Southwest Allen County Fire Protection District and Tera K. Klutz, in her official capacity as Auditor of Allen County, Indiana v. City of Fort Wayne

FILED
Feb 14 2020, 5:43 am

CLERK
Indiana Supreme Court
Court of Appeals
and Tax Court

ATTORNEYS FOR APPELLANTS ATTORNEYS FOR APPELLEE
Thomas F. Bedsole James P. Fenton
Maggie L. Smith Timothy A. Manges
Emily J. Schmale Fletcher Van Gilder, LLP
Frost Brown Todd, LLC Fort Wayne, Indiana
Indianapolis, Indiana

IN THE
COURT OF APPEALS OF INDIANA

Southwest Allen County Fire February 14, 2020
Protection District and Tera K. Court of Appeals Case No.
Klutz, in her official capacity as 19A-PL-510
Auditor of Allen County, Appeal from the Allen Superior
Indiana, Court
Appellants-Defendants, The Honorable Craig J. Bobay,
Judge
v. Trial Court Cause No.
02D02-1605-PL-231
City of Fort Wayne,
Appellee-Plaintiff.

Riley, Judge.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 1 of 25
 STATEMENT OF THE CASE
[1] Appellants-Defendants, the Southwest Allen County Fire Protection District

(District) and Tera K. Klutz, 1 in her official capacity as Auditor of Allen

County, Indiana (Auditor), appeal the trial court’s summary judgment in favor

of Appellee-Plaintiff, the City of Fort Wayne (City), on the City’s request for

declaratory judgment to receive the tax revenues from Annexed Territories. 2

[2] We affirm in part, reverse in part, and remand for further proceedings.

ISSUES
[3] The District raises two issues for our review, which we restate as:

(1) Whether the City is entitled to receive the tax revenue from the fire

protection services it provided to annexed areas; and

(2) Whether the City is entitled to retroactive relief even though the City

failed to exhaust its administrative remedies.

FACTS AND PROCEDURAL HISTORY
[4] The underlying facts were stated by this court in its disposition of the first

appeal; therefore, we shall rely on City of Fort Wayne v. Southwest Allen County

Fire Protection District, 82 N.E.3d 299 (Ind. Ct. App. 2017), trans. denied (First

1
The Auditor did not file a brief on appeal.
2
We heard argument in this cause on December 11, 2019 in the Indiana Court of Appeals Courtroom in
Indianapolis, Indiana. We thank counsel for their excellent advocacy.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 2 of 25
 Appeal) for the recitation of the facts. The District is a fire protection district

created in 1986 pursuant to state law. Beginning in December of 1987, the City

effected a series of fifteen annexations of territory, formerly located within the

District. The first of these annexations took effect in December 1987, with the

most recent being on January 1, 2006. Following the effective date of these

annexations, the Fort Wayne Fire Department (FWFD) provided fire

protection services to the areas within the annexed territories (Annexed

Territories) that formerly were serviced by the District. Subsequent to the

annexations, neither the City, FWFD, or the FWFD Pension Fund received

distributions of property tax revenue relating to the fire protection services from

the Annexed Territories; rather, the Auditor continued to make these

distributions to the District.

[5] By letter dated August 27, 2014, the City notified the District and the Auditor

that pursuant to Indiana’s annexation statutes—enacted in Ind. Code §§ 36-8-

11-16; -22—once the areas that were part of the District were annexed by the

City, and once the City began providing fire protection services to the Annexed

Territories, the Annexed Territories were no longer part of the District and the

property tax revenues derived from these Annexed Territories should have been

redirected to the applicable City fire protection funds.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 3 of 25
[6] Each year, the Department of Local Government Finance (DLGF) prepared a

document, titled the 1782 Notice, 3 and sent it to the City. The 1782 Notice is

based on assessed values information provided by the Auditor. This

information submitted by the Auditor includes an allocation of the values to be

directed, among others, to specific City or District funds. The Auditor provided

the total valuation of the Annexed Territories to the DLGF, based upon an

understanding, rooted in an Unofficial Indiana Attorney General Advisory

Letter of July 6, 1988, that informed that the District was grandfathered.

