Revitalization Commission Agenda and Packet 2021 11 10

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SUBJECT: APPROVAL OF 2022 BUDGET FOR URBAN REVITALIZATION DISTRICT DATE: NOVEMBER 10, 2021 PAGE 2 OF 3 Expenditures Support Services are payments to the City of Louisville for services such as accounting, budget, revenue collection, disbursements, debt administration, and general administration. This also includes the LRC's fees for legal services. Based on staff and legal estimated hours, the 2022 budget is $45,000. Staff will monitor actual hours contributed to the LRC in 2022 to ensure this is an accurate number for future years. Under the Tri-Party Agreement of 2006, the URD is required to remit 7.15% of net property tax revenue back to Boulder County. The LRC is obligated to pay the County 7.15% of annual TIF revenues for a not -to -exceed total of $3,075,000. The proposed budget for 2022 is $164,620. The LRC and City Council executed an agreement for revenue sharing with the Louisville Fire Protection District in 2020; the first payment under this agreement was made in budget year 2021. Per the agreement terms, the proposed budget for 2022 is: $57,580. Bond Maintenance Fees are charged by the Paying Agent for the 2014 Property Tax Increment Revenue Bonds (2022, $7,150). Investment Fees include fees charged by US Bank to maintain the DELO Construction Account and fees charged by the City of Louisville's Investment Advisor for funds on deposit at the City (2022, $3,500). The Professional Services proposed 2022 budget includes $12,000 for up to two third - party reviews required of proposed direct financial assistance agreements. In 2021, the City reviewed and approved a $17,940 pay request for the developer of the DELO project, which appears in the DELO construction account. The 2022 proposed budget amount of $295,000 represents the approximate amount in the US Bank account for the DELO project. Staff has allocated all of it so that it is removed from the projected ending fund balance —otherwise it may appear that the LRC has an extra $295,000 that can be used for projects. During 2022, staff will coordinate with Engineering and the DELO developer about what additional pay requests can be expected. The 2014 Property Tax Increment Revenue Bonds are accretion and cash flow bonds issued in the amount of $4.5 million. Under this bond structure, the URD calculates an annual amount of "pledged revenue" and deposits it with the Paying Agent. The pledged revenue calculation is defined in the Bond Resolution. If the annual calculation does not cover all interest due, the remaining interest is added to the principal as accreted interest. The 2022 proposed budget includes $603,000 in principal and $273,670 in interest payments. As of December, 31, 2021, the accreted value of the bonds will be $3,909,631. If the bonds are not fully paid at the end of the URD's life, they dissolve without default. Based on the preliminary assessed valuation amounts, staff projects the bonds will be completely paid in December 2027. Agenda Packet P. 10