Urban Renewal Authority of Dacono

Urban Renewal Authority of Dacono Meeting AGENDA Wednesday, December 7, 2022 6:00 PM Meeting location: New Annex Building, 512 Cherry Ave - Building C, Dacono, CO 80514 I. Roll Call II. Approval of the November 2, 2022 Urban Renewal Authority of Dacono Meeting Minutes. III. General Business A. *Public Hearing and Approval of Resolution URAD 22-07, approving the 2023 Budget. Presenter: Thuy Dam - Outsourcing CFO, Clifton Larson Allen, LLP B. *Consideration and Approval of Resolution URAD 22-08, approving a Reimbursement Agreement between the City of Dacono and the Urban Renewal Authority of Dacono for Roadway Project. Presenter: Jennifer Krieger, Executive Director IV. Authority Member Reports V. Adjournment *Materials in Packets. Accommodations for the disabled can be made upon request.  Urban Renewal Authority of Dacono Meeting Minutes Wednesday, November 2, 2022 Meeting called to order at 6:01 PM Members Present Perry Buck Doris Crespo Bill Haid Danny Long Adam Morehead Kevin Plain Jackie Thomas, Chairperson Jim Turnini Kathryn Wittman Members Absent Charlie Everitt, unexcused Chico Garcia, unexcused Staff Present AJ Euckert, City Manager Jennifer Krieger, Secretary/Executive Director Carolynne White, Attorney Valerie Taylor, Clerk to the Authority I. Approval of the September 7, 2022 Urban Renewal Authority of Dacono Meeting Minutes. Authority Member Wittman moved to approve the September 7, 2022 Urban Renewal Authority of Dacono Meeting Minutes as presented. The vote was unanimous with Chairperson Thomas declaring the motion carried. II. General Business A. Receipt of Financial Statement periods ended September 30, 2022. Thuy Dam, Outsourcing CFO – Clifton Larson Allen LLP, presented her report. No formal action take. B. 2023 Budget Presentation Thuy Dam - Outsourcing CFO, Clifton Larson Allen, LLP, presented her report. Authority Member Morehead moved to acknowledge the receipt of the 2023 budget and set the public hearing date as December 7, 2022. The vote was unanimous with Chairperson Thomas declaring the motion carried. III. Authority Member Reports None IV. Adjournment With no further business to be discussed, the meeting was adjourned at 6:30 PM Page 1 of 2  Approved this 7th day of December, 2022. _______________________________ Jackie Thomas, Chairperson Attest: ______________________________________ Jennifer Krieger, Secretary/Executive Director Page 2 of 2  Meeting Date: December 7, 2022 Subject: Adoption of Budget for the Urban Renewal Authority of Dacono Fiscal Year 2023. Presenter: Thuy Dam, Outsourcing CFO State and Local Government, Clifton Larson Allen, LLP Jennifer Krieger, Executive Director Background: The draft budget for the Urban Renewal Authority of Dacono for Fiscal Year 2023 was presented to the Board on November 2, 2022. The budget reflects expected revenues and expenditures for Dacono Plan Area I and Dacono Plan Area II for the Urban Renewal Authority of Dacono. Incremental property tax revenue is the primary funding source for the URAD. The primary 2023 project for the Authority includes the roadway design engineering and construction for a portion of Weld County Road 12 (Grand View Blvd). Incremental revenue generated from the Dacono Plan Area II is pledged revenue for debt service payment of the Authority Tax Increment Revenue Bonds, Series 2020.  URBAN RENEWAL AUTHORITY OF DACONO RESOLUTION NO. 22-07 A RESOLUTION OF THE URBAN RENEWAL AUTHORITY OF DACONO ADOPTING THE ANNUAL BUDGET AND APPROPRIATING EXPENDITURES FOR THE URBAN RENEWAL AUTHORITY OF DACONO FOR FISCAL YEAR 2023 WHEREAS, the Urban Renewal Authority of Dacono’s proposed annual budget for the fiscal year 2023 has been prepared and submitted to the Board of Commissioners; and WHEREAS, such budget contains all of the matters required by law, and said budget is in balance as required by law; and WHEREAS, a public hearing has been held on the proposed budget following public notice of the same; NOW THEREFORE, BE IT RESOLVED BY THE URBAN RENEWAL AUTHORITY OF DACONO: Section 1. The Annual Budget for the Urban Renewal Authority of Dacono, for the Fiscal Year beginning January 1, 2023, and ending December 31, 2023, is hereby approved and adopted. Such 2023 Annual Budget document is attached hereto and made a part of this Resolution. Section 2. Moneys are hereby appropriated for said fiscal year as provided in said budget document. INTRODUCED, READ, and ADOPTED this 7th day of December 2022. Jackie Thomas, Chairperson ATTEST: Jennifer Krieger, Executive Director/Secretary URBAN RENEWAL AUTHORITY OF DACONO ANNUAL BUDGET FOR THE YEAR ENDING DECEMBER 31, 2023 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO SUMMARY 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 2,327,813 $ 2,585,399 $ 2,656,373 $ 2,656,373 $ 3,379,886 REVENUES Incremental property taxes - Plan Area I 792,141 932,739 915,789 932,540 1,002,359 Incremental property taxes - Plan Area II 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Interest income 695 500 54,176 81,000 92,000 Royalties 44,135 35,000 43,417 45,000 45,000 Other Revenue - - 25 25 - Transfer from City 3,303 - - - - Total revenues 858,693 13,558,399 13,603,831 13,648,989 28,567,319 TRANSFERS IN 194,597 1,230,096 76,295 187,566 1,925,833 Total funds available 3,381,103 17,373,894 16,336,499 16,492,928 33,873,038 EXPENDITURES General Accounting 32,680 50,000 24,170 45,000 52,000 Auditing 5,750 7,000 5,850 5,850 7,000 County Treasurer's fee 12,156 202,843 202,596 202,844 426,454 Legal services 9,696 60,000 9,510 25,000 50,000 Professional services - 100,000 38,181 100,000 250,000 Staffing 133,057 185,000 119,951 173,832 209,000 Contingency 701 9,009 60 60 8,965 Property tax increment payments 7,308 5,037,979 5,038,086 5,038,086 11,001,353 Debt Service Trustee fees 3,000 3,000 - 3,000 3,000 Bond principal - 5,100,000 - 5,133,000 10,910,000 Bond interest - 2,171,804 - 2,171,804 681,875 Capital Projects Capital outlay - Plan Area I 98,285 1,250,000 21,496 27,000 1,938,000 Capital outlay - Plan Area II 227,500 1,791,976 - - 1,831,471 Total expenditures 530,133 15,968,611 5,459,900 12,925,476 27,369,118 TRANSFERS OUT 194,597 1,230,096 76,295 187,566 1,925,833 Total expenditures and transfers out requiring appropriation 724,730 17,198,707 5,536,195 13,113,042 29,294,951 ENDING FUND BALANCES $ 2,656,373 $ 175,187 $ 10,800,304 $ 3,379,886 $ 4,578,087 No assurance provided. See summary of significant assumptions. 