Revitalization Commission Agenda and Packet 2009 09 14

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3. LRC Budget. The LRC shall adopt a budget (the LRC Budget) for each fiscal year (which shall be the calendar year) and, by September I of each year, shall provide a copy of the budget to the City for review and approval. The LRC Budget shall contain a statement of sources and uses of all funds that are available or that the LRC reasonably expects to become available to LRC to finance its activities, undertakings, and obligations for each budget year. It is the intention of the Parties that the LRC shall use its reasonable best efforts to use other sources of revenue available under the Act as the primary sourec of its Operating Funds and paymcnt for Support Services as such revenue bccomes available to the LRC. Such rcvenue shall include, without limitation, tax allocation or tax incrcment revcnues that may become availablc pursuant to any urban renewal plan approved by the City Council of the City. 4. Reimbursement for Ooerating Funds and Suoport Services. The Parties shall cstablish a procedure for documenting the reasonable costs and expenscs (the Costs and Expenses) rclated to the Operating Funds and Support Serviccs provided by the City. The Costs and Expenscs shall constitute an indebtedness of the LRC to be repaid to the City from sources of revenue available under the Act as such revenuc becomes available to the LRC. Such revenue shall include, without limitation, tax allocation or tax increment revenues that may become available pursuant to an urban renewal plan approved by the City Council of the City. a. It is agreed that the Costs and Expenses incurred by the City to date total 527,000. At the election of the City, such amount may be evidcnced by a note approved by the Parties and exccuted by LRC. b. Upon request of the LRC, the City agrccs to give reasonable consideration to subordinating its right to repaymcnt of Costs and Expenses to any bonds, loans, advances, indebtedness, or other obligation of the LRC. 5. Approval of Certain Contracts: Bonds and Other Obligations of the LRC. The Parties agree that the City Council of the City shall provide direction to LRC and oversight of LRC activities as follows: a. Any proposed expenditure by the LRC which has not becn previously approved as part of the LRC budget shall bc subject to the prior review and approval of the City Council. b. Prior to issuing bonds or any other capital financial obligations or financial obligations extending beyond the end of the current liscal ycar of the LRC, the LRC shall notify the City Council in writing of its intention to do so, and shall promptly furnish to the City Council such information and documents relating to such bonds or other capital or long-term financial obligations as the City Council may rcquest. The LRC shall not commit to or proceed with any such bonds or other capital or long-term financial obligations unless a majority of the City Council has adopted a rcsolution determining that the City's interests in connection with such bonds or other obligations are adequately protected. 2