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HomeMy WebLinkAboutAgenda - Mail Packet - 7/16/2019 - Urban Renewal Authority Finance Committee Agenda - July 16, 2019Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.2231 970.224.6107 – fax fcgov.com AGENDA URA Finance Committee July 16, 2019 11:00 am -12:00 pm 1. Minutes May 14, 2019 2. Mall & Midtown Financial Overviews Other Business: URA 6-MONTH PLANNING CALENDAR July 2019 – December 2019 CALENDAR SUBJECT TO FREQUENT CHANGES Email URA Staff for up-to-date information: URABoardInfo@fcgov.com “The mission of the Urban Renewal Authority is to remedy blight, using Tax Increment Financing, to leverage private capital investment, and stimulate sustainable development and public improvement projects.” BOARD OF COMMISSIONERS: Wade Troxell, Chair Julie Pignataro Ross Cunniff, Vice Chair Andy Smith Christophe Febvre Kristin Stephens Emily Gorgol Ken Summers Susan Gutowsky Joe Wise Steve Johnson (Items are listed in no particular order) URA Board Meeting Selection Committee Planning & Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee Legal Contract Review Committee Created: 7/9/2019 4:18 PM URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… July 16 Time: 11:00am Location: CIC URA Finance Committee: Minutes (consent) Agenda: URA Finance Committee to approve the minutes of the May 14, 2019 meeting Mall & Mid-Town Financial Overviews Overview of Mall & Mid-Town Financial Overview July 25 Time: 3:00pm Location: CIC URA Board Meeting: Minutes (consent) Agenda: URA Board Meeting to approve minutes of the March 28, 2019 and April 24, 2019 meetings Adopt a Plan Area Adoption of Drake and College Urban Renewal Plan Area Staff Update: Mediation Staff to update URA Board on mediation between URA and Poudre School District August 14 Time: 1:00pm Location: CIC URA Finance Committee: Minutes (consent) Agenda: URA Finance Committee to approve the minutes of the July 16, 2019 meeting 501 Spaulding – Watermark Discuss possible TIF participation in a private development project August 20 Time: 11:00am Location: CIC URA Legal Contract Review Committee: Minutes (consent) Agenda: URA Legal Contract Review Committee to approve the minutes of the May 22, 2019 meeting URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… URA Legal Representation Discuss Brownstein Hyatt Farber Schreck contract and legal representation with URA August 22 Time: 7:30am- 11:30am Location: Block 1 Events 428 Linden St. Fort Collins, CO 80524 URA Board Meeting URA Board Half Day Retreat: Strategic Planning Session Strategic Planning Session Set URA Board Goals & Visions for 2019-2020 August 22 Time: 3:00pm Location: CIC URA Board Meeting CANCELED Agenda: TBD September 11 Time: 2:00pm Location: CIC URA Finance Committee: Minutes (Consent) Agenda: URA Finance Committee to approve the minutes of the August 14, 2019 meeting N. College CAG N. College Citizens Advisory Group (CAG) meeting with the URA Finance Committee 2020 URA Budget Format Overview Overview of the 2020 URA Budget Overview URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… September 26 Time: 3:00pm Location: CIC URA Board Meeting Agenda: TBD URA IGA with CITY Discussion of potential changes to the URA’s IGA with the City October 14 Time: 2:00pm Location: CIC URA Finance Committee Agenda: URA Finance Committee to approve the minutes of the September 11, 2019 meeting October 24 Time: 3:00pm Location: CIC URA Board Meeting Agenda: TBD November 7 Time: 3:00pm Location: CIC URA Board Meeting Agenda: TBD November 13 Time: 2:00pm Location: CIC URA Finance Committee Agenda: TBD URA Board Meeting Selection Committee Planning and Zoning Board Plan Area Review Committee URA Finance Committee City Council Meeting Public Open House City Council Finance Committee URA Legal Contract Review Committee Meeting Info Agenda Item The purpose of this item is to… December 3 Time: 11:00 am Location: CIC URA Finance Committee Agenda: TBD December 4 Time: 2:00pm Location: CIC URA Board Meeting Agenda: TBD UNSCHEDULED OR UPCOMING ITEMS Item Purpose of Item URA Budget Review/Approval Prospect & College Project (S. Prospect) King Soopers Project Adopt Plan Area at Drake and College Watermark Proposal – 501 Spaulding 2020 URA Budget Format Revise the budget process and provide new management reporting Discuss possible TIF participation in a private development project Discuss possible TIF participation in a private development project Adopt an Urban Renewal Plan area at Drake and College Ave Watermark