THEFISCALHEALTHOFINDIANA’S
LARGERMUNICIPALITIES:
CITYOFFISHERSMUNICIPALPROFILE
byJohnStafford
March2016
1
CITYOFFISHERSMUNICIPALPROFILE
MARCH2016
Introduction
ThisdocumentisasummaryoffinancialinformationontheCityofFishersassembledfromseveral
publicsources.ItisintendedtoserveasasupplementarydocumenttotheIndianaFiscalPolicyInstitute
reportFiscalHealthofIndiana’sLargerMunicipalitiesreleasedinDecember,2015.Itwasnotprepared
fororvettedbytheCityofFisherspriortoitsreleaseanddoesnotserveinanymannerasapublication
oftheCity.Ratheritistheauthor’sinterpretationofthedatagatheredfrompubliclyavailablesources.
TheelectorateintheTownofFishersvotedtochangetheclassificationofFishersfromaTowntoaCity,
effectiveJanuary1,2015.
EconomicClimate
Basedonthisstudy’sCompositeEconomicIndex,theTown/CityofFishershasbeenfunctioninginthe
secondstrongestofalleconomicclimatesamongtheeighteenselectedmunicipalities.
In1970,theTownofFishershad628residents.Thattotalrepresented1%oftheHamiltonCounty
population.In2014,theestimatedpopulationofFisherswas86,325.Thattotalrepresented28.5
percentoftheHamiltonCountypopulation,anincreaseof27.5percentagepointsfrom1970.Between
1970and2014,Fishersgained85,697residents,a13,646%increase.Between2006and2014,Fishers
gainedanestimated24,485residentsfora39.6percentincrease.
TotalpersonalincomeinHamiltonCountyincreasedby41.1percentbetween2006and2013.Thiswas
thehighestpercentageincreaseamongthefifteencountiesthatcontainedourselectedmunicipalities.
Percapitapersonalincomein2013inHamiltonCountywas$56,515,highestamongtheselected
counties.Thiswas146.3percentofthestatewidepercapitapersonalincome.In1970,percapita
personalincomeinHamiltonCountywas114.9percentofthestatewidepercapitapersonalincome.
HamiltonCountyhasexperiencedbothlong-termandshort-termgrowthinemployment.In1970the
countywidetotalemployment(fullandpart-timeemployment)was15,042.By2007employmentinthe
countyhadincreaseddramaticallyto165,996andcontinuedtogrowthrough2013whenithadreached
187,089.Thelonger-termgainbetween1970and2013was1,143.8percentandtheshorter-termgain
was12.7percent.Boththelong-termandshort-termpercentagegainswerethehighestamongthe
fifteencountiesthatcontainedtheeighteenselectedmunicipalities.HamiltonCountywasoneofonly
fourofthefifteencountiestoexperienceemploymentgrowthbetween2007and2013.Thisdatais
fromtheBureauofEconomicAnalysisTotalEmploymentbycountydataandisbasedonplaceofwork
notplaceofresidence.
TheGrossRegionalProductinHamiltonCountyin2013was$17,485,289,027.ThepercapitaGRPwas
$58,907in2013.ThiswasthehighestGRPpercapitaofthefifteencountiescontainingourselected
municipalities.
Oftheeighteenmunicipalitiesincludedinthisstudy,FishersrankedsecondonaCompositeEconomic
Indexofseveralmunicipalandcountywideeconomicindicators(shortandlong-termpopulationchange,
shortandlong-termemploymentchange,totalpersonalincomegrowth,percapitapersonalincome,
grossregionalproductpercapita,grossassessedvaluationchange,andgrossassessedvaluationper
THEFISCALHEALTHOFINDIANA’SLARGERMUNICIPALITIES|CITYOFFISHERS
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capita).Itscored261outofapossible270points.ThisindicatesthattheCityofFishershasbeen
operatinginaverystrongeconomicenvironmentincomparisonwiththegroupofmunicipalities
includedinthisstudy.Someofthesefactors,suchaspercapitapersonalincomerelatecloselytothe
relativeincometaxperformanceandotherssuchaschangeingrossassessedvaluationimpactboth
propertytaxleviesandcircuitbreakercredits.
AssessedValuation
ThegrossassessedvaluationfortheCityofFisherswas$8,751,973,750in2014pay2015.Thiswasa
24.5percentincreaseoverthe2007pay2008grossassessedvaluation.Grossassessedvaluationwas
$101,384percapitain2014pay2015,rankingsecondamongtheeighteenselectedmunicipalities.In
2007pay2008thestandardhomesteaddeductionswere12.1percentwhilethe2014pay2015
combinationofthestandardandsupplementalhomesteaddeductionsrepresented32.1percentof
Fishers’grossassessedvaluation.In2007pay20080.1percentofthecity’sgrossassessedvaluation
wascapturedintaxincrementfinancingdistrictsandthisincreasedto3.7percentin2014pay2015.
