUSTED GROSS INCOME Personal Exemptions: $1,000 annual exemption allowed for taxpayer and $1,500 for each dependent child. EXCISE TAX AUTOMOBILE TAX Excise tax in lieu of personal property tax, based on initial retail price and age of vehicle. INNKEEPERS TAX Additional 6% sales tax on any overnight stay in St. Joseph County. 0.25% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. 4 0.4% of adjusted gross income of St. Joseph County resident taxpayers and certain non- resident St. Joseph County taxpayers. COUNTY OPTION INCOME TAX 0.4996% of adjusted gross income of St. Joseph County resident taxpayers and certain non-resident St. Joseph County taxpayers. LOCAL OPTION INCOME TAX 0.6004% of adjusted gross income of St. Joseph County resident taxpayers and certain non-resident St. Joseph County taxpayers. LOCAL OPTION INCOME TAX PUBLIC SAFETY SCHEDULE OF INDEBTEDNESS Original Final Outstanding Direct Debt Par Amount Maturity Amount Tax Supported Debt Economic Development Income Tax Bonds of 2015 $5,605,000 08/01/35 $5,295,000 Century Center Energy Conservation Bonds of 2015 (QECB) 4,167,897 05/01/31 4,145,311 Redevelopment Authority Lease Rental Revenue Bonds, Series 2015 25,000,000 02/01/37 25,000,000 Lease Rental Revenue Refunding Bonds of 2015 31,450,000 02/15/33 29,420,000 Lease Rental Revenue Refunding Bonds, Series 2013 3,990,000 05/01/26 3,175,000 Taxable Lease Rental Revenue Refunding Bonds, Series 2011A 7,580,000 02/01/18 1,230,000 Lease Rental Revenue Refunding Bonds, Series 2011B 2,980,000 02/01/18 485,000 Special Program Refunding Bonds, Series 2011A (Downtown Central Development Area) 18,030,000 08/01/24 11,850,000 Special Program Refunding Bonds, Series 2011A (Airport Development Area) 10,435,000 08/01/24 6,755,000 Redevelopment District Special Taxing District Refunding Bonds of 2014 3,440,000 01/01/22 2,210,000 Taxable Revenue Bonds, Series 2010 4,980,000 01/15/19 1,340,000 City of South Bend Building Corporation First Mortgage Revenue Bonds, Series 2013 5,580,000 02/01/33 4,920,000 First Mortgage Revenue Refunding Bonds, Series 2012 13,595,000 02/01/23 8,265,000 County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 6,075,000 02/01/21 2,470,000 Leases and Loans 13,048,082 Subtotal 119,608,393 The following schedule shows the outstanding indebtedness of the City and the taxing units within and overlapping its jurisdiction as of February 15, 2017, as reported by the respective taxing units. CITY OF SOUTH BEND (Continued on next page) 5 Original Final Outstanding Par Amount Maturity Amount Self-Supporting Revenue Debt (1) Waterworks Refunding Revenue Bonds of 2016 $3,300,000 01/01/27 $3,300,000 Waterworks Revenue Bonds of 2012 8,300,000 01/01/33 6,925,000 Waterworks Refunding Revenue Bonds of 2012B 3,785,000 01/01/23 2,380,000 Waterworks Revenue Bonds of 2009, Series A (SRF) 427,332 01/01/30 332,562 Waterworks Revenue Bonds of 2009, Series B 5,380,000 01/01/30 4,325,000 Sewage Works Refunding Revenue Bonds of 2015 27,440,000 12/01/25 24,965,000 Sewage Works Refunding Revenue Bonds, Series 2013A 14,765,000 12/01/24 8,050,000 Sewage Works Revenue Bonds of 2012 25,000,000 12/01/32 20,890,000 Sewage Works Revenue Bonds of 2011 21,500,000 12/01/31 17,295,000 Sewage Works Revenue Bonds of 2010 9,345,000 12/01/30 7,145,000 Sewage Works Revenue Bonds of 2009 (SRF) 3,297,000 12/01/28 2,249,643 Waterworks and Sewage Works Leases 3,325,737 Subtotal 101,182,942 Total Direct Debt $220,791,335 Allocable to Allocable to Overlapping Debt Total Debt City (2)City Tax Supported Debt $30,465,000 28.17% $8,581,991 114,089,291 52.85% 60,296,190 36,675,073 2.68% 982,892 Mishawaka-Penn-Harris Public Library 2,475,000 2.19% 54,203 St. Joseph County Public Library 4,015,000 49.51% 1,987,827 12,080,000 28.17% 3,402,936 Tax Supported Debt 75,306,039 Self-Supporting Revenue Debt 875,000 62.41% 546,088 Self-Supporting Revenue Debt 546,088 Total Overlapping Debt $75,852,127 