Land Bank Agency

LAND BANK BOARD MEETING August 16, 2021 3:00 p.m. Training Room 210 City Hall, 903 W Main Street Blue Springs, Missouri 64015 PLEASE NOTE: Face coverings are required pursuant to Order of the Jackson County Executive dated August 6, 2021. Any persons wishing to attend the meeting in person should abide by the County’s mask requirement at all times while within City buildings 1. Approval of the July 19, 2021 Land Bank Board Meeting Minutes 2. Approval of Fiscal Year 2021-22 Annual Budget 3. 2021 Tax Sale Properties Update 4. Executive Session – Discussion relating to real estate pursuant to Sections 610.021(2) RSMo Posted Friday, August 13, 2021 at City Hall, 903 W Main Street, Blue Springs, MO and on the City’s website. A quorum of the City Council may be in attendance, however no City Council votes will be taken. Julia Porter Board Secretary  CITY OF BLUE SPRINGS, MISSOURI MINUTES OF LAND BANK MEETING JULY 19, 2021 A meeting of the Land Bank of Blue Springs, Missouri was held on Monday, July 19, 2021 at 3:00 p.m. with Chairman Johnson presiding. CONFIRMATION OF A Eric Johnson, Chair Tracy White-Baldridge - ABSENT QUORUM – James May, Vice Chair Kirk Sampson COMMISSIONERS IN Jim Fairbanks ATTENDANCE Also present were Staff Liaisons Christine Cates, Jackie Sommer, Karen Van Winkle, Chris Sandie; Matt Wright; Lance Dillenschneider, realtor and Board Secretary Julia Porter. CALL TO ORDER Chairman Johnson called the Land Bank meeting to order at 3:01 p.m. APPROVE BOARD Commissioner May moved to approve the minutes of the May 17, 2021 MINUTES meeting of the Land Bank of Blue Springs. Motion seconded by Commissioner Fairbanks and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT APPOINTMENT OF Commissioner Fairbanks moved to approve the slate of officers to OFFICERS serve through May 2022 as follows: • Eric Johnson as Chair • James May as Vice Chair • Kirk Sampson as Treasurer The motion was seconded by Commissioner May and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT 2021 TAX SALE UPDATE Jackie Sommer, attorney, gave an update on the 2021 Jackson County Tax Sale. There are currently five properties in the sale that are located in Blue Springs and all of the properties have houses. It is likely that these properties will sell at the Tax Sale due to the current market demand for houses and would most likely not be transferred to the Land Bank. QUARTERLY FINANCIAL Christine Cates presented the Land Bank Quarterly Financial STATEMENTS Statements for the Third Quarter of Fiscal Year 2020-21. The Financial Statements are attached to these Minutes and incorporated hereto. July 19, 2021 Land Bank Minutes Page 2 EXECUTIVE SESSION At 3:08 p.m., Commissioner Fairbanks moved that the Land Bank go into closed session pursuant to Section 610.021, subparagraph (2), Revised Statutes of Missouri, for the purpose of privileged communications between a governmental body or its representative and legal counsel including real estate, and that any minutes, documents and other records discussed or taken during the closed session remain closed, and that this body stand adjourned at the completion of such session. Motion seconded by Commissioner May and carried with the following votes: May – Aye Fairbanks – Aye Sampson – Aye Johnson – Aye White-Baldridge – ABSENT ______________________________ Eric Johnson, Chair ________________________ Julia Porter, Board Secretary The Land Bank Board is being asked to approve an increase in expenditures and revenues