Specifically, this Unofficial Letter advised that the annexing municipality

cannot tax the annexed area within the fire protection district for fire protection

services in order to avoid the risk of double taxation. Accordingly, the Auditor

calculated the total assessed value of land within the boundaries of the District,

including the assessments of the Annexed Territories. The Auditor did not

include the Annexed Territories, now serviced by the FWFD, in the calculation

of the total attributable to the City and the FWFD.

[7] On May 11, 2016, the City filed its Complaint for Declaratory and Other Relief

against the District and the Auditor, seeking a declaration that the City is

entitled to receive the property tax revenues of the Annexed Territories. On

July 27, 2016, the Auditor filed her motion to dismiss Plaintiff’s Request,

arguing that the trial court did not have subject matter jurisdiction over the

City’s claim because the City had failed to exhaust the administrative remedies

3
The 1782 Notice is the notice of final budget recommendations pursuant to I.C. § 6-1.1-17-16(d) (2016).

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 4 of 25
 available to it. On August 8, 2016, the Auditor filed a complementary motion

to dismiss, in which the Auditor sought a complete dismissal of the City’s

Complaint based on a lack of subject matter jurisdiction because the claims

asserted fell within the exclusive jurisdiction of the Indiana Tax Court. The

District joined in the Auditor’s motions. On October 30, 2016, following a

hearing, the trial court issued its Order, granting the Auditor’s and the District’s

motions to dismiss.

[8] The City appealed. After conducting oral argument, this court issued the First

Appeal, concluding that

the present case is an annexation case and requires no
consideration of substantive tax law. The parties do not dispute
the tax assessments and do not request a change in tax levies nor
are the parties attempting to collect a tax. No calculation to
determine a specific tax assessment must be made, and no
interpretation of tax laws is required. Rather, the City’s dispute
merely centers on the intended recipient of taxes already assessed
and collected, pursuant to I.C. § 36-8-11-22. This is not
quintessentially a tax matter.

Id. at 304 (internal citation omitted). Accordingly, we held that subject matter

jurisdiction was vested in the trial court and we remanded for further

proceedings.

[9] On remand, the City sought partial summary judgment on December 11, 2018,

as to the merits of its declaratory judgment request, seeking a declaration that

the City is entitled to collect future tax revenues for the Annexed Territories.

That same day, the District also moved for summary judgment, responding that

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 5 of 25
 the City cannot statutorily receive the future tax revenues of the Annexed

Territories, and seeking a declaration that the relief requested by the City in its

Complaint—reallocation of past, present, and future tax revenues—was not

available as to any tax levy because the City had failed to exhaust its

administrative remedies.

[10] On February 7, 2019, after a hearing, the trial court granted the City’s motion

for partial summary judgment and denied the District’s requested relief. In its

summary judgment, the trial court concluded:

The [c]ourt disagrees with the [District] as to which statute or
statutes control. On appeal of this [c]ourt’s October 30, 2016
Order of dismissal, the Indiana Court of Appeals concluded that
this is an annexation case, and as such, the annexation statute
I.C. § 36-8-11-22 controls. It is undisputed that the [District] had
fire protection districts in the Annexed Territories, that the City
has annexed the Annexed Territories, and that the City has
provided fire protection services in the Annexed Territories. The
[c]ourt concludes that I.C. § 36-8-11-22 plainly states that when a
municipality annexes areas that are part of a fire protection
district, and then provides fire services in the annexed areas, the
fire protection district ceases to exist in those areas. Thus, by
operation of the controlling statute, and as a matter of law, the
[c]ourt concludes that the [District] has ceased to exist in the
areas of the Annexed Territories.

The [District] makes the additional argument that the [c]ourt
lacks the authority to grant the relief sought by the City. The
[District] continues to argue that the City must seek an
administrative remedy via the [DLGF] and thereafter appeal to
the Indiana Tax Court. In the [First Appeal], the Indiana Court
of Appeals summarized the [District’s] arguments on appeal,

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 6 of 25
 which are identical to this second argument now being advanced
by the [District] in its [m]otion for [s]ummary [j]udgment. The
Court of Appeals concluded that this [c]ourt can grant relief
“because the present case is an annexation case and requires no
consideration of substantive tax law . . .” Thus, “the trial court
has subject matter jurisdiction to decide the City’s request for
declaratory judgment.”