St. Joseph County Airport Authority CITY OF SOUTH BEND SCHEDULE OF INDEBTEDNESS (Cont'd) (1)The City anticipates making substantial improvements to the Sewage Works over the next 20 years as part of its Long Term Control Plan and a Consent Decree entered into between the City and the U.S. Department of Justice and USEPA. The cost estimate for the Consent Decree is approximately $600 million. The exact costs and timing of these improvements are still to be determined. St. Joseph County (3) South Bend Community School Corporation Penn-Harris-Madison School Corporation South Bend Public Transportation (2) Based upon the 2016 payable 2017 net assessed valuation of the respective taxing units. The schedule presented above is based on information furnished by the obligors or other sources and is deemed reliable. The City makes no representation or warranty as to its accuracy or completeness. 6 (3)On December 30, 2014, the City of South Bend's Mayor, as the executive of the City, designated a portion of the City's distributive share of County Economic Development Income Tax to St. Joseph County (the "County"), pursuant to IC 6-3.5-7-15, in such amount as necessary to pay the annual debt service of 29.03% of the County's Economic Development Income Tax Revenue Bonds of 2014 ("County Bonds"), as long as these County Bonds remain outstanding. The principal balance outstanding attributable to the City was $2,386,508 as of December 31, 2016, as the City prepaid some of the outstanding principal amount. Issue Original Final Title Date Amount Maturity Outstanding Economic Development Income Tax Bonds of 2015 2015 $5,605,000 08/01/35 $5,295,000 St. Joseph County Economic Development Income Tax Revenue Bonds of 2014 2014 2,657,697 12/31/34 2,386,508 (1) Total $7,681,508 (1) Issue Original Final Title Date Amount Maturity Outstanding County Option Income Tax Lease Rental Revenue Refunding Bonds of 2010 2010 $6,075,000 02/01/21 $2,470,000 Taxable Revenue Bonds, Series 2010 2010 4,980,000 01/15/19 1,340,000 First Mortgage Revenue Refunding Bonds, Series 2012 2012 13,595,000 02/01/23 8,265,000 Total $12,075,000 Issue Original Final Title Date Amount Maturity Outstanding Lease Rental Revenue Refunding Bonds, Series 2013 2013 $3,990,000 05/01/26 $3,175,000 Century Center Energy Conservation Bonds of 2015 (QECB) 2015 4,167,897 05/01/31 4,145,311 Total $7,320,311 CITY OF SOUTH BEND CITY ECONOMIC DEVELOPMENT INCOME TAX REVENUE BONDS (As of February 15, 2017) These Bonds are payable solely from the City's share of the St. Joseph County Economic Development Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. COUNTY OPTION INCOME TAX LEASE RENTAL REVENUE BONDS (As of February 15, 2017) These Bonds are payable solely from the City's share of the St. Joseph County Option Income Tax and do not constitute a claim against the base property taxes collected or other income of the City. HOTEL-MOTEL TAX REVENUE DEBT (As of February 15, 2017) (Continued on next page) 7 On December 30, 2014, the City of South Bend's Mayor, as the executive of the City, designated a portion of the City's distributive share of County Economic Development Income Tax to St. Joseph County (the "County"), pursuant to IC 6- 3.5-7-15, in such amount as necessary to pay the annual debt service of 29.03% of the County's Economic Development Income Tax Revenue Bonds of 2014 ("County Bonds"), as long as these County Bonds remain outstanding. The principal balance outstanding attributable to the City was $2,386,508 as of December 31, 2016, as the City prepaid some of the outstanding principal amount. (Cont'd) Issue Original Final Title Date Amount Maturity Outstanding Lease Rental Revenue Bonds, Series 2015 2015 $25,000,000 02/01/37 $25,000,000 Lease Rental Revenue Refunding Bonds of 2015 2015 31,450,000 02/15/33 29,420,000 (1) Special Taxing District Refunding Bonds of 2014 2014 3,440,000 01/01/22 2,210,000 (1) Special Program Refunding