(a)A county that is not a member of the
development authority, along with municipalities within the county,
may financially participate in the mainline double tracking project and
receive the same benefits a member would receive under this chapter.
To financially participate, a county may become an associate member
of the development authority or a cash participant. The county fiscal
body must adopt a resolution to make the county a financial participant.
The resolution must specify whether the county is choosing to be an
associate member of the development authority or a cash participant.
If the county chooses to be a cash participant, the resolution must
specify whether the county will make a cash payment to the
development authority for the county's share of the local part of the
state
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(a) A county that is not a member of the
development authority, along with municipalities within the county,
may financially participate in the mainline double tracking project and
receive the same benefits a member would receive under this chapter.
To financially participate, a county may become an associate member
of the development authority or a cash participant. The county fiscal
body must adopt a resolution to make the county a financial participant.
The resolution must specify whether the county is choosing to be an
associate member of the development authority or a cash participant.
If the county chooses to be a cash participant, the resolution must
specify whether the county will make a cash payment to the
development authority for the county's share of the local part of the
state and local cost of the project or will commit to making debt service
payments annually for the life of the bonds used to finance the rail
project.
(b) The following apply to an associate member county:
(1) The county is not a full member of the development authority.
(2) The executive of the largest municipality in the county may
appoint an individual to serve as a nonvoting member on the
development authority board.
(3) The county agrees to pay two million five hundred thousand
dollars ($2,500,000) annually to the development authority to
cover the following expenses:
(A) The county's share of the cost of the rail project under the
final financing plan agreed to by the development authority and
the Indiana finance authority, estimated to be one million five
hundred thousand dollars ($1,500,000) in annual debt service.
(B) A debt service coverage ratio of one hundred thirty-three
percent (133%).
(C) A reserve of five hundred thousand dollars ($500,000) for
administrative and issuance costs.
(4) The county must pledge revenue for the membership payment
from only property tax revenue or local income tax revenue, or
both.
(c) The following apply to a cash participant county:
(1) The county is not an associate or a full member of the
development authority.
(2) The county is not entitled to appoint an individual to serve as
a voting or nonvoting member on the development authority
board.
(3) The county shall make either a cash payment to the
development authority for the county's share of the local portion
of the state and local cost of the project or shall commit to making
debt service payments annually for the life of the bonds.
(4) If the cash payment option is chosen, within one hundred
twenty (120) days after the rail project is approved for federal
funding and the final financing plan is agreed to by the
development authority and the Indiana finance authority, the
county shall pay to the development authority or the Indiana
finance authority the amount of the county's share of the rail
project's cost, estimated to be eighteen million two hundred fifty
thousand dollars ($18,250,000).
(5) If the annual debt service payments for the life of the bonds
option is chosen, before December 31 of each year, the county
shall pay to the development authority or the Indiana finance
authority the amount of the county's annual share of the project's
cost under the final financing plan negotiated by the development
authority and the Indiana finance authority, estimated to be two
million dollars ($2,000,000) annually, to cover the following
expenses:
(A) An estimated one million five hundred thousand dollars
($1,500,000) in annual debt service.
(B) A debt service coverage ratio of one hundred thirty-three
percent (133%).
The county must pledge revenue for the debt service payment
from only property tax revenue or local income tax revenue, or
both.
(6) The property tax and local income tax incremental revenues
from a district located in a political subdivision shall be
distributed by the county auditor to the political subdivision's
redevelopment commission.
(7) Money in a fund of a redevelopment commission established
by a county or municipality that is not otherwise committed for
other purposes may be used to make payments required by this
subsection.
(d) The following apply to a county that is an associate member of
the development authority or a cash participant county:
(1) The Indiana finance authority shall conduct pre-financing
verification of an associate member county or a cash participant
county to pay for the rail project.
(2) By becoming an associate member county or a cash
participant county, the county agrees to a state intercept provision
that will remain in force for the life of the state bonds used to fund
the rail project construction.
(3) The amount attributable to any debt service coverage reserve
provided by a county shall be returned to the county at the end of
the first ten (10) year period less the issuance and administrative
costs incurred by the development authority and the Indiana
finance authority.
(4) The property tax increment revenue and local income tax
increment revenue within a district shall be used by the
development authority or redevelopment commission or both, in
the case of a district located in an associate member county, only
to fund development projects within that district.
(5) Each year, the development authority or the Indiana finance
authority shall reconcile the total actual costs of the rail project
compared to the total costs of the rail project used to determine a
county's payments under this section. To the extent the total actual
costs of the rail project are less than the total rail project costs
used to determine payment amounts, the development authority
or the Indiana finance authority shall distribute twenty-five
percent (25%) of the total amount to the county. To the extent the
total actual rail project costs are greater than the total rail project
costs used to determine payment amounts, the county shall pay to
the development authority or the Indiana finance authority
twenty-five percent (25%) of the total amount.
(6) The state shall capture state sales tax revenue and state
income tax revenue within the district for the duration of the
district's existence.
(e) The development authority shall report annually to the budget
agency and to all the members and participating counties on the
amount of the issuance costs and administrative costs incurred in the
preceding year.