1 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA I 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 ASSESSED VALUATION - WELD COUNTY TIF Increment $ 5,921,051 $ 6,866,308 $ 6,866,308 $ 6,866,308 $ 7,361,614 Total TIF Certified Assessed Value $ 5,921,051 $ 6,866,308 $ 6,866,308 $ 6,866,308 $ 7,361,614 MILL LEVY General Fund 136.872 135.843 135.843 135.843 136.160 Total mill levy 136.872 135.843 135.843 135.843 136.160 PROPERTY TAXES General Fund $ 810,424 $ 932,739 $ 932,739 $ 932,739 $ 1,002,359 Levied property taxes 810,424 932,739 932,739 932,739 1,002,359 Refund and abatements (8,566) - (199) (199) - Adjustments to actual/rounding (9,717) - (16,751) - - Budgeted property taxes $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 BUDGETED PROPERTY TAXES General Fund $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 $ 792,141 $ 932,739 $ 915,789 $ 932,540 $ 1,002,359 No assurance provided. See summary of significant assumptions. 2 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO PROPERTY TAX SUMMARY INFORMATION PLAN AREA II 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 ASSESSED VALUATION - WELD COUNTY TIF Increment $ 159,460 $ 109,686,180 $ 109,686,180 $ 109,686,180 $ 237,367,900 Total TIF Certified Assessed Value $ 159,460 $ 109,686,180 $ 109,686,180 $ 109,686,180 $ 237,367,900 MILL LEVY Debt Service 115.509 114.783 114.783 114.783 115.550 Total mill levy 115.509 114.783 114.783 114.783 115.550 PROPERTY TAXES Debt Service $ 18,419 $ 12,590,160 $ 12,590,160 $ 12,590,160 $ 27,427,960 Adjustments to actual/rounding - - 264 264 - Levied property taxes 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Budgeted property taxes $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 BUDGETED PROPERTY TAXES Debt Service $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 $ 18,419 $ 12,590,160 $ 12,590,424 $ 12,590,424 $ 27,427,960 No assurance provided. See summary of significant assumptions. 3 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO GENERAL FUND 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 309,537 $ 686,850 $ 757,676 $ 757,676 $ 1,337,535 REVENUES Incremental property taxes - Plan Area I 792,141 932,739 915,789 932,540 1,002,359 Other Revenue - - 25 25 - Royalties 44,135 35,000 43,417 45,000 45,000 Interest income - - 502 1,000 2,000 Total revenues 836,276 967,739 959,733 978,565 1,049,359 TRANSFERS IN Debt Service Fund - administration fees 113 76,295 76,295 76,295 168,303 Total transfers in 113 76,295 76,295 76,295 168,303 Total funds available 1,145,926 1,730,884 1,793,704 1,812,536 2,555,197 EXPENDITURES Accounting 32,680 50,000 24,170 45,000 52,000 Auditing 5,750 7,000 5,850 5,850 7,000 County treasurer's fee 11,882 13,991 13,740 13,988 15,035 Legal services 9,696 60,000 9,510 25,000 50,000 Professional Services - 100,000 38,181 100,000 250,000 Staffing 133,057 185,000 119,951 173,832 209,000 Contingency 701 9,009 60 60 8,965 Total expenditures 193,766 425,000 211,462 363,730 592,000 TRANSFERS OUT Capital Projects Fund - Plan Area I 98,285 1,042,530 - - 1,639,720 Capital Projects Fund - Plan Area I (Mountain View Fire) 96,199 111,271 - 111,271 117,810 Total transfers out 194,484 1,153,801 - 111,271 1,757,530 Total expenditures and transfers out requiring appropriation 388,250 1,578,801 211,462 475,001 2,349,530 ENDING FUND BALANCES $ 757,676 $ 152,083 $ 1,582,242 $ 1,337,535 $ 205,667 No assurance provided. See summary of significant assumptions. 4 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO DEBT SERVICE FUND 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ - $ 10,874 $ 11,027 $ 11,027 $ 50,410 REVENUES Incremental property taxes - Plan Area II 18,419 12,590,160 12,590,424 12,590,424 27,427,960 Transfer from City 3,303 - - - - Interest income - - 40,308 60,000 70,000 Total revenues 21,722 12,590,160 12,630,732 12,650,424 27,497,960 Total funds available 21,722 12,601,034 12,641,759 12,661,451 27,548,370 EXPENDITURES Trustee fees 3,000 3,000 - 3,000 3,000 County Treasurer's fee 274 188,852 188,856 188,856 411,419 Property tax increment payment - AIMS Junior College 90 93,743 93,745 93,745 167,827 Property tax increment payment - School Dist RE1J 4,326 2,871,405 2,871,466 2,871,466 6,384,020 Property tax increment payment - School Dist RE8 91 112,915 112,918 112,918 202,149 Property tax increment payment - St Vrain Sanitation 70 46,886 46,887 46,887 103,370 Property tax increment payment - Weld County 1,157 812,360 812,377 812,377 1,757,998 Property tax increment payment - Mountain View Fire 1,425 1,000,544 1,000,565 1,000,565 2,165,240 Property tax increment payment - Northern Colorado Water 149 100,126 100,128 100,128 220,749 Bond principal - 5,100,000 - 5,133,000 10,910,000 Bond interest - 2,171,804 - 2,171,804 681,875 Total expenditures 10,582 12,501,635 5,226,942 12,534,746 23,007,647 TRANSFERS OUT General Fund - Administation fees 113 76,295 76,295 76,295 168,303 Total transfers out 113 76,295 76,295 76,295 168,303 Total expenditures and transfers out requiring appropriation 10,695 12,577,930 5,303,237 12,611,041 23,175,950 ENDING FUND BALANCES $ 11,027 $ 23,104 $ 7,338,522 $ 50,410 $ 4,372,420 No assurance provided. See summary of significant assumptions. 