proposal in North College 2020 URA Budget Format URA Finance Committee Agenda Planning Calendar 2019-2020 RVSD 7/9/2019 mnb Location: CIC Room (Agenda Items listed in no particular order) July 16th Meeting Time: 11:00am Mall & Mid-Town Financial Overviews 60 min Rachel Rogers August 14th Meeting Time: 1:00pm 501 Spaulding – Watermark Proposal 60 min Pat Smith September 11th Meeting Time: 2:00pm N. College CAG meeting the URA Finance Committee 20min Clay Frickey 2020 URA Budget Format Overview 40min Rachel Rogers Future Council Finance Committee Topics: • Projected sales tax revenue Spradley-Barr-Mazda (?) • 2020 URA Budget format • URA IGA Allocations • URA Insurance & Purchasing Power • URA Finance and Bond Council update Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80521 970.416.4349 970.224.6107 - fax fcgov.com URA Finance Committee Meeting Minutes 5/14/19 11am -12pm CIC Room – City Hall URA Committee Attendees: Darin Atteberry, Ross Cunniff, Ken Summers, Joe Wise, Christophe Febvre Staff: Darin Atteberry, Jeff Mihelich, Jacqueline Kozak- Thiel, Josh Birks, Jennifer Baker, Clay Frickey, Mike Beckstead, Rachel Rogers, Victoria Shaw Others: URA Finance Committee Meeting: 5/14/19 Call Meeting to order: 11:07am Item #1: Minutes 3/19/19. Ross motioned, Febvre seconded- motion passed unanimously. A. NORTH COLLEGE FINANCIAL OVERVIEW EXECUTIVE SUMMARY The purpose of this item is to provide the Fort Collins Urban Renewal Authority (the "Authority") Finance Committee (the "Committee") an update on the financial status, commitments and revenue of the North College URA. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does the Committee have any questions about the information presented? 2. Does the Committee feel the Board will need additional information about the information presented? BACKGROUND/DISCUSSION Staff plans to update the Board regularly on the financial status of the current three URA’s, starting with the North College URA. We believe this is important for transparency, and to confirm to the Board that staff is closely tracking the finances of the URAs. NORTH COLLEGE YRA FINANCIAL OVERVIEW Revenue • Total TIF revenue collected through 2019 is $13.1M. • Additional revenue forecasted through 2030 (2029 tax increment) is $24.0M. ⇒ Assumes a 2% property tax increase every other year. • Other revenue (interest, etc.) totals $0.5M for 2014-2029. Expenses Operating • Operating expenses consist of personnel costs, good and services, bank fees and the fee from the County for tax collection (2% of TIF revenue). • The North College URA has been paying for personnel costs, good and services, and bank fees for the Midtown and Mall URAs due to limited cash flow for those URAs. The North College URA will be reimbursed by the other URAs and those dollars are included in the analysis. Reimbursement Agreements • Hickory Commons – The Authority shall pay to the Developer fifty percent (50%) of the Tax Increment that was generated from the Property and paid for the previous calendar year up to maximum eligible costs of $136,072. There has been no increment generated to-date, so no payments have been made. In addition, the Authority will pay $1,361 to the developer if/when the developer delivers the Energy Star Certification to the Authority, which must be within two years of the date that a Certificate of Occupancy for the Buildings has been issued by the City to the Developer. • Lyric – The Authority shall pay to the Developer fifty percent (50%) of the Tax Increment that was generated from the Property and paid for the previous calendar year up to maximum eligible costs of $252,650. The first $43,650 in revenue goes back to the City for ROW repay obligation. • Feeders Supply – The Authority shall pay to the Developer fifty percent (46%) of the Tax Increment that was generated from the Property and paid for the previous calendar year up to maximum eligible costs of $72,472. In addition, the Authority will pay $1,584 to the developer if/when the developer delivers the Energy Star Certification to the Authority, which must be within two years of the date that a Certificate of Occupancy for the Buildings has been issued by the City to the Developer. • Aspen Heights – The Authority shall pay to the Developer fifty percent (50%) of the Tax Increment that was generated from the Property and paid for the previous calendar year up to maximum eligible costs of $894,287. This property was sold on 12/13/2016, and as per section 2.9 of the Redevelopment Agreement, developer