LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6314 NOTE PREPARED: Dec 6, 2023
BILL NUMBER: HB 1130 BILL AMENDED:
SUBJECT: Economic Development Districts.
FIRST AUTHOR: Rep. Manning BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: The bill creates a procedure to establish a Community Infrastructure Improvement
District (district). It specifies that the procedure added by the bill allowing for the establishment of a district
does not authorize the unit to establish a district that overlaps with an economic improvement district. It also
requires a petition for the establishment of a district to include a rate and methodology report. It specifies
the contents of the report.
The bill specifies the basis upon which benefits accruing to parcels of real property within a district may be
apportioned among those parcels. It also requires a determination that the aggregate assessments within a
district do not exceed 30% of the projected assessed value of property within the district; or (2) in the case
of a district that is established for single family residences, do not exceed 10% of the projected assessed
value per single family residence within the district before a legislative body may adopt an ordinance to
establish a district.
The bill requires a Community Infrastructure Improvement Board (board) to assist the county treasurer in
order to make certain specified determinations and designations regarding annual assessments within a
district. It adds specific provisions that apply to the board’s issuance of revenue bonds.
The bill sunsets these provisions after five years.
Effective Date: July 1, 2024.
HB 1130 1 Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: County Auditors and Clerk Treasurers: The bill’s provisions may
result in an increase in both the administrative workload and financial costs for both auditors and clerk
treasurers, depending on if the district is being proposed for an unincorporated part of the county or in a
municipality, respectively. The auditors and clerk treasurers would serve as the initial recipient for the
petitioner’s request to establish a district. Additionally, the auditors and clerk treasurers would be tasked with
handling the notice for the public hearing on the request to establish a district. Furthermore, county auditors
would need to receive the list of annual assessments to be charged from the board in order to have those
amounts reflected on the property tax statements.
County Treasurers: County treasurers shall make certain specific determinations and designations regarding
annual assessments within a district. The board will provide assistance with this process. The bill’s
requirements are within a county treasurer’s routine administrative functions.
County Councils and City or Town Councils: The bill’s provisions may result in an increase in the
administrative workload for the legislative body of the respective county or city or town. In addition to the
routine administrative function of conducting a public hearing, the council would have to verify that the
petition requesting the proposed district was signed by 100% of the owners in the district, who would be
subject to paying the annual assessment, before adopting an ordinance that establishes the district.
Additionally, the council would have to approve any amendments to the original structure of the district and
any appointments to the community infrastructure improvement board.
Community Infrastructure Improvement Board: The bill requires the establishment of a Community
Infrastructure Improvement Board if a district is established. The board is created by the legislative body of
the county or municipality. The board must establish a Community Infrastructure Improvement Fund. The
bill allows a board to issue bonds to finance the economic improvement projects in a district. The special
assessments made on the properties within the district would be used to pay the bonds. The bonds would not
be an obligation of the local unit that established the district. Additionally, the board would be tasked with
mailing the notice of assessments charged to each individual property owner in the proposed district. The
actual cost of the mailing would depend on the number of identified property owners in the district. The
board must also share the finalized list of assessments charged with the county auditor so that the auditor’s
office can include the charges under the special assessments section on the property tax statement.
Furthermore, the board would be required to submit to the county council or city/town council (1) on or
before November 1 of each year a proposed budget for the following year and (2) an annual report that
summarizes its activities and expenditures during the previous calendar year by February 15 each year.
Explanation of Local Revenues: Community Infrastructure Improvement Petition: The bill requires that
the total of all assessments made on the properties within a district (1) do not exceed 30% of the projected
AV of all the properties in the district; or (2) in the case of a district that is established for single family
residences, do not exceed 10% of the projected assessed value per single family residence. This requirement
will impact the scope of the economic improvement projects and the assessments imposed on the properties
within the district.
Community Infrastructure Improvement Fund: Assessments collected for the district must be paid to the
board and deposited in a Community Infrastructure Improvement Fund. Any money earned from the
HB 1130 2 investment of money in the fund becomes a part of the fund.
State Agencies Affected:
Local Agencies Affected: Counties and municipalities.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859; James Johnson, 317-232-9869.
HB 1130 3