Continuously serving Kosciusko County since 1854
WINONA LAKE - When originally established, tax increment financing districts were created to transform a designated blighted area into a district suitable for commercial or industrial development.
A TIF district's property tax revenue is "captured" and plowed back into the area, paying for water and sewer lines, improvements to schools, fire departments and the like.
Generally, the TIF district improvements are completed and paid through bond issue. The bond payments are guaranteed with future property taxes in the TIF district.
The effect of Indiana tax reform on TIF revenue will require an adjustment of the base value of each TIF area this year, Todd Samuelson of H.J. Umbaugh & Associates advised the Winona Lake town council Tuesday.
School districts' general funds, previously funded 20 percent by the state's property tax replacement fund, will be funded at the 60 percent level. This decreases net property tax rates and means a decrease in TIF revenues. There will be less money available to apply toward the bonds.
If revenue is lost as a result of the school general fund levy reduction, a state-mandated levy will be imposed on all property in the redevelopment district. Instead of being confined by the geographical boundaries of the TIF, all property owners could be taxed for the district.
Winona Lake's TIF district includes the Village At Winona area, includes the Winona Hotel and the Westminster building.
Established in 1998, Winona Restoration has been the recipient of town improvements, mainly in the form of street improvements. Winona Restoration also created the additional tax revenue to pay for the bond.
Samuelson said the town has options, through House Bill 1001, referred to as the "TIF Fix." The town can indicate the broad-based levy is unnecessary or establish its own levy by filing paperwork with the state.
Town Clerk Retha Hicks said she had attended a workshop on this process.
The council approved H.J. Umbaugh's consultation on the paperwork at a cost of $2,000 to $3,500.
Also, the board accepted the bid of Cripe Excavating in the amount of $61,083.29 for improvements to Faunn and Lake John Circle, upon review by town engineer Larry Long.
Cripe's bid was $13,504 less than that of the other bidder, Phend and Brown.
In other business the board:
• Adopted the 2003 budget as advertised.
• Also heard from Long that street lights in Stonehenge have been put in place and are awaiting electrical service.
• Heard from town coordinator Craig Allebach "the bad news" was a NIPSCO utility pole was hit at the corner of 12th Street and Park Avenue Tuesday, resulting in a power outage in the area. "The good news" was it was hit by a NIPSCO truck. Allebach commented he'd never seen such a fast response time.
• Heard a meeting was held with Hoeppner Construction representatives regarding the Senior Center floor in the great room. He said vents will be established in the interior foundation, which apparently is retaining excessive moisture and causing the subfloor to warp.
He said a humidifier will also be installed to keep the area dry.
• Heard from town attorney Jim Walmer that the Grace Village redevelopment grant and Heritage Park annexation paperwork was complete.
• Heard one bid was received, out of 12 packets sent, for the sanitary sewer/storm drain project. Allebach said the project will probably be readvertised as two separate projects.
• Noted upcoming events in Winona Lake: "A Day at the Lake," sponsored by the Catherine Peachy Society, Saturday and "Light the Night" event for the Lymphoma-Leukemia Society.
Town council members are Rolly Ortega, Jeff Carroll, Jerry Clevenger and David Delp. Craig Snow was absent.