The determination of the Court of Appeals as to this legal issue is
both binding on this [c]ourt and the appellate court in any
subsequent appeal involving the same case and substantially the
same facts. The [First Appeal] and its binding nature on legal
issues facing the [c]ourt in this case, compels the [c]ourt to
conclude that as a matter of law, this [c]ourt has the authority
and subject matter jurisdiction to grant relief sought by the City.
The City need not pursue a remedy through the DLGF.

(Appellant’s App. Vol. II, pp. 18-19) (internal references omitted).

[11] The District now appeals. Additional facts will be provided if necessary.

DISCUSSION AND DECISION
I. Standard of Review

[12] In reviewing a trial court’s ruling on summary judgment, this court stands in the

shoes of the trial court, applying the same standards in deciding whether to

affirm or reverse summary judgment. First Farmers Bank & Trust Co. v. Whorley,

891 N.E.2d 604, 607 (Ind. Ct. App. 2008), trans. denied. Thus, on appeal, we

must determine whether there is a genuine issue of material fact and whether

the trial court has correctly applied the law. Id. at 607-08. In doing so, we

consider all of the designated evidence in the light most favorable to the non-

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 7 of 25
 moving party. Id. at 608. A fact is ‘material’ for summary judgment purposes if

it helps to prove or disprove an essential element of the plaintiff’s cause of

action; a factual issue is ‘genuine’ if the trier of fact is required to resolve an

opposing party’s different version of the underlying facts. Ind. Farmers Mut. Ins.

Group v. Blaskie, 727 N.E.2d 13, 15 (Ind. 2000). The party appealing the grant

of summary judgment has the burden of persuading this court that the trial

court’s ruling was improper. First Farmers Bank & Trust Co., 891 N.E.2d at 607.

[13] We observe that, in the present case, the trial court entered findings of fact and

conclusions of law thereon in support of its judgment. Generally, special

findings are not required in summary judgment proceedings and are not binding

on appeal. AutoXchange.com. Inc. v. Dreyer and Reinbold, Inc., 816 N.E.2d 40, 48

(Ind. Ct. App. 2004). However, such findings offer a court valuable insight into

the trial court’s rationale and facilitate appellate review. Id.

II. Tax Revenue

[14] At issue here is the broad and extensive statutory scheme that establishes and

funds fire protection districts and addresses annexation issues connected to

these districts. The 1981 enabling legislation mandates that the Fire District is

to provide fire protection services and receive the tax revenues for the real

property within the Fire District’s boundaries, which the legislation expressly

contemplates might be overlapping between the Fire District boundaries and

other municipal entities’ boundaries. See I.C. §§ 36-8-11-4; -16.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 8 of 25
[15] In 1987, the General Assembly continued the evolution of fire districts and

enacted Public Law 341 which addressed aspects of fire districts in the context

of annexation. In this regard, Indiana Code section 36-8-11-22 allows property

in a fire district to be transferred to a municipality upon annexation, and the

municipality then provides the services and receives the tax revenue.

Specifically, the statute provides:

Areas annexed by municipalities

(a) Any area that is part of a fire protection district and is
annexed by a municipality that is not a part of the district
ceases to be a part of the fire protection district when the
municipality begins to provide fire protection services to the
area.

****

Nothing in this section requires a municipality to provide fire
protection services to an annexed area described in this
subsection.

I.C. § 36-8-11-22(a).

[16] Furthermore, Indiana Code section 36-4-3-7 requires that the annexing

municipality takes on all the financial obligations of that fire district relating to

the assessed valuation of the property being removed from the fire protection

district. In other words, the municipality obtaining the revenues must also be

responsible for the payment of the ongoing obligations. Specifically, the statute

stipulates:

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 9 of 25
 Publication of adopted ordinance; effectiveness; fire protection
districts.

(c) Subsection (d) and (e) apply to fire protection districts that
are established after July 1, 1987 . . .

(d) [] whenever a municipality annexes territory, all or part of
which lies within a fire protection district (I.C. § 36-8-11), the
annexation ordinance (in the absence of remonstrance and
appeal under section 11 or 15.5 of this chapter) takes effect the
second January 1 that follows the date the ordinance is adopted
and upon the filing required by section 22(a) of this chapter.
Except in the case of an annexation to which subsection (g)
applies, the municipality shall:

(1) provide fire protection services to that territory
beginning the date the ordinance is effective; and

(2) send written notice to the fire protection district of the
date the municipality will begin to provide fire protection
to the annexed territory within ten (10) days of the date the
ordinance is adopted.