was required to get approval from the URA for the sale. This condition was not met, therefor no payments will be made on this agreement. Capital • Whitewater Park - In 2018, the URA contributed $300k to this project (ordinance 2018-058). • North College Drainage Improvement District, Phase 1- In 2019, the URA budgeted a contribution of $300k to this Stormwater project to complete the preliminary stormwater project. This project is located at North Mason Street (Alpine Street to Hickory Street), along with Alpine Street, Pinon Street and Hemlock Street (Mason Street to North College Avenue). This was part of the 2019-2020 BFO process. Debt Service • Loan from General Fund to URA for RMI2 – RMI2 repaid part of the loan to the URA, while the URA “forgave” the remainder of the loan. The URA is paying the remaining debt service to the General Fund for that loan with a principal amount of $2,035,211. Debt service is due through 2024. • In 2013, the URA consolidated and refinanced its outstanding debt with the General Fund and the Stormwater Fund. Total debt is $11.085M, with final debt service payment made in 2029. The URA is required to keep a year’s debt service in the restricted fund balance 2018 2019 2020 2021 2022 Revenue Property Tax Increment 1,841,552 1,978,124 2,037,468 2,037,468 2,098,592 Interest on Balances 37,116 21,717 22,662 20,000 19,000 Total Revenue (Cash Inflow) $1,878,668 $1,999,841 $2,060,130 $2,057,468 $2,117,592 Expense Operating 229,311 395,143 405,749 412,999 421,617 Reimbursement Agreements 4,817 21,398 21,832 21,832 22,492 Sub-total Operating 234,128 416,541 427,581 434,831 444,109 Capital Project Contributions Whitewater Park 300,000 Stormwater (west side of College) 300,000 Sub-total Capital 300,000 300,000 0 0 0 Debt Service URA payment to City (RMI) 359,503 367,195 367,029 375,021 374,841 Principal 252,333 266,692 273,360 288,567 295,781 Interest 107,170 100,503 93,669 86,454 79,060 URA payment on outside debt 946,813 948,963 944,363 948,963 947,363 Principal 595,000 615,000 635,000 665,000 690,000 Interest 351,813 333,963 309,363 283,963 257,363 Sub-total Debt Service 1,306,316 1,316,158 1,311,392 1,323,984 1,322,204 Total Cash Outflow $1,840,444 $2,032,699 $1,738,972 $1,758,814 $1,766,312 Net Change in Cash 38,225 (32,858) 321,157 298,653 351,280 Prior year ending cash position 1,372,680 1,410,905 1,378,047 1,699,204 1,997,858 Ending Cash $1,410,905 $1,378,047 $1,699,204 $1,997,858 $2,349,137 Owed from other URA Funds 600,000 692,520 892,198 1,097,425 1,306,756 Restricted Fund Balance (948,963) (944,363) (948,963) (947,363) (944,763) Available Fund Balance $1,061,942 $1,126,204 $1,642,440 $2,147,920 $2,711,131 Projected Ending Balance 2030 $12,356,398 this includes operating payback from other URAs Oustanding Debt Balances URA to City (RMI2) 1,782,878 1,516,186 1,242,826 954,259 658,478 URA to bondholders 8,265,000 7,650,000 7,015,000 6,350,000 5,660,000 Total 10,047,878 9,166,186 8,257,826 7,304,259 6,318,478 In 2023 the cash balance is larger than the total remaining debt owed. Assumptions: - 2% growth in property tax TIF every other year. - URA ceases operation 12/20/2029. - 2029 property tax TIF will be received in 2030. - No repayment to Aspen Heights. ATTACHMENTS 1. 2018-2022 Excel File 2. 2018 Word explanation file DISCUSSION College & Drake Urban Renewal Plan Update – Tax Allocation Agreements URA Finance Committee Meeting – May 14, 2019 Meeting started: 11:07am Cunniff moved to adopt March 19, 2019 meeting minutes, Febvre seconded. Josh; Quick agenda item. Follow up to statements from last October. Today we have a new format to present to you. We’d like to use this format to start making things clearer towards what’s going on in with URA financial reporting. Rachel did all the work on this and will be here to answer specific questions. Cash flow statement, these are the un-audited numbers for 2019. Top is revenue, primarily property tax increment for North College. North College carries the debt for all of the districts within it. We’ve talked about finding a way to separate the districts. Right now, these are units of their own fund, we are evaluating right now on what makes the most sense moving forward, such as separating the funds into its own unit or keeping it all together. Febvre; Why do you want to see this differently? Where are you going and why? To better understand the operating costs, it’s all the same department doing the operations? Yes. Can you shift funds between URAs or are they clean