Greenwood shuffles TIF funds to cover shortfalls

<p>Greenwood is transferring nearly $1 million from one TIF to another to make up for a loss in tax collections due to the coronavirus pandemic.</p><p>Gov. Eric Holcomb signed an executive order in May that gave everyone in Indiana two extra months—until July 10—to pay property taxes without penalties. Due to this delay, Greenwood collected less money than expected in its tax-increment financing, or TIF, districts, which fund several city projects.</p><p>The city’s east side TIF had a significant shortfall in funds to make payments on bonds that were due this month on large projects, including the city’s $9 million fieldhouse, said Greg Wright, city controller.</p><p>June collections in the east side TIF district fell short about $2 million, Wright said. About $4.7 million was budgeted to come in, but about $2.3 million was actually collected. The Fry Road TIF, a smaller district, had a surplus, so the city opted to borrow $917,000 from it to cover payments in the east side TIF.</p><p>“We can collect again in August, but that doesn’t help us with the bills that are due,” Wright said.</p><p>Greenwood plans to put back the money in August, during the next tax draw, when the east side TIF district is expected to collect $2.4 million. The city has until the end of the year to return the money to the Fry Road TIF though, if there is another unexpected shortfall in August, he said.</p><p>Borrowing from other TIF districts has always been an option, but this is the first time Greenwood has had to do it, Wright said.</p>