(e) If the fire protection district from which a municipality
annexes territory under subsection (d) is indebted or has
outstanding unpaid bonds or other obligations at the time the
annexation is effective, the municipality is liable for and shall pay
that indebtedness in the same ratio as the assessed valuation of
the property in the annexed territory (that is part of the fire
protection district) bears to the assessed valuation of all property
in the fire protection district, as shown by the most recent
assessment for taxation before the annexation, unless the
assessed property within the municipality is already liable for the
indebtedness. . . .

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 10 of 25
 I.C. § 36-4-3-7 (emphasis added).

[17] Focusing on the 1987 statutory amendments, the District contends that because

the District was created on or before June 14, 1987, the financial protections

provided in I.C. § 36-4-3-7 are not applicable. “To avoid disharmonious,

irrational, [and] illogical results,” the District maintains that the date limitation

of I.C. § 36-4-3-7 must be read to also apply to I.C. § 36-8-11-22, which was

enacted simultaneously with I.C. § 36-4-3-7, and therefore, as the District was

created prior to June 14, 1987, the boundaries of the taxing district for the

purpose of levying taxes cannot be changed. (Appellant’s Br. p. 17). Resorting

to public policy, the District claims that “[t]his is the only way to shield fire

districts from municipalities using I.C. § 36-8-11-22 as a sword to selectively

annex only those properties in the fire district with a sizeable property tax

base—as was done here—while leaving the fire district still holding the financial

responsibilities to provide fire services to the remainder of the fire district but

leaving it without sufficient resources to do so because of the selective

annexation.” (Appellant’s Br. p. 18). To support its combined reading of the

two statutes, the District relies on the general guidelines to interpret statutes. It

argues that because both statutes were part of the same Act dealing with the

same subject matter (Annexation of fire protection districts), the Legislature

knew that Indiana law mandates the statutes must be read together. Providing

the temporal framework in I.C. § 36-4-3-7, which carried over to all the other

statutes in the Act, meant that the Legislature did not have to repeat the date

limitation in each of the statutes in the Act.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 11 of 25
[18] In response, the City claims that where the City has annexed areas within the

District and has provided fire protection services to those same areas, the

District ceases to exist, entitling the City to the tax levies of the Annexed

Territories. To support its argument, the City relies on another canon of

statutory construction, i.e., “when general and specific statutes conflict in their

application to a particular subject matter, the specific statute will prevail over

the general statute.” Lake Co. Bd. of Elections and Registration, v. Millender, 727

N.E.2d 483, 486 (Ind. Ct. App. 2000). The specific statute being I.C. § 36-8-11-

22, which—according to the City—unambiguously provides that “[a]ny area

that is part of a fire protection district and is annexed by a municipality that is

not part of the district ceases to be a part of the fire protection district when the

municipality begins to provide fire protection services to the area.” The City

contends that this statute “speaks plainly to this case and admits of no

exceptions where a city has annexed areas of a fire protection district and has

begun to provide fire protection services to those areas.” (Appellee’s Br. p. 15).

Had the Legislature wished to provide that I.C. § 36-8-11-22 only applied to

districts established after June 14, 1987, it could have easily incorporated a date

as it did in I.C. § 36-4-3-7(c). Rather, the Legislature’s failure to include a date

signals its intent that no date should be associated with I.C. § 36-8-11-22.

[19] While both parties implicitly appear to advance a claim that the annexation

statutes are ambiguous, we are mindful that the parties’ disagreement about a

provision is not conclusive of ambiguity, but is merely evidence that an

ambiguity may exist. See Indianapolis Publ. Transp. Corp. v. Ind. Dep’t of State

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 12 of 25
 Revenue, 512 N.E.2d 906, 908 (Ind. Tax Ct. 1987). When, as here, appellate

courts interpret a statute, they independently review a statute’s meaning and

apply it to the facts of the case under review. State Farm Fire and Cas. Co. v.

Riddell Nat. Bank, 984 N.E.2d 655, 658 (Ind. Ct. App. 2013), trans. denied. A

court should construe and interpret a statute only if it is ambiguous. Jefferson

Smurfit Corp. v. Ind. Dept. of State Revenue, 681 N.E.2d 806, 810 (Ind. Tax Ct.

