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Speedway commission approves MOU and sets TIF transfers to cover school bond shortfalls
Summary
The Speedway Redevelopment Commission approved an MOU to manage consolidated-area TIF surpluses tied to school expansion bonds and authorized a transfer plan that staff said uses $581,325 to cover police and fire payroll shortfalls and places $348,650 in a reserve fund.
The Town of Speedway Redevelopment Commission on Dec. 22 approved a memorandum of understanding to guide transfers of excess consolidated-area tax increment financing (TIF) revenue created by a school expansion bond, and approved a related resolution spelling out specific transfer amounts.
The MOU creates a process for the clerk-treasurer to report shortfalls and for excess TIF revenue to be transferred into a separate consolidated-area TIF police and fire fund, to be used for shortfall payments in years 11–20 after the consolidated-area TIF sunsets, staff said. "We've been working on this for, well over a year now," the presiding speaker said, noting the arrangement is new for the town and the state is still developing guidance.
Redevelopment staff presented figures the clerk-treasurer recommended: a total recommended amount of $929,975 and a identified shortfall of $581,325. Per the approved resolution, staff said $581,325 will be allocated toward the shortfall (described in the meeting as payroll expense) and the remainder, $348,650, will be placed in the new consolidated-area TIF police and fire reserve. Staff further explained the $581,325 allocation was shown in the accompanying exhibit as two payroll lines of $290,662.50 each for firefighter and patrolman expense accounts.
Commissioners stressed the MOU is primarily procedural—an agreement between the commission and the town to set guardrails for future transfers—and that the commission will be asked to approve the specific annual transfers when the clerk-treasurer provides figures. One commissioner summarized the approach as the commission receiving an annual report and a recommended transfer amount that it may approve or modify.
The commission moved and approved the MOU (Resolution 2025-18) and the implementing resolution with the recommended amounts (Resolution 2025-19) by voice votes. The actions were recorded as passed by the commission during the Dec. 22 meeting.
What happens next: staff will follow the agreed process with the clerk-treasurer each year to identify the annual shortfall and the recommended transfer; the commission will be asked to approve actual transfers in future meetings.