5 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA I 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ - $ 96,199 $ 96,199 $ 96,199 $ 180,470 REVENUES Total revenues - - - - - TRANSFERS IN General Fund 194,484 1,153,801 - 111,271 1,757,530 Total transfers in 194,484 1,153,801 - 111,271 1,757,530 Total funds available 194,484 1,250,000 96,199 207,470 1,938,000 EXPENDITURES I-25 Corridor (market analysis) 84,840 100,000 - 2,000 98,000 URAD Property (site planning) 13,445 65,000 21,496 25,000 40,000 County Road 12 (design/survey) - 100,000 - - 200,000 County Road 12 (construction) - 985,000 - - 1,600,000 Total expenditures 98,285 1,250,000 21,496 27,000 1,938,000 Total expenditures and transfers out requiring appropriation 98,285 1,250,000 21,496 27,000 1,938,000 ENDING FUND BALANCES $ 96,199 $ - $ 74,703 $ 180,470 $ - No assurance provided. See summary of significant assumptions. 6 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO CAPITAL PROJECTS FUND - PLAN AREA II 2023 BUDGET WITH 2021 ACTUAL AND 2022 ESTIMATED For the Years Ended and Ending December 31, 10/28/2022 ACTUAL BUDGET ACTUAL ESTIMATED BUDGET 2021 2022 9/30/2022 2022 2023 BEGINNING FUND BALANCES $ 2,018,276 $ 1,791,476 $ 1,791,471 $ 1,791,471 $ 1,811,471 REVENUES Interest income 695 500 13,366 20,000 20,000 Total revenues 695 500 13,366 20,000 20,000 Total funds available 2,018,971 1,791,976 1,804,837 1,811,471 1,831,471 EXPENDITURES Capital outlay 227,500 1,791,976 - - 1,831,471 Total expenditures 227,500 1,791,976 - - 1,831,471 Total expenditures and transfers out requiring appropriation 227,500 1,791,976 - - 1,831,471 ENDING FUND BALANCES $ 1,791,471 $ - $ 1,804,837 $ 1,811,471 $ - No assurance provided. See summary of significant assumptions. 7 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Services Provided The Economic Development Authority of Dacono was formed by resolution passed March 23, 2015, by the City Council of the City of Dacono, Colorado (the City) pursuant to the Colorado Urban Renewal Law, Colorado Revised Statutes. On June 8, 2020, a resolution was passed to change the name of the organization to the Urban Renewal Authority of Dacono (Authority). The purpose of the Authority is to acquire and develop certain blighted areas in the City to maintain the public welfare. The Authority is considered a component unit of the City since the Authority’s tax increment financing indicates financial accountability with the City, due to the benefits redevelopment will provide the City. The Mayor appoints the Authority board members and the City Council reviews the Urban Renewal Plans and any changes thereto. Legal counsel is of the opinion that under state statues, the City is not liable with respect to the bonds issued by the Authority. The Authority has no employees and all administrative functions are contracted. The Authority prepares its budget on the modified accrual basis of accounting in accordance with the requirements of Colorado Revised Statutes C.R.S. 29-1-105 using its best estimates as of the date of the budget hearing. These estimates are based on expected conditions and its expected course of actions. The assumptions disclosed herein are those that the District believes are significant to the budget. There will usually be differences between the budget and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Revenues Incremental Property Taxes The Authority receives incremental property tax revenue for each of the active Urban Renewal areas. Incremental property tax revenues are the property tax revenues in excess of an amount equal to the ad valorem property taxes produced by the levy at the rates fixed for such year by or for the governing bodies of the various taxing jurisdictions within or overlapping the Urban Renewal area upon a valuation for assessment equal to the property tax base amount. The property tax base amount is certified by the County Assessor as the valuation for assessment of all taxable property within the Urban Renewal area last certified by the County Assessor prior to the adoption of the Urban Renewal plan. The base amount may be proportionately adjusted for general reassessments in accordance with Colorado law. The calculation of the incremental property taxes budgeted is displayed on the Property Summary Information pages the budget at the estimated mill levies for each project area. Interest Income Interest earned on the Authority’s available funds has been estimated based on the current average interest rate. 8 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures Administrative Expenditures Administrative expenditures include the services necessary to maintain the administrative viability such as legal, accounting, audit, contractual, and professional services, and other administrative expenses for the Authority. County Treasurer’s Fees County Treasurer’s collection fees have been computed at 1.5% of the incremental property taxes. Property Tax Increment Payment City Cooperation Agreement. On December 16, 2019, the Authority entered into a Cooperation Agreement (Dacono II Urban Renewal Plan) with the City (the “City Cooperation Agreement”). Pursuant to the City Cooperation Agreement, the parties agreed that, in furtherance of carrying out the purposes of the Plan, the Authority may retain and expend, 100% of the following revenue: (a) incremental property tax revenues derived from the City’s mill levy and transferred by the County Treasurer to the Authority for deposit into the Special Fund (the “City Property Tax Increment”) and (b) the incremental sales and use tax revenues from the portion of the City’s 3.0% general fund sales