(A) For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BASE YEAR ASSESSMENT ROLL. The base year assessment roll prepared by the City Assessor in accordance with division (D) of this section.
CAPTURED ASSESSED VALUE. The amount in any one year by which the current assessed value as finally equalized of all taxable property in the downtown development area exceeds the initial assessed value.
DEVELOPMENT AREA. The area shown in Map 1, Boundaries of Development Area, more fully described in the development plan.
DEVELOPMENT PLAN. The City of Inkster Downtown Development Authority Development Plan and Tax Increment Finance Plan transmitted to the City Council by the Downtown Development Authority for public hearing, copies of which are on file in the office of the City Clerk.
DOWNTOWN DEVELOPMENT AUTHORITY. The City of Inkster Downtown Development Authority.
INITIAL ASSESSED VALUE. The most recently assessed value as finally equalized of all the taxable property within the boundaries of the Development Area at the time of adoption of this ordinance.
PROJECT FUND. The Downtown Development Authority Project Fund established pursuant to division (F) of this section.
TAXING JURISDICTION. Each unit of government levying an ad valorem property tax on property in the Development Area.
(B) Approval and Adoption of Development Plan. The Development Plan is hereby approved and adopted. The duration of the Development Plan shall be 30 years from the date of issuance of the last series of bonds issued pursuant to the Development Plan, except as it may be extended by subsequent amendment of the Development Plan and this ordinance. A copy of the Development Plan and all amendments thereto shall be maintained on file in the City Clerk’s office and cross-indexed to this ordinance.
(C) Boundaries of Development Area. The boundaries of the Development Area as set forth in the Development Plan are hereby adopted and confirmed.
(D) Preparation of Base Year Assessment Roll.
(1) Within 60 days of the effective date of this ordinance, the City Assessor shall prepare the initial base year assessment roll. The initial base year assessment roll shall list each taxing jurisdiction in which the development area is located, the initial assessed value of the development area on the effective date of this ordinance and the amount of tax revenue derived by each taxing jurisdiction from ad valorem taxes on the property in the development area.
(2) The Assessor shall transmit copies of the initial base year assessment roll to the City Treasurer, County Treasurer, Downtown Development Authority and each taxing jurisdiction, together with a notice that the assessment roll has been prepared in accordance with this ordinance and the tax increment financing plan in the Development Plan approved by this ordinance.
(E) Preparation of Annual Base Year Assessment Roll. Each year within 15 days following the final equalization of property in Development Area, the Assessor shall prepare an updated base year assessment roll. The updated base year assessment roll shall show the information required in the initial base year assessment roll and, in addition, the captured assessed value for that year. Copies of the annual base year assessment roll shall be transmitted by the Assessor to the same persons as the initial base year assessment roll, together with a notice that it has been prepared in accordance with this ordinance and the development plan.
(F) Establisbment of Project Fund; Approval of Depositary. The treasurer of the Downtown Development Authority shall establish a separate fund which shall be kept in a depositary bank account or accounts in a bank or banks approved by the City Treasurer, to be designated Downtown Development Authority Project Fund. All moneys received by the Downtown Development Authority pursuant to the Development Plan shall be deposited in the Project Fund. All moneys in that fund and earnings thereon shall be used in accordance with the Development Plan and this ordinance.
(G) Payment of Tax Increments to Downtown Development Authority. The City and County Treasurer shall, as ad valorem taxes are collected on the property in the development area, pay that proportion of the taxes, except for penalties and collection fees, that the captured assessed value bears to the initial assessed value to the Treasurer of the Downtown Development Authority for deposit in the Project Fund. The payments shall be made on the date or dates on which the City and County Treasurers are required to remit taxes to each of the taxing jurisdictions.
(H) (1) Uses of Moneys in the Project Fund. The money credited to the Project Fund and on hand therein from time to time shall annually be used in the following manner and following order of priority:
(a) To pay into the debt retirement fund, or funds, for all outstanding series of bonds issued pursuant to the Development Plan an amount equal to the interest and principal coming due (in the case of principal whether by maturity or mandatory redemption) prior to the next collection of taxes, less any credit for sums on hand in the debt retirement fund.
(b) To reimburse the city for funds which may be advanced to make preliminary plans and improvements necessary for the development area in accordance with the Development Plan.
(c) To pay the administrative and operating costs of the Downtown Development Authority and city for the development area, including planning and promotion, to the extent provided in the annual budget of the Downtown Development Authority.
(d) To establish a reserve account for payment of one year’s principal and interest on debts incurred purusant to the Development Plan.
(e) To pay, to the extent determined desirable by the Downtown Development Authority and approved by the city, the cost of improvements as set forth in the Development Plan to the extent those costs are not financed from the proceeds of bonds.
(f) To establish a sinking fund or a set aside account to be used to retire the debt incurred pursuant to the Development Plan at the earliest possible date.
(2) Any tax increment receipts in excess of those needed under the preceding paragraphs would revert to the taxing jurisdictions or would be used for future development activities within the Development Area, as defined in the Development Plan or as expanded pursuant to amendment or modification of the Development Plan pursuant to applicable provisions of Act No. 197 and other laws.
(I) Annual Report. Within 90 days after the end of each fiscal year, the Downtown Development Authority shall submit to the City Council, with copies to each taxing jurisdiction, a report on the status of the Project Fund. The report shall include the amount and source of revenue in the account, the amount and purpose of expenditures from the account, the initial assessed value of the Development Area, the captured assessed value of the development area, the tax increments received and the amount of any surplus from the prior year, and any additional information requested by the City Council or deemed appropriate by the Downtown Development Authority. The Secretary of the Downtown Development Authority shall cause a copy of the report to be published once in full in a newspaper of general circulation in the city.
(J) Refund of Surplus Tax Increments. Any surplus money in the Project Fund at the end of a year, as shown by the annual report of the Downtown Development Authority, shall be paid by the Authority to the City or County Treasurer, as the case may be, and rebated by them to the appropriate taxing jurisdiction.
(Ord. 741, passed 11-21-94)