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Speedway council approves MOU with redevelopment commission to offset TIF-related budget impacts
Summary
Council unanimously approved an MOU and a resolution accepting Speedway Redevelopment Commission transfers intended to offset circuit-breaker effects from a school capital project; the funds will be used to support fire and police salaries and to build a multicity surplus for later bond years.
The Speedway Town Council voted unanimously on Dec. 22, 2025 to approve a memorandum of understanding (MOU) with the Speedway Redevelopment Commission and a companion resolution to transfer Tax Increment Financing (TIF) funds to the town to offset revenue losses created by a school capital improvement levy.
Town Manager Grant Kleinheinz told the council that, because of Indiana's circuit-breaker property tax limits, a new school tax levy can reduce receipts available to the town. "The SRC actually this evening approved this MOU unanimously," Kleinheinz said, explaining that SRC agreed to transfer additional TIF dollars and set aside extra funds to create a reserve to pay future expenses tied to 20-year bonds. He said the transfers will be handled annually and that Philip Faust will review the amounts in the budget process before formal transfers occur.
The nut graf: The transfer arrangement aims to protect public-safety payroll lines that depend heavily on general-fund revenue; Kleinheinz said roughly 85% of the town’s general fund is used for fire and police, and the transfer is intended to make the town whole in early years and build a surplus to smooth later years when the consolidated Main Street TIF expires in 2035.
Councilors praised the intergovernmental cooperation. Council President Nick Sturgeon and others framed the agreement as an example of local entities coordinating to keep services funded while allowing the school capital project to move forward.
The council moved, seconded and approved both the MOU (resolution number 2025-22) and the transfer resolution (resolution number 2025-23) by voice votes recorded as passing 4–0.
Next steps: the transfer resolution will be executed annually as needed; staff will follow the timetable described (Philip to review in May–June and recommend transfers in July–August as part of the budget process).