and use tax which are in excess of the sales tax base amount which revenues are deposited into the Special Fund by the City (the “City Sales Tax Increment” and together with the City Property Tax Increment, the “City Increment”). Under the City Cooperation Agreement, the Authority agreed to use the City Increment to pay eligible costs of the redevelopment of the TIF Area. The City Sales Tax Increment is not pledged to the Bonds and will be used by the Authority for other uses. The City presently imposes a debt service mill levy for the payment of general obligation indebtedness (2.62 of its 25.082 mills imposed in 2019, all of which will contribute to the Pledged Revenues) with a final maturity date of December 1, 2025. County Tax Increment Revenue Sharing Agreement. On December 16, 2019, the Authority entered into a Tax Increment Revenue Sharing Agreement with the County (the “County Sharing Agreement”). The parties agreed that the Authority may retain 50% of the net property tax increment revenues generated from the County’s mill levy during the TIF Period (the “County Increment”) and the Authority will remit to the County the remaining 50% of the net property tax increment revenues. St. Vrain Valley School District IGA. On December 16, 2019, the Authority and St. Vrain Valley School District RE-1J (the “St. Vrain School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and St. Vrain Valley School District (the “St. Vrain School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the St. Vrain School District’s mill levy (currently in the amount of 24.995 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “St. Vrain Total Program Mill Levy Increment”) and the Authority will remit to the St. Vrain School District all of the property tax increment revenues derived from the St. Vrain School District’s other mill levies and any future mill levies. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. 9 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) Weld RE-8 School District IGA. On December 11, 2019, the Authority and Weld RE-8 School District (the “Weld School District”) entered into an Intergovernmental Agreement for Tax Increment Revenue Sharing By And Between the Economic Development Authority of Dacono and Weld RE-8 School District (the “Weld School District IGA”). The parties agreed that the Authority may retain the property tax increment revenues generated from the Weld School District’s mill levy (currently in the amount of 12.143 mills) established by the Colorado Public School Finance Act, Section 22-54-106, C.R.S. (the “Weld Total Program Mill Levy Increment”) and the Authority will remit to the Weld School District all of the property tax increment revenues derived from the Weld School District’s other mill levies and any future mill levies. Carbon Valley Parks and Recreation District IGA. On November 19, 2019, the Authority and Carbon Valley Parks and Recreation District (the “Parks and Recreation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Carbon Valley Parks and Recreation District) (Dacono II Urban Renewal Plan) (the “Parks and Recreation District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 100% of the property tax increment revenues generated from the Parks and Recreation District’s mill levy (the “Parks and Recreation District Increment”). The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the incremental property tax revenue received by the Authority to pay the administrative costs of the Authority. Mountain View Fire Rescue District IGA. On December 9, 2019, the Authority and Mountain View Fire Rescue District (the “Fire District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Mountain View Fire Rescue District) (Dacono II Urban Renewal Plan) (the “Fire District IGA”). The parties agreed that the Authority may retain and expend in furtherance of the Urban Renewal Project 42% of the property tax increment revenues generated from the Fire District’s mill levy (the “Fire District Increment”), subject to a limit of $16,000,000 (the “Fire District Increment Cap”). If the Authority collections hit the Fire District Increment Cap prior to expiration of the TIF Period, then the Authority will not be entitled to retain the Fire District Increment and will remit it to the Fire District. The parties agreed that the Authority may retain an annual administrative fee equal to 1% of the property tax increment revenues received by the Authority to pay the administrative costs of the Authority. The Authority agreed to use the Fire District Increment solely for transportation infrastructure projects identified in the Plan. Given the restrictions on the use of the Fire District Increment in the Fire District IGA, the Fire District Increment is not pledged to the payment of the Bonds. High Plains Library District IGA. On December 16, 2019, the Authority entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (High Plains Library District) (Dacono II Urban Renewal Plan) with High Plains Library District (the “Library District”) (the “Library District IGA”). The parties agreed that the Authority will remit to the Library District all of the property tax increment revenues derived from the Library District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of such property tax increment revenues to pay the administrative costs of the Authority. 