Median Family Income for Bloomington/Monroe County

Our community, like many others around the nation, is currently engaged in difficult conservations about affordable housing. And any time the concept of “affordable housing” comes up, the inevitable question “affordable to whom?” arises. While this is a complex, and also somewhat subjective question, I thought I would throw out, over a few blog posts, some of the hard numbers that the Federal Government uses to determine eligibility for and subsidy of various housing programs.

This post shows the Median Family Income and several income limits for what is known as the Bloomington, IN HUD Metro Fair Market Rent (FMR) Area. This area encompasses Monroe County. Remember that at the median income, half of the households in Monroe County have a higher income and half have a lower income. This number, which is $75,800 for Fiscal Year 2018 (October 2017-September 2018), is often also referred to as the Area Median Income (AMI).

HUD FY2018 Median Income and Income Limits for Bloomington/Monroe County

In addition, HUD provides several thresholds — Low Income, Very Low Income, and Extremely Low Income — that are used to determine various subsidies and eligibility for programs. Although nominally Low Income is 80% of AMI, Very Low Income is 50% of AMI, and Extremely Low Income is 30% of AMI, there are several adjustments made.

In particular, these thresholds are not allowed to fluctuate more than a certain amount per year (so-called “hold harmless provisions”), which is why the Very Low Income limit of $34,750 for a family of 4 is actually less than 50% of $75,800. In addition, the Extremely Low Income Limit is the greater of 60% of the Very Low Income Limit (which comes out to 30%) OR the poverty guideline used by the Department of Health and Human Services. In the case of Bloomington/Monroe County, the poverty guideline ($25,100 for a family of 4 for 2018) is used instead of the lower 30% of AMI as a definition of Extremely Low Income. Finally, as these numbers are baselined on a family of 4, adjustments are made for families of different sizes.

This is actually a pretty big simplification of some fairly complex calculations. This data, along with calculation methodologies, can be found here: FY2018 Income Limits Documentation System for Bloomington, IN HUD Metro FMR Area.

Also, note that these aren’t necessarily the thresholds used for all affordable housing programs. For example, 60% of AMI is used for some housing built using the Low Income Housing Tax Credit (LIHTC), which I will talk about in a future post.

Pedestrian Hybrid Beacons: How to Use Them

Pedestrian Hybrid Beacons (PHBs) are pedestrian crossing signal devices that have recently been cropping up around Monroe County, most notably where the B-Line Trail ends at Country Club Road, where the Karst Farm Greenway crosses Vernal Pike, and most recently on State Road 46 North, near University Elementary School. Also sometimes called HAWK (High-Intensity Activated crossWalK) signals, these devices have been, in the words of the Federal Highway Administration (FHA), “have been shown to significantly reduce pedestrian crashes.”

However, the FHA also notes that because they are not widely used in many areas, any usage should also be accompanied by an education and outreach campaign. It has also been my experience that motorists who are unfamiliar with the device can be confused and unsure how to act when confronted by the device.

In the interests of education and outreach, here is a diagram that illustrates the phases of a PHB.

Illustration of the Phases of a Pedestrian Hybrid Beacon

If you think about it, although the configuration is a little different, the signals really aren’t all that different from normal traffic signals: yellow means caution, steady red means stop, and flashing red means stop and then proceed with caution.

For more details about PHBs, here is an FHA Fact Sheet.

Catalent Plans Investment / Requests Tax Abatement from City

Catalent Indiana (formerly Cook Pharmica) is requesting a tax abatement from the City of Bloomington to support a $126M investment in the plant that occupies the former RCA/Thompson property that will create at least 200 jobs with a median wage of $24.52 and an annual payroll of $44M. Catalent is a contract pharmaceutical manufacturing company, meaning that it manufactures biologics (medicines produced from living organisms) on behalf of other companies. The company currently employs 839 (full-time).

Architect’s Rendering of the Project

The Project

The proposed investment includes $40M in real property and $85M in personal property (manufacturing equipment). Catalent describes the project in their tax abatement application as follows:

The project is comprised of two phases; Phase 1 consists of building out a 15,000 sq.ft. of ISO 9 manufacturing space and is aimed to expand Catalent, Bloomington packaging capacity and add new capabilities to support specialized device assembly for biological products produced within the site by 2020. Phase 2 is to expand Catalent, Bloomington drug product sterile filling capacity by 2022 to support. The fill/finish capacity at the Bloomington site will be expanded by 79,000 sq. ft., with both GMP [Good Manufacturing Practice, an FDA standard] and non-GMP capabilities.

