Johnson County RDC authorizes up to $15,000 probe after $15 million drop in incremental assessed value

The Johnson County Redevelopment Commission voted March 23 to authorize a capped investigation into an unexpected decline in incremental assessed value after accepting its 2025 annual report.

Jeff Peters, a consultant with Peters Franklin Ltd., told the commission that revenue for 2025 totaled about $420,000 and expenditures were roughly $84,000, with combined cash balances near $783,000. He said the commission’s incremental assessed value (AV) has fallen sharply compared with last summer and last year, a change he called inexplicable from the data he has reviewed.

"At this point in time, I can't tell you why that incremental assessed value vanished," Peters said, describing a roughly $2.5 million drop in net assessed value that corresponded with an almost $15 million loss in incremental AV.

Peters said he has discussed the anomaly with the auditor’s office, the assessor and the software vendor but has not yet determined whether the cause is a coding error, a vendor processing issue, a change in exemptions, or another factor. He recommended parcel-level review to identify which parcels drove the drop and then work with the vendor and the assessor to determine why.

Commissioners debated whether to proceed and how much to authorize. Kevin Walls moved—and Ron West seconded—a motion to direct Peters to begin targeted parcel-level analysis with an initial fee cap of $15,000 and to return to the board for authority if costs approach that cap. The board approved the motion and acceptance of the annual report by unanimous voice vote.

Peters warned in the meeting that the ultimate cost of a full forensic review could range higher, and he said he could not give a firm estimate in the public meeting. Commissioners asked that the work begin by identifying specific parcels that show the largest changes and that findings be shared with the auditor and assessor.

The commission also directed staff to forward the assessed-value pass-through determination to legal counsel so the commission can meet a statutory deadline of June 15 for any pass-through decisions. The board scheduled routine annual filings for May and indicated further review will follow once Peters presents parcel-level findings.

The motion to authorize the investigation carried unanimously; the vote was recorded by voice and acknowledged with 'I' from the commissioners present.