10 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Expenditures (Continued) Property Tax Increment Payment (Continued) St. Vrain Sanitation District IGA. On November 20, 2019, the Authority and St. Vrain Sanitation District (as previously defined, the “Sanitation District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (St. Vrain Sanitation District) (Dacono II Urban Renewal Plan) (the “Sanitation District IGA”). The parties agreed that the Authority will remit to the Sanitation District all of the property tax increment revenues derived from the Sanitation District’s mill levy allocated to the Special Fund, except that the Authority may retain an annual administrative fee equal to 1% of property tax increment revenues received by the Authority to pay the administrative costs of the Authority. Aims Junior College District IGA. On December 3, 2019, the Authority and Aims Junior College District (the “College District”) entered into an Intergovernmental Agreement for Property Tax Increment Revenue Sharing (Aims Junior College District) (Dacono II Urban Renewal Plan) (the “College District IGA”). The parties agreed that the Authority will remit to the College District all of the property tax increment revenues derived from the College District’s mill levy allocated to the Special Fund. Northern Colorado Water Conservancy District. On November 25, 2019, the Authority sent a letter to the Northern Colorado Water Conservancy District (the “Water District”) to notify the Water District that the Authority would remit to the Water District all of the property tax increment revenues derived from the Water District’s mill levy. Accordingly, the Authority did not enter into an intergovernmental agreement with the Water District governing the sharing of incremental property tax revenues. Debt and Leases City Loan Between 2016 and 2019, the City of Dacono General Fund loaned the Authority $877,677 to implement plan objectives. These objectives include eliminating and preventing the spread of blight within the Plan Area and to stimulate growth and investment within the Area boundaries. The funds were used for property acquisition and public improvements in the Plan Area. Currently, the Authority is to retain all of the TIF funds collected. In future years, the Authority anticipates TIF revenues to increase and the loan will be repaid at that time. Tax Increment Revenue Bonds, Series 2020 On October 28, 2020, the Authority issued $16,043,000 in Tax Increment Revenue Bonds, Series 2020. Proceeds from the bonds will be used to: (i) acquire certain water rights known as the Windy Gap Units for use in the TIF Area and elsewhere within the City, (ii) finance a portion of the costs of the design, construction, acquisition, and equipping of certain water and sewer infrastructure within the TIF Area and elsewhere within the City, and (iii) pay costs of issuing the bonds. 11 DRAFT - SUBJECT TO REVISION  URBAN RENEWAL AUTHORITY OF DACONO 2023 BUDGET SUMMARY OF SIGNIFICANT ASSUMPTIONS Debt and Leases (Continued) Tax Increment Revenue Bonds, Series 2020 (Continued) The bonds bear interest rate of 6.250% per annum and are payable annually on December 1, beginning on December 1, 2020 from and to the extent of available pledged revenue. The bonds mature on December 1, 2039 an are subject to mandatory redemption on December 1 of each year to the extent of available pledged revenue. The bonds are structured as cash flow bonds meaning that there are no scheduled payments of principal or interest prior to the final maturity date. Pledged revenue consists of pledged property tax revenues and any other legally available moneys, which the Authority determines, in its absolute discretion, to transfer to the Trustee for application as pledged revenue. Pledged property tax revenues are generally defined as that portion of the property tax increment revenues that is derived solely from property classified as oil and gas real property or oil and gas personal property as certified by the County Assessor in the TIF Area, net of any costs of collection of the City and/or County and any tax refunds or abatements authorized by or on behalf of the City and/or County. Property tax increment revenues generated from other taxable property in the TIF Area are not pledged to the payment of the bonds. To the extent principal of any bonds is not paid when due, such principal shall remain outstanding until the termination date of December 2, 2044 and shall continue to bear interest at the rate then borne by the bonds. To the extent interest on any bonds is not paid when due, such interest shall compound annually on each interest payment date at the rate then borne by the bonds. The bonds will be deemed discharged on the termination date. The District has no capital or operating leases. This information is an integral part of the accompanying budget. 12 DRAFT - SUBJECT TO REVISION  Meeting Date: December 7, 2022 Subject: URAD Resolution 22-08, A Resolution approving a Reimbursement Agreement between the City of Dacono, Colorado, and the Urban Renewal Authority of Dacono for Roadway Project. Presenter: Jennifer Krieger, Executive Director Background: As a part of the Dacono II Urban Renewal Plan, the Authority entered into tax increment revenue-sharing agreements with taxing bodies that impose a mill levy within the area. In the County TIF Agreement, the Authority and the County agreed that the Authority may retain certain of the net property tax increment revenues generated from the County’s mill levy collected shall be used for the purposes of financing public streets and roadway projects within or benefitting projects within the area defined by the Plan. Additionally, as part of the TIF Agreement with the Mountain View Fire Protection District, County Road 12 was to be prioritized. The FY 2023 Urban Renewal Authority of Dacono budget includes $1,800,000 for the design and construction of Grand View Blvd (WCR 12). Because the right-of-way is owned by the City of Dacono, the Authority is entering into a Reimbursement Agreement. Under the terms of the Agreement, the City will complete the roadway project, and the URAD will reimburse the City. General