washington County · 3-5 IACC Annual Conference – Sheraton Keystone at the Crossing b s Mill John Hay Lake Features 5 When Will County budgets See a recovery? by David bottorff

Association of Indiana Counties Inc.101 West Ohio Street, Suite 1575Indianapolis, Indiana 46204-2051

PreSOrtedStandard

U.S. POStage PaId tWg, Inc.

IndIana neWS 92Volume 19 Number 4 July/August 2013

washington County

Where nature & history unite

ATLANTA CHICAGO DeLAwAre INDIANA LOS ANGeLeS mICHIGAN mINNeApOLIS OHIO wASHINGTON, D.C.

Fired up.Communities across Indiana depend on their county officials to make important decisions that will benefit citizens. As Indiana’s largest law firm, Barnes & Thornburg LLp is passionate about assisting many county officials with legal issues they face on a daily basis, including:

• Financing county facilities• Generating economic development strategies• Litigating cases when necessary• Developing county employment policies• Addressing environmental issues

You can’t teach that kind of passion. But when you come to us for advice, you can certainly expect it.

btlaw.com

elkhart574-293-0681

Fort wayne260-423-9440

Indianapolis317-236-1313

South Bend574-233-1171

What’s Inside

Vol. 19 Number 4 July/August 2013

CalendarSeptember11-15 Coroners training – Sheraton Keystone at the Crossing

23-26 AIC Annual Conference – Belterra Resort in Switzerland County

OCtOber22-25 Auditors Fall Conference – Sheraton Keystone at the Crossing

NOvember19 AIC Institute Class – Legislative Affairs (Statehouse)

DeCember3-5 IACC Annual Conference – Sheraton Keystone at the Crossing

Historic Beck’s Mill

John Hay Lake

Features 5 When Will County budgets See a recovery? by David bottorff

6 Indiana Needs Annexation reform part 1: An Unbalanced Status Quo by Andrew berger

8 top 10 reasons Not to miss the AIC 2013 Annual Conference by Christine traina

10 On the Cover: Washington County Where Nature & History Unite

14 Affordable Care Act (ACA) employer mandate Delay is No Free pass

by tracey Gavin, Apex Benefits Group

16 tIF: A blessing or a Curse? Common misconceptions about tax Increment Finance

by thomas K. “buddy” Downs and Heather James, Ice Miller LLP

extras 4 AIC Honored for Advocacy of the NACo

prescription Discount Card program

18 professional Services Directory

Don’t

miss it!

Sept. 23-26

www.IndianaCounties.org July/August 2013 INDIANA NeWS 92 3

The official magazine of Association of Indiana Counties, Inc.

101 West Ohio Street, Suite 1575Indianapolis, Indiana 46204-2051(317) 684-3710 FAX (317) 684-3713

www.indianacounties.org

Karen Avery, editor

OFFICerS

President: Penny Lukenbill, Marshall County Auditor

First Vice President: Jeff Quyle, Morgan County Council

Second Vice President: Al Logsdon, Spencer County Commissioner

Third Vice President: Jane Grove, Randolph County Treasurer

Treasurer: Terri Rethlake, St. Joseph County Clerk

StAFFDavid Bottorff, Executive Director [email protected]

Andrew Berger, Director of Government Affairs & General Counsel [email protected]

Danielle Coulter, Deputy Director of Government Affairs [email protected]

Karen Avery, Director of Public Relations [email protected]

Alicia Ramer, Finance & Business Development Coordinator [email protected]

Christine Traina, Director of Planning and Professional Development [email protected]

The Association of Indiana Counties, Inc. (AIC) was founded in 1957 for the betterment of county government. Each of Indiana’s 92 counties are members of the AIC. The AIC Board of Directors is made up of elected county officials and is responsible for overall AIC policy and management. AIC serves it members through lobbying, education, publications, research, and technical assistance.

Indiana News 92 is published bi-monthly by the AIC at 101 W. Ohio St., Suite 1575, Indianapolis, IN 46204-2051. It is distributed to county elected officials, county employees, state and federal legislators, state agency personnel, National Association of Counties (NACo), universities, non-profit associations, media, and organizations interested in the betterment of county government. For advertising rates and other information, please contact Karen Avery, Editor.

All county members receive annual subscriptions to Indiana News 92 magazine through payment of county dues.

Subscription Rate: $25.00 per year.

