City Council

A Mayor Council President Councilors C"YOTWOOCI JohnC Miner JairoRios-Campos Mark dark DaraTan Village WOOD VILLAGE URBAN RENEWAL AGENCY BUDGET COMMITTEE MINUTES APRIL 25, 2024 PRESENT Urban Renewal Agency ChairJohn C Miner, Vice-Chair Stanley Dirks, Members Jairo Rios-Campos and Mark dark. Budget Committee Members Teresa Campos-Dominguez, Mary dark, Victoria Minnieweather, Patricia Smith, and Stephen Zebrowski. City Manager Greg Dirks, Director of Finance Seth Reeser, Public WorksOperationsManagerErikaNormine, PublicWorksProjects ManagerBeckyGallien, and interested parties. ABSENT Urban Renewal Agency Member Dara Tan CITIZEN COMMENTS (NON-AGENDA ITEMS) None ELECTION OFCHAIR Upon motion by Mark dark, seconded by S. Dirks and passing 9-0, Patricia Smith was selected as Chairof the Urban RenewalAgencyBudgetCommittee. Upon motion by Smith, seconded by Mark dark and passing 9-0, Mary dark was selected as Secretary of the Urban RenewalAgencyBudgetCommittee. BUDGETMESSAGE Dirkspresented the BudgetMessageand stated thedistricthas been in placesince2008-09butdidn't really becomeviable until 2015-16.The City hasdonequite a fewprojects the lastfewyearsthatwill be recapped. OurUrban RenewalDistricthas a total authorizeddebt limit ofa little over 11.5 million dollars and hadourfirst plan amendmentin 2019. The recap begins closer to when performance started to increase to allow City to do some good works. Total plan areavalue has increased, and you can seewhen largerdevelopments havecomeonline like Riverwood South and the Byway. The impacts ofthe change property ratio in correlation with The Byway, whereif it hadcomeonline in 1997whenthe changeproperty ratio wasfirstenacted, it would havecovered 135 units ofthe 172 that were built. The City had anticipated The Byway coming online in 2022 where the CPRwould havecovered 84 units; it cameon in 2023with a dramaticdropto the CPRwhereit covers 62 units which gave the City a loss of$90, 000 in revenue injust those two years. Instead of being flat in terms of revenues to the City's expenses, savings has been used which is fine for Urban Renewal Agency which City Council Minutes April 25, 20241 Page 1 wedo havethe resources to payoffourdebts. Dirks presents a future projection ofrevenues assuming no further construction even though that will not be the case, the City is unsure ofwhen there will be further construction within the Urban Renewal Agency boundaries. Revenue does continue to track upwards despite these circumstances. Dirksexplainstheoverlapping taxrate. Thecalculation presented istheincrement timesthetaxratewhich shows the maximum amount ofrevenue the Citycould collect. This is not reflected thiswayin the budgetto allow for uncollectables which is about 6% for the URA Budget allowing for $628, 000 in revenue return. Dirks presents the operating budget explaining howthe revenue return will be used. The biggest change in this is interest. Interest rates weren't what they are now and have increased greatly, which the City is taking steps to continue capturing higher rates. The largest expense is ourdebt service payment. Taking a took at the details ofour personnel expenditures, last year the city completed a reallocation ofwhere time was actually being spent in general and in the Urban Renewal Agency, management of projects and promoting it, and the relative costs of that. The materials and supplies budget's largest cost is the audit. Debt service iscovering paying loansdown;oneisa $1.2 million loanfromthegeneralfundwith4% interest, anda full faith and credit bond which was taken out in May of 2020 that the URA is paying back. Dirks explains a graphshowing howtheCPRimpacted revenues andthedebtservicewhichshowsa dipintotheending fund balances and savings to capture the difference. This isfine for LIRAsince they must operate in debt. Oncethe FFCbond drops off, itwill give margin to invest in projects again. In terms ofresources for projects, therearedevelopment incentives, and ifa largeprojectcomes up, thereistheoption to refinance the current bond and do a budget amendment. Currently, we are spending down fund balance to pay off the City's debt. Dirks talks about projects that the City has completed within the LIRA: the Arata Rd fence, the old city hall property both incentives and utility relocation work, thenewcityhall project, HalseyStcrosswalks, andour solartrash canson Wood Village Blvd and Arata Rd. Thegatewaysign project will be underway in the following week, and the hope was to have the park restroom project coming up soon but as discussed at council, the bidswere unfavorable forthat project sothatwill commence nextfiscal yearthatwill include a transfer to the general fund to help carry that out. Additional development for incentives is set at $400, 000 which there is no specific project for that but it does give some room to offer some kind of incentive. Most projects ofsizetakesometime, even ifa projectwaspresented tomorrow it is possibleitcould be completed in the upcoming fiscal year but not likely, as these are 12-18 month long projects. We do not currently have much planned tofund as the City is paying offdebt. Rios-Campos askstodiscussthe Urban Renewal boundarylinesandthepark, Dirksexplainsthisispartof how the City is able to do the restroom project by adding capacity and it is part ofthe agency boundaries. Upon motion by S. Dirks, seconded by Rios-Campos and passing 9-0, the Budget Committee recommended the adoption of the FY 24-25 Urban Renewal Agency Budget. Upon motion byS. Dirks, seconded byMarydark andpassing9-0,theBudgetCommittee levied 100%of the available overlapping tax rate from the division of taxes. ADJOURNMENT City Council Minutes April 25, 2024 | Page 2  ith no further business, the meeting adjourned at 5:49 pm. /W» Mary dark SECRETARY ATTEST: CITY RECORDER City Council MinutesApril 25, 2024 | Page 3