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HomeMy WebLinkAboutDC Compiled Budget 6-9-16Page 1 of 2 STAFF REPORT June 9, 2016 AGENDA ITEM: V-A Consideration of Resolution Adopting the Central Point Development Commission Budget for Fiscal Year 2016-17. STAFF SOURCE: Don Burt, Planning Manager BACKGROUND: On April 18, 2016 the Central Point Development Commission Budget Committee met to review the draft budget for Fiscal Year 2016-17. After discussion they voted to approve the budget as follows: General Fund Personnel Services $39,000 Materials & Services $120,300 Capital Outlay $1,588,010 Debt Service $397,400 Contingency $50,000 Total General Fund $2,194,710 For purposes of budgeting tax increment revenue projections ranging between $325,000 and $268,000 were developed. The Budget was based on the higher, more aggressive, estimate with the understanding that actual tax increment receipts will be known prior to any financings and/or construction contracts, and that expenditures will be appropriately adjusted. If the lower tax increment projection were used the Budget would generally appear as follows: General Fund Personnel Services $39,000 Materials & Services $102,300 Capital Outlay $1,318,010 Debt Service $328,400 Contingency $50,000 Total General Fund $1,837,710 Page 2 of 2 Expense reductions would occur in Materials & Services (bond costs), Capital Outlay, and Debt Service. Because of the variability in establishing bond parameters (interest, market vs. private placement, etc.) and expenditure controls, use of the higher tax increment revenue projection for purposes of preparing the Budget had minimal risk. EXHIBITS/ATTACHMENTS: Exhibit “A” – Central Point Development Commission Annual Budget, Fiscal Year 2016-17. Attachment “B” – Resolution No. 2016-03 Approving Budget ACTION: Consider resolution approving the fiscal year 2016-17 budget for the Central Point Development Commission. RECOMMENDATION: Adopt Resolution No. 2016-03 approving the alternate fiscal year 2016-17 budget for the Central Point Development Commission. EXHIBIT “A” Page 1 of 12 CENTRAL POINT DEVELOPMENT COMMISSION PROPOSED BUDGET FISCAL Y EAR 2016-17 BUDGET MEETING JUNE 9, 2016 EXHIBIT “A” Page 2 of 12 CENTRAL POINT DEVELOPMENT COMMISSION CENTRAL POINT DEVELOPMENT COMMISSION MEMBERS HANK WILLIAMS, CHAIR BRUCE DINGLER , VICE CHAIR ALLEN BRODERICK TANEEA BROWNING MIKE QUILTY RICK SAMUELSON BRANDON THUESON CITIZEN BUDGET COMMITTEE MEMBERS KAY HARRISON ROB HERNANDEZ KA REN HUCKINS CHRIS RICHEY BILL STULTS BILL WALTON STEVEN WEBER BUDGE T OFFICER CHRIS CLAYTON, CITY MANAGER URBAN RENEWAL STAFF CHRIS CLAYTON, URBAN RENEWAL MANAGE R/ CITY MANAGER , FI NANCE DIRECTOR TOM HUMPHREY, COMMUNITY DE VELOPMENT DIRECTOR MATT SAMITORE, PARKS & PUBLIC WORKS DIRECTOR EXHIBIT “A” Page 3 of 12 BUDGET MESSAGE TO: CHAIR AND BOARD OF DIRECTORS CENTRAL POINT DEVELOPMENT COMMISSION; BUDGET COMMITTEE MEMBERS; AND CITIZENS OF CENTRAL POINT INTRODUCTION The FY 2016-17 Budget represents the Commission’s first significant venture toward the physical implementation of the Plan. This becomes apparent in the knowledge that not only will it exceed, by a significant amount, all prior budgets combined, but it will also represent the Commission’s first use of tax increment financing in the amount of $1,700,000. There are three actions that necessitate the size of the proposed budget: 1. East Pine Streetscape Design & Engineering ($210,000). As a carryover from the FY15-16 Budget, the Commission will be completing the design, preliminary engineering, and Phase 1 final construction engineering for the downtown streetscape project on East Pine Street. This design and engineering project will identify the scope and cost of constructing Phase 1 of the East Pine’s streetscape. 