Bonds, Series 2011A 2011 18,030,000 08/01/24 11,850,000 (Downtown Central Development Area) Special Program Refunding Bonds, Series 2011A 2011 10,435,000 08/01/24 6,755,000 (Airport Development Area) Total $75,235,000 Final Title Maturity Outstanding Waterworks Refunding Revenue Bonds of 2016 01/01/27 $3,300,000 Waterworks Revenue Bonds of 2012 01/01/33 6,925,000 Waterworks Refunding Revenue Bonds of 2012B 01/01/23 2,380,000 Waterworks Revenue Bonds of 2009, Series A (SRF) 01/01/30 332,562 Waterworks Revenue Bonds of 2009, Series B 01/01/30 4,325,000 Sewage Works Refunding Revenue Bonds of 2015 12/01/25 24,965,000 Sewage Works Refunding Revenue Bonds, Series 2013A 12/01/24 8,050,000 Sewage Works Revenue Bonds of 2012 12/01/32 20,890,000 Sewage Works Revenue Bonds of 2011 12/01/31 17,295,000 Sewage Works Revenue Bonds of 2010 12/01/30 7,145,000 Sewage Works Revenue Bonds of 2009 (SRF) 12/01/28 2,249,643 Waterworks and Sewage Works Leases 3,325,737 TAX INCREMENT FINANCING (TIF) REVENUE DEBT (As of February 15, 2017) (1) The Bonds are payable from a Special Ad Valorem Tax; however, it is the intent of the City to pay from Tax Increment Revenues. STATEMENT OF CITY UTILITY REVENUE DEBT The City of South Bend owns and operates the municipal waterworks and municipal sewage works (the "Utilities") which have heretofore issued and have outstanding the following revenue bonds. All such revenue bonds constitute a lien on the revenue of the utilities and are not, pursuant to Indiana statures, direct obligations of the City. Revenue bonds issued of the Utilities and outstanding as of February 15, 2017, were as follows: 8 DIRECT DEBT ISSUANCE LIMITTATION (SOUTH BEND REDEVELOPMENT DISTRICT) Certified Net Assessed Valuation - 2016 Payable 2017 $2,317,096,240 2% of One-Third Thereof 15,447,308 Less Bonds subject to limitation: Special Taxing District Refunding Bonds of 2014 (2,210,000) Taxable Revenue Bonds, Series 2010 (1,340,000) Issuance Margin $11,897,308 Population - 2010 101,168 Certified Net Assessed Valuation - 2016 Payable 2017 $2,317,096,240 Ratio of Debt Per Debt/Assessed Description Amount Capita Valuation Total Direct Debt and Lease Obligations $220,791,335 $2,182.42 9.53% Total Overlapping and Underlying Direct Debt and Lease Obligations 75,852,127 749.76 3.27% Totals $296,643,462 $2,932.18 12.80% CITY OF SOUTH BEND The District is limited to the issuance of direct general obligation debt in an amount not to exceed 2% of one-third of the assessed valuation. PER CAPITA AND DEBT RATIO ANALYSIS 9 TOTAL CERTIFIED TAX RATES City of South Bend - Portage Township Per $100 of Net Assessed Valuation Year Taxes Payable 2013 2014 2015 2016 2017 County $0.6731 $0.7058 $0.6866 $0.6974 $0.6950 Portage Township 0.0453 0.0505 0.0500 0.0512 0.0527 Schools 1.3493 1.3577 1.2940 1.2682 1.2049 Library 0.3227 0.3309 0.3207 0.3549 0.3372 Corporation General 2.5678 2.7977 2.8313 2.8703 2.8382 Park & Recreation 0.5102 0.5608 0.5676 0.5754 0.6473 Cumulative Cap Development 0.0328 0.0328 0.0325 0.0321 0.0313 Total Corporation 3.1108 3.3913 3.4314 3.4778 3.5168 Redevelopment General 0.0599 0.0379 0.0687 0.0648 0.0376 Airport 0.0330 0.0345 0.0338 0.0423 0.0285 Transportation 0.1042 0.1125 0.1100 0.1153 0.1161 Total Tax Rate $5.6983 $6.0211 $5.9952 $6.0719 $5.9888 (1) Includes certified tax rates of overlapping taxing units. Source: DLGF Certified Budget Orders for the City. 10 CITY OF SOUTH BEND St. Joseph County Year Personal Total Total Payable Real Estate Utilities Property Taxable Value Taxable Value 2013 $1,858,213,181 $100,832,450 $412,042,066 $2,371,087,697 $7,753,967,187 2014 1,687,672,152 90,252,180 431,802,340 2,209,726,672 7,612,534,622 2015 1,753,122,893 86,924,710 420,221,715 2,260,269,318 7,894,770,717 2016 1,737,036,616 83,786,930 456,346,197 2,277,169,743 7,993,696,892 2017 1,758,787,301 105,036,200 463,676,740 2,327,500,241 8,262,636,370 Note: See footnote (a) at the end of this