Revitalization Commission Agenda and Packet 2021 05 25

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SUBJECT: EXISTING FUNDS AND CIP BUDGET IMPACTS DATE: MAY 4, 2021 PAGE4OF6 • There are few Transportation investments included in the C-I-P, so other projects could be cut or reduced (such as facility improvements, IT security, golf course, sustainability/energy efficiency, etc. Additional Budget Impacts: If the City moves forward with plans to increase funding for transportation project implementation, additional staff resources are necessary and funding to support them should be incorporated into the funding scenarios. Depending on the package selected, this may include: 1 FTE for transportation engineering and project management in Public Works at approximately $150,000 per position, for 3-5 years - 1 FTE for project assistance for capital projects at approximately $100,000 for 3- 5 years An estimate for staffing costs is $1,382,000 which includes an estimated $250,000 per year + 5% annual salary increase for a maximum of 5 years. These costs will be allocated similar to the allocation of current engineering costs, to the General Fund and the Capital Projects Fund. In addition, operational costs should be considered for the ongoing maintenance of the projects that are completed. This may include routine maintenance such as snow removal, plowing, pavement/concrete improvements and long terms replacement costs. Estimated costs for ongoing maintenance is approximately $10,000 — 25,000 per year. These costs will also be funded through the General Fund and Capital Projects Fund. Other funding sources: In addition to the Capital Projects Fund, Capital Projects Fund reserves and General Fund reserves, City Council requested additional information about the potential for utilizing Louisville Revitalization funds to support projects that are eligible within the Urban Renewal Area (URA). The LRC plans to review long-term fund projections in June so staff is unable to provide information about the status of reserves and future fund balance at this time. Next steps in June would involve developing updated financial projections for the remaining life of the URA and discussing LRC long-term funding priorities. Staff has received some guidance from the City Attorney regarding the expenditure of funds beyond the life of the Urban Renewal Authority. All funds generated by property tax increment (the main source of LRC funding) remaining in the LRC's special fund must be pledged (not necessarily spent) within the 25-year life of the LRC's TIF provision, which ends in 2032. If the LRC has pledged funds under a TIF agreement or to the repayment of bonds, for example, the LRC could still use property tax increment in the special fund to pay those obligations beyond 2032. However, the LRC won't receive property tax increment beyond the 25-year life of the TIF provision. So any pledge of funds beyond 2032 would need to come out of funds already deposited in the special fund. If Council and the LRC decide to move forward with the use of LRC funds, CITY COUNCIL COMMUNICATION Agenda Packet P. 8