1997). A statute that is clear and unambiguous must be read to mean what it

clearly expresses, and its plain and obvious meaning may not be enlarged or

restricted. Dep’t of State Revenue v. Horizon Bancorp, 644 N.E.2d 870, 872 (Ind.

1994). The words and phrases of such a statute shall be taken in their plain,

ordinary, and usual sense. State Bd. of Tax Comm’rs v. Jewell Grain Co., 556

N.E.2d 920, 921 (Ind. 1990). But if a statute is susceptible to more than one

interpretation, it is deemed ambiguous and thus open to judicial construction.

Sees v. Bank One, Ind., N.A., 839 N.E.2d 154, 157 (Ind. 2005). At that point, we

will engage in construction to effect the intent of the legislature. Hinshaw v. Bd.

of Comm’rs of Jay Co., 611 N.E.2d 637, 638 (Ind. 1993). We do not presume that

the legislature intended language used in a statute to be applied illogically or to

bring about an unjust or absurd result. State ex. rel. Hatcher v. Lake Superior Ct.,

Room Three, 500 N.E.2d 737, 739 (Ind. 1986).

[20] Our review of the statute at issue, I.C. § 36-8-11-22, does not reveal any

ambiguity and requires no judicial interpretation. The statute is unequivocal

that where, as here, the area that was originally part of the District, becomes

annexed by the City, the area ceases to be part of the District as soon as the City

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 13 of 25
 begins to provide fire protection services to the Annexed Territory. The parties

do not dispute that since the annexation, the City has provided the Annexed

Territories with fire protection services. With the exception of providing fire

protection services, the legislature did not impose any other requirements on an

annexing municipality prior to becoming the recipient of the tax revenue in the

annexed areas.

[21] We are not persuaded by the District’s argument that the temporal framework

in I.C. § 36-4-3-7 should be read into the other statutes of the Act. While both

statutes are part of the same Act, our legislature did not provide any indication

that the date restriction included in one statute, should be read into another

statute. Rather to the contrary: while I.C. § 36-4-3-7 consists of subsections (a)

through (g), our legislature explicitly limited the date restriction to apply only to

subsections (d) and (e). As our legislature restricted the application to two

specific subsections within a broader statute, there is no reason to infer, absent

any explicit indication, that it intended to have us apply the same restrictive

provision in a different statute. See Jefferson Smurfit Corp., 681 N.E.2d at 810

(“[W]hen a definite provision is made with reference to one particular

subdivision of a section of the law dealing with the identical subject matter as

the other subdivisions thereof and a similar reference is omitted from the other

subdivisions thereof as well as from all of the rest of the section, the particular

reference is intended to apply solely to the subdivision in which it is contained

and to exclude its application from all of the rest.”) Accordingly, giving effect

to the plain, ordinary, and usual meaning of the words of the statute, we

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 14 of 25
 conclude that upon annexation and provision of the fire protection services to

the Annexed Territories, the City was entitled to receive the assessed tax

revenue associated with the Annexed Territories.

III. Administrative Remedies & Reallocation of Tax Levies

A. Law of the Case

[22] As a threshold issue, we need to determine the parameters of this second issue.

The City contends, and the trial court agreed, that the District’s argument

concerning the exhaustion of administrative remedies is barred by the law of the

case. Pointing to our decision that the trial court has subject matter jurisdiction

because “there is no tax law that needs interpreted or applied” and footnote 4 in

which we outline a possible litigation strategy with respect to the DLGF, the

City claims that the law of the case derived from the First Appeal limited the

administrative remedy to the situation when “the Auditor and/or DLGF fail to

comply with the declaratory judgment.” (First Appeal, 82 N.E.2d at 304, n.4).

[23] The law of the case doctrine provides that an appellate court’s determination of

a legal issue binds both the trial court and the court on appeal in any subsequent

appeal involving the same case and substantially the same facts. Pinnacle Media,

LLC v. Metr. Dev. Com’n of Marion Co., 868 N.E.2d 894, 901 (Ind. Ct. App.

2007), trans. denied. The purpose of the doctrine is to minimize unnecessary

relitigation of legal issues once they have been resolved by an appellate court.

