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Council creates redevelopment authority and adopts resolution to preserve option to reimburse sewer project costs up to $11 million
Summary
The Sellersburg Town Council approved an ordinance creating a redevelopment authority and adopted Resolution 2025-R-001 declaring official intent to reimburse sewer project expenditures—discussed as potentially financed with redevelopment authority bonds secured by TIF revenues.
The Sellersburg Town Council on April 14 approved an ordinance creating a redevelopment authority (2025-ORD-007) and adopted Resolution 2025-R-001, a declaration of official intent to reimburse up to $11,000,000 of expenditures related to upgrades to the town’s sewage works if the town or its instrumentality issues debt for the project.
Attorney Brian Bozella of Frost Brown Todd told the council the resolution is a precaution that "allows you if you did pursue a sewage project and you did issue bonds, it allows you to spend money on that project now and reimburse yourself out of bond proceeds." He said the language follows federal tax rules so that bonds could remain tax-exempt if issued in the future.
In public discussion, Bozella and council members described the financing structure the council could use: bonds issued by the redevelopment authority would be secured by tax increment financing (TIF) revenues. Bozella explained the redevelopment authority is a statutory entity used "to issue bonds" and that "it would be secured by TIF dollars." The council record states the authority could issue obligations in an aggregate principal amount not to exceed $11,000,000 for design, construction, and installation of sewer system upgrades.
Council members asked for plain-language clarification during the meeting. Bozella and staff reiterated that the resolution does not obligate the town to undertake the project or issue bonds; it only preserves the option to reimburse expenditures if bonds are later issued.
Actions taken: The council approved the second reading and adoption of Ordinance 2025-ORD-007 creating the Sellersburg Redevelopment Authority and subsequently approved Resolution 2025-R-001 declaring official intent to reimburse sewer project expenditures and authorizing issuance of obligations in an amount not to exceed $11,000,000.
Why it matters: Creating the authority and adopting the reimbursement declaration are preparatory steps that would let the town use redevelopment authority bonds secured by TIF revenues to finance large sewer upgrades in future if the council later votes to issue debt. Council members emphasized that the authority "has no taxing power" and that TIF captures incremental property-tax growth, not a new tax on property owners.
Next steps: Staff and counsel will retain the reimbursement declaration on file for potential future financing; no bonds were issued and no project contracts were approved at the April 14 meeting.