for fiscal year 2021. Transfers for Neighborhood Improvement District debt will include all revenues associated with NID properties until all past due assessments are fully reimbursed. Fiscal Year 2021 Land Bank Budget Amendment Account Description Amount Revenue Sale of Land & Buildings Sales: $ 980,203 2014-03 –GAP Construction LLC (Villas North) 2014-04 & 2014-05 –DAK Realty (Brookside Est) 2017-05 –Proverbs Holdings (Proverbs Est) 2016-06 –Kansas LD LLC (Cambridge Park) Lease Revenue Chapman Farm Lease for 2021 5,600 Property Tax Increase in taxes 2,452 Interest Income Interest on taxes and funds held from sales 4,213 Total Revenue $ 992,468 Expenditures Professional Services Fees associated with sale of properties $ 61,507 Tax Collection Services Tax collection fees of 1% and 4% for Land Bank $ 300 Tax Assessment Services Tax assessment fee of 0.6% $ 50 Transfer to City for DS – NID Net Sale of Properties $ 918,724 Transfer to City for DS – NID 2020 Property Tax for NID Properties $ 4,177 TOTAL 984,758 The FY2021 budget is being submitted for your review and approval. Included in this budget is a transfer to the City’s general fund for property tax and NID special assessment for those Land Bank post-sale parcels that are in the NID. Although there are a few pending contracts for the sale of Land Bank property that may finalize in FY 2022, those funds are not included in the budget. Once the sale is completed, a request for an amended FY 2022 budget will be submitted. Fiscal Year 2022 Land Bank Budget Account Description Amount Revenue Property Tax Three years of property taxes – post sale $ 266,033 Purchase Application Fee Fee paid by potential buyers $ 25 Interest Income Interest earned on cash in bank $ 5,713 Total Revenue $ 271,771 Expenditures Tax Collection Services Jackson County 1% collection fee $ 2,660 Tax Collection Services - LB Jackson County 4% fee for costs related to LB $ 10,640 Tax Assessment Services Jackson County 0.06% fee for assessing value $ 595 Insurance Premiums & Bond Truss $ 500 Transfer to City for NID Debt Net revenues associated with any NID property $ 251,692 Total Expenditures $ 266,087 The 2021 budget does not include non-cash items such as Contributed Capital or Loss on the Sale of Assets. These items will be recorded when properties are either transferred to the Land Bank by the County or when the Land Bank sells a property. Other Land Bank expenditures that are not included in the budget and that are paid by the City include office supplies, postage, and audit costs. The proposed budget may be amended throughout the year if additional property sales occur or additional expenditures become necessary.  City of Blue Springs Land Bank Fund Budget Summary FY 2021-22 Annual Budget 2020-21 2020-21 Year- 2021-22 2019-20 $ Change % Change $ Change % Change LAND BANK FUND Adopted/Amended End Budget Actual from 2021 from 2021 from 2021 from 2021 Budget Projection Request REVENUES Taxes 48,835 109,381 111,832 2,451 2.24% 266,034 156,653 143.22% Charges for Service 25 100 25 (75) -75.00% 25 (75) -75.00% Interest 1,444 1,500 5,713 4,213 280.84% 5,713 4,213 280.84% Sales & Rental 244,863 - 985,803 985,803 0.00% - - 0.00% Other Income 51,739 - - - 0.00% - - 0.00% TOTAL REVENUES 346,906 110,981 1,103,372 992,391 894.20% 271,771 160,790 144.88% EXPENDITURES Supplies and Materials - - - - 0.00% - - 0.00% Contractual Services 18,168 6,031 67,888 61,857 1025.65% 14,395 8,364 138.68% Capital Outlay 70,123 - - - 0.00% - - 0.00% TOTAL