Postmaster: Send address corrections to: AIC101 West Ohio Street, Suite 1575Indianapolis, IN 46204-2051

INDIANA NeWS 92

Visit www.IndianaCounties.org to update your contact information.

Fax your contact information to (317) 684-3713 attn: Karen Avery.

Email your contact information to Karen Avery at [email protected].

Stay Informed.GEt thE latEst aIC nEws and updatEs. It’s Easy!

aIC honorEd For adVoCaCy oF thE naCo prEsCrIptIon dIsCount Card proGramthe Association of Indiana Counties was honored at the NACo Annual Conference last month for its advocacy of the NACo prescription Discount Card program. the Outstanding Advocacy Award was given to the AIC because Indiana continually ranks as the highest user of the program nationwide. Indiana residents have saved more than $82.5 million since the program began in our state.

thanks to all the counties that participate in the program. If you currently participate and need assistance with marketing the program, or have questions in general, please contact David bottorff at (317) 684-3710 / [email protected]. You may also contact Andrew Goldschmidt at NACo at (202) 942-4221 / [email protected].

Pictured left to right: Al Logsdon, Spencer County Commissioner; Kent Ward, NACo Board member and Hamilton County Surveyor; Alicia Ramer, AIC Staff; Jeff Quyle, Morgan County Council; Penny Lukenbill, AIC President and Marshall County Auditor; Robert Cope, Lemhi County Idaho Commissioner; David Bottorff, AIC Executive Director; Aaron King, CVS Caremark; and Dave Decker, LaPorte County Commissioner.

4 INDIANA NeWS 92 July/August 2013 Association of Indiana Counties Inc.

the property tax caps were implemented during the economic recession so local units experienced decreasing income taxes, stagnant growth in new construction and decreasing residential values all at the same time. the downward spiral tended to feed on itself with little room for relief unless counties used new income tax options to partially offset the decreasing property tax revenue. Now counties are getting to experience how property tax caps and increasing income taxes relate to each other.

In July, the state released its fiscal year end numbers. the state has a very robust surplus of $1.9 billion compared to $14.2 billion in expenditures for the concluded Fiscal Year (FY) 2013. the state’s surplus has benefited from reduced spending and increasing revenues. personal income growth has rebounded, reaching an all-time high of $4.97 billion. From FY 2012 to FY 2013, state personal income growth was 4.4 percent. During the previous FY, personal income tax grew 3.9 percent. this is great news for counties as the growth in income taxes will eventually be reflected in local option income tax distributions.

Depending on the type of income tax or taxes a county has implemented, higher income taxes can mean lower property taxes and, in some instances, higher property tax collections. With more income dedicated to property tax relief, fewer properties may hit the tax caps, equating to higher property tax collections.

With the functionality of the tax caps, the mix of assessed value in a unit and the tax rates, predicting property tax collections is a cumbersome process. the rule of thumb may be there is no rule of thumb.

the higher income tax distributions are occurring at the same time that the economy is beginning to boost home values. After years of assessed value stagnation and even reductions in home values, the real estate market has been heating up.

According to the Indiana Association of realtors, the average sale price of homes has increased for 18 consecutive months. Growth in assessed values can also re-allocate property tax relief. If residential property values are growing faster than commercial values, more property tax relief will flow to residential properties. each unit’s mix of assessed value differs so predicting and outcome on a broad scale is difficult.

An improving economy, higher income tax collections and increasing property values are great news for individuals and local units of government. the level of new revenue will be different for each community, but it is great to see how this formula works in an improving economy. Now may be a good time for counties to re-evaluate how and how much they are providing property tax relief to different classes of property.

When Will County budgets See a recovery?thE CompEtInG FaCtors makE It hard to prEdICt. by David bottorff, Executive Director

[email protected]

the Director’s Chair

Now may be a good time for counties to re-evaluate how and how much they are providing property tax relief to different classes of property.


Annexation is an issue that pits residents, communities and local units of government against each other. Loaded phrases and characterizations such as “free loaders,” “money grab,” and “taxation without representation” are tossed about in often heated debates. the annexation discussion is not new, but it has taken on additional importance as the impact of annexations on other units becomes more extreme.