terms of the Agreement include: • The term of this Agreement shall begin on the effective date and continue until the earlier of (a) the date the roadway project has been completed and the City has been fully reimbursed for the costs or (b) December 16, 2044, which is the expiration of the period for which the Authority is authorized by the Act to receive tax increment revenues pursuant to the Plan. • The City shall accomplish the design and construction of the roadway project. No later than December 31, 2023, the City shall engage a contractor and commence the design of the roadway project. The City shall oversee the performance and completion of such design and construction. • The Authority shall reimburse the City for the entire costs and expenses incurred by the City in the design and construction of the roadway project minus any City contribution.  URBAN RENEWAL AUTHORITY OF DACONO RESOLUTION NO. 22-08 A RESOLUTION OF THE URBAN RENEWAL AUTHORITY OF DACONO APPROVING A REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DACONO, COLORADO AND THE URBAN RENEWAL AUTHORITY OF DACONO FOR ROADWAY PROJECT WHEREAS, the Authority is a body corporate and has been duly organized, established and authorized by the City to transact business and exercise its powers as an urban renewal authority, all under and pursuant to the Charter and the Colorado Urban Renewal Law, section 31 25 101, et seq., Colorado Revised Statutes (the “Act”); and WHEREAS, pursuant to section 31 25 109 of the Act, the Authority has the power and authority to issue or incur notes, interim certificates or receipts, temporary bonds, certificates of indebtedness, debentures, advances, or other obligations, including refunding obligations (collectively, the “Obligations”), for the purpose of financing the activities and operations authorized to be undertaken by the Authority with respect to the urban renewal projects in accordance with any adopted urban renewal plans and the Act, as approved by the City; and WHEREAS, an urban renewal plan, known as the “Dacono II Urban Renewal Plan” (the “Plan”) was duly and regularly approved by the City Council of the City by resolution on December 16, 2019. WHEREAS, the Authority has entered into certain tax increment revenue sharing agreements with taxing bodies that impose a mill levy within the area defined in the Plan (collectively, the “TIF Agreements”), including the Tax Increment Revenue Sharing Agreement by and between the Authority and the County of Weld, Colorado (the “County”) approved by the Authority by resolution on December 16, 2019 (the “County TIF Agreement”); WHEREAS, pursuant to the County TIF Agreement, the Authority and the County agreed that the Authority may retain certain of the net property tax increment revenues generated from the County’s mill levy collected pursuant to the Plan and shall use such amounts for the purposes of financing public streets and roadway projects within or benefitting projects within the area defined by the Plan; WHEREAS, pursuant to the County TIF Agreement, the street and roadway projects that are identified as priorities are listed in the “Roadway Project Summary”; and WHEREAS, the Authority finds the Roadway Project to be in the best interest of the Authority and necessary to carry out the purposes of the Plan; and WHEREAS, the tax increment revenue collected by the Authority pursuant to the TIF Agreements has outperformed bond projections, allowing the Authority to commence the Roadway Project sooner than previously anticipated; and  WHEREAS, the City agrees to accomplish the design and construction of the Roadway Project, as described in the Agreement; and WHEREAS the Authority agrees to reimburse the City for the costs of the City’s activities relating to the completion of the Roadway Project as one of the Obligations of the Authority, as described herein; and WHEREAS, the Act, Section 18, Article XIV of the Colorado Constitution authorizes the City and the Authority to enter into cooperative agreements, such as this Agreement. NOW THEREFORE, BE IT RESOLVED BY THE URBAN RENEWAL AUTHORITY OF DACONO: Section 1. The proposed Reimbursement Agreement (“Agreement”) between the Urban Renewal Authority of Dacono and the City of Dacono is hereby approved in essentially the same form as the copy of such Agreement accompanying this resolution. Section 2. The Chairperson is hereby authorized to execute the Agreement, and is further authorized to negotiate and approve on behalf of the Authority such revisions to the Agreement as the Chairperson determines are necessary or desirable for the protection of the Authority, so long as the essential terms and conditions of the Agreement are not altered. INTRODUCED, READ, and ADOPTED this 7th day of December 2022. __________________________ Jackie Thomas, Chairperson ATTEST: _____________________________________________ Jennifer Krieger, Executive Director/Secretary  REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF DACONO, COLORADO AND THE URBAN RENEWAL AUTHORITY OF DACONO FOR ROADWAY PROJECT THIS REIMBURSEMENT AGREEMENT (the “Agreement”) is entered into on the _____ day of ____________, 2022, (the “Effective Date”), by and between the City of Dacono, Colorado (the “City”), a home rule municipality and municipal corporation of the State of Colorado, and the Urban Renewal Authority of Dacono (the “Authority”), formerly known as the Economic Development Authority of Dacono, a body corporate duly organized and existing as an urban renewal authority under the laws of the State of Colorado and the Charter of the City. The City and the Authority are referred to individually as a “Party” and collectively as the “Parties.” WITNESSETH: WHEREAS, the City is a home rule municipality and municipal corporation