2. Phase 1 Streetscape Construction ($1,348,010). The Phase 1 streetscape construction project will require an estimated $1,700,000 tax increment revenue bond before commencement of construction. It can be expected that due to construction timing (beginning late spring 2017) that a large percentage of the construction funding will be carried forward to the FY17-18 Budget. 3. Bond Costs. Including the first year’s estimated Debt Service Payment and Debt Service Reserve the total cost for the bond will be approximately $102,000. It should be noted that the costs and funding for the FY 2016-17 Budget will cover most of two fiscal years to see the Phase 1 streetscape project through to completion. MISSION It is the primary mission of the Central Point Development Commission to eliminate blight and depreciating property values within the urban renewal district. This mission will be accomplished through the strategic implementation of projects and activities that consciously maximize both public and private investments within the Urban Renewal Area, investments that are designed to target, facilitate and strengthen the economic and aesthetic vitality of the urban renewal district as the City’s traditional mixed-use urban core. EXHIBIT “A” Page 4 of 12 OVERALL GOAL The basic goal of the Development Commission is to address, through the implementation of the Plan, existing blighted conditions within the urban renewal district so that unused and underused properties can be placed in productive condition and utilized at their highest and best use in accordance with the City of Central Point Comprehensive Plan. KEY OBJECTIVES AND ACTIVITIES Section 1.5.2 of the Plan identifies fourteen (14) goals and objectives to be accomplished by the Plan. Section 1.6 addresses the activities that the Commission may undertake. In July of 2013 the Development Commission prepared the Central Point Urban Renewal Project Guide identifying the Development Commission’s top five activities to be undertaken over a five-year period (FY13-14 to FY17-18). The activities budgeted for FY 2016-17 are both long awaited and consistent with the Plan’s goals and objectives and the Development Commission’s activities schedule. KEY PERFORMANCE MEASURES  Increased real property assessed value within the urban renewal district  Track and manage Return-on-Investment (ROI) ratio between public and private investment dollars within the urban renewal district  Completion of projects on schedule. LEGAL COMPLIANCE  Notice of Budget Committee meeting  Affidavit of Publication, Mail Tribune  Resolution Adopting the Annual Budget  FORM UR-50, Notice to Assessor THE BUDGET This budget is a financial plan listing all planned expenses and revenues for fiscal year 2016-17. The Development Commission’s budget consists of a single fund; the General Fund. The Budget’s primary source of income is tax increment revenue, including proceeds from the sale of tax increment revenue bonds. GENERAL FUND EXPENSES The Development Commission’s expenses fall into one of four categories: Personal Services, Materials & Services, Capital Projects, and Debt Service. All expenditures are dedicated to implementation of the Plan. PERSONAL SERVICES Funding for Personal Services ($39,000) is related to the increase in the workload necessary to complete the budgeted projects. Rather than hire personnel for staffing the Development Commission the budget for Personal Services will be used to reimburse the existing City staff for the time committed to urban renewal. Because of the East Pine Street project scheduled for this fiscal year the Personal Services budget has increased from last year. EXHIBIT “A” Page 5 of 12 MATERIALS & SERVICES The Materials & Services category ($120,300) is comprised of six subcategories, most of which address basic