boundaries? Josh; There’s two pieces of operation. North College is the first district that has ever been created, it has historically carried all of the costs. We cannot and do not comingle funds between the TIF districts. What I don’t know the answer to, is if one district can lend money to another. We have had conversations with the City and the City lending funds. Darin; The question is, are they reasonably covering their own costs. Mike; North College, has been building up a receivable because they were the first and covered it all. This will eventually make the North College whole relative to the operational costs of staffing that it has covered since the beginning. Cunniff; So, whether we have asked the question or not, we have been lending? Josh; Yes, but to make it correct we are going through this process for better accounting rigor. We track our time as staff to figure out how much time we are investing and other operating static operational costs are disbursed, we then create a ratio and figure out the amount of Urban Renewal by district. Wise; If this was a business, we would be reporting operations, expense by project and then consolidated for North College? Josh; This is why we are transitioning. Eventually North College will go away, and we will lose our ability to use TIF. We need to be able to pull out and see the operations separately so that we won’t be perpetuating TIF in the North College area simply for operations. Wise; I think there’s a lot of value in seeing the projects separately. There’s no other way to see a clear cost/benefit analysis otherwise. This format gets us toward an accurate cost for each of our districts. Josh; The other reason we want to present this like this, is because the loans between the City and the URA show the full balance of the loan carried each year. In our October Budget discussions in October, a lot of our funding balances looked like we have available loan balances when really, they were negative because of the blended component unit projection. We are now trying to show this from more of a management perspective that gives us a better sense of the debts and available fund balance as if the URA were a standalone entity. This gives the URA a better overall sense of debt vs. available funds. Mike; One of the nuances we have here is that, we have a URA policy around TIF that specifies 50 or 75% TIF and gives priorities as opposed to giving a lump sum up front. We started the first couple of projects without this policy. Now looking at reimbursement agreements, if it’s paid overtime it’s falling into the operation expense line item because we give them a portion of TIF. We are shifting this to be more of the norm. In some of these there are sharing agreements between the City and the URA. Most of the nuances are reflective of the ways that we manage TIF. Troxell; What about the snapshot of the declining URA time frame and how that plays into opportunity costs? There are multiple variables that need to be balances to opportunities. Josh; This cash flow statement runs out through the end of the district. In North College, we are seeing revenue build up over time more funds to address the blight. This Board will ultimately have to decide, what is the best way to do this? In the final 10 years of the North College district, we might want to think about creating legacy. We have more than 10years worth of work to do, so we may want to look at strategic investments now and revenue streams that go beyond the TIF. Wise; But we have a full printout that shows the end of the project? Rachel; Yes. We did this for all three of the URAs. We really looked at the cash flow and what the anticipated TIF would be overtime at a 2% increase every other year. This is how we determined revenue. The debt service, reimbursements agreements and operating expenses we know. We showed all of these through the end of the life cycle for all three URAs. Mike; I would want to point out to you that 12.4 is the forecasted fund balance by 2030, this committee has the opportunity of what to do with this. This number has grown a lot, particularly in the last 2 years. Cunniff; I believe one option is to refund this to the affected taxing entities, correct? Josh; Yes, but it will be up to the Board to decide what it wants to do with the money. My hope is that during the retreat, we as staff can help the board better question what would characterize as broader community benefits. Some of the district areas predate HB 15-1348. Right now, as long as there is