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Kosciusko County Redevelopment Commission discussed their 2026 spending plan Thursday.
“Every year, on Gateway, we have to submit a spending plan, and update it as changes are made,” Alyssa Schmucker, county auditor, stated as to why the spending plan was being brought to the commission's attention. “You will see, on the flip side, is the spending.”
All miscellaneous revenue from settlements, debts, bonds proceeds or payments, capital expenditures allowed and professional developments were all listed for this spending plan.
“What it’s trying to show is where they think our estimated January balance will be,” stated Schmucker. “All we have to submit to Gateway is the flip-side, showing $109,000 of warrants or the bond payments, and then the $15,000 that we’re going to pay for the legal fees, or Reedy Financial fees.”
While looking at the detailed page, President Doug Hanes noticed a dramatic change in funds for the Leesburg tax increment finance (TIF) district and brought it to Schmucker’s attention.
“The change in fund balance is what has me concerned. I didn’t know if it was because we put back the money that was allocated for the Reedy 2.0. If we could just make sure that that’s good,” said Hanes.
Both Dan Brown and Rachael Rhoades discovered more discrepancies with the payment areas for the Leesburg TIF district, which Schmucker stated it was probably a duplication, and will be double checked. Schmucker did reiterate it was an estimated document.
“I assume that at some point the Department of Local Government Finance will start using it for something … we’re trying to do everything we’re supposed to be doing,” Schmucker said.
She also stated she would take another look, and the commission should revisit it in December to make sure everything is correct.
“When a bond expires, can it vary from spring to fall, or is it on a monthly basis?” asked Hanes.
Schmucker elaborated there is a schedule they follow with bond payments, and they are always paid after the settlement funds, along with paying only what the schedule says, because they have to keep a certain percentage in for budgeting reasons. After two years, all the bonds will be paid off.
Hanes asked if in the January meeting, if Schmucker could put when other areas will be paid off.
Brad Johnson brought up the expanded TIF districts, which Hanes agreed that any TIF that would positively impact an area, that it would make sense to otherwise expand economic impact area to encompass it, and needs to be looked at. Schmucker said that needed to be something they brought up to Reedy Financial.
Adam Turner, attorney for the commission, said it was more nuanced, and the test would be that the use benefits the TIF area, compared to the economic development area.
“The more you expand that economic development area, the easier that correlation is to make,” stated Turner.
Hanes said he did not get that off of the Reedy presentation, and Brown stated they should sketch out the areas to give to Reedy to look at.
The commission set up an ad hoc committee that will put together the current TIF districts and economic development impact areas as two distinguished maps. Jan Orban, Johnson and Brown decided they would be on that committee, and they agreed to look at areas, along with getting with Reedy. The rest of the spending plan will be looked at during a later time.
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The FaB Lab request was approved at the Sept. 11 meeting, with the caveat being on Reedy Financial reviewing the request. Reedy came back with the opinion it was suitable use of TIF funds, but legal would need to have the final say on the allocation prior to it being presented to the council for consideration and final approval.
Schmucker remarked that Reedy was asked to give it another look, and that after diving into the request further, it does appear that there would be legal problems that would arise.
After Turner reviewed this, they came to the conclusion it was not a viable use of TIF based on two considerations; the first being infrastructure improvements that could not be maintained by the town, and the second being that the RDC cannot grant TIF money for use for private property development. Turner talked with other attorneys that specialize in the area of TIF allocation spending and was able to come to this consensus after several of the commission members also brought up how strange the request was.
This brought up a conversation about how there needed to be a new way for people to fill out forms so they can properly vet who can and cannot receive these funds.
Schmucker gave an overview of all the claims that were paid as of the last meeting:
• The first TIF that was paid was the West 30, with a total of $194,982.27. There was also a credit memo from Brooks Construction, as they were charging the highway department the wrong price per ton for some of the asphalt, which led to a credit.
• The Co-Op TIF totaled $216,465.66, with more credit memos there.
• The Van Buren TIF totaled $242,429.36.
All were from the road projects that were approved for TIF dollars. These amounts and charges were approved.
She stated she would like to start having the commission members signing off each meeting, so Schmucker does not have to worry about tracking down members afterwards.
The Van Buren Maple Leaf TIF expires in 2026, and currently, Van Buren Township does not have a need for the TIF district anymore. Matt Sandy, Area Plan Commission director, stated there were no known uses for that district. After further discussion, this was tabled until next meeting.
The meetings for next year will still be on a bimonthly basis, but be on the first Thursday of the month, instead of the second. Meetings will still be held at the Kosciusko County Courthouse at 1:30 p.m.
