LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7101 NOTE PREPARED: Apr 24, 2025
BILL NUMBER: SB 525 BILL AMENDED: Apr 23, 2025
SUBJECT: Annexation.
FIRST AUTHOR: Sen. Carrasco BILL STATUS: Enrolled
FIRST SPONSOR: Rep. Ireland
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill allows the Town of Plainfield in Hendricks County (town) to annex a
noncontiguous residential development that meets certain requirements. It provides that the annexation is
initiated by: (1) the homeowner's association board petitioning the town legislative body for annexation of
the residential development; and (2) the town legislative body adopting a resolution approving initiation of
the annexation process. It provides that the town may not do the following: (1) Use the annexation territory
to annex additional territory. (2) Annex additional territory within the unincorporated area extending 1/2 mile
from the boundaries of the annexation territory, unless the annexation is with the consent of all of the
landowners within the area to be annexed. (3) Annex, under any type of annexation, within the area that
extends from the boundary of the 1/2 mile area to the town.
The bill also provides that the town's redevelopment commission may only enact a housing tax increment
financing district in Liberty Township in Hendricks County if the district is approved by a resolution passed
by the Mill Creek School Corporation.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: This bill’s provision may potentially increase the administrative
workload for the town of Plainfield’s legislative body since it would expand the ability to petition for
annexation of a noncontiguous residential development and the public highway that connects the residential
development to include a homeowner’s association. Additionally, there might be a minor, temporary increase
in the administrative workload for the Mill Creek School Corporation since the school corporation would
have to adopt a resolution approving of a housing tax increment financing (TIF) district before the
redevelopment commission for the town of Plainfield could establish a district. Furthermore, the town of
Plainfield water and sewer utility may encounter an increase in both the administrative workload and fiscal
expenditures to connect the residential development to the town's water and sewer service.
SB 525 1 Actual impact would be contingent on the level of residential subdivision development activity in the
unincorporated areas of Hendricks County adjacent to the town of Plainfield, the decision of homeowner’s
associations connected to these developments, and the town of Plainfield’s intention to create a housing TIF
district.
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected: Town of Plainfield; Mill Creek School Corporation.
Information Sources:
Fiscal Analyst: Nate Bodnar, 317-234-9476; James Johnson, 317-232-9869.
SB 525 2