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Consultants present Delaware County annual TIP report; bond obligations and TIF collections reviewed
Summary
Baker Tilly presented the county's annual Tax Increment Plan (TIP) report on March 13, detailing outstanding TIF bond balances, 2025 collection estimates and allocation-area projects. Consultants flagged coverage for most debt but warned of legislative changes and administrative details that could affect future revenues.
Matt Eckerley, principal at Baker Tilly, presented the Delaware County Redevelopment Commission's annual Tax Increment Plan (TIP) report during the commission's March 13 meeting, laying out revenue estimates, outstanding bond obligations and proposed projects across the county's allocation areas.
The presentation matters because the county uses TIF revenues to pay bonds and fund infrastructure projects; changes in assessed value, delinquencies or state law could reduce money available for road, sewer and economic-development work.
Eckerley said the Morrison Road allocation area (a legacy allocation area established before July 1, 1995) carries two series of outstanding bonds: refunding TIF bonds issued in 2021 with about $3,821,000 of principal outstanding and 2021 new-money bonds with about $5,208,000 outstanding. He told the commission that the county collected roughly $1.5 million from Morrison in 2024 (above prior estimates) but currently estimates about $895,000 for 2025; after scheduled debt service the area will likely have about $230,000 available for other projects this year. "You have about $3,821,000 of outstanding principal left on those" bonds, Eckerley said during the presentation.
The report runs through each allocation area individually. Highlights included: - Morrison Road: explained limits of legacy status (ability to capture homestead residential value in legacy areas) and the commission's longstanding policy to "pass through" incremental assessed value to overlapping taxing units; last year the pass-through decision removed about $11.1 million of incremental assessed value from county capture (which would have generated about $330,000 in TIF). The annual pass-through determination is made before June 15. - Morrison Road Allocation Area 2 (established 02/2018): no increment yet; because it was established after 1995 it cannot capture homestead residential and its statutory term begins when an obligation is first issued (25 years from first obligation). - NEBO allocation areas (several): some collections and one 2012 bond with about $1,465,000 outstanding; the obligated parcel owner has contractual responsibility for shortfalls in some cases. - Park 1 / Park Brevini / Canpack area: multiple allocation areas pledged to 2023 bonds; combined coverage across those areas should leave funds available for other projects despite some shortfalls historically covered by designated taxpayers or notes. - PRL allocation area and CREED: PRL has about $1,038,000 of principal outstanding; Delaware County is unusual in having multiple CREED zones and has a $1 million per-year state cap on CREED receipts. Eckerley noted past problems getting CREED payments from the State Department of Revenue and said the county has experienced delayed payments in other years. - Canpack (Fountain Square allocation area): collections will jump in 2025 as the facility and equipment came online; Baker Tilly reported the 2021a bonds are structured to be repaid from 75% of the TIF for the first 15 years and noted series 2021b have draws tied to company performance metrics, with only $39,000 drawn to date.
Eckerley described several technical constraints the commission must observe: projects funded from an allocation area must be authorized in that area's economic development plan; statutory term lengths vary depending on the date of establishment (legacy pre-1995, 30 years for July 1, 1995'Feb 2008 establishments, 25 years for later ones tied to first obligations). He also walked the commission through coverage graphics showing that most outstanding debt is covered by current TIF collections but stressed that delinquencies and legislative changes could change that picture.
On legislation, Eckerley told the commission he was watching bills in the Indiana General Assembly that would reduce or phase out personal property assessments and change homestead/residential deductions; he said those changes could shrink tax bases and increase circuit-breaker losses, producing mixed effects on TIF revenues across allocation areas.
Commissioners asked several questions during and after the presentation about maps, the form letters used for pass-through notifications and whether it would make sense to pool free-cash-flow allocation areas for a bond issue to fund larger projects. Baker Tilly said staff will provide updated GIS maps and electronic copies of the full TIP report and summary presentation.
The commission did not take formal action on the TIP during the meeting; the presentation was informational and the consultant offered to follow up on requests for specific maps and scheduled-debt details.
Eckerley's presentation and the county's responses will inform decisions the commission must make before the June 15 pass-through deadline and if the county pursues new debt or amendments to economic development plans.