Indiana has some of the most municipal friendly annexation laws in the nation. the Hoosier State is one of only two states (Idaho the other) that allows involuntary annexation, where the city or town can annex an area where a majority of the population opposes it. residents may remonstrate against the annexation if 65 percent of land owners or owners of at least 75 percent of the annexed area with assessed value sign the petition. this remonstrance, though, only initiates a court hearing at which the municipality is required to demonstrate that the statutory requirements of an annexation are met.

Once an annexation moves forward, the city or town is able to increase its tax levy. there is an automatic increase of the maximum levy by at least 15 percent. the DLGF calculates the percentage increase of Av and certifies a corresponding increase to the maximum levy. If the municipality wants a greater increase in the unit’s maximum levy, it may make a special levy appeal under IC 6-1.1-18.5-13. this will be reviewed by the DLGF and the increase in the levy based on the fiscal plan will be created for the annexation.

When a municipality annexes, the city or town levy applies to more

taxpayers in the county in addition to the county, school, township and potentially a number of other special districts whose areas overlap the annexed territory. this tax increase often pushes those taxpayers’ liability above the tax caps. the loss of revenue due to the caps will not be borne by the annexing municipality alone but will instead be proportioned to all the other local units of government.

the levy increase is critically important, not only to the municipality that is annexing, but to the other units of government. this is because each unit’s share of the countywide tax levy is the basis of the units’ share of local income tax revenue. by increasing the city levy, the city increases its share of the income tax distribution and much like the tax cap impact; the city’s gain is the other unit of government’s loss.

Cities and towns have other reasons for annexing property beyond simply increasing revenue. much of it is focused on the use of service by those non-city residents. City streets, parks and other amenities should be supported by the population using them. Utility concerns come into play, and in many cases annexed areas were already benefiting from municipal utility services. Cities also want to control development and land use in areas impacting their communities.

It is important to note that these justifiable arguments in favor of a municipal leaning annexation law are largely dealt with in statute. municipalities control zoning within a two-mile area outside of the city limits. municipal utilities are allowed to assess higher rates on

politics & policy

by Andrew berger, Director of Government Affairs & General Counsel

[email protected]

IndIana needs annexatIon RefoRm PaRt I: An Unbalanced Status Quo


customers who live outside the city. And, as discussed above, local income tax distribution is based on each unit’s cost of service, not population.

Utility service is an important part of any annexation discussion due to a particular part of statute that allows residents, when hooking on to city sewers, to waive the rights of the property owner and any property owner in the future to remonstrate against and annexation. Legislation was passed this most recent session, at least, that provides notice to buyers of these properties if such a waiver exists.regardless, the existence of these waivers allows municipalities to draw annexations to include enough waivers to make the remonstrance threshold, a high bar already, unreachable.

Fundamentally, a municipality’s desire for free reign over annexation decisions is about that unit’s desire to control its own destiny. the need to control growth and revenue is understandable, but it ignores the same concerns not only of the residents being annexed but of the other units who experience the fall-out. municipalities’ tunnel-vision also flies in the face of the anti-silo thinking that the tax caps demand.

American government is based on a system of checks and balances. Indiana’s laws on annexation do conform to that bedrock principle.

The next Indiana News 92 will contain Part II where potential solutions to this unbalanced system are discussed.

P

With access to an abundant supply of natural gas and a commitment to customer service, ETC ProLiance Energy has built a reputation as a secure and reliable energy supplier. We meet the needs of today’s energy customer by providing relevant information along with a competitively-priced natural gas supply. From utility consumption monitoring to price risk management strategies, ETC ProLiance Energy helps customers focus on sustainability for both the environment and their financial future.

Call Todd Elliott, General Manager of Sales, at 317.231.6818 or visit www.etcprolianceenergy.com to fi nd out how ETC ProLiance Energy can serve your natural gas needs.


reasons Not to miss the AIC 2013 Annual Conferenceby Christine traina, Director of Planning and Professional Development

[email protected]

2013 Annual Conference

top 10

1. You will participate in workshops focusing on vital issues facing county officials and employees.

2. You will meet with your respective affiliate group to share ideas and network.

3. You have the opportunity to play golf on a world-class, championship course designed by legend tom Fazio.

4. You will mix and mingle with exhibitors who are happy to tell you all about how their services can save your county time and money.

5. You will be part of a year-in-the-making celebration of the achievements of award winning counties and county officials.

6. You will hear an inspiring presentation from our 16th president on leadership as Dean Dorrell portrays Abraham Lincoln.

