September 30 is the Deadline for Township Capital Improvement Plans

This timely message was prepared for our members by C.L.Coonrod, CPA.

September 30 is the Deadline for Township Capital Improvement Plans…..and all Townships Must File Something.

If your township fails to adopt a required capital improvement plan by September 30, 2020, your township may be prohibited from levying 2021 property taxes for any capital improvement funds.

HEA 1177-2019 requires townships to adopt a capital improvement plan if the total cash balance of its capital improvement funds exceeds:

(1) 150% of the township’s estimated annual budget and
(2) $200,000.

“Capital improvement funds” are defined to include any township fund from which capital improvements may be paid. This includes the Township General, Fire, Cumulative Fire, Parks, and Equipment Replacement funds. Most township Rainy Day funds are also included. (The Township Assistance fund and debt service funds are not capital improvement funds.)

If your township meets both criteria, your township trustee must prepare a capital improvement plan, and your township board must hold a public hearing and adopt the plan by the September 30, 2020 deadline.

Capital improvement plans adopted in 2020 must include the amount of revenue expected each year from 2021 through 2023 and the amount of proposed capital improvement expenditures, along with a narrative of the nature and description of the proposed expenditures.

Access the capital improvement plan template in Excel at https://www.in.gov/dlgf/files/pdf/200723%20-%20VanDorp%20Memo%20-%20Township%20Capital%20Improvement%20Plan.xlsx

Note: Townships not required to adopt a capital improvement plan must upload a copy of the “Main” tab from the CIP Template to the budget application on Gateway.

If the plan is not required, no board action is necessary.  But the “Main” tab must always be uploaded.

According to a DLGF memo dated July 28, 2020, “The Department will use the template uploaded into Gateway for all townships to determine if the plan was required. If a township fails to upload the template confirming that they were not required to submit a plan, the Department will assume a plan was required and not completed by the deadline.”