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HomeMy WebLinkAboutA5 - NE URD Workplan and Budget Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Economic Development Director SUBJECT: Northeast Urban Renewal Board FY 17 Work Plan and Budget MEETING DATE: June 13, 2016 AGENDA ITEM TYPE: Action RECOMMENDATION: Review the attached materials, listen to the Board presentation, ask questions and provide direction on the proposed FY 17 Northeast Urban Renewal Board (NE URB) Work Plan and Budget. If approved by the City Commission, the NE URB FY 17 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s FY 17 Budget. BACKGROUND: At its regular meeting held on June 7, 2016 the Northeast Urban Renewal Board approved the attached FY 17 work plan and budget. (Attachments 1 & 2) The total amount of budgeted funds for FY 17 is $2,014,000 (including carry over from previous years and not including the undesignated reserve). FY 17 Proposed Budget Summary: Trails Maintenance $5,000 Infrastructure $1,598,700 Public Arts Program $5,000 Depot Rehabilitation $1,000 Anticipated Bonding Costs $30,000 Staff Support $10,000 Administrative Services $3,000 Bond Repayment $55,000 Project Engineering $60,000 Bond Reserve $110,244 210 Undesignated Reserve $136,056 Budget Total $2,014,000 The NURB proposes a work plan and budget and submits a report on an annual basis per Section 7-15-4237 of the 2009 Montana Code Annotated (MCA): (1) An agency authorized to transact business and exercise powers under this part and part 43 shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. (2) The report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of the fiscal year. UNRESOLVED ISSUES: The current value of one mill is $86,564. Estimates indicate an approximate 2% increase in taxable values during reappraisal in 2017 which will have an impact on Districts around the City. Commercial and residential property reappraisals have shifted from a six-year to a two-year reappraisal cycle. FISCAL EFFECTS: The current fund balance, as of May 26, 2016 is $399,828.72. (Attachment 3) If approved by the City Commission, the NURB FY 17 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s Annual Budget adoption process. The district is preparing to bond for the eligible projects. The Board is working with CDS of Montana to assist in that effort. A proposed bonding schedule and map are included as Attachments 4 & 5. Attachments: 1. NURB FY 17 Proposed Work Plan; 2. NURB FY 17 Proposed Budget; 211 3. Northeast Urban Renewal District Revenues and Expenditures as of 5-26-16 4. May 16, 2016 Bond Schedule Memo prepared by CDS of Montana; and 5. Map of the NE URD. Report compiled on: June 3 and June 7, 2016 212 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 1 59771 NORTHEAST URBAN RENEWAL BOARD BUDGET FY 2017 PROPOSAL TO THE BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted Ordinance No. 1655 which formally enacted the Northeast Urban Renewal Plan. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight] Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the Northeast Urban Renewal District (NURD) the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan envisions a District with diversity of housing businesses and amenities, it intends to maintain the unique ambiance and historic character of the District”. Nine principles were developed for the plan. Each of the principles has one or more goals associated with the plan, some of which specifically relate to this work plan while others represent general objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows: GENERAL GOALS:  Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.  Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive.  Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.  Harmonize commercial and industrial development with residential quality of life.  New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership.  Promote sustainable building practices and design within the district  Procure new land for park and open space  Improve landscaping in existing public spaces  Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan.  Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan. 213 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 2  Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas.  Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District BACKGROUND In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1) Parks, Trails and Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. 2016 AT-A-GLANCE In FY 2016, the Board continued to work on its priorities. While the Board, with the assistance of Morrison-Maierle, had previously identified the elements to be included in the final special design standards for East Peach Street and East Tamarack Street/Front Street/North Ida Avenue within the district boundaries, the plans have not yet been completed or adopted by the City Commission. The next step is to get those documents finalized and adopted. The Board has expressed its intent to issue bonds to accomplish those street improvements once all of the approval processes have been completed and has begun the initial steps in the bonding process. The Board recognized the need to retain a consulting engineer to assist in moving projects forward in a more timely manner and, after soliciting proposals and interviewing firms, retained KLJ Engineering. The only street improvement project that has been