Taxes and Funding
- How much will the Library project cost?
- How much will the library building project affect my property taxes?
- Where can I find my property's net assessed value?
- How do I calculate the cost per month that the new library project will cost me?
- Are the other downtown development projects going to raise my property taxes as well?
- What am I currently paying for library taxes?
- What is considered "median value" for a house?
- What is the purchase price for the property, and who will own it?
- How do the Indiana Economic Development Corporation (IEDC) Industrial Recovery tax credits (AKA DINO Credits) work?
- Why does the Library have to spend money before the referendum?
- What process went into hiring the private developer, City Properties, for this project?
- How much is the private developer investing?
- How do we attract private investment in the Cultural Center? Are local businesses that join the Center going to get some of the tax credits?
Q: How much will the Library project cost?
A: The Library has a strict budget of $8.25 million. The cost to taxpayers will be limited to the $6.5 million bond referendum. The Library Board voted on the financing measure on April 14, 2016, which means the process is now in place to move forward with the referendum question that will be on the November 8, 2016 ballot. The question will state that the Library wishes to borrow $6.5 millon to construct a new building.
With this amount set, the Library cannot borrow any amount more than $6.5 million. The remaining portion of the building budget will come from IEDC tax credits and private fundraising. If, for some reason, the construction estimates should result in being higher, the Board would downsize the scope of the building project because no additional taxpayer funds could be raised after the passing of the referendum.
Q: How much will the library building project affect my property taxes?
A: The Library Board voted on April 14, 2016 to move foward with a 15-year bond. The annual tax rate impact associated with the bond is $0.0595, which means an approximate increase of 6 cents per $100.00 of the net assessed value of your home. For the median home in Jasper, this equals an increase of $2.69 per month for the next fifteen (15) years. Any money donated to the library building project will lower the amount owed on the bond overall.
If you want to calculate the amount per month based on your property's net assessed value, visit the Calculator page and use our on-line calculator.
Click here to view a document for a quick look at the estimated monthly taxpayer impact for homes with a market value ranging from $75,000 to $500,000 (the net assessed value is also listed).
Q: Where can I find my property's net assessed value?
A: For a detailed explanation of finding your property's net assessed value, please visit our Calculator page.
Q: How do I calculate the cost per month that the new library project will cost me?
A: The Library has provided an on-line calculator that will do the math for you. You can find it on the Calculator page.
Q: Are the other downtown development projects going to raise my property taxes as well?
A: No, there has been no discussion of a tax increase anywhere besides the one for the library referendum. All other city projects are looking at using fundraising, EDIT funds, and other available city resources to fund these projects.
Q: What am I currently paying for library taxes?
A: Residents who pay taxes for the Jasper Public Library currently pay 7.07 cents per $100 of a home's net assessed value.
To put this in perspective, Jasper's library tax is 151st out of 237 library districts in Indiana. With the tax increase, this would put Jasper's library tax at 92nd in the entire state. Over the lifetime of the bond, the median homeowner would pay a total of $484.20 over the course of the next fifteen (15) years for a new library.
Q: What is considered "median value" for a house?
A: While the net assessed value and market value for a house are not the same, it may help you to get an idea of the average home in Jasper by considering that the average net assessed value is $54,135 and the average market value is $132,900.
The PDF linked below, provided by library financial consultants H.J. Umbaugh and Associates, should give you a better idea of what a 15-year repayment amount per month will look like for various types of properties.
Q: What is the purchase price for the property, and who will own it?
A: The purchase price agreed upon by the Library Board and the Sternbergs is $864,000. There is an option to purchase in place for the property that will be executed pending referendum approval. The option is between the Library and the Sternbergs. When that option is executed, the Library will own the entire property. Once that purchase is completed, the Library will set up land ownership/leasing structures between the Library, Arts, and private development, in which we will all own portions of the land.
Q: How do the Indiana Economic Development Corporation (IEDC) Industrial Recovery tax credits (AKA DINO Credits) work?
A: Because the Library and Arts are government entities that don't pay state taxes themselves, a private investor needs to be awarded the IEDC tax credits. However, we will still be able to use them for the Cultural Center project. In order to handle this, we need the private developer--City Property Groups--to act as a placeholder for the tax credits. The credits will then be sold to a third party investor not directly associated with the project.
Once the credits are sold, the money will be available to use for 25% of qualified expenses. These expenses for the Library and Arts include hard costs, such as construction, site development, and environmental rehabilitation, if necessary. They do not include soft costs, such as architectural or engineering services.
When the eligible expenses have been certified by a private audit, the third party investor will receive the tax credits to use against their Indiana State taxes. There is no limit on how many years the third party investor has to use the credits, but the money for the credits must be in the construction account before construction bids can be accepted. This will require the third party investor to invest their financial contribution before construction begins.
Q: Why does the Library have to spend money before the referendum?
A: It is not possible to avoid spending money prior to the referendum vote. A referendum requires the services of a Bond Counsel, a Financial Advisor, and our own attorney. These groups work together to ensure the referendum question on the ballot meets the State's requirements and will calculate the cost to each taxpayer.
In addition, there are costs from the private developer to provide a schematic drawing/design of what the Library and Cultural Center will look like. The Library has been clear in stating that we do not want to progress beyond schematics because the more detailed the design, the higher the cost. By partnering with the City of Jasper and the Jasper Arts Commission, the Library is saving money by sharing the costs of the design work.
Q: What process went into hiring the private developer, City Properties, for this project?
A: City Properties Group has been very supportive of the project since the earliest stages. They were instrumental in our project being awarded the $3.5 million IEDC DINO tax credits. However, the Library Board felt it would be a mistake not to complete the due diligence of accepting applications from other interested groups for the project. The tax credit award did stipulate that we must have a private developer. The opportunity was advertised in four (4) newspapers: Jasper, Evansville, Louisville, and Indianapolis. We received eleven (11) inquiries, but only City Properties Group submitted a proposal to serve as the private developer and was thus hired.
Q: How much is the private developer investing?
A: The amount has yet to be determined. Much of it will be dependant upon the feasibility study to determine what are viable options for the site. We expect a significant investment on their end. City Properties Group has repeatedly affirmed that they are invested in this project for the long haul. They see the value in investing in Jasper for years to come. They specialize in redevelopment projects. You can view examples of their work at their website: City Properties Group
Q: How do we attract private investment in the Cultural Center? Are local businesses that join the Center going to get some of the tax credits?
A: The tax credits that were awarded to the project are currently earmarked to the Library and the Arts. If a private developer has the desire for additional tax credits, they will need to secure additional approval from an awarding agency. This would not affect the credits already in place for the Library and the Arts. City Properties Group is taking the lead on the private investment aspect of the Cultural Center, and several local groups have already expressed interest in becoming involved and bringing their establishments to the Cultural Center. The Library will not be involved as landlords for or own any of the private space.