Brownsburg RDC hears annual presentation on tax increment financing, reviews projects and debt

The Brownsburg Redevelopment Commission heard an annual presentation required by Indiana Code 36-7-25-8 on June 5 about tax increment financing, commonly called TIF, from staff and consultants at LWG CPAs & Advisors.

The presentation summarized TIF mechanics and how the Town of Brownsburg has used TIF to finance redevelopment, infrastructure and economic development incentives. Mister Pierce, a staff member, said TIF "is an economic development tool that helps municipalities fund infrastructure improvements, redevelopment projects, and other public investments within a specific TIF area." Bob Swins, of LWG CPAs & Advisors, described the statutory tests used when creating allocation areas and how bonds and assessed value interplay with allowable revenue.

Speakers emphasized the basic TIF structure: when an allocation area is established the current assessed value is set as the base assessed value. Property tax revenue on that base continues to be distributed to all taxing units, while increases in assessed value attributable to new development — the incremental assessed value — are captured for reinvestment in the allocation area. Presenters said newly…