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3/15/2019 - Greensburg Redevelopment Commission Special Session takes action on Water Treatment Plant Project
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The Greensburg Redevelopment Commission met in Special Session Thursday evening. John Julien from Umbaugh and Associates briefed the commission members on the financing plan for the new water treatment plant projected to cost about $22 million. He stated that time was critical because bids are going to be received in April with a projected bond closing in May to ensure the lowest interest rates from the State Revolving Fund. Honda Tax Increment Funds (TIF funds) will be used to pay down water rate increases. During the March 4th Greensburg City Council meeting, Mr. Julien discussed the Decatur County Redevelopment Commission agreeing to pay $500,000 in Honda TIF funds for the water treatment plant project each year for years 1-3 (2019-2021), contingent on the Greensburg Redevelopment Commission agreeing to pay $500,000 in Honda TIF funds for the project in years 4-6 (2022-2024). Thursday evening, Mr. Julien informed the Redevelopment Commission that they would be responsible for paying the $500,000 in Honda TIF funds for the project each year from 2022 until the bonds are retired. He noted that the Honda TIF district expires in 2038. The bonds for the water plant will run through 2040, although any excess TIF funds would be applied to retire the bonds early. The amended deposit agreement would require a funding process if the bonds are not retired prior to the expiration of the Honda TIF district. Mr. Julien had previously discussed water rate studies every three years to determine if the amount paid in Honda TIF funds would be sufficient to keep water rates at the projected monthly average increase of 26 percent. A 26 percent increase is projected to be $6.38 for the average monthly residential water bill. The water rate studies were not mentioned during Thursday's meeting. Without the Honda TIF money, the average water bill would be projected to increase 42 percent.
Mr. Julien stated that the Honda TIF district started in 2007, when the Decatur County RDC was created. The county RDC, Decatur County Commissioners, Greensburg RDC, Greensburg City Council, State of Indiana, and Honda executed a deposit agreement to establish how TIF funds could be used. Any amendments are required to be approved by all parties. Beginning in 2007, the share of Honda TIF funds received by the city was applied directly to water and sewer bonds separate from the city RDC. The excess collected in Honda TIF funds for the city were used to pay off the water and sewer bonds on an accelerated basis, with the bonds now scheduled to be paid off in 2022. The full amount of Honda TIF funds, about $1.5 million annually, used to pay the 2007 bonds will be deposited in the city RDC account when payment of the 2007 bonds is completed in 2022 with $500,000 designated for the water treatment plant project pending approval of an amended deposit agreement.
Mr. Julien noted that, in order for the plan to move forward, an amended deposit agreement would be required to be executed by all parties involved in the initial agreement. The water plant project would be amendment number 3 to the original deposit agreement. He asked the RDC to pass a resolution that would amend the deposit agreement and redo the list of authorized projects. The amended agreement, once passed by the Greensburg RDC, would require approval by the Greensburg City Council, Decatur County RDC, Decatur County Commissioners, Honda, and the State of Indiana. He also asked the RDC to authorize a representative, the President of the RDC, to execute the amended and restated deposit agreement. The commission passed the resolution 4-0 contingent on review and approval of the final document.
City Engineer Ron May provided an update on Veterans Way, Phase II. He noted that right-of-way acquisition has not been completed, which means the city has missed the ready for contract date for 2019. For the project to move forward, the final parcel of property must be acquired and funds must be available from the state in 2020.
Mr. May also provided an update on Lincoln Street. He stated that there is one piece of sidewalk and drain to complete, although there are a few additional pieces outside of the project area that need repaired and will be fixed. Asphalt plants are expected to open around April 1st and, contingent on weather conditions, paving should be completed by late April.
The RDC will hold its next meeting on April 11th at 6:30 pm at Greensburg City Hall.
Tom Flemming-WTRE News
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