Jasper Redevelopment Commission approves $133,800 for Greater Jasper Chromebook purchase
The Jasper Redevelopment Commission approved $133,800 from the Central Tax Increment Finance District to purchase Chromebooks for first- and third-graders for the Greater Jasper Consolidated Schools.
Tax Increment Financing (TIF) districts are used by cities and towns to support development in targeted areas by capturing the increase in property tax revenue generated after the district is established. A base assessed value is set for properties within the district, and as development occurs and property values rise, the additional tax revenue—the “increment”—is redirected into a TIF fund. That funding is typically used to pay for infrastructure and other improvements intended to encourage economic growth.
Critics of TIF districts argue that while existing tax revenues continue to flow to taxing units such as schools and libraries, those entities do not receive the full benefit of new property tax growth within the district while it is active, even as development may increase demand for services.
The approval comes after the City of Jasper has reiterated that it would consider allocations of tax increment finance funds on a project-by-project basis. Discussions about adding the area north of Home Depot to the Central TIF district prompted school officials to make their first request, which was presented by Greater Jasper Consolidated Schools Superintendent Dr. Tracy Lorey at March’s regular meeting.
“It’s schools, it’s economic development, it’s technology,” said RDC President Andrew Seger during deliberations at the meeting today. “I think an appropriate plan here would be to fund $133,800 for this request, especially considering that this is the first time we’ve seen a project of this type.”
He added that it also shows the RDC sees the school corporation as a part of the city’s economic development plan.
The approval came alongside new spending recommendations developed by Clerk-Treasurer Kiersten Knies, who presented a comprehensive analysis of the city’s TIF fund balances and projected revenues.
Knies reported the Central TIF maintains a current balance of $1.6 million with annual revenue of approximately $1.3 million. The fund pays out roughly $1 million yearly over the next five years, leaving a $300,000 annual surplus.
“I recommend that we establish a limit of $100,000 a year for economic development-related grants,” Knies told the commission. “We currently give $25,000 a year to the Heart of Jasper for economic development. So that would leave $75,000 available.”
The money would come from the Central TIF, since the other TIF funds show more limited capacity.
The Riverfront TIF holds a $293,000 beginning balance with $400,000 in annual revenue, but 95% of those funds are pledged to developers, leaving only $20,000 in annual surplus.
University Heights TIF maintains a $32,000 balance and anticipates $90,000 in annual revenue. After developer obligations consuming 90% of proceeds, approximately $9,000 remains available yearly.
Under Indiana law, municipalities may spend no more than 15% of allocated tax proceeds annually on workforce education or training programs. Knies reported the request fell within that limit.
Commission members emphasized that TIF funds support previously established economic development plans with specific project commitments. For example, the Central TIF area enabled construction of the city’s outdoor swimming pool through bond repayment pledges.
The commission established that future economic development grants will be evaluated annually on a project-by-project basis rather than creating multi-year commitments. This approach allows flexibility while maintaining fiscal responsibility within TIF fund constraints.
“Every year we will vote on the dollar amount on a yearly basis,” confirmed one commissioner during discussion of the new guidelines.
The school funding request fits within the 15% workforce education spending limit under state law. Steve Lukemeyer, the non-voting school corporation representative on the commission, expressed appreciation for the commission’s support.
“On behalf of the school corporation and the students we serve, thank you,” Lukemeyer said following the vote.
The formal resolution will be considered at June’s regular RDC meeting.