blight to be remedied, the URA can continue to deliver on its objectives. Febvre; Is there a distinction between the North College URA and current make-up of the board? Josh; North College predates HB 15-1348 so all of the increment flows directly towards the URA Authority. The board ultimately decides on what to do with the increment, this would be the full expanded URA Board. Cunniff; In addition to the community benefit, I’d like to know projected maintenance costs of the things that we put in. Josh; 2.7 million in funding went into funding the local street portion of Vine and Hickory. Without the URA, this money would’ve had to of come from City transportation funding. In this case, the URA fronted the money in for the project. As a board we get to decide on what we want to do with the repayment? Waive it? Collect it all of it? If we collect it then we can reinvest it towards other improvements, this will be up to the Board to decide. That repay exists beyond the end of TIF, the money can be used to create revenue and continue to address blight issues of the site. Troxell; In 2030, if there is still a 12.4 mill in there. Does it go away or you’re just no longer collecting? When there is an afterlife with the districts, what does the afterlife look like? Josh; Any fund balance that is just increment has to be refunded back to the district if it’s not used by the end of the district. Wise; This money, such as the 12.4million, could go far in building a library in the area. Josh; There’s a number of opportunities that could be catalyst on North College with this money. I am excited to hear ideas from the Board on how we can move forward. Our chair brought up that we still have 10 years left to create more increment. We could consider what we can do with what we have to generate more increment to do more things. In North College, we are starting to develop a high amount of increment that we can strategically use to generate more, improve the area, increase livability of the area and remedy blight. Our retreat will be geared more towards the beginning of guiding principals of what community benefits means for the Board. Troxell; In the retreat, I would like to look at how we can leverage this to enable a lot more, so it’s more of a 1:10 benefit well beyond the 1:1. I would like to use the URA to enable a lot more, and to Ross’s point, we need to look at operational costs and these should not be an after- thought.. Josh; In the retreat, I think that in the time we have the Board can begin to develop a unified direction and the beginning of some unified language. We can than revisit as a Board. Troxell; As it relates to the retreat, are we going to drill into each of the different districts? These are all at different stages, so how do we think about leveraging our portfolio? Josh; One of the topics currently on the agenda is scanning the future horizons. There are multiple to look at, there are horizons for Fort Collins, Library, Health, the larger idea is to get everything out on the table to look at opportunities for leverage, overlap and creating meaningful properties. Cunniff; I can imagine the County has Human services high on the list Josh; Exactly, we’d like to look at all the districts priorities together and evaluate from there. There could be opportunities there on what we can or cannot do but if anything, it will give us all a greater understanding of where we are each coming from. Wise; I think there is some magic to that. If we could see money being applied directly to needs other than City needs, but more of need of the districts, I think there would be greater sympathy. Right now, there are some issues of some Board members feeling like funds are going towards City costs. More enthusiasm will come from applying money directly towards districts needs for things that the community really wants, such as mental health facilities. Josh; I fully agreed, but we will not know this until we get everything out on the table and get to clear guidance on what the Board would like to address in all the districts. Spending the money within the North College area, some of the districts may see things out on the horizon that would be true public benefit for the community. Mike; Remember that North College fund balance is the oddity of the URA districts. Most of them look very different, such as Prospect South, the Mall, etc… each of the districts look different. Josh; North College is managed very different from our other URAs. We didn’t have the conversations