(STATEHOUSE) May 14, 2007 - Governor Daniels signed House Enrolled Act 1774 (HEA 1774) co-authored by Representative Randy Borror (R-Ft. Wayne). The act establishes the option for second-class cities to develop regional development authorities (RDA), which address the financing of infrastructure and economic development projects of regional importance.
"Regional development authorities will provide growing cities, such as Ft. Wayne, with additional opportunities to promote economic development and small business growth," said Rep. Borror. "By allowing local units of government to work together, they will further their efforts to attract jobs to their region, which will be beneficial to the entire state."
HEA 1774 will allow a local option for participation in an RDA. If a county decides to join, its county council must pass a resolution indicating its intent to join. To participate, a second-class city must contribute its proportional amount of funds based on the County Economic Development Income Tax (CEDIT). The County Council or the County Income Tax Council, whichever has jurisdiction over local income taxes in a given county, will decide to either adopt a new CEDIT or provide an amount equal to a new CEDIT fund. If a new CEDIT is adopted, it will be based on a 0.05 percent rate for exclusive use for the RDA. The RDA will have no separate taxing authority, it will only have those funds provided by participating counties and second-class cities if they join separately and from grants and donations.
Participation in an RDA is a five-year commitment and a county or second-class city may only join one. If a county chooses not to join an RDA, the Common Council of a second-class city within the county may independently join an RDA. Each RDA will have a board with one member per participating county and one per second-class city. A second-class city will get one member either when its host county joins or if it joins independently. County Commissioners and the Mayors of the second-class city will make the appointments to the board.
The act will become effective as of July 1, 2007.
For more information, please contact State Representative Randy Borror at the Statehouse, 200 W. Washington St., Room 401, Indianapolis, IN 46204. You may also reach him by phone at 1-800-382-9841 or e-mail him at email@example.com.
Representative Borror represents House District 84, which includes portions of Allen County, including the city of Fort Wayne.