administrative requirements of the Development Commission. Such as; the costs of legal services, annual audit, materials, contract services, etc. For this fiscal year the costs for an anticipated bond sale have been added, substantially raising the total costs allocated to Materials and Services. CAPITAL PROJECTS The Capital Projects Fund accounts for all expenditures ($1,588,010) on projects related to implementation of the fifteen (15) projects listed in the Plan. This includes such activities as project administration, design, engineering, and construction costs. Over the course of the next 21 years it is the Commission’s charge to undertake each of these projects, while not exceeding its Maximum Indebtedness limit of $43,177,530. For FY 2016-17 the Capital Projects Fund includes the following projects:  Engineering for the streetscape and signalization improvements on East Pine within the downtown (Project No. 1 and 5). This project was started in FY 2015-16 and will be completed FY 2016-17.  Construction of Phase 1 of East Pine Streetscape Project (Project No. 1 and 5).  Funding for the Economic Development Incentive Program (commercial façade improvement). DEBT SERVICE The purpose of the Debt Service category is to account for the payment of principal and interest due on Commission debt. For this fiscal year the Commission will pay interest on the $125,000 loan from the City. The terms of the loan are 2% interest payments annually, with a $125,000 balloon payment at the end of the fifth year (FY17-18). The Commission also has a debt service obligation in the amount of $4,900 for improvements made along Hwy. 99 by Walgreen’s per the Streetscape Reimbursement Program. For the first time the Debt Service category will also include provision for repayment of the anticipated FY 2016-17 Bond. RESOURCES Funding for activities and projects will come from four sources; tax increment revenue, interest, cash balance forward, and bond proceeds, for a total of $2,194,710. FY 2016-17 BOND It is anticipated that in FY 2016-17 the Commission will $1,700,000 in bond proceeds. EXHIBIT “A” Page 6 of 12 TAX INCREMENT REVENUE The primary source of urban renewal revenue will be bond proceeds, followed by tax increment revenue. For FY 2016-17 it is estimated that the Commission will receive $325,000 in tax increment revenue. INTEREST & PREVIOUSLY LEVIED TAXES It is estimated that the Development Commission will receive $2,600 in previously levied taxes and interest on its cash balance. BALANCE FORWARD The Commission will begin FY 2016-17 with an estimated beginning cash balance of $167,110. A BALANCED BUDGET By Oregon Law the budget is balanced at $2,194,710. EXHIBIT “A” Page 7 of 12 Actual Amount Adopted Budget Proposed Budget 2014/15 This Year 2015/16 Next Year 2016/17 126,059$ 126,500$ 167,110$ -$ -$ -$ -$ -$ 1,700,000$ -$ -$ -$ 94$ -$ -$ Interest 890$ -$ 100$ 119,074$ 287,800$ 327,500$ NA NA NA 246,117$ 414,300$ 2,194,710$ -$ 18,000$ 39,000$ 690$ 18,900$ 120,300$ 210$ 360,000$ 1,588,010$ -$ 7,400$ 397,400$ -$ -$ -$ Contingencies -$ 10,000$ 50,000$ -$ -$ -$ -$ -$ -$ 900$ 414,300$ 2,194,710$ LONG TERM DEBT July 1, 2016General Obligation Bonds Other Bonds Other Borrowings Total Beginning Fund Balance/Net Working Capital NOTICE OF BUDGET HEARING Contact: Chris Clayton, Urban Renewal Manager Phone: (541) 423-1018 Email: Chris.Clayton@centralpointoregon.gov FINANCIAL SUMMARY - RESOURCES TOTAL OF ALL FUNDS Capital Outlay Federal, State and All Other Grants Revenue from Bonds and Other Debt Interfund Transfers All Other Resources Except Division of Tax & Special Levy Revenue from Division of Tax Revenue from Special Levy Total Resources FINANCIAL SUMMARY - REQUIREMENTS BY OBJECT CLASSIFICATION Personnel Services Materials and Services Debt Service Interfund Transfers