7. You get to explore the charming and historic Switzerland County seat of vevay with its delightful restaurants, shops, and art galleries.

8. You get a fabulous host gift and opportunity for door prizes.

9. You get a jump start on your AIC Institute for excellence in County Government credit hours for the year by attending the great workshops.

10. Where else can you network with hundreds of your county colleagues and friends in the same place?!


kEynotE spEakEr: dEan dorrEll a lesson on leadership from a Great american leader

peter Drucker, the legendary management consultant and scholar, once said, “management is doing things right; leadership is doing the right things.” It’s not always easy to do the right things, but as leaders that is the job ahead of us. take a lesson on leadership from one of our nation’s greatest leaders, Abraham Lincoln. enjoy the Opening Session as Dean Dorrell portrays the 16th president of the United States. Dean Dorrell was awarded the 2002 best Abraham Lincoln Award by the Association of Lincoln presenters and the 2005 Glen Schnizlein Award for best Abraham and mary Lincoln team with Donna mcCreary by the Association of Lincoln presenters as well. He has appeared on stage in the one-man play “Mr. Lincoln”, by Herbert mitgang, as well as his own “Evening with Abraham Lincoln.” travel back in time and be part of history.

Visit www.indianacounties.org

success the road to success

It’s not too late to register!

2013 ANNUAL CONFERENCE | sEpt. 23-26

We invite you to learn more at tax.thomsonreuters.com/aumentum.

PROVIDING QUALITY SOLUTIONS AND SERVICES TO INDIANA LOCAL GOVERNMENT SINCE 1969

From our first installation until today, we continue to heavily invest to develop the best solution-based products and services for our customers.

Over 65 Indiana Counties are currentlyutilizing Thomson Reuters software to record documents, assess and collect property taxes.

© 2013 Thomson Reuters


Salem Speedway

washington County

Where nature & history unite

Washington County

Courthouse


On the Cover: Washington County

With the gorgeous backdrop of shimmering lakes and lush forests, Washington County bestows a picturesque atmosphere for an array of outdoor activities. the County is home to a multitude of forests, trails, lakes, rivers and parks, providing ample

opportunities for outdoor recreation. Washington County’s natural beauty is not all it has to offer. the County is also known for its rich traditions and unique history. Washington County showcases the beautiful scenery and antiquity of Southern Indiana.

Delaney Creek park is just one of Washington County’s many breathtaking landscapes. the 326-acre park offers a peaceful setting and provides limitless recreational opportunities. With a beautiful 88-acre lake, the park offers swimming, fishing and boat rentals. the Delaney Creek park trailhead is also located on the park’s grounds and offers hiking on the 6-mile nature trail. Washington County is also home to a segment of the Knobstone trail. the 58-mile-long trail is the longest hiking footpath in Indiana and spans across Washington and Clark Counties.

Hikers can also enjoy the Jackson-Washington County State Forest. this 18,000-acre forest offers a beautiful setting for hiking, including the backcountry Hiking trail at Spurgeon Hollow Lake, located within the Forest’s grounds. this rugged, 8-mile hiking trail provides a scenic escape into the Indiana backcountry.

Several historic sites are nestled in Washington County’s countryside. One such attraction is beck’s mill, the only extant mill in Indiana that only used grindstone milling throughout the entirety of the milling process. the beck family constructed the mill in 1808, and it continued to operate until around 1950. Although the mill sat idle for many years, it was reopened in 2008 and is currently operational, offering visitors a firsthand look at the old-fashioned mill that served Washington County residents for nearly 150 years.

built of brick from local historic buildings, the Stevens memorial museum offers a one-of-a-kind look into the history and heritage of Washington County. Housing Civil War mementos,

Washington County is home to a multitude of forests, trails, lakes, rivers and parks, providing ample opportunities for outdoor recreation.

John Hay Lake

Historic Beck’s Mill, built in 1808.

Delaney Creek Park and Knobstone Trail entrance


Salem Speedway

aged furniture and clothing, and old-time law and dentist offices, the Stevens memorial museum allows visitors to peek into the past. the museum is part of the John Hay Center, which was constructed in honor of John milton Hay, a public servant who worked alongside presidents Abraham Lincoln, William mcKinley and theodore roosevelt. Hay also served as a United States Ambassador and authored the panama Canal treaty. the Center is also home to the John Hay House. built in 1824, the John Hay House is the birthplace of John milton Hay. Another piece of history offered by the Center is the pioneer village, a living village set to demonstrate life in the 1840s. the village offers a unique perspective to what life was like for the early settlers of Washington County.

