in-20250903-IR-050250431NRA: DEPARTMENT OF LOCAL GOVERNMENT FINANCE

DEPARTMENT OF LOCAL GOVERNMENT FINANCE Nonrule Policy Document #2025-1: Controlled Project Amount Thresholds For Calendar Year 2026 NOTICE: Under IC 4-22-7-7, this document is required to be published in the Indiana Register and is effective on its date of publication. It shall remain in effect until the date it is superseded or deleted by the publication of a new document in the Indiana Register. DISCLAIMER: This nonrule policy document is intended to supplement applicable rules and laws. It does not replace applicable rules and laws and, if it conflicts with these rules or laws, the rules or laws shall control. This nonrule policy document supersedes Nonrule Policy Document #2024-1: Controlled Project Amount Thresholds For Calendar Year 2025 (DIN: 20240821-IR-050240312NRA). SUBJECT: The purpose of this nonrule policy is to determine the threshold amounts under the following situations: BACKGROUND: As required by House Enrolled Act 1043-2017, the Department of Local Government Finance (“Department”) must promulgate and publish certain amounts for a controlled project as defined in IC 6-1.1-20-1.1, for triggering a petition and remonstrance on a controlled project under IC 6-1.1-20-3.1, and for triggering a referendum on a controlled project under IC 6-1.1-20-3.5. In the case of an ordinance or resolution to initiate a controlled project adopted in 2019, and for every year thereafter, the threshold amounts must increase annually by the maximum levy growth quotient (“MLGQ”) determined by the State Budget Agency under IC 6-1.1-18.5-2 for that year. The State Budget Agency has determined the MLGQ for 2026 to be 1.04. The increase of the threshold amount is determined by taking the threshold amount from the previous year (the “base amount”) and multiplying it by the MLGQ. The Department identifies the following base amounts: Please be aware that, in reference to the petition and remonstrance process, a controlled project is eligible under IC 6-1.1-20-3.1(a)(2)(C)(i) if the cost is less than the threshold amount, but still more than the amount under IC 6-1.1-20-1.1(a)(2)(A)(iii). EFFECT OF SEA 1-2025: Section 65 of Senate Enrolled Act 1-2025 (“SEA 1”) establishes new conditions by which a project will be considered controlled. The conditions will apply to a project for which the political subdivision adopts an ordinance or resolution making a preliminary determination on the project after June 30, 2025. Any project financed by bonds or a lease, including a project that does not meet the cost thresholds provided in IC 6-1.1-20-1.1(a)(2), 3.1(a)(2), 3.1(a)(3), 3.5(a)(1)(A), or 3.5(a)(1)(B), as applicable, will be considered controlled if the political subdivision’s total debt service tax rate (excluding a rate imposed for a levy approved by voters in a referendum) exceeds a specified amount depending on the type of political subdivision. The threshold amounts determined in this Nonrule Policy Document may not be construed to exempt a political subdivision’s proposed project from the requirements of IC 6-1.1-20 if the debt service rate thresholds imposed under SEA 1 would subject the political subdivision to those requirements. DETERMINATION: The threshold amounts determined for 2026 are as follows: Please note that, notwithstanding the above, a project may be considered a controlled project under the conditions of IC 6-1.1-20-1.1(a)(2)(B) or 1.1(c). Likewise, a project may be subject to a petition and remonstrance under the conditions of IC 6-1.1-20-3.1(a)(2)(C)(ii), 3.1(a)(3)(B)(ii), or 3.1(a)(6), and may be subject to a referendum under the conditions of IC 6-1.1-20-3.5(a)(1)(A)(ii), 3.5(a)(1)(B)(ii), 3.5(a)(1)(C), or 3.5(a)(1)(F). Replaces Policy Document: 20240821-IR-050240312NRA