All Other Expenditures and Requirements Unappropriated Ending Fund Balance Total Requirements -$ -$ STATEMENT OF INDEBTEDNESS Estimated Debt Outstanding Estimated Debt Authorized But not incurred on July 1 -$ 1,700,000$ 157,060$ 152,662$ 157,060$ 1,852,662$ A public meeting of the Central Point Development Commission will be held on June 9, 2016 at 6:00 p.m. at the City of Central Point Council Chambers, 140 S. 3rd St.,Central Point Oregon. The purpose of this meeting is to discuss the budget for the fiscal year beginning July 1, 2016 as approved by the Central Point Development Commission Budget Committee. A summary of the budget is presented below. A copy of the budget may be inspected or obtained at the City of Central Point Finance Department, 140 S. 3rd St., Central Point, OR, between the hours of 9:00 a.m. and 4:00 p.m., or at www.centralpointoregon.gov. EXHIBIT “A” Page 8 of 12 RESOURCES General Fund 1 124,242$ 126,059$ 125,150$ 1. Available cash on hand* (cash basis) or 167,110$ 167,110$ 167,110$ 2 -$ -$ -$ 2. Net working capital (accrual basis)-$ -$ -$ 3 -$ 94$ 150$ 3. Previously levied taxes estimated to be received 2,500$ 2,500$ 2,500$ 4 296$ 890$ 1,200$ 4. Interest 100$ 100$ 100$ 5 -$ -$ -$ 5. Transferred in, from other funds -$ -$ -$ 6 6 OTHER RESOURCES -$ -$ 7 -$ -$ -$ 7. Loan (City of Central Point)-$ -$ -$ 8 -$ -$ -$ 8. FY16-17 Bond 1,700,000$ 1,700,000$ 1,700,000$ 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21 22 -$ 22 23 23 24 24 25 25 26 26 27 27 28 28 29 124,538$ 127,044$ 126,500$ 29. Total resources, except taxes to be levied 1,869,710$ 1,869,710$ 1,869,710$ 30 287,800$ 30. Taxes estimated to be received 325,000$ 325,000$ 325,000$ 31 6,194$ 119,074$ 31. Taxes collected in year levied 32 130,732$ 246,117$ 414,300$ 32. TOTAL RESOURCES 2,194,710$ 2,194,710$ 2,194,710$ *Includes ending balance from prior year FORM LB-20 Central Point Development Commission Second Preceding Year 2013-14 Budget for Next Year 2016-17Historical Data Actual First Preceding Year 2014-15 Adopted Budget This Year 2015-16 RESOURCE DESCRIPTION Proposed By Budget Officer Approved By Budget Committee Adopted By Governing Body EXHIBIT “A” Page 9 of 12 FORM LB-30 Adopted Budget Second Preceding First Preceding This Year Proprosed By Approved By Adopted By Year 2013-14 Year 2014-15 2015-16 Budget Officer Budget Committee Governing Body PERSONAL SERVICES 1 -$ -$ 15,000$ Salaries & Wages 30,000$ 30,000$ 30,000$ 1 2 -$ -$ 3,000$ City Taxes & Benefits 9,000$ 9,000$ 9,000$ 2 3 -$ -$ 18,000$ TOTAL PERSONAL SERVICES 39,000$ 39,000$ 39,000$ 3 MATERIALS AND SERVICES 4 690$ 916$ 2,300$ Advertising/Legal Notices $2,300 2,300$ 2,300$ 4 5 1,400$ 223$ 5,500$ Professional Services $102,000 102,000$ 102,000$ 5 6 82$ 126$ 10,000$ Contract Services, Admin. Staff $15,000 15,000$ 15,000$ 6 7 -$ -$ 400$ Office Supplies $400 400$ 400$ 7 8 -$ -$ 400$ Postage $300 300$ 300$ 8 9 -$ -$ 300$ Phone/Internet $300 300$ 300$ 9 10 2,172$ 1,265$ 18,900$ TOTAL MATERIALS AND SERVICES $120,300 120,300$ 120,300$ 10 CAPITAL OUTLAY 11 -$ 79,181$ 15,000$ Oak Street Parking Lot & Hwy. 99 Street Lights -$ -$ -$ 11 12 210$ 310,000$ East Pine Streetscape & Signals (Engineering)210,000$ 210,000$ 210,000$ 12 13 -$ -$ -$ East Pine Streetscape & Signals Construcion (Phase 1)1,348,010$ 1,348,010$ 1,348,010$ 13 14 -$ -$ 30,000$ Economic Incentive Program 30,000$ 30,000$ 30,000$ 14 15 -$ 29,133$ 5,000$ Design Services, Concept Plan -$ -$ -$ 15 16 210$ 108,314$ 360,000$ TOTAL CAPITAL OUTLAY 1,588,010$ 1,588,010$ 1,588,010$ 16 DEBT SERVICE 17 2,500$ 2,500$ 2,500$ City Loan, Interest Only 2,500$ 2,500$ 2,500$ 17 18 -$ -$ 4,900$ Streetscape Reimbursement 4,900$ 4,900$ 4,900$ 18 19 -$ -$ -$ FY16-17 Bond + Reserve 390,000$ 390,000$ 390,000$ 19 20 2,500$ 2,500$ 7,400$ TOTAL DEBT SERVICE 397,400$ 