EXPENDITURES 88,291 6,031 67,888 61,857 1025.65% 14,395 8,364 139% EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 258,615 104,950 1,035,484 930,534 887% 257,376 152,426 6% OTHER FINANCING SOURCES (USES): OPERATING TRANSFERS IN From General Fund - - - - 0% - - 0% TOTAL OPERATING TRANSFERS IN - - - - 0% - - 0% OPERATING TRANSFERS OUT 686,931 94,760 1,017,660 922,900 974% 251,692 156,932 165.61% TOTAL OPERATING TRANSFERS OUT 686,931 94,760 1,017,660 922,900 974% 251,692 156,932 165.61% Revenue Budget Summary Land Bank 2020-21 2020-21 2021-22 2017-18 2018-19 2019-20 $ Change % Change Account Account Description Adopted/Amended Year-End Budget Actual Actual Actual from 2021 from 2021 Budget Projection Request 770-00000-401100 Property Tax 78,820 106,408 48,835 109,381 111,832 266,034 156,653 143% Total Taxes 78,820 106,408 48,835 109,381 111,832 266,034 156,653 143% - - - - - - - 0% Total Licenses and Permits - - - - - - - 0% - - - - - - - 0% Total Intergovernmental - - - - - - - 0% 770-00000-430140 Purchase Application Fee 100 75 25 100 25 25 (75) -75% Total Charges for Service 100 75 25 100 25 25 (75) -75% - - - - - - - 0% Total Fines and Penalties - - - - - - - 0% 770-00000-450100 Interest Income 992 11,613 1,444 1,500 5,713 5,713 4,213 281% 770-00000-450521 Interest Income - Delinquent Property Taxes 1 - - - - - - 0% Total Interest Earnings 993 11,613 1,444 1,500 5,713 5,713 4,213 281% 770-00000-460300 Sale of City Property 31,150 890,000 232,024 - 980,203 - - 0% 770-00000-460610 Lease Revenue 7,120 7,697 12,839 - 5,600 - - 0% Total Sales & Rentals 38,270 897,697 244,863 - 985,803 - - 0% 770-00000-480999 Contributed Capital 93,731 - 51,739 - - - - 0% Total Other Income 93,731 - 51,739 - - - - 0% - - - - - - - 0% Total Operating Transfers In - - - - - - - 0% TOTAL LAND BANK REVENUES 211,913 1,015,793 346,906 110,981 1,103,372 271,771 160,790 144.88% 2020-21 2020-21 Year- 2021-22 $ Change % Change 2017-18 Actual 2018-19 Actual 2019-20 Actual Adopted/Amended End Budget from 2021 from 2021 Budget Projection Request \\cbswin1\finance\Economic Development\Land Bank\Land Bank Budget\2022_770 Land Bank.Budget.xlsx 2022_770 Land Bank.Budget.xlsx Revenue Summary Budget Summary Land Bank 2020-21 2020-21 2021-22 2017-18 2018-19 2019-20 $ Change % Change Account Account Description Adopted/Amended Year-End Budget Actual Actual Actual from 2021 from 2021 Budget Projection Request Total Supplies and Materials - - - - - - - 0% 770-00000-530100 Professional Services 225 56,551 15,196 - 61,507 - - 0% 770-00000-530200 Tax Collection Services 3,941 5,320 2,442 5,469 1,164 2,660 (2,809) -51% 770-00000-530200 Tax Collection Services - - - - 4,605 10,640 10,640 0% 770-00000-530210 Tax Assessment Services 102 274 30 62 112 595 533 860% 770-00000-530410 Insurance Premiums & Bonds 500 500 500 500 500 500 - 0% Total Contractual Services 4,768 62,645 18,168 6,031 67,888 14,395 8,364 139% 770-00000-549000 Gain/Loss on Disposal of Capital Asset 164,364 71,379 70,123 - - - 0% Total Capital Outlay 164,364 71,379 70,123 - - - - 0% 770-00000-550400 Debt - Transfer for Debt Payments 74,513 538,102 686,931 94,760 1,017,660 251,692 156,932 0% Total Operating Transfers Out 74,513 538,102 686,931 94,760 1,017,660 251,692 156,932 166% TOTAL LAND BANK EXPENSES 243,645 672,126 775,222 100,791 1,085,548 266,087 165,296 164.00% 2020-21 2020-21 Year- 2021-22 2017-18 2018-19 2019-20 $ Change % Change Adopted/Amended End Budget Actual Actual Actual from 2021 from 2021 Budget Projection Request