In 1830, Washington County held its first Independence Day celebration. Since that time, the County has hosted the Independence Day event for 183 consecutive years, making it the oldest consecutive Independence Day celebration in the nation. Although the celebration began as a rather intimate event at three local families’ homes, the pekin 4th of July Celebration has grown. today the event offers a parade, an artisan market, a queen contest, an antique car show, a 5K run, and much more.

Washington County also offers another glimpse into the past through the Depot railroad museum. Once an important

aspect of transportation, the monon railroad served Indiana for 125 years. today, the museum serves as a tribute to “the Hoosier Line,” named for the location of its tracks. the museum offers rustic railroad furniture, including original waiting room benches. railroad advertisements, signals, tools and equipment are on display. Additionally, a worker’s motor car and a station’s baggage wagon are featured at the museum. Another interesting exhibit is an HO scale model railroad depicting 1950 and 1860 Washington County, located in the basement of the Depot railroad museum.

While the railway served Washington County as an older form of transportation, the County celebrates more modern transportation as well. Famous drivers such as mario Andretti, Darrell Waltrip, rusty Wallace, A.J. Foyt, tony Stewart, Jeff Gordon, and many other well-known race car drivers have sped toward the checkered flag at the Salem Speedway in Washington County. the Speedway, which opened in 1947, offers a .555 mile oval with 33-degree banks, allowing racecars to reach speeds of nearly 140 miles per hour. the track was recently renovated in 2010, and prides itself as being one of the finest motorsports vicinities in the midwest.

Although the racecars may speed by, Washington County offers an opportunity to slow down and experience the County’s past while enjoying the present. With its deep history and gorgeous scenery, Washington County provides ample opportunities to experience what it once was, as well as what it is today.

On the Cover: Washington County

John Hay House & Pioneer Village

Stevens Memorial Museum

© S

ALEm

SPE

EDW

Ay. A

LL R

IGhT

S RE

SERv

ED. P

hOTO

By

mAR

K yO

RK D

ESIG

N. A

LL R

IGhT

S RE

SERv

ED.

Washington County offers an opportunity to slow down and experience the County’s past while enjoying the present.


AIC Institute for Excellence in County Government Offers Classes

via Webinar

Save time and travel costs with

just a click!Attend an AIC Institute for Exellence in County Government class online via

webinar, and get the training you need.

For more information or to find webinar class schedules, go to:

www.indianacounties.org “click on the training/education tab”

AIC Institute Sponsored by Vectren Corporation

RegisteR and view up to one yeaR lateR!


by tracey Gavin, Health Care Reform Practice Leader

Apex benefits

Affordable Care Act (ACA) employer mandate Delay is No Free pass

Apex benefits

On July 2, the Obama Administration announced the employer mandate of the Affordable Care Act is delayed until 2015. the mandate, which requires employers with 50 or more Ftes to offer health insurance coverage to their employees, was a key requirement of the health care overhaul set to go into effect Jan. 1, 2014. Although the mandate is delayed, other elements of the ACA remain on schedule and take effect Jan. 1, 2014. How will these elements affect you? Let’s look at the top 5 reasons employers should continue evaluating the impact of Health Care reform and act now:

1. Fees & Tax Assessments: all fees and taxes related to the ACA, including Comparative effectiveness research Fees (pCOrI), Transitional Reinsurance and Health Insurance Assessment, remain in place for Jan. 1, 2014.

• PCORI - assessed beginning in 2012 at $1 per participant. this fee increases to $2 thereafter until 2019. transitional reinsurance - assessed to both self-funded and fully insured health plans. the fees help fund the excess costs of the public Health Insurance marketplace (exchange) and are scheduled to phase out by 2016. the fee is calculated based on the number of plan participants and applies to employees and covered dependents

• Health Insurance Assessment - Fully insured plans will also see a Health Insurer Assessment that will range from 2-4% of the total premium cost of the health plan.

2. Individual Mandate: With few exceptions, everyone will be required to obtain health coverage effective January 2014. Coverage can be obtained through various sources including employer-Sponsored Coverage, medicaid, individual insurance policies and the public exchange. employers must consider how vulnerable their health plan is for migration of employees currently waving coverage. plan enrollment will increase and could lead to unplanned expense.