Phase 1 is aimed to expand Catalent, Bloomington packaging capacity and add new capabilities to support specialized device assembly for biological products produced within the site by 2020. This will be accomplished by the purchase and installatino of a Flexible top load cartoning machine, an automated Auto-injector assembly machine, and Syringe assembly equipment. A new Quality Control laboratory will also be constructed to support the expanded production.

Phase 2 is to expand Catalent, Bloomington drug product sterile filling capacity by 2022 to support commercial launches and clinical development. A high-speed flexible vial line, utilizing both ready-to-use (RTU) components and bulk filling, will be installed along with a high-speed flexible syringe/cartridge line, and a fully automated vial inspection machine. This investment will nearly double the site capacity with over 460 additional filling days.

Application for Designation as an Economic Development Area (ERA)

The Abatement

The requested abatement is the “traditional” Indiana tax abatement, which phases in the new property taxes resulting from the company’s investment over a 10-year period (starting with 100% of the new property taxes abated in the first year, and ending with 5% in the 10th year). Using estimates based on current tax rates, the present value of the abatement over the 10-year period is around $2.6M, and the company would also pay about $2.2M in new property taxes over the same period. Tax abatements only apply to the new assessed value created by the investment; they do not reduce the existing property tax responsibility of the company.

Process

This after, the City’s Economic Development Commission (of which I am a member) reviewed the application, and heard from City Economic and Sustainable Development staff and representatives from Catalent, and forwarded on the abatement application to the City Council with a unanimously positive recommendation.

The memo from the City’s Department of Economic and Sustainable Development, which provides additional background on the application, can be found here:

In order to approve the abatement, the City Council will have to vote in favor of the application at two separate meetings (a so-called declaratory resolution and a confirmatory resolution). Most likely the soonest this could happen, if the City Council supports it, is at the March 6, 2019 meeting.

2019 Monroe County Budget Order, Tax Rates Approved

Monroe County Courthouse at Night
Monroe County Courthouse at Night

Last night, Monroe County received its 2019 Budget Order from the state, which includes:

  • The budgets for all taxing units (i.e., county, cities and towns, school districts, townships, public library, special units)
  • The property tax levies and tax rates for all taxing units
  • The property tax rates for each taxing district (i.e., the tax rates that actually affect each property owner)

The following table summarizes the total 2019 property tax rate (per $100 of net assessed value) for each taxing district in Monroe County, sorted from highest to lowest. I’ve also included the 2015-2018 tax rates for comparison.

Monroe County Property Tax Rates 2015-2019

I highlighted the taxing districts that are within incorporated municipalities in aqua.

The following are my brief observations about the 2018 tax rates:

  • Most tax rates remained about the same from 2018 to 2019 (decreased or increased less than $0.01), with two exceptions (which follow)
  • The rates for the taxing districts served by the Richland-Bean Blossom School Corporation (Ellettsville, Stinesville, and unincorporated Richland and Bean Blossom Townships). went down substantially, almost $0.25 (per $100 of assessed value). This is a result of the correction in 2019 of a bond-related tax rate error that caused rates in the areas served by R-BB to increase substantially
  • Indian Creek Township‘s rate went up almost $0.09, as a result of joining the Monroe Fire Protection District (formerly known as Perry-Clear Creek Fire Protection District)

Funding for Youth Services Expansion on Council Agenda for Tonight

Back in March, I wrote about an exciting plan for major capital improvements to Monroe County’s facilities for youth services, including the Binkley House Youth Shelter (located at 615 S Adams St).

Much has happened with this project over the last several months. An architect was hired (RQAW), the facilities were designed, and the County Commissioners have awarded a contract for construction of the new facility to Building Associates, pending funding approval by the County Council.