Netcertifiedassessedvaluationin2007pay2008was74.4percentofgrossassessedvaluation(lessthe
grossassessedvaluationcapturedintaxincrementdistricts).By2014pay2015,thishadfallento63.2
percent.
Figure1illustratesthechangesinnetassessedvaluationforFishersfrom2005pay2006throughthe
currentyear.ThecertifiednetassessedvaluationfortheCityofFishersGeneralFundis$5,399,045,989
for2014pay2015.Thatisupfrom$4,137,372,859in2005pay2006.Between2007pay2008and2008
pay2009,wheretheimpactoftheincreasesinthehomesteaddeductionsenactedinHEA1001-2008
firstoccurred,thecertifiednetassessedvaluationforFishersdeclinedby18.2percent,thefourth
largestdeclineamongtheeighteenselectedmunicipalities.Between2008pay2009and2014pay
2015,theCityofFishers’netassessedvaluationgrewby26.4percent,thehighestrateofgrowthamong
theselectedmunicipalities.NetassessedvaluationpercapitainFisherswas$62,543in2014pay2015,
rankingsecondamongtheeighteenmunicipalities.Overthepastyear,netassessedvaluationforthe
CityofFishersGeneralFundincreasedby3.0percent.In2014pay2015,3.7percentoftheCityof
Fisher’sGeneralFundNetAssessedValuationwascapturedbyTaxIncrementFinancingDistricts.This
wasthesecondlowestpercentageamongthetwentyselectedmunicipalities.
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In2006pay2007,theTownofFisher’scertifiednetassessedvaluationwas23.5percentofthe
netassessedvaluecountywideinHamiltonCounty.By2014pay2015,theCity’sportionofthe
countywidenetassessedvaluehadincreasedto29.5percent.
AnnualPropertyTaxCertifiedBudgets,LeviesandRates
2007CertifiedBudgets,LeviesandRatesforPropertyTaxSupportedFunds
Fund Budget CertifiedLevy General
$35,182,563 $10,697,591 DebtService $872,400
$353,560
LeaseRentalPayment $1,325,500
$1,137,127
MVH $3,049,795
$597,230
ThoroughfareBond $1,556,008
$1,404,686
CCD $4,591,046
$1,261,351
Total
$46,577,312 $15,451,545 2015CertifiedBudgets,LeviesandRatesforPropertyTaxSupportedFunds
Fund Budget CertifiedLevy General
$60,347,502 $22,584,209 DebtPayment
$5,507,405
$5,366,652
Bond#2
$3,039,926
$2,888,490
CCD $2,864,574
$2,645,533
Total
$71,759,407 $33,484,884 Source:DepartmentofLocalGovernmentFinanceAnnualBudgetOrders
THEFISCALHEALTHOFINDIANA’SLARGERMUNICIPALITIES|CITYOFFISHERS
Rate/$100AV
$0.2239
$0.0074
$0.0238
$0.0125
$0.0294
$0.0264
$0.3234
Rate/$100AV
$0.4183
$0.0994
$0.0535
$0.0490
$0.6202
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TheTownofFishers’2015propertytaxrateof$0.6202rankedasthelowestamongtheeighteen
selectedmunicipalities.Fishers’propertytaxrateincreasedby$0.0.2968between2007and2015.This
wasa91.8%increase.Theincrease,incentsper$100assessedvaluation,rankedseventhlowestamong
theselectedcommunitiesandwasthehighestasapercentageincrease.
TheCityofFishershasadoptedaCumulativeCapitalDevelopmentFundwitha2015rateof$0.0490.It
doesnotlevypropertytaxestosupportPoliceandFirePensionFundsin2015anddidnotdosoin2007.
In2015,24.7%ofitspropertytaxratewasusedtosupportdebtservicefunds.
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CircuitBreakerImpacts
In2015,theCityofFisherslost$1,431,012inpropertytaxrevenueduetoCircuitBreakercredits.That
was4.3percentofitsCertifiedPropertyTaxLevy,thefourthlowestamongtheselectedmunicipalities.
