Report: Carmel panel may face TIF shortfall but can pay debts

Back to TopCommentsE-mailPrintBookmark and Share

New financial projections suggest the Carmel Redevelopment Commission will have enough annual revenue to pay its debts for the next 15 years before dipping into reserves.

But property taxes from the city’s two-dozen TIF districts could fall more than $1 million short as soon as next year—something City Council member Rick Sharp says is cause for alarm.

Municipal-finance adviser H.J. Umbaugh & Associates estimates the CRC will collect about $18 million in so-called tax increment in 2015, applying all of it to debt payments that total $19.1 million. The difference—plus about $630,000 that’s being called a “surplus”—is expected to come from other, much smaller income streams.

According to the analysis, prepared at the commission’s request, total revenue should exceed debt obligations by at least six figures every year until 2029, when the redevelopment areas begin to expire and tax revenue drops by $10 million a year.

By then, the CRC should have more than $27 million in a “special reserve” fund the Carmel City Council mandated in 2012, when it refinanced $184 million in redevelopment debt. More than $1.9 million a year is expected to flow into the account from an existing TIF district that is about to retire its debt.

CRC President Bill Hammer said the report shows the commission is capable of meeting its obligations, avoiding a citywide special-benefits tax that would kick in if it missed a payment. The extra property tax was offered as a belts-and-suspenders fallback to get a better bond rating in 2012, he said.

“We never really intended to use that as the first source of payment,” he said. “And we think that given the projections of today, it will never happen.”

He praised the City Council’s “great foresight” in establishing the reserve fund to cover any future shortfalls, adding that the agency has adjusted its spending plan to conserve cash and found additional savings by refinancing more bonds this year.

Sharp appreciates the kudos, but the former council president is concerned about tax proceeds failing to keep pace with debt—to the tune of an estimated $43 million by 2037. The more other revenue goes to bond payments, he said, the less the CRC has to do its redevelopment work.

“Are we folding up shop? Are we done?” Sharp asked. “If that’s the case, I can accept looking at the debt versus total revenue. Otherwise, the only prudent thing to do is look at TIF revenue.”

And the message there?

“It was a mistake to go right up to the edge of the cliff,” he told IBJ.

During the meeting, Hammer called the revenue estimates conservative, saying officials are confident the targeted areas "will continue to attract a great deal of private development."


  • Projections Lacking
    Umbaugh projections didn't show operating expenses of the Carmel Redevelopment Commission, and how they will be funded. Their assumption on future projects are questionable, however they assume revenue from them will be there. There is definitely a shortfall in TIF revenue. Umbaugh loaded the assumption in order to show that enough money will be available to paid the bonds. Umbaugh previously predicted that there was ample future revenue, however two bailouts of the Commission were needed over the last two years. The Commission is operating on a shoestring and a Special Benefits Tax still looms over Carmel taxpayers.
  • pass around the plate to all the rich
    I suggest that a fund raiser for the city, from all wealthy individuals to pay off the 184 million dollars.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Yes sir keep cashing those 300K a year checks direct to IMS, while millions disappear from the teams like Rahal's. Guess there wasn't enough ka- ching going around to keep Sarah Fisher in business without their "merger". LOL._____.Meanwhile back in Realville the series with the "best racing in the world" drew what appeared to be about 5000 live spectators ( and probably 1500 of those Target "freebies", and was beaten in the ratings by a series that reportedly consists of "parades" and aired while most people are still sleeping. That will generate those big ka-chings for sure. :-). But, hey, as long as the Speedway gets the cash who gives a damn about the teams?

  2. Welcome to PETERSON LOAN AGENCY Company (A Personalized Service for All Your Financial Needs) We, Liberal Investment Company Providers offers loan at a very low interest rate of 2%, we offer Personal loans, Debt Consolidation Loan, Venture Capital, Business Loan, Educational Loan, Home Loan, and Loan for any reason and urgent needs!. with a maximum duration of 30 years. Have you been turned down by your bank? Do you have bad credit? Do you have unpaid bills? Are you in debt? Do you need to set up a business? Worry no more as we are here to offer you a low interest loan. Our loan ranges from $5,000-USD (Five Thousand US dollars) to $50, 000,000.00.(Fifty Million US dollars). We also lend in USA DOLLARS EURO and POUNDS ! Fill in this form and forward it to our email: PETERSONLOANAGENCY@GMAIL.COM 1. Your Full names:_______ 2. Contact address:_______ 3. Country Of Residence:______ 4. Loan Amount Required:________ 5. Duration:_____ 6. Gender:_____ 7. Occupation:________ 8. Monthly Income:_______ 9. Date Of Birth:________ 10.Telephone Number:________ 11. Purpose of loan:_________ Yours In Service, MR PERRY, PETERSONLOANAGENCY@GMAIL.COM

  3. If I could actually get the prices...I would do this on my own. We need laws that force provides to publish the costs they will charge. Everyone else gives you the price in advance...except hospitals.

  4. I was under the impression that fencing is not allowed on a front yard and that on a corner, both sides are considered "front" yards, therefore can't be fenced without a variance. Also impedes the visibility for drivers at the intersection. Am I understanding this correctly? Might be why a fence was not included in the plans and a request for a variance will have to be made?.

  5. I was a big fan of Cowards and Carrots, which I got a chance to see at the show. It's currently on Kickstarter, but the designer also put out What's He Building in There last year, which got a fair amount of buzz.