Revitalization Commission Agenda and Packet 2021 07 14

Home Browse Search

Revitalization Commission Minutes June 16, 2021 Page 2 of 7 Reports of Commission: None. Business Matters of Commission: • Discussion/Direction — 2020 year End Update, 2021 Estimates & 2022-2032 Financial Projections Finance Director Kevin Watson said last May, staff presented the LRC projections of revenue through 2024. Materials in the packet now take projections through 2032, which is the last year of the URA property tax disbursement. In relation to 2020 financials, Director Watson noted the URA is a component of the City, is audited by City auditors and is a part of audited statements. • Discussion/Direction — Funding Contribution to Underpass Improvements in the Urban Renewal Area Director Watson reviewed four scenarios related to potential contributions the LRC can consider for underpass improvements the City is evaluating for implementation. He indicated the only funding challenge arises in scenario four, where the LRC would provide a $2M annual contribution. In this scenario, fund balance becomes negative, but he stated this situation could be avoided by delaying contributions to begin in 2023 rather than 2022. Director Watson believes the assumptions made for taxation and increases in valuation are conservative. But he warned that there is a lot of uncertainty as to where property values will go post -pandemic and legislation affecting assessed property values. Director Watson and Director Pierce explained the assumptions used for future development. Lastly, Director Watson said that which scenario the LRC chooses is a policy question —pointing out that what presents as fund balance is discretionary since staff has assumed all existing financial obligations of the LRC. Director Pierce encouraged the LRC to focus on the scenarios for $1 M and $1.5M annual contributions to the underpass improvements. She agreed with Director Watson that $2M was feasible, but that it would constrain the LRC from possible future opportunities. She also stated that a $500,000 annual contribution might cause the LRC to struggle to spend all the funds it is likely to receive by the end of the life of the TIF. Director Pierce and Commissioners discussed large investments by the LRC and that the next ten years may require more aggressive spending. Agenda Packet P. 3