Architect’s rendering of the expanded youth facilities and Binkley House youth shelter

At tonight’s County Council meeting, the Council will consider the appropriation request for $2,261,000 to fund the construction. The actual bids came in quite a bit under the estimated $3M for the project. The Council will consider funding the project from three sources, all of which are earmarked specifically for funding for youth services:

  • Juvenile Per Diem Fund (which receives money from the state when youth are placed in the facility)
  • Juvenile Services Non-Reverting Fund (which received one-time money left over from the Child Welfare property tax levy when the state took over child welfare funding)
  • Juvenile Rainy Day Fund (which received certain special distributions of the Juvenile county option income tax)

None of these funds by themselves could support the entire $2.3M appropriation, but together they more than fund the project, which means that the County will not need to bond for (borrow) the money for this capital project.

When talking about youth services and our youth shelter here in Monroe County, I want to make it clear, because several constituents have asked me about it, that our youth facilities do not include any aspect of secure detention. Our Youth Services Bureau is entirely focused on supporting youth and families through advocacy, education, collaboration, and providing support to youth and families in crisis.

Monroe County’s proactive and positive approach to youth services has resulted in one of the lowest rates of youth placed in secure detention in the date, a rate radically lower than that of our peer counties.

The Monroe County Council meetings tonight, January 8, 2019 at 5:30PM in the Nat U Hill Room of the Monroe County Courthouse. The meeting will be broadcast on CATS and is open to the public. Public comment will be taken on any item on the agenda (including this proposal to fund the YSB expansion) and on topics not on the agenda.

Annual Report on Monroe County’s Tax Increment Finance (TIF) Districts

Tax increment finance (TIF) districts are the subject of a lot of public misunderstanding. In order to increase transparency about TIF districts, redevelopment commissions in Indiana were recently given some requirements for increased public reporting on the impacts of tax increment finance (TIF) districts on other units of local government. In the short 2018 special session, the Indiana General Assembly passed House Enrolled Act 1242, which, among other things, required that:

Each redevelopment commission shall annually present information for the governing bodies of all taxing units that have territory within an allocation area of the redevelopment commission. The presentation shall be made at a meeting of the redevelopment commission and must include the following:

(1) The commission’s budget with respect to allocated property tax proceeds.
(2) The long term plans for the allocation area.
(3) The impact on each of the taxing units.

HEA 1242 of Special Session 1 of 2018

Remember that TIF districts “capture” any growth in the assessed value of real property within the district and use it to support infrastructure in the district, rather than being used to lower the tax rates of the underlying taxing units that serve the district. These taxing units refer to other units of government, such as cities and towns, county, township, public library, etc., that have territory that overlaps a TIF district, and may have to provide services to the development within the district. 

Monroe County currently has 4 TIF districts: Westside, Fullerton Pike, State Road 46 (also sometimes referred to as North Park), and Curry-Profile (which consists of two parcels of the former GE plant purchased by Cook and moved out of the Westside district into a newly created TIF).

This past Wednesday, the Monroe County Redevelopment Commission hosted the first annual public presentation of this information, in fulfillment of the statute. All taxing units were invited to attend. I’m including a link to the presentation that was given (by Financial Solutions Group) here, because it provides a good overview of the status of current and future projects, debt, and overall cash flow of each of Monroe County’s TIF districts, as well as their impact on other taxing units. The presenter acknowledged that this was the first report for Monroe County of this kind, and that the data will be improved and presented in more detail in future years. 

In brief, the presentation outlined the following types of (positive) impacts that the underlying units of government see from the TIF districts (in greatly varying degrees):

  • Personal Property: TIF districts typically capture only the grown of assessed value of real property (buildings and structures), not personal property (equipment used in producing income). However, factories and other businesses typically employ a lot of personal property as well (machines, IT equipment, etc.). So the assessed value of the personal property does accrue to the other taxing units, and thereby goes to reduce their tax rates
  • Circuit Breaker: Due to the aforementioned growth in personal property typically associated with growth in TIF districts, the tax rates are slightly lower than they would have been, and therefore the circuit breakers (constitutional tax caps) are slightly lower, leading to a bit more revenue for the other taxing units. Note that this effect, while positive, is generally quite small.
  • Income Tax: With employment associated with growth in TIF districts comes local income tax (LIT), which benefits all taxing districts. Note that this income tax only goes to Monroe County taxing units if the employee earning the wages lives in Monroe County.

The presentation to the Redevelopment Commission is also available on CATS.

