HomeMy WebLinkAboutMinutes - Finance Committee - 07/19/2010 -_____C .Finance Administration_____I 0 215N Mason
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Council Audit ft Finance Committee
Minutes
7/19/10
10:30 a.m.12:00 p.m.
Council Attendees:Mayor Doug Hutchinson,Mayor Pro Tern Kelly
Ohlson,Ben Manvel
City Staff Attendees:Darin Atteberry,John Voss,Mike Freeman,Mindy
Pfleiger,Tom Vosburg,Heather Shepherd
Others:Jim Manire from James Capital,Sarah Bohnsack
from Mcgladrey a Pullen,Kathy Cardona a Matt
Robenalt from the DDA,John Knezovich,David
May from Chamber of Commerce
Approval of the Minutes from the June 14.2010 Meeting
Ben Manvel moved to approve the minutes and Kelly Ohison seconded the motion.Minutes
were approved unanimously.
2009 Audit Report
Sarah Bohnsack from the audit firm of McGladrey &Pullen reviewed the 2009 financial report
summary,which compares Fort Collins with other benchmark Cities.
Ben Manvel asked what ‘uncorrected misstatements’are.Sarah said they are for the purpose
of determining whether theses statements will have significant impact to net equity,and the
ones currently Listed here won’t have any effect.
Kelly Ohlson asked Sarah Bohnsack what the key points to this summary are,in her opinion.
1.Fort Collins is very similar in revenue to other Cities in that sales tax revenue is declining.
2.Fort Collins has been taking advantage of stimulus grants,which is good.
The group discussed some of the points in the report,and it was decided that the
presentation of City Staff’s response to the findings would be reviewed at an upcoming
meeting.
DDA Bond Sale
This information is intended to advise the Council Finance Committee of the Fort Collins
Downtown Development Authority’s decision to seek a 2010 Bond Series of taxable and tax
exempt Tax Increment Revenue Bonds.
Dates:
City Council Finance Committee Meeting:July 19,2010
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Proposed:
Downtown Development Authority Board Meeting:August 12,2010
City Council Meetings:August 17,and September 7,2010
The accompanying print presentation available as an electronic download on the DDA
website:August 12,2010
Terms offered by Great Western Bank.
Subject to change per final negotiation and determination of project tax status as determined
by City/DDA bond counsel.
Amount:up to $12,500,000
Debt Service Term:10 Yr
Current Interest Rate:Tax exempt =4.3%
Taxable =6.375%
Rate/Pricing:agreed to cap at 10%(6.6%tax exempt)
Repayment:interest payment due 3/1,principal and interest due 9/1
Examples of how a TIE helps:
-To date,more than 50 façades have received high-quality facelifts
Investments in public-private projects has created ROl that provides necessary funding for
publicly owned projects that do not directly generate tax increment.
How Would this Impact Future TIE Revenues
*Beginning in the tax-year 2011,the DDA’s tax increment revenues will be
reduced by approximately 58%.
*Decreased TIF revenues will reduce DDA’s annual cash flow capacity to support
payment of bond debt.
*Bonding is the DDA’s primary form of financing projects and programs approved
by the Board of Directors and authorized by the City Council.
Matt Robenalt asked if there is any additional specific direction this Committee has for the
DDA,and if the current dates proposed seem acceptable?
Doug Hutchinson said when this topic is presented to City Council,he recommends being very
specific regarding what projects this will apply to.
Other Business
The McGladrey Pullen contract was renewed for another year of their five year contract.