report. CITY OF SOUTH BEND SCHEDULE OF HISTORICAL NET ASSESSED VALUATION (As Provided by the St. Joseph County Auditor's Office) City of South Bend 11 PROPERTY TAXES LEVIED AND COLLECTED Certified Taxes Levied Certified Net of Collected as Collected as Collection Taxes Circuit Breaker Circuit Breaker Taxes Percent of Percent of Year Levied Tax Credit Tax Credit Collected Gross Levy Net Levy (1) 2012 $70,756,844 ($23,965,911) $46,790,933 $47,728,794 67.45% 102.00% 2013 72,696,497 (27,863,156) 44,833,341 43,943,006 60.45% 98.01% 2014 73,981,565 (28,708,050) 45,273,515 44,540,371 60.20% 98.38% 2015 76,533,090 (31,636,141) 44,896,949 45,265,669 59.15% 100.82% 2016 78,503,658 (32,421,068) 46,082,590 47,766,833 60.85% 103.65% Source: The St. Joseph County Auditor's Office and the DLGF Certified Budget Orders for the City. CITY OF SOUTH BEND (1) Circuit Breaker Tax Credits allocable to the City per the DLGF. Note: See footnote (b) at the end of this report. 12 LARGE TAXPAYERS Percent of 2016/2017 Total Net Assessed Net Assessed Name Type of Business Valuation Valuation (1) Indiana Michigan Power Company (2) Electric utility $50,290,160 2.16% University of Notre Dame (2) Higher education 43,287,836 1.86% Edward Rose of Indiana (2) Apartment complexes 37,011,700 1.59% Honeywell International, Inc./ Bendix Corp. (2) Mfg. auto and aircraft parts 35,957,771 1.54% Steel Warehouse Co., Inc./ Lock Joint Tube LLC (2) Steel processing 33,327,984 1.43% Indiana Bell Telephone Co, Inc./ AT&T Telecommunications utility 33,185,910 1.43% Services, Inc. (2) JVE Investments LLC/ The Tire Rack, Inc. (2) Tire sales 24,703,590 1.06% Federal-Mogul Powertrain Systems Mfg. automotive parts 23,751,180 1.02% Northern Indiana Public Service Company (2) Gas & electric utility 22,260,990 0.96% Eddy Property Development, Inc./ South Bend Healthcare clinic 21,728,410 0.93% Clinic LLP (2) Totals $325,505,531 13.98% (1) (2) 13 CITY OF SOUTH BEND The following is a list of the ten largest taxpayers located within the City. The total net assessed valuation of the City is $2,327,500,241 for taxes payable in 2017, according to the St. Joseph County Auditor's office. Located in a tax increment allocation area; therefore, all or a portion of the taxes are captured as TIF and not distributed to individual taxing units. Source: County Auditor's office and the DLGF. Individual parcel data is submitted by the County Auditor to the DLGF once a year for preparation of the county abstract. (a) "Net Assessed Value" or "Taxable Value" represents the "Gross Assessed Value" less certain deductions for mortgages, veterans, the aged, the blind, economic revitalization areas, resource recovery systems, rehabilitated residential property, solar energy systems, wind power devices, hydroelectric systems, geothermal devices and tax-exempt property. The "Net Assessed Value" or "Taxable Value" is the assessed value used to determine tax rates. Pursuant to State law, personal property is assessed at its actual historical cost less depreciation, in accordance with 50 IAC 4.2, the DLGF's Rules for the Assessment of Tangible Personal Property. Effective January 1, 2016, state law annually exempts from property taxation new tangible business personal property with an acquisition cost of less than $20,000. Pursuant to State law, real property is valued for assessment purposes at its "true tax value" as defined in the Real Property Assessment Rule, 50 IAC 2.4, the 2011 Real Property Assessment Manual ("Manual"), as incorporated into 50 IAC 2.4 and the 2011 Real Property Assessment Guidelines, Version A ("Guidelines"), as adopted by the DLGF. P.L. 204-2016, SEC. 3, enacted in 2016, retroactive to January 1, 2016, amends State law to provide that "true tax value" for real property does not mean the value of the property to the user and that true tax value shall be determined under the rules of the DLGF. As a result of P.L. 204-2016, the DLGF