City Council Agenda and Packet 2023 11 06

Home Browse Search

SUBJECT: RESOLUTION NO. 65, SERIES 2023 DATE: NOVEMBER 6, 2023 PAGE 3 OF 4 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 2024 proposed budget includes $681,000 in principal and $189,880 in interest payments. As of December, 31, 2023, the accreted value of the bonds will be $2,712,631. 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. Based on Commissioner feedback as well as LRC Work Plan priorities, staff has included the following anticipated project expenditures in the 2024 Proposed Budget: • Facade Improvement Program: $350,000 o The 2023 Budget included $300,000 in Facade Improvement Program. The most recent budget amendment increased the total Facade Improvement Program funding to $350,000. Staff proposes $350,000 in Facade Improvement Program funding for the 2024 Budget. • Property Improvement Program: $250,000 o The LRC wishes to allocate $250,000 to its new Property Improvement Program. This program will provide financial assistance to businesses or property owners that wish to make improvements to their property beyond what is currently included in the Facade Improvement Program (including interior renovations). Staff is working on the program parameters and will be presenting options to the LRC. The program will need to be formally approved by City Council prior to implementation. • Old Town Skate: $188,000 o The LRC amended its 2023 Budget to include $425,500 for the downtown ice skating rink. $425,500 includes the equipment purchase, equipment rental, management of the ice rink, and electricity costs for the first year of operation. Annual operation of the ice skating rink is expected to cost $188,000, which is the amount budgeted for 2024. o The ice rink is also expected to produce $199,000 in revenue for the LRC. This number was determined by taking the average revenues from the 2021 /2022 and 2022/2023 seasons. o Per the Cooperation Agreement between the City and the LRC, the LRC will need to determine whether or not they want to financially contribute to the ice rink for the 2024/2025 season. After hearing the intent of the LRC, the City will decide whether or not to renew the executed Management Agreement for the 2024/2025 season. Revenue allocation for the 2024/2025 season is not addressed in the current Cooperation Agreement. • Downtown Vision Plan for Streetscapes and Public Places: $150,000 o The LRC amended its 2023 Budget to include $152,500 for the completion of the Downtown Vision Plan for Streetscapes and Public Places. The $150,000 in the 2024 Budget is for implementation of improvements identified by the Downtown Vision Plan. CITY COUNCIL COMMUNICATION 26