Brownsburg RDC hears annual TIF briefing, approves resolutions to retain incremental assessed value

The Town of Brownsburg Redevelopment Commission on June 5 received its annual tax-increment-financing briefing and approved two related resolutions determining whether incremental assessed valuation should be released to other taxing units.

The presentation, prepared by LWG CPAs and Advisors and delivered by Town staff and LWG representatives, covered how TIF (tax increment financing) works, the town's existing allocation areas and debt obligations tied to TIF revenues, and examples of past projects financed with TIF. After discussion the commission approved Resolution 2025-02 (no dollars passed through for all allocation areas except Wynne Farms) and Resolution 2025-03 (continue capturing 50% of incremental assessed value in the Wynne Farms allocation area).

The annual presentation is required under state law and, as Mr. Pierce, a town staff member, told commissioners, "The annual informative presentation is something that all RDCs that have created a TIF area, or also known as an allocation area, are required to do, every year, before June 15." The presenters said the briefing is intended to review the RDC's budget, long-term plans for allocation areas and the impacts on other taxing units including the county, town, townships, the library and the school corporation.

Bob Swins of LWG CPAs and Advisors explained the statutory test for creating an allocation area, referring to a commonly used formulation: "The primary test in the creation of an allocation area, they they term it as the BUPFOR test." He and town staff described the mechanics: when a TIF is created the current assessed value becomes the base AV; new incremental assessed value from development is reinvested in the TIF area and, after the TIF expires, total AV is redistributed to all taxing units.

Presenters summarized Brownsburg's existing allocation areas and projects financed or supported by TIF revenue. The commission's larger North Beltway allocation area was created in 1994 and expanded several times (2006, 2010, 2012, 2014 and 2017). The Wynne Farms allocation area was created in February 2008, expanded in February 2015, and reduced twice (including a February 2023 action in which the town removed 284 residential parcels). The town said it does not capture personal property tax revenue in its TIF areas and noted one deliberate exclusion: the Perlogis site (buildings with a combined assessed value cited in the presentation as around $70,000,000) was left outside TIF so its revenue is shared with other taxing units.

Staff and LWG said most TIF revenue is used for debt service on bonds issued to finance public infrastructure and economic development incentives. Examples discussed included town purchases and site preparation for redevelopment on the former Archer and Raybould properties, a pedestrian crossing and signal on Green Street between Arbuckle and Union Green, traffic-signal design at South Green Street and Northfield Drive, roadway and utility improvements connected to Raceway Boulevard and work near the Ronald Reagan Parkway and I‑74 interchange. The presenters emphasized that projected incremental revenues for 2025 are estimates based on incremental assessed values from the county auditor and assumed tax rates; actual collections can vary with taxpayer circuit-breaker caps and collection rates.

Commissioner Kai, who asked for a copy of the presentation, said: "This is, like, the best presentation I've had in a a few years," and presenters agreed to provide the materials and post them to the town website.

On formal actions, the commission approved the March 4, 2025 meeting minutes, adopted Resolution 2025-02 RDC (determining no excess assessed value to release to other taxing units for all allocation areas except Wynne Farms) and adopted Resolution 2025-03 RDC (confirming the town will continue to capture 50% of the Wynne Farms incremental assessed value for the 2026 budget year). All three items were approved by voice vote; the transcript records the motions, seconds and voice votes but does not record a roll-call tally.

Town staff asked commissioners to remain briefly after the meeting to sign the two resolutions and noted the RDC's next meeting is scheduled for Tuesday, July 1 to consider new business items.

The meeting concluded with a motion to adjourn.