Afteradjustingforinflation,the2015totalCertifiedLevynetofCircuitBreakerCreditswas181.9
percentofits2007CertifiedLevy.In2015CircuitBreakerCreditsallocatedtotheCityofFisherswere
$17percapita(thirdlowestamongtheeighteenmunicipalities)and$27per$100ofassessedvaluation
(alsothirdlowest).TheCityofFishersdidnotloseanypropertytaxrevenueduetotheCircuitBreakers
initstaxincrementfinancingdistricts.
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LocalIncomeTaxes
HamiltonCountyhasadoptedtheCountyOptionIncomeTaxata1.0%rate.Ithasnotadoptedeithera
PropertyTaxReliefLOITorthePublicSafetyLOIT.TheCityofFishers,noranyotherentity,controlsa
majorityofthevotesintheHamiltonCountyIncomeTaxCouncil.
In2008,theCityofFishersreceived$12,152,325inlocalincometaxdistributions.By2015these
distributionshadincreasedto$17,672,596.The2008distributionwouldhaveneededtobe
$13,469,394in2015tokeeppacewithinflation.
Localincometaxrevenuerepresented40.8percentofFisher’s“coreincome”(certifiedpropertytaxlevy
plusincometaxrevenue)in2008.Thisproportiondeclinedto35.5percentof“coreincome”(certified
propertytaxlevylesscircuitbreakercreditsplusincometaxrevenue)in2015.
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FiscalCapacityIndex
AfterexploringthechangeswhichhaveoccurredtothepropertyandincometaxrevenuestotheCityof
Fishers,whathasbeentheoverallimpactonthefiscalcapacityofthismunicipality?Tobetter
understandthatimpact,asimple“FiscalCapacityIndex”hasbeencreated.“Coreincome”asdefinedin
thisstudyisthecombinationof(1)annualcertifiedpropertytaxleviesnetofcircuitbreakercredits;and
(2)annuallocaloptionincometaxcertifieddistributions.Inaddition,propertytaxlevieshavebeen
adjustedtoremovethe2008leviesforthosePoliceandFirePensionFundsthatweretakenoverbythe
statein2009toallowforamoreaccurateyear-toyearcomparison.
Thesetwosourcesrepresentthetwokeyrevenuesourcesformostmunicipalities.Thepropertytax
componenthasbeenimpactedbytheenactmentofthepropertytaxcapsandbythechangesto
assessedvaluationbothoccurringthroughthe2008legislationtoincreasehomesteaddeductionsand
bytherecessionholdingdown“natural”growthinassessedvaluation.Secondly,theimpactofthe
propertytaxcapshasbeenincludedbyreducingpropertytaxrevenuebytheamountofCircuitBreaker
Creditsattributabletoeachmunicipality.Lastly,therecessionalsohadadepressingeffectonpersonal
incomewhich,inturn,reducedincometaxrevenues.
Aftertheannual“coreincome”wasdeterminedforFishers,thisrevenuewasthenadjustedforinflation,
creatingtherealvalueoftheannualrevenueforcomparisonoverthe2008-2015timeframe.Figure8
illustratestheinflationadjustedcoreincomefortheCityofFishersfrom2008through2015.
THEFISCALHEALTHOFINDIANA’SLARGERMUNICIPALITIES|CITYOFFISHERS
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DespitenotadoptingeitheraPropertyTaxReliefLOITorthePublicSafetyLOIT,theCityofFishers’total
certifiedpropertytaxlevy,netofcircuitbreaker,plusincometaxrevenuewas,afteradjustingfor
inflation,150.6percentofthe2008total.1ThiswasthesecondhighestFiscalCapacityIndexrankingof
theeighteenselectedmunicipalities.Between2009and2015thecumulativegainofcorerevenue
comparedwiththe2008totalwas$73,073,000.Thiswastheequivalentof245percentof2008core
revenue.
1
TheTown/CityofFishershadnoPoliceandFirePensionleviesin2008andthustheStatetakeoverin
2009hadnoimpactonthiscalculation.
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Year-EndBalances,AnnualReceiptsandAnnualDisbursements
The2014year-endbalance,includingreservedandobligatedfunds,intheCityofFishers’GeneralFund
was$14,595,565.ItsRainyDayFundended2014withabalanceof$0.Thecombinedtotalbalancefor
bothfundsatyear-end2014was$14,595,565.Thiswas32.3percentofannualreceiptsfromboth
fundscombined,rankingasthe8thhighestoftheeighteenselectedmunicipalities.Thecombinedtotal
represented$169percapita,the6thhighestranking.ThecombinedGeneralandRainyDayfund
balancesdecreasedby394,159between2009and2014.Thiswasthe8thweakestrankingamongthe
selectedmunicipalities.
