NOTICE: Under IC 4-22-7-7, this document is required to be published in the Indiana Register and is effective on its date of publication. It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register.

DISCLAIMER: This nonrule policy document is intended to supplement applicable rules and laws. It does not replace applicable rules and laws and, if it conflicts with these rules or laws, the rules or laws shall control. This nonrule policy document supersedes Nonrule Policy Document #2022-1: Controlled Project Amount Thresholds For Calendar Year 2023 (DIN: 20220831-IR-050220264NRA).

SUBJECT: The purpose of this nonrule policy is to determine the threshold amounts under the following situations:

• Whether a capital project is a "controlled project" as defined in IC 6-1.1-20-1.1.

• Whether a proposed controlled project must be approved by property owners and registered voters through a petition and remonstrance under IC 6-1.1-20-3.1 and IC 6-1.1-20-3.2.

• Whether a proposed controlled project must be approved by registered voters through a referendum under IC 6-1.1-20-3.5 and IC 6-1.1-20-3.6.

BACKGROUND:

As required by House Enrolled Act 1043-2017, the Department of Local Government Finance (Department) must promulgate and publish certain amounts for a controlled project as defined in IC 6-1.1-20-1.1, for triggering a petition and remonstrance on a controlled project under IC 6-1.1-20-3.1, and for triggering a referendum on a controlled project under IC 6-1.1-20-3.5. In the case of an ordinance or resolution to initiate a controlled project adopted in 2019, and for every year thereafter, the threshold amounts must increase annually by the maximum levy growth quotient (MLGQ) determined by the State Budget Agency under IC 6-1.1-18.5-2 for that year. The State Budget Agency has determined the MLGQ for 2024 to be 1.04.

The increase of the threshold amount is determined by taking the threshold amount from the previous year (base amount) and multiplying it by the MLGQ. The Department identifies the following base amounts:

• For a project to be a controlled project, the base amount is $6,106,217, as provided in IC 6-1.1-20-1.1(2)(A)(iii) for 2022.

• For a controlled project to trigger the petition and remonstrance process, the base amount is $18,318,651, as provided in IC 6-1.1-20-3.1(a)(2)(C)(i) for 2022.

• For a controlled project to trigger the referendum process, the base amount is $18,318,651, as provided in IC 6-1.1-20-3.5(a)(1)(A)(i) and IC 6-1.1-20-3.5(a)(1)(B)(i) for 2022.

Please be aware that, in reference to the petition and remonstrance process, a controlled project is eligible under IC 6-1.1-20-3.1(a)(2)(C)(i) if the cost is less than the threshold amount but still more than the amount under IC 6-1.1-20-1.1(2)(A)(iii).

EFFECT OF HEA 1499-2023:

Section 6 of House Enrolled Act 1499-2023 (HEA 1499) provides that, for calendar year 2024, a project for which a political subdivision intends to issue bonds or enter into a lease, payable by property tax, is considered controlled if the political subdivision's total debt service tax rate is at least $0.40, regardless of whether the total cost of the project is under the thresholds under IC 6-1.1-20-1.1(2)(A)(iii). The controlled project will then be subject to either the petition and remonstrance process or the referendum process if the political subdivision's total debt service tax rate is under $0.80 or above $0.80, respectively.

The threshold amounts determined in this nonrule policy document may not be construed to exempt a political subdivision's proposed project from the requirements of IC 6-1.1-20 if the debt service rate thresholds imposed under HEA 1499 would subject the political subdivision to those requirements.

In addition, under Section 5 of HEA 1499, the MLGQ for school corporations for calendar years 2024 and 2025 cannot exceed 1.04. Therefore, the threshold amounts determined below shall apply to all civil taxing units and school corporations, including those school corporations eligible to use the alternative MLGQ under Section 8 of House Enrolled Act 1021-2019.

DETERMINATION: The threshold amounts determined for 2023 are as follows:

Please note that, notwithstanding the above, a project may be considered a controlled project under the conditions of IC 6-1.1-20-1.1(2)(B). Likewise, a project may be subject to a petition and remonstrance under the conditions of IC 6-1.1-20-3.1(a)(2)(C)(ii) and IC 6-1.1-20-3.1(a)(3)(B)(ii), and may be subject to a referendum under the conditions of IC 6-1.1-20-3.5(a)(1)(A)(ii), IC 6-1.1-20-3.5(a)(1)(B)(ii), and IC 6-1.1-20-3.5(a)(1)(C).