that we did with Drake and College, so in a way, now we need to go back and have these conversations. In this unique conversation, it is a great case study to look at what we truly want to achieve in the districts. The cash flow of this statement is geared towards helping the board think about URA investments strategically. Which in my mind is great because it brought the Board to a conversation of how they want to strategically invest the money as opposed to examining what the available fund balance actually is in each of the districts. Troxell; In more recent URAs, the philosophy has been more of a narrowed scope, such as the Drake and College project. The legislation and philosophy behind this has really narrowed the scope of the URA’s work. With North College, the project is more open, and the increment is over a much wider region, the conversation is totally different. This has been very helpful. Cunniff; In 2023 the cash balance is larger than the total remaining debt owed? Rachel; In 2023 there is enough money to cover all of the debt. If we wanted to pay all of the debt in any given year, this would be it. That’s all I’m showing on the spreadsheet. Josh; We can add another year and show it to you? One of our options is in 2023 we can pay all of the outstanding debt and be done. Cunniff; Yes. Does the projection take the most recent assessment into account? Most of the residential has been about 23%, not 2%. Josh; North College may have experienced a different reassessment values, we have not seen commercial values in 2019 this but will update when we can. Initial certifications are typically given around August with the final given around November. Troxell; OK. Anything else? Wise; Looking at this project and remaining time, this all looks good. Josh; As a next step we will finalize similar reports for the other districts and share with committee in July, sort of a Q2 update. We plan to continue with this process and give you an update for all the other districts with the full cash flow out through the lifecycle of each district. We’ll be giving you a 5-year snapshot as a focus. Rachel; The 2019 TIF is based on 2018 that will not change, it’s just the going forward. Troxell; We have City projects going on right now in the North College Area, like Suniga and stormwater needs. The URA contributed some funds to stormwater and I know there are some needs on the West side. I am not sure the boundaries of where the URA funds were spend here, some of this work was in the County Josh; Some of these projects were created in 2004. After 2005 the rules became much stricter in where and how money can be spent within a district. This is why we have to contribute only to Vine right of way as opposed to White Water Park. The southern portion of the right of way for Vine is in the district, the rest is out, so we basically had to spend all of our money within the southern portion. Troxell; In terms of the blighted areas. I think this is where we as a Board will really be able to apply our broader community objectives. Josh; We did some work about 12 months ago where we looked at 6 or 7 focus areas in North College. This basically went to Hickory, Suniga, Vine, Jarome, College, areas that we felt needs the most as well as there were good opportunities. We are happy to share this research with you. Troxell; I think this is an interesting area for our community. There is really a lot of opportunity up there. Wise; The Mulberry area will be interesting to look at well in terms of opportunity. Troxell; Yes. Other business? None Adjourned: 5/14. 11:49am Urban Renewal Authority 222 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.416.4349 970.224.6107 – fax fcgov.com URA FINANCE COMMITTEE AGENDA ITEM SUMMARY Staff: Josh Birks Rachel Rogers Date: July 16, 2019 SUBJECT FOR DISCUSSION Prospect South URA and Foothills Mall URA financial updates. EXECUTIVE SUMMARY The purpose of this item is to provide the Fort Collins Urban Renewal Authority (the "Authority") Finance Committee (the "Committee") an update on the financial status, commitments and revenue of the Prospect South URA and Foothills Mall URA. In addition, there has been an update on the North College URA financials for 2019 based on a reevaluation of monies owed for administrative expenses from the other URA funds. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does the Committee have any questions about the information presented? 