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The2014year-endbalanceforallGovernmentalFundsfortheCityofFisherswas$37,920,070,down
from$73,883,724in2010.Thiswas$439percapita,rankingsecondlowestamongtheselected
municipalities.Theyear-endbalanceforallGovernmentalFundswas36.6percentofthe2014receipts
inthosefunds.GeneralFunddisbursementsrepresented40.1percentofallGovernmentalFund
disbursementsin2014.TotaldisbursementsfromallGovernmentalFundsin2014were$114,072,122.
Totaldisbursementsfromallfunds,includingGovernmentalandEnterprisetypefunds,was
$127,181,176in2014.
TotalreceiptsfromallGovernmentalFundsin2014were$103,628,469.Thiswas$1,200percapita,
rankinglowestamongtheselectedmunicipalities.Corerevenue(certifiedpropertytaxesnetofcircuit
breakercreditspluscertifiedincometaxdistributions)represented46.0percentofallGovernmental
Fundreceiptsin2014fortheCityofFishers.
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IntergovernmentalRevenue
TheinformationinthissectionwasobtainedfromtheIUPUI’sPublicPolicyInstituteFiscalBenchmarking
Project.2012intergovernmentalrevenueforFisherswas$5,823,026andrepresented7.0percentof
totalrevenue.Intergovernmentalrevenuein2011-2012averaged7.8percentoftotalannualrevenue.
Fishersrankedasthe15thmostdependentonIntergovernmentalRevenuesamongtheselected
municipalities.2The2011-2012averageannualintergovernmentalrevenuepercapitawas$76,also
rankingFishersasthefifteenthhighestamongtheselectedmunicipalities.
HighwayFunding
Thedistributionofstatetaxesonfuelbacktolocalgovernmentshastraditionallybeentheprimary
revenuesourcetosupportmunicipalroadmaintenanceandenhancements.Whilemostmunicipalities
havefounditnecessarytosupplementthissourcewithotherrevenues,particularlyasdistributions
fromtheMotorVehicleHighway(MVH)andLocalRoadandStreet(LR&S)fundshadnotbeenkeeping
pacewithinflation,thissourceremainsamostimportantrevenuestreamfortheCityofFishers.
In2008,theCityreceivedacombinedtotalof$2,245,183fromtheMVHandLR&Sdistributions.By
2012,thesedistributionshadincreasedto$2,966,512.ThechangestotheMVHAccountmadebythe
GeneralAssemblybeginningwiththe2013-2015StateBudgetincreasedthedistributionstolocalunits,
includingtheCityofFishers.By2014,thefirstfullyearthattheincreasewasineffect,Fishers’
combineddistributionshadincreasedto$3,898,206.Thiswasa73.6percentincreaseoverthe2008
distributions,rankingasthesecondhighestpercentagechangeamongtheselectedmunicipalities.After
adjustingforinflation,thiswasa57.9percentincreaseoverthe2008combinedMVHandLR&S
distributions.Thecompositeinflationadjustedincreaseforalleighteenselectedmunicipalitieswas15
percent.
2
TherewasnodataavailableonIntergovernmentalRevenuesfortheCityofLafayette.
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TheCityofFishersdoesnotcurrentlylevypropertytaxestosupporteitheritsMVHorLR&SFunds.In
2007theyhadapropertytaxlevytobothsupporttheirMVHFundanddebtserviceonaThoroughfare
Bond.
Debt
PerinformationavailableontheIndianaGatewaydatabase,asofJuly1,2014,theTown/CityofFishers
hadtotaloutstandingdebtof$244,307,503.Thiswas$2,912ofoutstandingdebtpercapita,ranking
eighthhighestamongtheselectedmunicipalities.
Ofthetotaloutstandingdebt,2.7percentwassupportedbywastewaterrevenues,nodebtwas
supportedbywaterrevenuesand36.9percentwassupportedbytaxincrementfinancerevenues.The
totaloutstandingdebtpercapita,excludingdebtsupportedbywastewater,waterandTIFrevenueswas
$1,758,secondhighestamongtheselectedmunicipalities.
AsofJuly1,2014,theTown/CityofFishershad$38,938,434inoutstandingdebtsupportedwithCounty
OptionIncomeTaxrevenues.Thiswas2.2timestheCity’s2015totalCOITcertifieddistribution.In
2014,Fishershadatotalcertifiedpropertytaxlevyof$8,442,786initsdebtservicefunds.
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The2024projectedtotaldebtpaymentsofallcurrentoutstandingdebtis43.7percentofthe2015
projectedpayments.AccordingtheIUPUIPublicPolicyInstitute’sFiscalBenchmarkingProject,the2012
DebtServiceRatiofortheTownofFisherswas9.1percent.
