The city is paying for the new police station through the bond, which will be backed by tax-increment financing, or TIF, revenue. An annual bond payment will total about $800,000 per year.
Jeffersonville expects to pay off the bond debt using public safety local option income tax funds, but a state restriction will not allow the money to be pledged as the source of funds to repay the bond. As a result, the city, and subsequently the Jeffersonville Redevelopment Commission, had to approve the TIF money as the source of the bond’s repayment. The 2013 disbursement of LOIT money to Jeffersonville is expected to total $2.2 million, leaving an estimated $1.4 million remainder in the fund after the bond payment has been made.
Merkley said at the time the bond was approved the hope was to be able to close the bond April 25 and to break ground on the new station June 1.