2. Does the Committee feel the Board will need additional information about the information presented? BACKGROUND/DISCUSSION Staff plans to update the Board regularly on the financial status of the current three URA’s. We believe this is important for transparency, and to confirm to the Board that staff is closely tracking the finances of the URAs. ATTACHMENTS 2018-2022 North College URA Financial Snapshot 2018-2022 Midtown – Prospect South URA Financial Snapshot Midtown – Prospect South URA Financial Snapshot Revenue • Total TIF revenue collected through 2019 is $2.9M. • Additional revenue forecasted through 2037 (2036 tax increment) is $11.8M. ⇒ Assumes a 2% property tax increase every other year. • Other revenue (interest, etc.) totals $0.3M for 2014-2037. Expenses Operating • Operating expenses consist of personnel costs (paid to the North College URA annually), goods and services, bank fees and the fee from the County for tax collection (2% of TIF revenue). Reimbursement Agreements • Prospect Station – The Authority agrees to reimburse the Developer for the eligible costs up to $494,000. The first payment is to be half the total amount - $247k was paid to the Developer in 2014. The remaining payments will be over a 21-year period at an amount of $11,762 per year. Debt Service • Loan from General Fund to URA for Capstone project – In 2013, the URA borrowed $5M from the City General Fund for the Capstone project. Payment terms include lower interest rate of 2.68% and 50% TIF to cover interest difference with a loan maturity on December 31, 2037. The TIF payment amount shall not exceed $1,780,000 in total. Through 2018, $354,699 in revenue sharing has been paid on the loan. Debt service payments fluctuate based on the debt service schedule and are between $400-500k per year. • Loan from Water Fund to URA for Prospect Station project - – In 2013, the URA borrowed $247,000 from the City Water Fund for the Prospect Station project. Payment terms include interest rate of 4.5% and loan maturity on December 31, 2037. Debt service payments are $17,459 per year. Restricted Fund Balance • The Restricted Fund Balance equals next year of debt service. Foothills Mall URA Financial Snapshot Revenue • Total revenue collected through 2019 is: o URA Property Tax Increment - $4.5M o Metro District Property Tax Increment - $2.8M o Sales Tax Increment - $1.0M • Additional revenue forecasted through 2039 (2038 tax increment): o URA Property Tax Increment - $41.7M o Metro District Property Tax Increment - $26.6M ⇒ Assumes a 2% property tax increase every other year. o Sales Tax Increment - $3.6M ⇒ Sales Tax Increment is projected to end by 2024 as the Mall debt service is paid off and the increment is no longer needed. • Other revenue (interest, etc.) totals $0.5M for 2014-2037. Expenses Operating • Operating expenses consist of administrative costs contracted at 1.5% of Property Tax TIF paid to the City (paid to the North College URA annually), goods and services, bank fees and the fee from the County for tax collection (2% of Property Tax and Metro District TIF revenue). Developer Project Costs • The Authority agrees to reimburse the Developer the Property Tax TIF, the Metro District TIF, and the Sales Tax TIF (up to 2024), minus 3.5% in fees paid to the City and the County. Actual (Unaudited) Forecast Forecast Forecast Forecast 2018 2019 2020 2021 2022 Revenue Property Tax Increment 1,841,552 1,978,124 2,037,468 2,037,468 2,098,592 Interest on Balances 37,116 21,717 22,662 20,000 19,000 Admin Reimbursement from URAs 0 310,017 70,333 71,967 72,670 Total Revenue (Cash Inflow) $1,878,668 $2,309,858 $2,130,463 $2,129,435 $2,190,262 Expense Operating 229,311 395,143 405,749 412,999 421,617 Developer Reimbursement Agreements 4,817 21,398 21,832 21,832 22,492 Sub-total Operating 234,128 416,541 427,581 434,831 444,109 Capital Project Contributions Whitewater Park 300,000 Stormwater (west side of College) 300,000 Sub-total Capital 300,000 300,000 0 0 0 Debt Service URA payment to City (RMI) 359,503 367,195 367,029 375,021 374,841 Principal 252,333 266,692 273,360 288,567 295,781 Interest 107,170 100,503 93,669 86,454 79,060 URA payment on outside debt 946,813 948,963 944,363 948,963 947,363 Principal 595,000 615,000 635,000 665,000 690,000 Interest 351,813 333,963 309,363 283,963 257,363 Sub-total Debt Service 1,306,316 1,316,158 1,311,392 1,323,984 1,322,204 Total Cash Outflow $1,840,444 $2,032,699 $1,738,972 $1,758,814 $1,766,312 Net Change in Cash 38,225 277,159 391,490 370,620 423,950 Prior year ending cash position 1,372,987 1,411,212 1,688,371 