Id. Accordingly, under the law of the case doctrine, relitigation is barred for all

issues decided “directly or by implication in a prior decision.” Id. However,

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 where new facts are elicited upon remand that materially affect the questions at

issue, the court upon remand may apply the law to the new facts as

subsequently found. Id. We also note that the law of the case doctrine “is a

discretionary tool.” Hanson v. Valma M. Hansom Revocable Trust, 855 N.E.2d

655, 662 (Ind. Ct. App. 2006). To invoke this doctrine, the matters decided in

the earlier appeal must clearly appear to be the only possible construction of an

opinion. Id. Thus, questions not conclusively decided in the earlier appeal do

not become law of the case. Id. Moreover, statements that are not necessary in

the determination of the issues presented are dicta, are not binding, and do not

become the law of the case. Id. As always, it should be remembered that we do

not decide issues in footnotes. See Richardson v. State, 856 N.E.2d 1222, 1229

(Ind. Ct. App. 2006), trans. denied.

[24] The First Appeal analyzed whether the trial court had subject matter

jurisdiction over the dispute between the parties. Based on the specific facts

before us, we concluded that the case was essentially an annexation case which

did not require an interpretation of tax laws. The current second issue before us

on this subsequent appeal focuses on the question as to whether the City should

have exhausted its administrative remedies prior to being awarded the tax levies

of the Annexed Territories. Failing to exhaust administrative remedies is not

directly or by implication connected to the subject matter jurisdiction and

should be considered as a separate question, unrelated to the First Appeal. See

First Am. Title Ins. Co. v. Robertson, 19 N.E.3d 757, 760 (Ind. 2014) (“the

exhaustion of administrative remedies . . . is a procedural error and does not

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 16 of 25
 implicate the trial court’s subject matter jurisdiction.”) Accordingly, the law of

the case doctrine is not implicated and we have jurisdiction to decide this issue

on the merits.

B. Tax Revenues

[25] The City’s declaratory judgment action requested the trial court to determine

whether the City is entitled to past, present, and future property tax revenues

derived from the Annexed Territories and to order tax revenues previously

allocated to the District reallocated to the City. However, in its motion for

partial summary judgment, the City only sought a declaration that the City is

entitled to future tax revenues.

[26] On the other hand, the District sought summary judgment not only as to its

right to continue providing fire protection services to the Annexed Territories,

but also that any tax levy, past, present, and future, be challenged through the

administrative process prior to being reallocated to the City.

[27] The trial court granted partial summary judgment to the City and denied the

District’s summary judgment. The District appealed the trial court’s summary

judgment and is now challenging the trial court’s denial of its motion of

summary judgment, i.e., that the City is not entitled to past tax levies that have

already been allocated and distributed. The City does not address past

allocations, but only presents an argument with respect to current and future

allocations of the tax levies. For judicial expediency’s sake, we will address the

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 tax levy argument as initially presented by the District, i.e., past, present, and

future payments.

[28] Property tax revenues fund local government through tax levies. See I.C. § 6-

1.1-17-1 et seq. 4 The tax levy for a specific area is based on the political

subdivision’s budget, tax rates, and assessed values as determined and certified

by the auditor. I.C. § 6-1.1-17-1 (2016). The county auditor then submits the

budget, tax rates, and tax levies to the County Board of Tax Adjustment for

review and adjustment. I.C. §§ 6-1.1-17-5 (2012);-6 (2016). Challenges must be

made by way of an appeal to the DLGF. I.C. § 6-1.1-17-13 (2009). After the

DLGF provides formal notice with a 1782 Notice of the final budget, the

objecting political subdivision “must file a statement with the [DLGF] no later

than ten (10) days” after receiving the annual notice of tax levy. I.C. § 6-1.1-17-

4
By P.L. 257-2019, our Legislature made significant changes to Chapter 17 of Indiana Code 6-1.1. In
essence, the current Chapter provides that the auditor shall submit a certified statement of the assessed value
for a specific political subdivision to the DLGF. I.C. § 6-1.1-17-1(a). In turn, the DLGF “shall make the
certified statement available on the department’s computer gateway.” I.C. § 6-1.1-17-1(b). Thereafter, the
DLGF “shall certify the tax rates and tax levies for all funds of political subdivisions subject to the [DLGF’s]
review.” I.C. § 6-1.1-17-16(a).
The [DLGF] shall give the political subdivision notification electronically in the manner
prescribed by the [DLGF] specifying any revision, reduction, or increase the department
proposed in a political subdivision’s tax levy or tax rate. The political subdivision has ten
(10) calendar days from the date the political subdivision receives the notification to
provide a response electronically in the manner prescribed by the [DLGF]. The response
may include budget reductions, reallocation of levies, a revision in the amount of
miscellaneous revenues, and further review of any other item about which, in the view of
the political subdivision, the department is in error. The [DLGF] shall consider the
adjustments as specified in the political subdivision’s response if the response is provided as
required by this subsection and shall deliver a final decision to the political subdivision.
I.C. § 6-1.1-17-16(g). Accordingly, the Legislature has streamlined the DLGF’s procedures by incorporating
an electronic gateway system, which replaces the formerly written 1782 Notice of the final budget.