duly organized and existing under and pursuant to Article XX of the Colorado Constitution and the City Charter of the City of Dacono (the “Charter”); and WHEREAS, the Authority is a body corporate and has been duly organized, established and authorized by the City to transact business and exercise its powers as an urban renewal authority, all under and pursuant to the Charter and the Colorado Urban Renewal Law, section 31-25-101, et seq., Colorado Revised Statutes (the “Act”); and WHEREAS, pursuant to section 31-25-109 of the Act, the Authority has the power and authority to issue or incur notes, interim certificates or receipts, temporary bonds, certificates of indebtedness, debentures, advances, or other obligations, including refunding obligations (collectively, the “Obligations”), for the purpose of financing the activities and operations authorized to be undertaken by the Authority with respect to the urban renewal projects in accordance with any adopted urban renewal plans and the Act, as approved by the City; and WHEREAS, an urban renewal plan, known as the “Dacono II Urban Renewal Plan” (the “Plan”) was duly and regularly approved by the City Council of the City by resolution on December 16, 2019. WHEREAS, the Authority has entered into certain tax increment revenue sharing agreements with taxing bodies that impose a mill levy within the area defined in the Plan (collectively, the “TIF Agreements”), including the Tax Increment Revenue Sharing Agreement by and between the Authority and the County of Weld, Colorado (the “County”) approved by the Authority by resolution on December 16, 2019 (the “County TIF Agreement”); and WHEREAS, pursuant to the County TIF Agreement, the Authority and the County agreed that the Authority may retain certain of the net property tax increment revenues generated from the County’s mill levy collected pursuant to the Plan and shall use such amounts for the purposes of financing public streets and roadway projects within or benefitting projects within the area defined by the Plan; 1 24929633.3  WHEREAS, pursuant to the County TIF Agreement, the street and roadway projects that are identified as priorities are listed in the “Roadway Project Summary” attached hereto as Exhibit A (collectively, the “Roadway Project”); and WHEREAS, the Authority finds the Roadway Project to be in the best interest of the Authority and necessary to carry out the purposes of the Plan; and WHEREAS, the City finds the Roadway Project to be in the best interests of the health, safety, and welfare of the citizens of the City; and WHEREAS, the tax increment revenue collected by the Authority pursuant to the TIF Agreements has outperformed bond projections, allowing the Authority to commence the Roadway Project sooner than previously anticipated; and WHEREAS, the City agrees to accomplish the design and construction of the Roadway Project, as described herein; and WHEREAS the Authority agrees to reimburse the City for the costs of the City’s activities relating to the completion of the Roadway Project as one of the Obligations of the Authority, as described herein; and WHEREAS, the Act, Section 18, Article XIV of the Colorado Constitution authorizes the City and the Authority to enter into cooperative agreements, such as this Agreement. NOW, THEREFORE, in consideration of the foregoing recitals, and the following terms and conditions, the Authority and the City hereby agree as follows: 1. RECITALS. The Recitals to this Agreement are hereby incorporated herein by this reference as though fully set forth in the body of this Agreement. 2. TERM. Unless earlier terminated as expressly provided for in this Agreement, the term of this Agreement shall commence on the Effective Date and continue until the earlier of (a) the date the Roadway Project has been completed and the City has been fully reimbursed for the Costs (as defined below) or (b) December 16, 2044, which is the expiration of the period for which the Authority is authorized by the Act to receive tax increment revenues pursuant to the Plan. 3. ROADWAY PROJECT DESIGN AND CONSTRUCTION. Subject to the terms of this Agreement, the City shall accomplish the design and construction of the Roadway Project. No later than December 31, 2023, the City shall engage a contractor and commence design of the Roadway Project. Thereafter, the City shall oversee the performance and completion of such design and construction. 4. REIMBURSEMENT OF CITY COSTS AND EXPENSES. 4.1. Reimbursement of Costs. Subject to the terms of this Agreement, the Authority shall reimburse the City for the entire costs and expenses incurred by the City in the design and construction of the Roadway Project minus any City contribution (the “Costs”) pursuant to any contracts executed by the City with any third parties for the performance and completion of the 2 24929633.3 design and construction of the Roadway Project (“Contracts”). Upon execution of any such Contracts, the City shall provide a report to the Authority of the Costs to be paid pursuant to such Contracts. The Costs actually paid by the City pursuant to the Contracts shall be certified by the Authority as to the actual amount paid and shall be approved and reimbursed by the Authority. The Costs to be reimbursed by the Authority may exceed the estimates set forth on the Roadway Project Summary attached hereto as Exhibit A. However, the Costs to be reimbursed by the Authority may not exceed the Costs actually paid by the City pursuant to the Contracts. The Authority is only obligated to reimburse the City for the Costs in years that the Authority receives tax increment revenues pursuant to the Plan. 4.2. Administrative Services. The Parties acknowledge that the Parties entered into the Amended and Restated Cooperation Agreement Between the City of Dacono, Colorado, and the Urban Renewal Authority of Dacono for Administrative Services approved by the City on December 13, 2021, and by the Authority on January 5, 2022, and effective as of June 8, 2015 (the “Cooperation Agreement”). The Parties agree that any reimbursement by the Authority of any costs incurred by the City for the services of City employees in connection with the Roadway Project shall be governed by the Cooperation Agreement and not by this Agreement. 