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Millage Rate to remain the same in 2007
The New Albany Community Authority board voted to keep the milage rate 5.0 mills for the 2007 Assessment.
The special assessment was set up through a community authority district in 1992 and is collected with property taxes on the majority of new homes and businesses developed in New Albany after 1992. When established, the millage rate was set at 9.75 mills. The money has paid for several community projects.
The millage was collected at 8 mills in 2003, 7.0 mills in 2004, 6.5 mills in 2005, 5.5 mills in 2006 and 5.0 mills in 2007. This year, board members reviewed options and voted to set the millage rate at 5.0 mills to be collected in 2008.
On August 29th, the board members reviewed options and voted to keep the millage rate at 5.0 mills. Authority treasurer Brent Bradbury informed the board that the values in the district increased by 5.69% mostly due to new construction. Using the increased values and very conservative growth rate, Bradbury studied the possibility of staying at 5.0 mills or lowering the millage to 4.75. Based on the study, and discussion by board members it was agreed that keeping the millage at 5.0 mills would continue to allow the Authority to meet debt requirements and to possibly be in a position to lower the millage or to accelerate debt payments in future years if growth exceeds projections.
Bradbury informed the board that collections in 2007 from the 2006 charge totaled $3,783,550.
Bradbury also informed the board that the district has over 4,700 tax parcels included in the 2008 collections which are estimated at $3,994,087 based on the 5.0 mill charge.
Bradbury also informed the board that the bonds outstanding for the Community Improvements is currently at $48,950,000 with a scheduled principal payment of $1,335,000 due in October of 2007.
Economic Development Fund
On January 14, 2004, the Authority established an Economic Development Fund (EDF) in conjunction with the refinancing of the Infrastructure Improvement Bonds. The bonds are to be repaid with income tax revenues received from the businesses within the Business Park.
The Authority began accumulating excess funds in the Infrastructure accounts after the Village increased the income tax in July 2003. The source of the share of income tax that the Authority receives is only from the businesses in the New Albany Business Park. Based on projections, the Authority will be in a position to contribute excess funds to the EDF annually and continue to maintain the scheduled debt service payments on the Infrastructure Bonds. The funds in the EDF will be available to the Village to provide economic incentives to businesses to relocate to New Albany. The funds in the EDF are restricted to economic development incentives or if the Village chooses to further reduce the outstanding debt associated with the infrastructure improvements in the Business Park. Village council must approve any disbursement from the EDF.
On August 24, 2006, the Village of New Albany presented three projects for approval for disbursement from the EDF. The projects include $2,000,000 for the Canini Trust infrastructure, $1,190,362 for a Fiber Optic project and $750,000 for an Incubator Project. The Authority board agreed to disburse funds for these projects.
On August 29, 2007, the Village presented two additional projects for approval. The two projects are $1,700,000 for the US Route 62 widening project at the Canini Trust site, and $300,000 for the Water’s Edge Office site. The Authority board agreed to disburse funds for these projects that were already approved by the New Albany Village Council.
Jeanne B. McCoy Community Center for the Arts
In January 2005, the New Albany Community Performing Arts Center Facility Agreement was finalized for the construction and operation of a Performing Arts Center in New Albany. The facility will serve the school district daily as an auditorium and with teaching spaces. This includes band, orchestra, ensembles, drama, musicals, lectures, assemblies and more. When not being used by the district, the facility will serve any number of community needs including recitals, concerts, competitions, lectures, seminars and more.
A new 501c3 organization has been formed to oversee and fund non-school related programming. The New Albany Community Authority Board of Trustees voted unanimously to act as the financing conduit for the partnering entities (School District, Village of New Albany, Plain Township and the New Albany Community Foundation) who jointly are building the facility. The Foundation also is endowing the facility to support educational and cultural programming for the schools and community. The New Albany Company donated the land.
No assessment district funds are being used to build the facility. Rather, the community authority is acting as the contracting agent to facilitate its construction for the partnering entities. Upon its completion in February 2008, the community authority will transfer ownership to the School District, Village and Township. For more information, contact the New Albany Community Foundation at 939-8150 or Ted DeDee, Executive Director of the Jeanne B. McCoy Community Center for the Arts.
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