Just for kicks, since I go to a bunch of EDGE meetings, I thought I would try to reconcile what the EDGE Board approves with the 2018 Annual Shelby County Trustee’s Report. First before I get started, I know the Shelby County Trustee is NOT in charge of reconciling EDGE Board approvals with EDGE contracts. But who is ?
The Shelby County Trustee only bills and collects taxes based on legal requirements, and for this discussion, an authorized industrial development board payment-in-lieu of taxes (PILOT) contract. With that stated, based on what is EDGE Board approved and what is showing up in the Trustee’s report varies widely unless I am misinterpreting something, which is entirely possible and why I am writing this blog.
First, the EDGE Board typically approves an excessive 75% city-county tax abatement for a 10 – 15 year period or a payment-in-lieu of taxes of 25% of property taxes due. But this is what the 2018 Shelby County Trustee Report reveals based on contract amounts regarding County property taxes:
For real property, $3,434,440 is billed based on PILOT contracts instead of $25,627,065. That is 13.4% instead of 25%. Had 25% been billed that would mean $6,406,766 in billings or $2.972,326 more in PILOT revenue.
For personal property, $246,809 is billed based on PILOT contract instead of $12,269,542. That is 2% instead of 25%. Had 25% been billed, that would mean $3,067,385 in billings or $2,820,576 more in PILOT revenue.
The total estimated variance between what is typically approved in a 25% PILOT and what is showing up in PILOT contracted billings in the 2018 Shelby County Trustee Report is an estimated $5,792,902 PILOT revenue shortfall.
Also in trying to reconcile EDGE approvals with The Shelby County Trustee Report, is the “Owner” the property owner or the entity that EDGE awards the abatement ?
And if something is drafted in contract that is significantly different from what is publicly EDGE Board approved, shouldn’t the revision of what was originally approved come back for public hearing and approval ?
Anyway, here is my spreadsheet work.
Please advise if I am analyzing this reconciliation in the wrong way. Thank you.