2,079,861 2,450,482 Ending Cash $1,411,212 $1,688,371 $2,079,861 $2,450,482 $2,874,431 Restricted Fund Balance (948,963) (944,363) (948,963) (947,363) (944,763) Available Fund Balance $462,249 $744,008 $1,130,899 $1,503,119 $1,929,669 Projected Ending Balance 2030 $10,616,410 this includes operating payback from other URAs Oustanding Debt Balances URA to City (RMI2) 1,782,878 1,516,186 1,242,826 954,259 658,478 URA to bondholders 8,265,000 7,650,000 7,015,000 6,350,000 5,660,000 Total 10,047,878 9,166,186 8,257,826 7,304,259 6,318,478 Assumptions: - 2% growth in property tax TIF every other year. - Property tax TIF collection ends 12/20/2029. - 2029 property tax TIF will be received in 2030. - No repayment to Aspen Heights. North College URA Actual (Unaudited) Forecast Forecast Forecast Forecast 2018 2019 2020 2021 2022 Revenue Property Tax Increment 529,741 604,833 616,930 616,930 629,268 Interest on Balances 18,830 10,000 10,200 10,404 10,612 Total Revenue (Cash Inflow) $548,571 $614,833 $627,130 $627,334 $639,880 Expense Operating (LarCo charges) 10,595 12,097 12,339 12,339 12,585 Admin Charge to N College (1 yr in arrears) 0 226,139 22,744 23,426 24,129 Reimbursement Agreements (Prospect Station) 11,762 11,762 11,762 11,762 11,762 Sub-total Operating 22,357 249,998 46,845 47,527 48,476 Debt Service URA payment to City (Capstone) 404,776 411,025 423,182 430,070 443,011 Principal 155,049 159,205 169,068 173,599 183,959 Interest 124,762 120,607 116,340 111,809 107,157 Revenue Share 124,965 131,213 137,774 144,662 151,896 URA payment to City (Prospect Station) 17,459 17,459 17,459 17,459 17,459 Principal 7,239 7,565 7,905 8,261 8,633 Interest 10,220 9,894 9,553 9,198 8,826 Sub-total Debt Service 422,234 428,483 440,640 447,529 460,470 Total Cash Outflow $444,591 $678,481 $487,485 $495,055 $508,946 Net Change in Cash 103,980 (63,648) 139,645 132,278 130,934 Prior year ending cash position 195,720 299,699 236,052 375,697 507,975 Ending Cash $299,699 $236,052 $375,697 $507,975 $638,909 Restricted Fund Balance (428,483) (440,640) (447,529) (460,470) (468,065) Available Fund Balance ($128,784) ($204,588) ($71,832) $47,505 $170,844 Projected Ending Balance 2037 $4,117,271 Oustanding Debt Balances URA to City (Capstone) 4,500,250 4,341,045 4,171,977 3,998,378 3,814,419 URA to City (Prospect Station) 219,861 212,296 204,391 196,130 187,497 Total $4,720,111 $4,553,341 $4,376,368 $4,194,508 $4,001,916 Assumptions: - 2% growth in property tax TIF every other year. - 3% growth in operating expenses each year. - Property tax TIF collection ends 9/5/2036. - 2036 property tax TIF will be received in 2037 and will be prorated for 8 months. - The Restricted Fund Balance equals next year of debt service plus the balance on what is "owed" on the 50% TIF. Midtown - Prospect South URA - Admin Charges is for operating expenses incurred by the URA but paid for by N College paid 1 yr in arrears. 2019 is the balance through 2018, 2020 and after is is an estimate. Actual (Unaudited) Forecast Forecast Forecast Forecast 2018 2019 2020 2021 2022 Revenue Property Tax Increment 1,770,453 1,938,326 1,977,093 1,977,093 2,016,635 Metro District Property Tax 1,121,254 1,234,273 1,258,958 1,258,958 1,284,138 Sales Tax 339,423 476,928 491,236 505,973 521,152 PIF Interest on Balances 5,160 5,263 5,368 5,476 5,585 Other (7,187) 0 Total Revenue (Cash Inflow) $3,229,103 $3,654,790 $3,732,655 $3,747,500 $3,827,509 Expense Operating (LarCo charges) 57,690 63,452 64,721 64,721 66,015 Admin Charge to N College (1.5% of Property TIF, 1 yr in arrears) 0 83,878 47,589 48,541 48,541 Funding Agreement w/Mall 3,131,567 3,538,486 3,614,025 3,628,762 3,706,397 Sub-total Operating 3,189,257 3,685,816 3,726,335 3,742,024 3,820,954 Total Cash Outflow $3,189,257 $3,685,816 $3,726,335 $3,742,024 $3,820,954 Net Change in Cash 39,846 (31,025) 6,320 5,476 6,556 Prior year ending cash position 15,283 55,129 24,104 30,424 35,900 Ending/Available Cash $55,129 $24,104 $30,424 $35,900 $42,456 Projected Ending Balance 2039 $99,134 Assumptions: - 2% growth in property tax TIF every other year. - Property Tax TIF collection ends 5/6/2038. - 2038 property tax TIF will be received in 2039 and will be prorated for 4 months. - Ending cash balance is mostly due to interest income projected. Foothills Mall URA - Admin Charge is for operating expenses incurred by the URA but paid for by N College. 2019 is the balance collected through 2018 and 2020 and after is the 1.5% of Property Tax TIF revenue projection as per the URA agreement.