5. MISCELLANEOUS. 5.1. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Colorado and shall be subject to the limitations, if any, that are applicable under the Charter or ordinances of the City. 5.2. Notices. All notices and other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by first class mail, postage prepaid, addressed as follows: If to the City: City of Dacono 512 Cherry Avenue P.O. Box 186 Dacono, CO 80514 If to the Authority: Urban Renewal Authority of Dacono 512 Cherry Avenue P.O. Box 186 Dacono, CO 80514 The City or the Authority may, by notice given hereunder, designate any further or different addresses to which subsequent notices or other communications shall be sent. 5.3. Termination. Either Party may terminate this Agreement upon thirty (30) days written notice to the other Party; provided, however, that there are no outstanding amounts payable 3 24929633.3 by the Authority to the City unless satisfactory arrangements have been made, in the sole discretion of the City, for the payment of such amounts. 5.4. Severability. In the event that any provision of this Agreement, other than the requirement of the Authority to reimburse the City for obligations incurred by the Authority hereunder, shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. [signature page follows] 4 24929633.3 IN WITNESS WHEREOF, the City and the Authority have caused their duly authorized officials to execute this Agreement effective as of the Effective Date. CITY OF DACONO, a home rule municipality and municipal corporation of the State of Colorado By: __________________________________ Title: __________________________________ ATTEST: By: _____________________________ URBAN RENEWAL AUTHORITY OF DACONO, a body corporate and politic of the State of Colorado By: __________________________________ Title: __________________________________ ATTEST: By: _____________________________ 24929633.3  Exhibit A Roadway Project Summary [see attached] Exhibit A-1 24929633.3  Roadway Project Summary One of the key blighting factors within the plan area is a lack of sufficient infrastructure, particularly roadways and water/sewer facilities to facilitate and support development. The following summary of proposed roadway projects will both assist in alleviating this condition and fulfilling the Dacono adopted plans. Roadway Goals: • Implement the City of Dacono adopted roadway classification system in coordination with the adopted Weld County system. • Improve the capacity and mobility of Dacono and Weld County roadway network • Develop and maintain a safe and efficient roadway network. • Improve the movement of people, goods and emergency services, through the City of Dacono and adjacent Weld County communities by enhancing roadway network. • Improve roads with culverts and crossings that are structurally deficient and functionally obsolete because of inadequate lane widths, shoulder widths, to serve current and projected traffic demand, or those that may be occasionally flooded. WCR 12- Grand View Blvd. (I-25 east to Holly Street WCR 15)- Estimated project cost $7,924,174. Grand View Blvd. is an adopted east-west truck route through the City of Dacono. Grand View Blvd. This roadway serves areas of unincorporated Weld County and the Mountain View Fire Protection District Station #7. WCR 8 Summit Blvd (I-25 to WCR 17)- Estimated project cost $15,789,703. I-25 is a significant east/west highway which serves as a gateway to Weld County. Summit Blvd. Summit Blvd. serves as a primary links to/from I-25 eastward into Weld County. WCR 10 Graden Blvd (I-25 to WCR 17)- Estimated project cost $12,163,318. Completion of Graden Blvd. The intent is to upgrade the roadway, construction of a bridge deck at Little Dry Creek and facilitate mobility. This project will also provide connectivity between Dacono and areas of unincorporated Weld County. WCR 10 improvements also contribute to network redundancy by creating an east-west alternate route to SH52. WCR 13- Colorado Blvd. (SH52-WCR 6/city limits)- Estimated project cost $16,535,944. Colorado Blvd. is a significant north-south arterial and designated truck route through the City of Dacono. Colorado Blvd. serves as an alternate to I-25. This roadway serves both areas of unincorporated Weld County and Dacono residents. Weld County Road 13 is identified as a Strategic Roadway by the Weld County 2035 Transportation Plan. County Road 13 is ranked #17 of roadways in Weld County identified as “Highest Traveled County Roads.” WCR 15- Holly Street (SH52-WCR 6)- Estimated project cost $15,966,836. Holly Street is an unimproved gravel roadway along the eastern boundary of the current City limits. Improvements to this roadway will contribute to the continuity and connectivity of roadways between the City of Dacono and unincorporated Weld County. Exhibit A-2 WCR 11- York Street (SH52-WCR 10)- Estimated project cost $14,904,583. York Street is identified as a Strategic Roadway by the Weld County 2035 Transportation Plan and an alignment study of WCR 9.5 and WCR 11 on the east side of I-25 was adopted by the Board of County Commissioners in October of 2003. WCR 11 improvements also contribute to network redundancy by creating a north-south alternative to I-25. Exhibit A-3 24929633.3