moving forward through the design process is North Wallace Avenue because that was identified by City staff as one of the community’s highest priorities. That project has been a top priority for staff and the consulting engineer, which has caused the Board’s high priority projects to languish. The North Wallace Avenue street improvements are being bid this spring, with work to be undertaken as soon as possible and completed in the fall. This fiscal year, the Board was approached by Gallatin Valley Land Trust (GVLT) about providing some funding for the Front Street trail, which is to extend from North Rouse Avenue to North Wallace Avenue. The Board recognized the importance of this trail connection, even though only the southeasternmost end of it actually lies within the district. As a result, the Board committed the monies needed to complete the fundraising portion of the project. The Board continued to demonstrate its commitment to preserving the District’s historic character by monitoring any proposals that might impact historic properties, including any potential for preservation and possible re-use of the Depot. The Board is vigilant in monitoring new proposed development within the District, to ensure its compatibility with the historic mixed use character of the area. MOVING FORWARD – FY2017 The Board continues to support opportunities to work with Montana Rail Link and Burlington Northern Santa Fe on preservation and rehabilitation projects for the passenger depot. The Board has also agreed to commit monies to the North Wallace Avenue street improvements completed under a special improvement district. This action will result in tax increment financing monies being used to pay what would have been special improvement district assessments for those properties lying within this district and fronting along North Wallace Avenue. 214 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 3 The Board plans to actively pursue the issuance of bonds to fund construction of several infrastructure projects, including East Tamarack Street and East Peach Street improvements, in accordance with the special design standards once they are adopted. Since the Board has decided to pursue the issuance of bonds, the work plan and budget for this upcoming year are significantly different from those of past years, with several projects being removed from the list. The Board has specifically designated the following projects as urban renewal projects n the following ranked order of priority: 1. East Tamarack Street reconstruction 2. East Peach Street reconstruction 3. Pedestrian R/R crossing upgrades at North Wallace Avenue 4. East Aspen Street / Pedestrian Bridge 5. Alternative Front Street reconstruction 6. Alternative North Ida Avenue reconstruction 7. Alternative Quiet Zone Feasibility Study Furthermore, the Board has pledged to designate future annual tax increment to tax increment urban renewal revenue bonds authorized by the Bozeman City Commission. NORTHEAST URBAN RENEWAL PROJECTS INFRASTRUCTURE Poor pedestrian connectivity within the District is well documented. Lack of street improvements including missing curb, gutter, pavement and sidewalks creates an unwelcoming and potentially unsafe environment for pedestrians and bicyclists. A lack of stormwater drainage facilities leads to the ponding of water in public rights-of-way, encouraging pedestrians to walk in the street and emphasizing the need for street improvements. The District has a historic mix of light manufacturing and residential uses creating a more urban environment on the streets, especially during business hours. Modest improvements to pedestrian facilities to create safer more welcoming routes for pedestrians will reduce conflict between users. The lack of street delineation/improvements and stormwater facilities has caused an unknown number of individuals to use some sections of the District as dumping grounds for unwanted appliances and furniture. Street improvements coupled with improvements to trails and parks and the landscaping of public spaces will improve conditions for pedestrians and bicyclists and reduce, if not eliminate, dumping in the public right-of-way. Making improvements to sidewalks on unimproved streets comes with some difficulty especially if elevation differences are present across the width of the right-of-way and if a need to improve stormwater drainage is warranted as well. What seems like a rather simple project turns into a large scale street improvement project. Without additional information, moving forward on these improvements is difficult, so survey and design is the first step. Regarding design, the Board recognizes that creative solutions are needed to enhance the public right-of-way for two very different user types in the District. In support of improvements to these streets, the Board has allocated a portion of the budget to the following deficient street sections in the District: 215 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 4 East Peach Street – Sidewalks, Storm Water control, Landscaping Construction $ 387,400 Initial survey and the design for East Peach Street improvements have been completed. The Board approved the design in November 2011. City advisory boards have reviewed the design, and the Commission has approved the design, but it has not yet been adopted by ordinance. It has also been determined that the design has not been fully completed and