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New Requirements for Referendum and Remonstrance Thresholds for Schools

By Belvia B. Gray, CIPMA, October 19, 2017

The financial thresholds necessary to initiate petition and remonstrance and referendum processes for school corporations are changing per House Enrolled Act 1043 effective January 1, 2018.

 

 

Current Law

Per House Enrolled Act 1043 effective
January 1, 2018

No formal taxpayer approval required

Projects that cost less than the lesser of (a) $2,000,000 or (b) 1% of gross assessed value (“GAV”) (if that amount is at least $1,000,000)

Projects that cost less than lesser of $5,000,000 or 1% of GAV (if that amount is at least $1,000,000)

Subject to
Petition-Remonstrance

Projects that cost more than the lesser of $2,000,000 or 1% of GAV and less than $10,000,000

Projects that cost between $5,000,001 up to $15,000,000 depending on GAV.

Subject to Referendum

Projects that cost more than $10,000,000

  1. Projects that cost more than $10,000,000 or $15,000,000 (depending on gross AV)
  2. If projects subject to petition/ remonstrance or referendum on or after January 1, 2018 plus projects subject to petition/ remonstrance or referendum with preliminary determination adopted within previous 365 days exceed $25 million

On or after January 1, 2019, the thresholds will increase each year by applying the assessed value growth quotient for the year to the threshold amount determined for the preceding year and will be calculated by the Indiana Department of Public Finance.

It is strongly suggested that you contact your financial advisor and bond counsel to help determine the thresholds that apply to your school construction project. Please contact us at .(JavaScript must be enabled to view this email address) if you have any questions or if we can help with your future project planning.

Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at vision@umbaugh.com.


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