HomeMy WebLinkAboutMinutes - Finance Committee - 10/15/2012 -_____C .Finance Administration____I 0——•2~FIoorI-On CoLLins Fort Collins CO 80522
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Council Audit ft Finance Committee
Minutes
10/15/12
10:00 to 12:00
CIC Room
Council Attendees:Mayor Karen Weitkunat,Mayor Pro Tern Kelly
Ohlson,Ben Manvel
Staff:Dart n Atteberry,John Voss,Mike Beckstead,Chris
Donegon,Megan Bolin,Harold HaLL,Josh Birks,
Bruce Hendee,Heather Shepherd
Others:
Approval of the September 2012 Minutes
Ben Manvel requested that the September minutes to include his comment asking staff
members to make some further calculations on various GERP scenarios,such as how much
money will be saved if plan members are asked to contribute a certain amounts.Kelly Ohlson
moved to approve the September 2012 minutes as amended and Ben Manvel seconded the
motion.The minutes are approved as amended.
Investment Policy Review
Staff updated the Committee members on the city’s current investment policy
current Policy Investment Rules:
Maximum maturity of individual investments is 5 years.(exceptions may exceed 5 years;
maturity length to coincide with expected use of funds)
Weighted Average Maturity of city portfolio not to exceed 3 years.
Must maintain 5 percent of the operating portfolio in instruments maturing in 120 days or less.
Three areas that require modification:
Interest Rate for such Loans—(per January 2012 Council Finance Committee meeting)
Various wording within Policy
Maximum Loan Limits within the Policy
0 City of
Fort CoLLins
Ben Manvel asked staff members to create a chart showing when each specific loan will be finished/paid
off,and also showing when they each started.
Kelly requested terminology changes,(or notes of explanation)to use more layman’s terms to assist the
‘regular citizen’in understanding when this type of detailed topic is presented at City Council Meetings.
Summary
The City investment portfolio is in compliance with City policy and Colorado State Statute.
Current investment returns are appropriate based on the investment portfolio mix and duration.
The City will increase returns on future Inter-agency loans by adding a margin and floor to loan
rates.
Removing ‘nexus’will allow Utility Funds to be utilized without restriction.
Cap the amount of Inter-agency loans to assure liquidity.
The next step is to present this information to City Council for approval of a resolution implementing the
changes.
URA Budget
Megan Bolin reviewed the proposed Urban Renewal Authority budget for 2013.
Revenues $1,355,034
•Property Tax Increment Collection
•Interest Earned on Investments
Expenses $1,038,683
•Operations
•North College Storefront Improvement Program
•Debt Service
URA expenses are a combination of operating costs and debt service payments.Operating
expenses for 2013 include the following:
•Operations $209,627
•North College Storefront Improvement Program $25,000
Total $234,627
The operations line item includes the cost for personnel and on-call consulting services.New in
2013 is the Storefront Improvement Program,which would provide five-year forgivable loans to
business owners or tenants in the North College Plan Area for façade-related improvements.
This Program is intended to augment traditional TIF assistance for smaller-scale improvements
that add value but do not necessarily generate much increment.
The URA’s annual debt service payments (principal and interest)are from the following
outstanding loans:
•North College Marketplace —phase 1 $354,821
•JAX $37,186
•Northeast College Corridor Outfall (NECCO)$9,827
r City of
Fort CoLLins
•North College Road Improvements —Vine to Conifer $158,760
•Kaufman and Robinson $4,745
•North College Marketplace —phase 2 $238,717
Total $804,056
The forthcoming Resolution would appropriate the operating and debt service budget for the
URA,which totals $1,038,683 for 2013.
Kelly asked if there is a specific process for the external design/façade for URA projects,and especially
the Façade Improvement program.Megan Bolin stated that there are definite and specific steps to be
followed for each project.
Next Step
Resolution adopting the Budget scheduled for URA Board consideration on November 20,2012.