SummaryObservations
TheCityofFishershasbeenfunctioninginaverystrongeconomicclimateincomparisonwiththeother
seventeenmunicipalitiesincludedinthisstudy.IttiedwithfellowHamiltonCountycommunityof
CarmelforhavingthehighestrankingintheCompositeEconomicIndexpreparedasapartofthisstudy.
HamiltonCountyhadthehighestpercentageincreaseintotalpersonalincome,thehighestpercapita
personalincomeandthehighestgrossregionalproductpercapitaofanyofthefifteencountiesthat
containedoneormoreofthestudiedmunicipalities.
Fishers’growthingrossassessedvaluationbetween2007pay2008and2014pay2015,whenmeasured
onapercentagechangebasis,wasstrongerthanalloftheotherselectedmunicipalitieswiththe
exceptionofJeffersonville(whichhadundertakensignificantannexationduringthisperiod).While
Fishersexperiencedasubstantialdecreaseinitsnetassessedvaluationin2008pay2009duetothe
legislationincreasinghomesteaddeductions,itwasoneofonlytwooftheselectedmunicipalitiesto
experienceanincreaseinnetassessedvaluationbetween2007pay2008and2014pay2015.Its
currentnetassessedvaluationpercapitaissecondonlytothatofCarmel.In2014pay2015,theCityof
Fisherscapturedonly3.7percentofitsnetassessedvaluationintaxincrementfinancingdistricts,the
secondlowestpercentageoftheeighteenselectedmunicipalities.
Fishers’2015propertytaxrateof$0.6202per$100assessedvaluerankedasthelowestamongthe
eighteenmunicipalities.Conversely,thepercentageincreaseinitspropertytaxratebetween2007and
2015wasthehighestamongthisgroupofcities.Certainlythatchangewasreflectiveoftheincreased
demandformunicipalservicescreatedbythedramaticincreaseindevelopmentoccurringwithinthe
city.AlsoreflectiveofthatgrowthwasthepercentageincreaseinFishers’propertytaxlevybetween
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2006and2015of125percent–thehighestofalltheselectedmunicipalities.Onapercapitabasis,
Fishers’propertytaxlevyin2014remainedamongthelowestofthestudiedmunicipalgovernments.
TheCity’slowpropertytaxrate,coupledwiththerelativelylowratesoftheoverlappingunitsoflocal
government,resultedinonlyaverymodestpropertytaxcapimpactonFishers’propertytaxrevenues.
In2015,circuitbreakercreditsresultedinalossof4.3percentofFishers’certifiedpropertytaxlevy,the
fourthlowestpercentageamongtheselectedmunicipalities.
HamiltonCounty’slocalincometaxratewas1.0%in2008andthatrateremainedunchangedthrough
2015.ThestronggrowthintotalpersonalincomeinHamiltonCountycontributedtothesubstantial
growthinFishers’localincometaxrevenuebetween2011and2015,experiencedwithoutanincreasein
therate.TherelativelylowimpactofthepropertytaxcapsonFishers’propertytaxrevenues,coupled
withthestronggrowthinincometaxrevenue,werekeycontributorstowardthismunicipality’ssecond
highestrankingonthestudy’sFiscalCapacityIndex.
TheCityofFishersended2014withabalanceofnearly$15millioninitsGeneralFund.Ithada$0
balanceinitsRainyDayFund.Thisbalancewas32percentof2014annualreceiptsintheGeneral
Fund,astrongfiscalposition.Thisbalanceisalsoupfromthe2011amountofjustover$9million.
Fishers’2014disbursementspercapitafromallGovernmentalFundsof$1,321rankedasthethird
lowestamongtheeighteenselectedmunicipalities.TheCity’soutstandingdebtpercapitaasofJuly,
2014of$2,830wasinthemid-rangeoftheselectedmunicipalities.
TheCityofFishersexperienceda254percentcumulativegainin“corerevenues”between2009and
2015,secondamongtheselectedmunicipalities.ThestrongeconomicclimatewithinwhichFishersis
operating,itsgainincorerevenues,themodestimpactattributabletothecircuitbreakercredits,and
thestrongGeneralFundbalanceallcontributedtotheCity’ssecondhighestrankingonthisstudy’s
IndexofOverallFiscalHealth.Itmustbenoted,however,thatthedramaticgrowthinresidentsand
developmentwillplacesignificantpressureonthesefiscalresourcesasthedemandforoperatingand
capitalexpendituresgrows.
THEFISCALHEALTHOFINDIANA’SLARGERMUNICIPALITIES|CITYOFFISHERS