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Home My WebLink AboutCC-10-16-23-01 Rate Capand Levy Appeal Resolution CleanSponsor(s): Councilors Worrell, Campbell, Aasen, Ayers, Finkam, Green, Hannon, Nelson and Rider Prepared by Curtis L. Coonrod on September 20, 2023 as suggested language only and not as legal advice. No subsequent revision has been reviewed by Mr. Coonrod. RESOLUTION CC 10-16-23-01 AS AMENDED A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, TO LIMIT THE RATE FOR TAXES PAYABLE IN 2022 AND AUTHORIZE NECESSARY TEMPORARY BORROWING AMONG CITY FUNDS Synopsis: A resolution finding that the City’s 2024 property tax rate should not exceed 0.7877, which is the same as the 2023 rate, and recommending how the DLGF should allocate the 2024 property levy among City funds; and also permitting temporary borrowing among funds during 2024; and also authorizing appeal to the Department of Local Government Finance for permission to increase the City’s 2024 ad valorum property tax levy in excess of the usual maximum allowable amount. WHEREAS, it is the policy of the City of Carmel, Indiana (“City”) to keep the City property tax rate level for taxes payable in 2024 in comparison to 2023; and WHEREAS, the Indiana Department of Local Government Finance (“DLGF”) has the authority to set the final City tax rate for taxes payable in 2024; and WHEREAS, the City of Carmel Common Council (“Council”) finds it to be in the interests of the City to levy for the 0708 Motor Vehicle Highway Fund only the amount needed to fund appropriations, leaving no operating balance: and WHEREAS, the Council finds it in the interests of the City to maintain a positive cash balance in every City fund for cash flow purposes; and WHEREAS, the Council finds that certain City funds have sufficient cash available to deposit temporarily to the credit of other funds, and WHEREAS, the City experienced a shortfall of property tax revenue for taxes payable in 2022, and is entitled in accordance with IC 6-1.1-18.5-16, to appeal to the DLGF for a levy for taxes payable in 2024 for a levy in excess of the usual maximum allowable amount to compensate for the shortfall, and WHEREAS, the City experienced an unanticipated emergency due to passage in the 2023 Session of the Indiana General Assembly of P.L.236-2023, SEC.82, which is expected to reduce the City’s 2024 local income tax revenue by $8,300,000, and is entitled in accordance with IC 6-1.1-18.5-13, to appeal to the DLGF for a levy for taxes payable in 2024 for a levy in excess of the usual maximum allowable amount to compensate for the loss, and WHEREAS, the City has commenced litigation to enjoin the State of Indiana from implementing P.L.236-2023, SEC.82 on the grounds that it is contrary to the prohibition in the Constitution of the State of Indiana against the enactment of local and special laws, and Resolution CC 10-16-23-01 – Version A Page One of Four Pages DocuSign Envelope ID: AE1B4AFB-62BA-42F4-8072-7C55FC43FDEF Sponsor(s): Councilors Worrell, Campbell, Aasen, Ayers, Finkam, Green, Hannon, Nelson and Rider Prepared by Curtis L. Coonrod on September 20, 2023 as suggested language only and not as legal advice. No subsequent revision has been reviewed by Mr. Coonrod. WHEREAS, the City cannot carry out its governmental functions under its current maximum levy for the ensuing calendar year without the approval of a levy appeal pursuant to IC 6-1.1-18.5-16, and WHEREAS, the City cannot carry out its governmental functions under its current maximum levy for the ensuing calendar year without the approval of a levy appeal pursuant to IC 6-1.1-18.5-13 or a favorable result in its litigation against the implementation by the State of Indiana of P.L.236-2023, SEC.82. