City Council Minutes 2014 10 07 - Laserfiche WebLink

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City Council Meeting Minutes October 7, 2014 Page 12 of 27 rebuild the reserves. He was concerned over how many of the CIP Projects are currently in the implementation phase and requested an update on those projects at the next budget meeting to make sure the budget numbers are correct. Mayor Muckle concurred. Council member Stolzmann stated it would be helpful to know what projects staff anticipates moving forward. She stated staff will have a list of major anticipated Capital Projects. MOTION: Mayor Muckle moved to set a public hearing for City Manager's Proposed 2015 Budget and 2015 -2019 Capital Improvements Plan for October 21, 2014, seconded by Mayor Pro Tem Dalton. All were in favor. RESOLUTION No. 61, SERIES 2014 — A RESOLUTION MAKING CERTAIN FINDINGS WITH RESPECT TO THE PROPOSED ISSUANCE OF THE LOUISVILLE REVITALIZATION COMMISSION PROPERTY TAX INCREMENT REVENUE BOND (DELO PROJECT), SERIES 2013, IN A MAXIMUM PRINCIPAL AMOUNT OF $4,500,000 Mayor Muckle requested a staff presentation. Economic Development Director DeJong reviewed Resolution No. 61, Series 2014, which authorized the issuance of the Core Area TIF. The Louisville Revitalization Commission (LRC) will issue a maximum of $4,500,000 in TIF bonds to pay for the infrastructure costs within the Core Project Area of the Urban Renewal Area. Several documents add up to allow for the funding and execution of the Bonds: LRC Bond Resolution; Bond Purchase Agreement; Paying Agent Agreement; Construction Agreement and City Resolution. LRC Bond Resolution: Authorizes the ability to sell bonds of $4,500,000 at 7% interest; Bonds are paid through Pledges Revenues, which do not include the County payment, staff costs, and the South Street Gateway contributions. Payments are made on December 1; unpaid interest due to lack of Pledged Revenues is not a default; unpaid interest compounds annually. After seven (7) years, the LRC may redeem bonds (refinance). Bond Purchase Agreement: Outlines funding provisions between LRC and DFP, LLC. The LRC agrees to issue bonds; DFP, LLC agrees to buy the bonds. The initial issuance is $700,000, additional issuances of more than $1,000,000 up to the $4,500,000 maximum. After Final Advance, bonds may be transferred in increments greater than $500,000. Paying Agent Agreement: U.S. Bank is the Registrar and Paying Agent for the Bonds. U.S. Bank will receive funds and make payments to bond holders each December 1st, and calculate and document interest and principal payments.