I want to mention a big caveat, though. There is a big omission in this type of analysis, and that is the additional costs to the other units of government caused by development in the TIF districts. To understand the impact of these costs would require a case-by-case assessment. For example, the impact on the Monroe County Public Library by the industrial development in the Westside TIF is negligible/zero. On the other hand, the same development puts significant additional responsibilities on the Ellettsville Fire Department (which serves Richland Township, by contract).  A more comprehensive understanding of the impact of TIF on other governmental units needs to take these additional costs into account.

Note: in the presentation above, the Curry-Profile Allocation Area is referred to as the Cook Allocation Area. While Cook is the sole property owner in the TIF district, the official name is Curry-Profile.

Monroe County 2019 Budget Advertised in Advance of Budget Hearing

Monroe County Courthouse
Monroe County Courthouse in the Fall

Today, Monroe County published its official advertisement of its proposed 2019 budget and tax levies, in advance of the public hearing scheduled for Tuesday, October 2, 2018 at 5:30 PM in the Nat U Hill Room of the Monroe County Courthouse.

The official advertisement (“Notice to Taxpayers”) provides a total budget and tax levy (the amount of property taxes to be collected) for each fund. Not all funds receive property taxes. Note that the tax levies are frequently advertised higher than the level at which the County Council will actually adopt them, in order to give the Council flexibility (after advertisement, budgets and levies can only be decreased, not increased). 

While the Notice to Taxpayers includes a summary of the proposed budget by fund, the following report provides line-by-line detail of the budget to be considered:

The following is a summary of the major changes to the budget from 2018 to 2019:

  • Addition of 5 corrections officers to the Monroe County Jail, in order to alleviate understaffing concerns (paid out of the Public Safety Local Income Tax/PS-LIT). More staff means a more humane environment for everyone – the existing staff, those incarcerated, and the families of those incarcerated. We’ll have to look closely and see if that is enough. I suspect we’ll have to revisit the jail staffing levels over the next year. 
  • Addition of 1 audit coordinator position in the Auditor’s Office, to improve internal compliance, along with a move of an employee in the financial division of the office from 35 hours to 40 hours.
  • Addition of 1 tech services (IT) technician who will focus on jail and justice-related applications.
  • Move of 2 probation officer positions in Community Corrections, along with some hourly staff and electronic monitoring fees out of unsustainable user fee funds into tax-supported funds. This was my number one priority for this budget. We need to support alternatives to incarceration, and base funding for Community Corrections is one of those ways that the Council can demonstrate our commitment. One of the reasons why the user fee funds are no longer sustainable is because of the partial elimination of the use of cash bail, which is a very positive development.
  • Similarly, move of 1/2 a position in the Prosecutor’s Office to the General Fund, out of Pretrial Diversion fees. This represents the conclusion of almost a decade-long effort to move essential positions in the Prosecutor’s Office out of unsustainable user fee funds.
  • Increase in the costs of providing employee health care from $9800 to $10,200 per full-time employee.
  • Cost of living increase for county employees (including elected officials) of 1.7%. This number represents the change in Consumer Price Index (CPI) for the midwest region from December to the previous December. This is the benchmark that the County Council uses for cost of living. We have spent a lot of effort over the past two years increasing employee salaries in various ways, and it is important that we don’t let county employees’ salaries erode due to inflation.
  • Addition of 3 shift supervisor positions and funding of capital equipment projects in the Unified City/County Dispatch Center. The positions will actually be City of Bloomington employees.
  • Funding of the 2019 municipal election. Each year, the budget of the Election Board is different, depending on the specifics of each election year. In municipal election years, a substantial portion of the costs of the election will be reimbursed by the City of Bloomington and potentially the Town of Ellettsville. 
  • Addition of a second K-9 unit in the Sheriff’s Department, funded by the PS-LIT.

If there is anything that attracts your interest that I didn’t cover in this summary, please let me know, and I’ll be happy to explain!

As I mentioned at the beginning of this post, a public hearing will be held on this proposed budget on Tuesday, October 2, 2018 at 5:30 PM in the Nat U Hill Room of the Monroe County Courthouse. The public is invited to read the above proposed budget, and make comment, either at the public hearing, or beforehand to any or all of their County Council representatives