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Carmel, Hamilton County, Indiana: Section 1. The foregoing Recitals are incorporated herein by this reference. Section 2. The DLGF is respectfully requested to set the total 2023 City tax rate, for all City funds, so as not to exceed $0.7877 per $100 of assessed value. Section 3. The DLGF is respectfully requested to set the 2023 property tax levy of the 0708 Motor Vehicle Highway Fund at a level no greater than the amount needed to fund appropriations. Section 4. Except as provided in Section 5, the DLGF is respectfully requested to set the 2023 property tax levies of the 2391, 0180, and 0181 debt service funds at levels needed to fund appropriations plus operating balances to the extent allowed by law. Section 5. After applying the maximum ad valorem property tax levy, as that term is described at Indiana Code § 6-1.1-18.5-3, to the 0708 Motor Vehicle Highway Fund and the 0101 General Fund, as appropriate, the Department of Local Government Finance is respectfully requested to reduce levies, as necessary, to eliminate operating balances in the 2482 Road Bond Fund, the 0180 Debt Service Fund, the 0181 Debt Service Fund, and then the 0182 Debt Service Fund in that order, and then to reduce the levy in the General Fund, such that the total tax levy is reduced to a level which will result in the total City tax rate named in Section 2. Section 6. The Council hereby permits borrowing among City funds in accordance with Indiana Code § 36-1-8-4. Borrowing is permitted only when it is necessary to enhance a fund in need of money for cash flow purposes when another fund has sufficient money on deposit. The borrowed amount shall be returned by December 31, 2024, and may not exceed the amount needed to fund appropriations or other lawful disbursements. Only revenues derived from the levying and collection of property taxes or special taxes or from operation of the political subdivision may be included in the amount transferred. Resolution CC 10-16-23-01 – Version A Page Two of Four Pages DocuSign Envelope ID: AE1B4AFB-62BA-42F4-8072-7C55FC43FDEF Sponsor(s): Councilors Worrell, Campbell, Aasen, Ayers, Finkam, Green, Hannon, Nelson and Rider Prepared by Curtis L. Coonrod on September 20, 2023 as suggested language only and not as legal advice. No subsequent revision has been reviewed by Mr. Coonrod. Section 7. The Council hereby resolves to proceed with a petition for an excess property tax levy to the DLGF to increase the taxing unit’s maximum levy in accordance with IC 6-1.1- 18.5-16 due to the 2022 shortfall, and we represent that the taxing unit cannot carry out its governmental functions resulting from a shortfall in 2022 under its current maximum levy for the ensuing calendar year without the excess levy. Section 8. The Council hereby resolves, subject to the favorable resolution, prior to issuance of notice by the DLGF in accordance with IC 6-1.1-17-16(g), of its litigation to enjoin the State of Indiana from implementing P.L.236-2023, SEC.82, to allow the Mayor, at his discretion, to proceed with a petition for an excess property tax levy to the DLGF to increase the taxing unit’s maximum levy in accordance with IC 6-1.1-18.5-13, and we represent that the taxing unit cannot carry out its governmental functions under its current maximum levy for the ensuing calendar year without the excess levy. Resolution CC 10-16-23-01 – Version A Page Three of Four Pages DocuSign Envelope ID: AE1B4AFB-62BA-42F4-8072-7C55FC43FDEF Sponsor(s): Councilors Worrell, Campbell, Aasen, Ayers, Finkam, Green, Hannon, Nelson and Rider Prepared by Curtis L. Coonrod on September 20, 2023 as suggested language only and not as legal advice. No subsequent revision has been reviewed by Mr. Coonrod. SO RESOLVED, by the Common Council of the City of Carmel, Indiana, this ____ day of ____________, 2023 by a vote of _____ ayes and _____ nays. COMMON COUNCIL FOR THE CITY OF CARMEL ___________________________________ Jeff Worrell, President Laura Campbell, Vice-President ___________________________________ ____________________________________ Kevin Rider Sue Finkam ___________________________________ ____________________________________ Anthony Green Adam Aasen ___________________________________ ___________________________________ Tim Hannon Miles Nelson ___________________________________ Teresa Ayers ATTEST: __________________________________ Sue Wolfgang, Clerk Presented by me to the Mayor of the City of Carmel, Indiana this ____ day of _________________________ 2023, at _______ __.M. ____________________________________ Sue Wolfgang, Clerk Approved by me, Mayor of the City of Carmel, Indiana, this _____ day of ________________________ 2023, at _______ __.M. ____________________________________ James Brainard, Mayor ATTEST: ___________________________________ Sue Wolfgang, Clerk Resolution CC 10-16-23-01 – Version A Page Four of Four Pages DocuSign Envelope ID: AE1B4AFB-62BA-42F4-8072-7C55FC43FDEF 2023 October 17th 17th 4:00 POctober3:45 9 0 P 16th