3. Exchanges: Within the exchange, individuals whose House Hold Income (HHI) is between 100 – 400% of the Federal poverty Level (FpL) could be eligible for a federal tax subsidy to assist with premium payment and out–of-pocket expenses. exchange offerings have a variety of benefit options and are provided in


colorful categories (bronze, Silver, Gold & platinum). A catastrophic plan will be available for individuals under 30, or those exempted from the individual mandate due to unaffordability or hardship. Individuals choosing NOT to obtain coverage will be subject to tax penalty effective 2014.

4. Wellness Incentives: You have an opportunity to increase financial wellness incentives to a 30% differential for employees participating in wellness program activities and improved health results. Such incentives can improve employee’s overall health and help manage your healthcare costs.

5. Employee Communications & Notifications: employees have an opportunity to take advantage of public exchanges in 2014 and need resources and guidance from you to make critical decisions. providing employees with an understanding of the exchanges will greatly alleviate confusion and allow employees to focus on their job.

evaluating the impact of ACA is still critical even though the employer mandate has been delayed. employers should determine the overall financial impact of the fees and taxes and potential increase in plan participants due to the individual mandate. there are options to off-set potential plan cost increases by building a short- and long-term healthcare strategy and incorporate wellness initiatives. All employers should work with their benefits advisor now to plan and prepare for 2014.

FormEr aIC staFFEr JoIns apEx BEnEFIts Group, an aIC EndorsEd proGram

Former AIC Director of planning and professional Development Shawna Schwegman has joined Apex benefits as a business Development Associate. Shawna worked for the AIC for seven years managing the Institute for excellence in County Government program. Shawna also planned the AIC Annual Conference, Legislative Conference and other AIC events. At Apex benefits, the AIC’s

endorsed employee benefits advisor, Shawna will be working with counties to help them identify employee benefits that retain employees, increase wellness and productivity and address increasing health care costs. Apex benefits coordinates benefits in more than 15 counties and looks forward to assisting more counties with their employee benefit programs. Shawna will be attending the AIC Annual Conference in Switzerland County and other county events.

Shawna Schwegman


tax increment financing, or “tIF,” is the most important redevelopment and economic development tool available to counties in Indiana. tIF has always been the subject of much debate, discussion, controversy and misconception, from its first use in the 1980s for major projects such as the Subaru-Isuzu facility in tippecanoe County, the Gm plant in Allen County, to more recent projects such as the toyota facility in Gibson County and the Honda plant in Decatur County.

what Is tIF?tIF revenues are the real property taxes (and in some cases depreciable personal property taxes) generated from new assessed value in an allocation area established in connection with the creation of an economic development area or a redevelopment area by the county’s redevelopment commission (“redevelopment Commission”). New development, investment and job creation or retention are the typical reasons for which a redevelopment Commission establishes an economic development area/allocation area, while rehabilitating deteriorating buildings, abandoned properties and failing infrastructure are the typical reasons for establishing of a redevelopment area/allocation area. In either case, the redevelopment Commission must find that redevelopment or economic development of an area cannot be corrected by regulatory processes or by the ordinary operations of private enterprise; in other words, without the use of tIF, the economic development or redevelopment will not occur at the time and in the manner the community wants.

what may tIF BE usEd For?tIF cannot be used to pay operating expenses of the redevelopment Commission. Other than that limitation, tIF can be used for a variety of capital expenditures required to promote economic development and redevelopment in serving or benefitting an economic development area or redevelopment area. tIF can be used to pay debt service on bonds issued by the redevelopment Commission or rental payments on leases executed by the redevelopment Commission to finance the development or redevelopment of the area. tIF bond proceeds can be used to pay expenses that the redevelopment Commission incurs in undertaking the development

Legal Insight

TIF: A Blessing or a Curse?Common misconceptions about tax Increment Financeby thomas K. “buddy” Downs and Heather James, Ice Miller LLP

Legal Insight


www.downeypublicrisk.com

GUARANTEED HE’S NOT THINKING ABOUTINSURANCE COVERAGE RIGHT NOW.

