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~ L ~-~ <br />Redevelopment Commission <br />Staff Report from Don Inks <br />Proposal fi-om Crowe Horwath for TIF Neutralization Calculations <br />6/ 1 /09 <br />This proposal is for Crowe Horwath to prepare the City of South Bend Tax Increment <br />Financing Neutralization Worksheets, including collecting the necessary data, preparing <br />t11e worksheets for each TIF area and filing the worksheets with the Auditor's office. The <br />total cost is not exceed $20,000 for professional fees and $2,500 for incidental costs <br />related to communication, printing, travel expenses and other similar expenses. <br />These calculations are necessary every year in which there is a reassessment of all <br />properties. Historically, these calculations were only required once every ten years when <br />a general reassessment was done. However, now these calculations are needed every <br />year, since every year all property values are adjusted for market trending. <br />This calculation adjusts the base assessed value for each TIF area to "neutralize'" the <br />effect of the reassessment. To achieve this neutralization, the base assessed values are <br />adjusted to reflect growth in the County vs. the TIF area, and to achieve the amount of <br />tax revenue collected in prior year plus tax revenue due to new "real growth" and tax <br />abatement roll offs. I have attached a Worksheet from the calculations done last year to <br />further explain this process. <br />Staff recommends favorable consideration by the Redevelopment Commission. <br />