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Clayton council moves toward ordinance to create Cumulative Capital Development Fund; public hearing planned for May
Summary
Council agreed to work with town attorney to draft an ordinance to establish a Cumulative Capital Development (CCD) fund and to schedule a public hearing in May; council discussed a remonstration period and potential impact of state Senate Bill 1 on levy limits.
The Town of Clayton council on May 8 agreed to begin drafting an ordinance to establish a Cumulative Capital Development (CCD) fund and to hold a public hearing in May to consider the measure.
Council members said a CCD fund would allow the town to set aside tax revenue specifically for capital needs — furnaces, HVAC units and other long‑lived equipment — outside of the levy changes proposed in the state’s Senate Bill 1. Town attorney Graham was asked to draft the ordinance and the council tentatively scheduled a public hearing for the May meeting.
Council members described the statutory process: an ordinance and public hearing must be completed by May 31 to meet the department’s timing, and Indiana law provides a 30‑day remonstration period after the hearing when town residents can submit objections. Staff warned the remonstration period can extend; the council cannot adopt the ordinance past May 31 and must follow the Department of Local Government Finance steps. Council asked Graham to prepare the ordinance and public notice materials for the May meeting.
Council also discussed how the CCD fund would be financed. A council member summarized the mechanism discussed earlier: an incremental property tax increase expressed in cents per $100 of assessed value phased over years; exact levy and cent amounts cited in the discussion were conditional on legislative outcomes and require precise calculation by staff. Council members asked staff to provide concrete levy roll examples and the notice language for the public hearing.
Why this matters: If adopted, a CCD fund would create a restricted local capital source that could reduce the town’s vulnerability to statewide levy limits or changes to county distributions under Senate Bill 1. The ordinance requires public notice and a remonstration process that gives residents a formal opportunity to object.
Next steps: Town attorney Graham will draft the ordinance and staff will prepare the public hearing notice and financial examples for the May meeting; council intends to open the remonstration period after the hearing as required by statute.