He knows his world could change in a single moment. That’s why he focuses all his attention on his job. That’s why he depends on you to focus on details like premiums and survivor benefits. Since 1970, Indiana’s governmental agencies have chosen our comprehensive programs for liability, workers compensation and professional liability coverage. Today, more than 1,000 Indiana cities, towns, counties and government organizations trust us to protect their civil servants. Learn more about how Downey Public Risk Underwriters can help you in all aspects of your service from application and marketing assistance to customer service and prompt claims management. Contact us at 1-800-382-8837.

or redevelopment including:

• property acquisition, including rights-of-way; of all land, rights-of-way, and other property to be acquired and redeveloped;

• fees for various services, including professional fees for architects, engineers, attorneys, financial advisors, accountants, and advertising; and

• utility relocation expenses.

tIF can also be used to pay debt service on bonds issued by the county or rental payments on leases entered into by the county to finance public improvements located in or physically connected to the area and to reimburse the county for expenditures the county made for public improvements located in or physically connected to the area. the redevelopment Commission can also use tIF to make payments under a contract to provide educational programs, worker training and retraining programs.

Common mIsConCEptIons aBout tIFmisconception: tIf reduces the operating revenues of the schools and other taxing units. tIF does not reduce the operating revenues of other taxing units. property taxes levied on the assessed value of the area before the establishment of the area (the “base assessed value”) continue to be collected by the taxing units that levied those property taxes – cities and towns, the school corporation, the township, the county,

etc. tIF is generated by multiplying the aggregate of all the tax rates levied on property in the area on the new assessed value.

It is not unusual for a county to “hold back” a certain amount of new assessed value, that is not captured as tIF, to benefit the taxpayers of all the civil taxing units with jurisdiction over the area, including schools and libraries.

misconception: tIf and tax abatement are the same thing. tIF and tax abatement are similar in that increases in assessed value in the county are not immediately added to the property tax base of the county or overlapping taxing units. they are very different in actual operation. tax abatement “phases in” the new assessed value of property over a period of years. A taxpayer benefiting from tax abatement has very little property tax liability in the early years of an abatement. As the assessed value is gradually added to the tax rolls, the taxpayer’s property tax liability is also gradually increased. Unlike tax abatement, tIF requires taxpayers in an allocation area to pay all the property taxes on the entire assessed value of their property each year, including the base assessed value, which generates property taxes for overlapping taxing units.

Ice Miller LLP serves as counsel to the Association of Indiana Counties. For more information on TIF and economic development, please contact Buddy Downs at (317) 236-2339, [email protected] or Heather James at (317) 236-2199, [email protected].

professional Services Directory

Stay Connected. Follow the AIC on Twitter and Facebook & YouTube!


You make a lot of tough decisions as a county official. Here is one made easier.

Choose a Bliss McKnight insurance and risk management program for your county.

Coverage is provided through Bliss McKnight, Inc. and local insurance brokers. © 2010, Bliss McKnight Concepts, Inc. All rights reserved.Bliss McKnight trademark of Bliss McKnight Properties, Inc, used here under license by independently owned and operated corporations.

With Bliss McKnight you get what matters: • Aggressive defense of non-meritorious lawsuits

• Fully dedicated risk management specialists

• Practical, real-world risk management assistance

• Specialized insurance protection designed for Indiana counties

• Competitive, stable premiums and more value for your dollar

For the last two decades, the Association of Indiana Counties has endorsed and recommended Bliss McKnight insurance and risk management programs to its members. Bliss McKnight programs are available through the independent insurance agent of your choice.

Make the right decision. Choose Bliss McKnight.

Decisions

2801 East Empire • Bloomington, IL [email protected] ext. 441

Your Insurance and Risk Management Partner Endorsed by AIC.

www.icemiller.com

General Counsel to AIC

Pattie Zelmer Jane Herndon Lisa LeeAmy Corsaro Karen Arland Kristin McClellanTyler Kalachnik David Nie Heather James

Buddy Downs

(317) 236-2216 Fax (317) 592-4641

We don’t have of ces in everycounty in Indiana,

but we might as well.

Chicago • Cleveland • Columbus • DuPage County Ill. Indianapolis • Washington, D.C.

* The Bond Buyer statistics for certain categories for 2011.

2/3 Market Share of Indiana Bonds

Isn’t Bad!*

Documents

washington County · 3-5 IACC Annual Conference – Sheraton Keystone at the Crossing b s Mill John Hay Lake Features 5 When Will County budgets See a recovery? by David bottorff