397,400$ 397,400$ 20 TRANSFERRED TO OTHER FUNDS 21 -$ -$ -$ -$ -$ -$ 21 22 -$ -$ -$ -$ -$ -$ 22 23 -$ -$ -$ -$ -$ -$ 23 24 -$ -$ -$ TOTAL TRANSFERS -$ -$ -$ 24 25 10,000$ OPERATING CONTINGENCY 50,000$ 50,000$ 50,000$ 25 26 126,059$ 134,038$ Ending balance (prior years) 27 -$ UNAPPROPRIATED ENDING FUND BALANCE -$ 28 4,882$ $112,080 $414,300 TOTAL REQUIREMENTS $2,194,710 2,194,710$ 2,194,710$ 28 150-504-030 (Rev 12/09) REQUIREMENTS SUMMARY Central Point Development Commission - General Fund Historical Data Actual REQUIREMENTS DESCRIPTION Budget For Next Year 2016-17 EXHIBIT “A” Page 10 of 12 LEGAL COMPLIANCE  Notice of Budget Committee meeting  Notice of Budget Hearing  Resolution No. 2015-04 Adopting the Annual Budget  FORM UR-50, Notice to Assessor NOTICE OF BUDGET COMMITTEE MEETING A public meeting of the Budget Committee of the Central Point Development Commission, Jackson County, Oregon to discuss the budget for the fiscal year July 1, 2016 to June 30, 2017, will be held the City Council Chambers, 140 S. Third Street, Central Point, Oregon. The meeting will take place on April 18, 2016, at 4:00 P.M. The purpose of the meeting is to receive the budget message and comments from the public on the budget. A copy of the budget document may be inspected or obtained on or after April 18, 2016 at the Finance Offices of the City of Central Point, between the hours of 9:00 A.M. and 5:00 P.M., on the City of Central Point web site at www.centralpointoregon.gov. This is a public meeting where deliberation of the Budget Committee will take place. Any person may appear at the meeting and discuss the proposed budget with the Budget Committee. EXHIBIT “A” Page 11 of 12 Actual Amount Adopted Budget Proposed Budget 2014/15 This Year 2015/16 Next Year 2016/17 126,059$ 126,500$ 167,110$ -$ -$ -$ -$ -$ 1,700,000$ -$ -$ -$ 94$ -$ -$ Interest 890$ -$ 100$ 119,074$ 287,800$ 327,500$ NA NA NA 246,117$ 414,300$ 2,194,710$ -$ 18,000$ 39,000$ 690$ 18,900$ 120,300$ 210$ 360,000$ 1,588,010$ -$ 7,400$ 397,400$ -$ -$ -$ Contingencies -$ 10,000$ 50,000$ -$ -$ -$ -$ -$ -$ 900$ 414,300$ 2,194,710$ LONG TERM DEBT July 1, 2016 General Obligation Bonds Other Bonds Other Borrowings Total Beginning Fund Balance/Net Working Capital NOTICE OF BUDGET HEARING Contact: Chris Clayton, Urban Renewal Manager Phone: (541) 423-1018 Email: Chris.Clayton@centralpointoregon.gov FINANCIAL SUMMARY - RESOURCES TOTAL OF ALL FUNDS Capital Outlay Federal, State and All Other Grants Revenue from Bonds and Other Debt Interfund Transfers All Other Resources Except Division of Tax & Special Levy Revenue from Division of Tax Revenue from Special Levy Total Resources FINANCIAL SUMMARY - REQUIREMENTS BY OBJECT CLASSIFICATION Personnel Services Materials and Services Debt Service Interfund Transfers All Other Expenditures and Requirements Unappropriated Ending Fund Balance Total Requirements -$ -$ STATEMENT OF INDEBTEDNESS Estimated Debt Outstanding Estimated Debt Authorized But not incurred on July 1 -$ 1,700,000$ 157,060$ 152,662$ 157,060$ 1,852,662$ A public meeting of the Central Point Development Commission will be held on June 9, 2016 at 6:00 p.m. at the City of Central Point Council Chambers, 140 S. 3rd St.,Central Point Oregon. The purpose of this meeting is to discuss the budget for the fiscal year beginning July 1, 2016 as approved by the Central Point Development Commission Budget Committee. A summary of the budget is presented below. A copy of the budget may be inspected or obtained at the City of Central Point Finance Department, 140 S. 3rd St., Central Point, OR, between the hours of 9:00 a.m. and 4:00 p.m., or at www.centralpointoregon.gov. EXHIBIT “A” Page 12 of 12 FORM UR-50 NOTICE TO ASSESSOR 2016-2017 • Submit two (2) copies to county assessor by July 15. Check here if this is an amended