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 13 (2009). The DLGF shall then “consider the adjustments as specified in the

political subdivision’s response if the response is provided as required by this

subsection and shall deliver a final decision to the political subdivision. I.C. §

6-1.1-17-13 (2009).

[29] “A claimant with an available administrative remedy must pursue that remedy

before being allowed access to the courts.” Graham v. Town of Brownsburg, 124

N.E.3d 1241, 1247 (Ind. Ct. App. 2019), reh’g denied, trans. denied. This is true

even when neither a statute nor agency rule specifically mandates exhaustion as

a prerequisite to judicial review. Id. Thus, where an administrative remedy is

readily available, “filing a declaratory judgment action is not a suitable

alternative” to exhaustion. Id. The exhaustion doctrine is supported by strong

policy reasons and considerations of judicial economy.

The exhaustion requirement serves to avoid collateral, dilatory
action . . . and to ensure the efficient, uninterrupted progression
of administrative proceedings and the effective application of
judicial review. It provides an agency with an opportunity to
correct its own errors, to afford the parties and the courts the
benefit of the [agency’s] experience and expertise, and to compile
a [factual] record which is adequate for judicial review.

Id. There are exceptions to the general requirement to exhaust administrative

remedies. For example, exhaustion is not required where it would be futile,

where the agency action is ultra vires, where exhaustion would cause irreparable

injury, or where other equitable considerations preclude exhaustion. Id.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 19 of 25
[30] Here, upon receipt of the 1782 Notice which confirmed the Auditor’s allocation

of tax levies to the District, the City was required to file a statement with the

DLGF no later than ten (10) days after receiving this annual notice of tax levy.

The City has conceded that it never disputed any allocations that pre-date the

commencement of this litigation, i.e., prior to May 2016, by using the

administrative remedies outlined in the 1782 Notice. Accordingly, the City is

now foreclosed from pursuing these tax revenues. Moreover, as these levies

have already been spent by the local government entity, it would be inequitable

to allow the City to now—very belatedly—receive these tax levies.

[31] In line with our decision in the first issue, we agree with the trial court’s

conclusion that the City is entitled to receive all future property taxes

attributable to fire protection services in the Annexed Territories. If the Auditor

fails to allocate future levies to the City, and the DLGF certifies this allocation,

then the City should follow the administrative procedure outlined in I.C. § 6-

1.1-17, as recently amended by our Legislature in 2019.

[32] With respect to the allocations between the date of filing the declaratory

judgment lawsuit in May 2016 and the judgment in February 2019, we are

apprehensive that where an administrative remedy is readily available, “filing a

declaratory judgment action is not a suitable alternative” to exhaustion.

Graham, 124 N.E.3d at 1247. Accordingly, as the City does not invoke any

exceptions to the general requirement to exhaust administrative remedies, the

City is only entitled to receive these revenues if the City appealed the 1782

Notice within the requisite period of time. Therefore, we reverse the trial court

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 20 of 25
 in this respect, and remand for further determination whether the City timely

availed itself of this administrative procedure.

CONCLUSION
[33] Based on the foregoing, we conclude that the City is entitled to receive the

future tax revenues from the fire protection services it provided to the Annexed

Territories. The City is not entitled to the past revenues. Finally, we conclude

that the City is entitled to tax revenues between May 2016 and February 2019,

if the City availed itself of the administrative remedy to appeal the Auditor’s

allocation. Accordingly, we remand to the trial court for determination

whether the City timely appealed the tax revenues allocated between May 2016

and February 2019.

[34] Affirmed in part, reversed in part, and remanded for further proceedings.

