Wednesday, May 26, 2010

Indiana municipal consolidations

Not many municipal entities so far have taken advantage of the Indiana state law that allows, and the Governor has encouraged even, consolidations. Umbaugh and Associates has written a two part article on the topic, click the link for the full article:

Is It Time To Consider Consolidation?

Part 2 in a series.

In our last issue we explored the advantages of consolidating with another governmental unit. Those advantages include improved management of growth and development, identifying and defending borders, developing a broader tax base, resource sharing and efficiency, enhanced ability to provide services, better coordination among taxing units and following the recommendations for better local government from the Kernan-Shepard report.

If you've reviewed the potential issues outlined in the first article and decided to pursue consolidation, the next step is to convene an ad hoc committee to discuss the merits of consolidation. The committee's findings should be presented to each governing body as you ask for approval to continue.

Next, create reorganization committees to break down key components for further discussion (i.e.-finance, public safety, ordinances, etc.).

Although many municipal finance and organizational consulting firms are contemplating the possibilities with their clients right now, we too would be pleased to meet on the subject. This is new territory for everyone, with the consolidation in Zionsville Indiana being the only real case study ... let's meet soon and work through the options.

Cender and Company


Wednesday, May 5, 2010

Indiana DLGF memo on exempt debt

The Indiana Department of Local Government Finance sent out the following memo and charts to help local government organizations better understand the impact of the circuit breaker tax credits on exempt debt and the imperative directions concerning debt payments:


Related diagrams of explanation: Unit Payment of Debt Service and Distribution Method with and without exempt rates.

If you have further questions on the application of these memos to your municipal budget, levy, or tax rate please call our office at 219-736-1800 today ... ask for Dan Botich or Karl Cender.

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