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HomeMy WebLinkAboutMinutes - Finance Committee - 10/15/2012 -_____C .Finance Administration____I 0——•2~FIoorI-On CoLLins Fort Collins CO 80522 970.221.6788 ~9702216782 fax 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.