has begun the process of amending the Manual. In the case of agricultural land, true tax value shall be the value determined in accordance with the Guidelines and IC 6-1.1-4, as amended by P.L. 180-2016. P.L. 180-2016 revises the factors used to calculate the assessed value of agricultural land. This legislation is retroactive to the January 1, 2016 assessment date and applies to each assessment date thereafter. The revised factors enacted in the legislation may reduce the total assessed value of agricultural land, which could shift property tax liability from agricultural property owners to other property owners. In addition, the reduction in the assessed value of agricultural land may result in a reduction of the total assessed value. Lower assessed values may result in higher tax rates in order for a unit to receive its approved property tax levy. Except for agricultural land, the Manual permits assessing officials in each county to choose any acceptable mass appraisal method to determine true tax value, taking into consideration the ease of administration and the uniformity of the assessments produced by that method. The Guidelines were adopted to provide assessing officials with an acceptable appraisal method, although the Manual makes it clear that assessing officials are free to select from any number of appraisal methods, provided that they produce "accurate and uniform values throughout the jurisdiction and across all classes of property". The Manual specifies the standards for accuracy and validation that the DLGF uses to determine the acceptability of any alternative appraisal method. (b) Indiana Code 6-1.1-20.6 provides taxpayers with a tax credit for all property taxes in an amount that exceeds the gross assessed value of real and personal property eligible for the credit (“Circuit Breaker Tax Credit”). Property taxes for residential homesteads are limited to 1% of the gross assessed value of the homestead; property taxes for agricultural, other residential property and long term care facilities are limited to 2% of their gross assessed value; and property taxes for all other real and personal property are limited to 3% of gross assessed value. Additional property tax limits have been made available to certain senior citizens. Since July 1, 2012, property tax revenue subject to reduction by the Circuit Breaker Tax Credit under Indiana Code 6-1.1- 20.6-9.8 is classified as either "protected taxes" or "unprotected taxes." "Protected Taxes" include taxes levied to pay debt service or lease rental on obligations payable from ad valorem property taxes. A debt service fund containing Protected Taxes is funded first by the taxing unit before property taxes are deposited into any other funds. The Constitutional Provision excludes from the application of the Circuit Breaker Tax Credit property taxes first due and payable in 2012, and thereafter, that are imposed after being approved by the voters in a referendum. The Statute codifies this exception, providing that, with respect to property taxes first due and payable in 2012 and thereafter, property taxes imposed after being approved by the voters in a referendum will not be considered for purposes of calculating the limits to property tax liability under the provisions of the Statute. In accordance with the Constitutional Provision, the General Assembly has, in the Statute, designated Lake County and St. Joseph County as "eligible counties" and has provided that property taxes imposed in these eligible counties to pay debt service and make lease rental payments for bonds or leases issued or entered into before July 1, 2008 or on bonds issued or leases entered into after June 30, 2008 to refund those bonds or leases, will not be considered for purposes of calculating the limits to property tax liability under the provisions of the Statute, through and including December 31, 2019. CITY OF SOUTH BEND FOOTNOTES 14