[35] Bradford, C. J. concurs

[36] Vaidik, J. concurs in part and dissents in part with separate opinion

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 21 of 25
 IN THE
COURT OF APPEALS OF INDIANA

Southwest Allen County Fire Court of Appeals Case No.
Protection District and Tera K. 19A-PL-510
Klutz, in her official capacity as
Auditor of Allen County,
Indiana,
Appellants-Defendants,

v.

City of Fort Wayne,
Appellee-Plaintiff

Vaidik, Judge, concurring in part, dissenting in part.

[37] I respectfully dissent in part. I believe that our holding in the first opinion—that

the trial court had subject-matter jurisdiction over the City’s declaratory-

judgment action—was incorrect. As the District explains, with no dispute from

the City, the Legislature has set forth what should happen if a political

subdivision disagrees with an allocation of funds in a budget notice from the

DLGF. See Appellant’s Br. pp. 13-14. “The political subdivision has ten (10)

calendar days from the date the political subdivision receives the notice to

provide a response electronically in the manner prescribed by the department of

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 22 of 25
 local government finance.” Ind. Code § 6-1.1-17-16(g). If a political

subdivision provides such a response, the DLGF “shall consider the

adjustments as specified in the political subdivision’s response” and “shall

deliver a final decision to the political subdivision.” Id. If the political

subdivision remains unsatisfied, it can file a petition for judicial review “in the

tax court.” Id. at (j) (emphasis added). Because the Legislature has established

a procedure that leads to the tax court, I believe we erred in determining that

the trial court had subject-matter jurisdiction in this matter. See Ind. Code § 33-

26-3-2 (establishing that a tax court has “any other jurisdiction conferred by

statute”).

[38] That being said, we must resolve this appeal in accordance with our first

opinion. In that regard, I agree with the majority that the trial court properly

interpreted Indiana Code section 36-8-11-22 and properly determined that the

City is entitled to the property-tax revenues from February 2019 onward.

Where I depart from the majority is on the issue of the 2016-2019 property-tax

revenues.

[39] The City chose to file a declaratory-judgment action in the trial court. A trial

court has the jurisdiction “to declare rights, status, and relations, and to

interpret statutes, contracts, and instruments generally.” Brindley v. Meara, 198

N.E. 301, 306 (Ind. 1935). Once the trial court declares the rights and stakes of

the parties, execution of the order is left to “a court having jurisdiction to grant

the relief.” Id. Indiana’s declaratory-judgment statute provides that trial courts,

within their respective jurisdictions, “have the power to declare rights, status,

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 23 of 25
 and other legal relations whether or not further relief is or could be claimed.”

Ind. Code § 34-14-1-1 (emphasis added). Having declared the City’s right to

receive future tax revenues associated with the Annexed Territories, the trial

court’s job under our first opinion is done. The City is therefore not entitled to

seek recovery of 2016-2019 property-tax revenues in the trial court. That is so

because the City made the choice to file a declaratory-judgment action in the

trial court instead of exhausting their administrative remedies by filing an

objection with the DLGF each year. That was their strategic choice. Their

inability to now seek recovery of the 2016-2019 property-tax revenues is a

consequence of that choice.

[40] I am troubled by the majority’s analysis requiring the City to exhaust its

administrative remedies while the declaratory-judgment action was pending in

the trial court for two reasons. First, that reasoning is inconsistent with what

we said in the first opinion—that the trial court had jurisdiction over this

dispute without the City having to exhaust its administrative remedies. Second,

the majority’s reasoning—requiring the City to exhaust its administrative

remedies at the same time the trial court had jurisdiction—means that the City

would have been required to file parallel proceedings in two separate courts—

one in the trial court and one with the DLGF (followed by judicial review in the

tax court). Parallel proceedings waste judicial resources, generate questions of

which judgment controls, and may produce contradictory judgments.

[41] I therefore concur with the majority’s conclusion that the trial court was correct

in declaring that the City is statutorily entitled to the future property-tax

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 24 of 25
revenues associated with the Annexed Territories. However, I respectfully

dissent as to its resolution of the 2016-2019 property-tax revenues. I would

hold that the City is not entitled to those interim revenues and instruct the trial

court to enter summary judgment on the 2016-2019 property-tax revenues for

the District.

Court of Appeals of Indiana | Opinion 19A-PL-510 | February 14, 2020 Page 25 of 25