01-26-15 Agenda, Packet and Committee Meeting Notice

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CITY OF SOUTH BEND, INDIANA South Bend, Indiana County Economic Development Income Tax (Continued) less than the amount collected to offset overpayments made in prior years, or may adjust the certified amount to correct any clerical or mathematical errors made in any previous certification. The county auditor is to distribute CEDIT revenues (i) based on the proportionate share of the allocation amount of the City and each city, town and the county (each, a "unit ") to the total allocation amount of the City and all units within the county, or (ii) for counties that adopt CEDIT after June 1, 1992, upon passage of an ordinance by the appropriate body, based on each unit's proportionate share of population within the county to the total population of the county. The County Income Tax Council has adopted an ordinance to provide that CEDIT in St. Joseph County will be distributed based upon the allocation amount formula per IC 6- 3.5- 6 -1.1. The county and each city and town in a county are entitled to a share of the county's certified distribution; provided that such county or unit has adopted a capital improvement plan under Indiana Code 6- 3.5 -7 -15 (the "Plan ") that specifies the uses for which CEDIT will be disbursed. A Plan must identify projects to be funded from CEDIT proceeds, provide total cost estimates for each project, and supply a schedule for the planning, development and construction of each project. The Plan must encompass a period of not less than two years and must provide for the expenditure of at least 75% of CEDIT to be received by such unit during the period that such Plan is in operation. If the county or a unit in the county fails to adopt a Plan or designate the county or another unit in the county as the recipient of its share of the distribution, that county or unit may not receive its CEDIT distribution. The county treasurer will retain such distribution and any designated distribution for such county or unit in a separate account until the county or unit adopts a Plan. If the county or unit fails to adopt a Plan for three succeeding years, the balance in such account will be distributed to the county or other units in the county that have adopted a Plan. Such redistribution will be based on property taxes first due and payable to the county or units during the calendar year in which the three year period expires. For a project to be paid for or financed with bonds or leases payable from CEDIT, it must be (i) deemed an "economic development project" by the county or unit within the county receiving such revenues or (ii) a capital project for which the county or unit could issue general obligation bonds. An "economic development project" is any project that promotes gainful employment, attracts a major new business enterprise or retains or expands a business enterprise within the jurisdiction; and involves expenditures for a combination of, or singly, the purchase of land, infrastructure improvements, enlargement or construction of buildings, and the acquisition of machinery, furniture and fixtures. The CEDIT statute provides that CEDIT may be pledged to defray the debt service for bonds or long term lease rentals to undertake improvements and expenditures pursuant to a Plan. If bonds are issued and outstanding pursuant to the CEDIT Statute, a county income tax council or a county council may not reduce the CEDIT rate below a rate that would (or could be projected to) produce 1.25 times the maximum annual debt service on such bonds. The calculation for such minimum tax rate must be based on the average of the county's preceding three years' tax collections. C -6