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State sells $300 million in Tax Anticipation Notes

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Gov. Mitch Daniels’ strategy to keep Indiana’s taxes low and spending tight is paying off in the form of modest borrowing costs.

Low taxes and tight belts helped Indiana reduce interest costs on its short-term debt. (IBJ File Photo)

On Jan. 21, the Indiana Bond Bank sold $300 million in Tax Anticipation Notes, the proceeds of which will help more than 120 local government units pay their bills while they wait for their property tax receipts. Local participants in the issue include the Greenwood Community School Corp., Indianapolis Public Schools, the Metropolitan School District of Perry Township, Speedway Public Library and Decatur Township.

The state’s borrowing rate was 0.98 percent for one year, or the lowest short-term borrowing rate the Indiana Bond Bank has ever offered during the 24 years of its Advanced Funding program. A year ago, rates stood at 1.79 percent.

New York-based credit rating agency Standard and Poor’s, which analyzed the $300 million debt issue in a Jan. 14 research note, said there is little chance Indiana could experience problems repaying the notes. And that remote possibility is offset by several factors, including strong bond bank oversight and program experience with property tax delays.

 

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  1. How much you wanna bet, that 70% of the jobs created there (after construction) are minimum wage? And Harvey is correct, the vast majority of residents in this project will drive to their jobs, and to think otherwise, is like Harvey says, a pipe dream. Someone working at a restaurant or retail store will not be able to afford living there. What ever happened to people who wanted to build buildings, paying for it themselves? Not a fan of these tax deals.

  2. Uh, no GeorgeP. The project is supposed to bring on 1,000 jobs and those people along with the people that will be living in the new residential will be driving to their jobs. The walkable stuff is a pipe dream. Besides, walkable is defined as having all daily necessities within 1/2 mile. That's not the case here. Never will be.

  3. Brad is on to something there. The merger of the Formula E and IndyCar Series would give IndyCar access to International markets and Formula E access the Indianapolis 500, not to mention some other events in the USA. Maybe after 2016 but before the new Dallara is rolled out for 2018. This give IndyCar two more seasons to run the DW12 and Formula E to get charged up, pun intended. Then shock the racing world, pun intended, but making the 101st Indianapolis 500 a stellar, groundbreaking event: The first all-electric Indy 500, and use that platform to promote the future of the sport.

  4. No, HarveyF, the exact opposite. Greater density and closeness to retail and everyday necessities reduces traffic. When one has to drive miles for necessities, all those cars are on the roads for many miles. When reasonable density is built, low rise in this case, in the middle of a thriving retail area, one has to drive far less, actually reducing the number of cars on the road.

  5. The Indy Star announced today the appointment of a new Beverage Reporter! So instead of insightful reports on Indy pro sports and Indiana college teams, you now get to read stories about the 432nd new brewery open or some obscure Hoosier winery winning a county fair blue ribbon. Yep, that's the coverage we Star readers crave. Not.

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