Council approves pledge of city general revenues as backup for Grand Park lease‑revenue bonds amid state tax changes

The council adopted a resolution pledging certain general revenues of the city as an additional security source for Lease Rental Revenue Bonds issued by the Westfield Redevelopment Commission to finance Grand Park District projects.

Justin (Dustin) Meeks of Barnes & Thornburg and city staff explained that recent changes in Indiana law (Senate Enrolled Act 1) materially altered the local income tax (LIT) structure the financing had relied on as a backup. Meeks said the LIT changes create uncertainty for the long‑term availability and predictability of local income tax revenues.

To assure the bond market and improve the city’s financing position, Meeks said the city is adding a pledge of available general revenues as an extra layer of security. "What general revenues means is that after all of the claims are paid out and all other obligations are paid out, whatever is kind of what the phrase we use is at the bottom of the barrel, is pledged to be available, to pay this financing," Meeks said.

Councilors asked whether there is a cap on the amount of general funds that could be used. Meeks said the pledge is limited to what is available after all other city obligations and claims are satisfied and that the change does not increase the dollar size of the financing (the bond remains sized at $40,000,000 over up to 30 years). City officials and the mayor said they do not anticipate needing the general revenue backup but that adding the pledge should improve bond market reception and borrowing costs amid the state tax uncertainty.

Council adopted Resolution 25‑136 on a unanimous roll call. Staff said the pledge would be used only insofar as general revenues remain available after all other obligations and that the mayor would be authorized to ensure debt service payments if necessary under the pledge structure.