form. Part 1: Option One Plans (Reduced Rate). For definition of Option One plans, see ORS 457.435(2)(a) Increment Value to Use* 100% from Division of Tax Special Levy Amount** $ Or Yes ____ $ $ Or Yes ____ $ $ Or Yes ____ $ $ Or Yes ____ $ Part 2: Option Three Plans (Standard Rate). For definition of Option Three plans, see ORS 457.435(2)(c) Increment Value to Use*** Amount from Division of Tax*** Special Levy Amount**** $ Or $ Or $ Or Part 3: Other Standard Rate Plans. For definition of standard rate plans, see ORS 457.010(4)(b)Increment Value to Use* 100% from Division of Tax* $ Or Yes X $ Or Yes ____ $ Or Yes ____ $ Or Yes ____ $ Or Yes ____ Part 4: Other Reduced Rate Plans. For definition of reduced rate plans, see ORS 457.010(4)(a) Increment Value to Use* 100% from Division of Tax* $ Or Yes ____ $ Or Yes ____ $ Or Yes ____ $ Or Yes ____ $ Or Yes ____ Notice to Assessor of Permanent Increase in Frozen Value. Effective 2012-2013, permanently increase frozen value to: Plan Area Name New frozen value $ Plan Area Name New frozen value $ * All Plans except Option Three: Enter amount of Increment Value to Use that is less than 100% Or check "Yes" to receive 100% of division of tax. Do NOT enter an amount of Increment Value to Use AND check "Yes". ** If an Option One plan enters a Special Levy Amount, you MUST check "Yes" and NOT enter an amount of Increment to Use. *** Option Three plans enter EITHER an amount of Increment Value to Use to raise less than the amount of division of tax stated in the 1998 ordinance under ORS 457.435(2)(c) OR the Amount from Division of Tax stated in the ordinance, NOT both. **** If an Option Three plan requests both an amount of Increment Value to Use that will raise less than the amount of division of tax stated in the 1998 ordinance and a Special Levy Amount, the Special Levy Amount cannot exceed the amount available when the amount from division of tax stated in the ordinance is subtracted from the plan's Maximum Authority. 150-504-076-5 (Rev. 12-10) Plan Area Name Plan Area Name Downtown & East Pine Street Corridor Revitalization Plan The Central Point Development Commission authorizes its 2016-2017 ad valorem tax increment amounts by plan area for the tax roll of: Jackson County Plan Area Name Plan Area Name Notification Chris Clayton (541) 423-1018 July 10, 2016 (Contact Person) (Telephone Number) (Date) 140 S. 3rd St., Central Point, Oregon 97502 Chris.Clayton@centralpointoregon.gov (Agency's Mailing Address) (Contact Person's E-mail Address) Page 1 of 1 Resolution No. 2016-03 BEFORE THE CENTRAL POINT DEVELOPMENT COMMISSION A RESOLUTION ADOPTING THE BUDGET, MAKING APPROPRIATIONS, AND DECLARING TAX INCREMENT The Central Point Development Commission resolves as follows: Section 1. The budget for fiscal year 2016–17 in the total of $2,194,710 is adopted (Exhibit “A”). This budget is now on file at the City of Central Point Finance Offices, 140 South Third Street, Central Point, OR 97502. Section 2. The amounts for the fiscal year beginning July 1, 2015; and for the purposes shown below are appropriated: GENERAL FUND Personal Services $39,000 Materials & Services $120,300 Capital Outlay $1,588,010 Debt Service $397,400 Contingency $50,000 TOTAL GENERAL FUND $2,194,710 Section 3. The Board of Directors certify to the county assessor a request for the Downtown & East Pine Street Corridor Revitalization Plan Area for the maximum amount of revenue that may be raised by dividing the taxes under Section 1c, Article IX, of the Oregon Constitution and ORS Chapter 457. The above resolution statements were approved and declared adopted on this 9th day of June 2016. ________________________________________ Hank Williams, Chair Central Point Development Commission ATTEST __ ___ _______________ Deanna Casey, Recorder