the plans and specifications have not yet been compiled for going to bid on this project. The Board has decided to fund the engineering needed to complete the design and bidding process from its TIF funds this year, in anticipation that the final plans and construction documents will be prepared this year, with bidding to occur in late Fall or early Winter 2016 and construction to be undertaken in Spring 2017. The Board has chosen to issue tax increment financing bonds to cover the costs of constructing several infrastructure improvements over the next couple construction seasons, including this one. East Tamarack Street $ 385,900 Morrison-Maierle has completed the initial survey and design work for special street standards for East Tamarack Street, Front Street and North Ida Avenue; and this Board approved those designs at its September 2014 meeting. The final design is to be prepared and submitted to advisory boards for comment and then to the Commission for its action. After the Commission approves the design standards for these roadways, the next step will be preparation of an ordinance that adopts the special design standards for these roadways and those for East Peach Street. The Board has now chosen to split this project into different pieces, with the East Tamarack Street improvements selected as its top priority project. As a result, this section pertains to the East Tamarack Street improvements only. The Board has decided to fund the engineering needed to complete the design and bidding process from its TIF funds this year, in anticipation that the final plans and construction documents will be prepared this year, with bidding to occur in late Fall or early Winter 2016 and construction to be undertaken in Spring 2017. The Board has chosen to issue tax increment financing bonds to cover the costs of constructing several infrastructure improvements over the next couple construction seasons, including this one. Front Street/East Aspen Street $ 193,700 A significant amount of design work is still needed for the improvements to Front Street and East Aspen Street adjacent to depot park, particularly with the storm drainage issues near the depot. The Board has budgeted some TIF monies this year for continued work on the designs for these street improvements. These are listed as low priority projects for the use of bond monies and will be constructed only if monies are available after the other top priority projects have been completed. 216 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 5 North Ida Avenue $ 290,500 A significant amount of design work is still needed for the improvements to North Ida Avenue, due in large part to the narrow right-of-way available, the proximity of buildings to the right-of-way line, and storm drainage issues. The Board has budgeted some TIF monies this year for continued work on the design for these street improvements. This is listed as the lowest priority project for the use of bond monies and will be constructed only if monies are available after the other top priority projects have been completed. North Wallace Avenue Construction $ 100,000 The North Wallace Avenue design has been completed and a special improvement district created to cover the costs that the adjacent property owners are to cover. Since this project is subject to the City’s reconstruction process, the reconstruction fund will cover 85 percent of the basic costs while the special improvement district will fund 15 percent of the basic costs and 100 percent of the additional enhancements desired by those within the SID boundaries. Based on the low bid received for this project, the principal SID costs to property owners within the tax increment financing district is just under $100,000. The Board has expressed its intent to use TIF monies currently on hand to pay those costs after the work has been completed and the assessment resolution adopted, but prior to the assessments being made. Pedestrian Railroad Crossing Upgrades $ 50,000 The Board has determined that upgrades to the pedestrian railroad crossing at North Wallace Avenue/L Street are critical, particularly in light of the impending development of the Story Mill Park and the North Wallace Avenue reconstruction. The Board wishes to fund upgrades that can be easily and quickly designed and installed. Conversations with Montana Rail Link have revealed that work done within the railroad right-of-way is to be done by its crews, with those costs to be borne by those making the request. The estimated cost of making the crossing upgrades that are acceptable to both Montana Rail Link and this Board is $50,000. Initial conversations with representatives from Gallatin Valley Land Trust and the City’s Parks Department reveal that both entities recognize the crossing also provides enhanced trail connections and, as a result, may contribute some monies toward the upgrade. Pedestrian Bridge/East Aspen Street right-of-way between North Rouse Avenue and Bozeman Creek $ 166,200 These projects have been budgeted separately in previous years but have been combined this year since the Board recognizes the need to improve the pedestrian facilities along East Aspen Street if the pedestrian bridge is to be installed and dump pedestrians onto an area that is ill prepared to handle the traffic. Board members previously identified the need for a pedestrian bridge at the terminus of East Aspen Street and the North Church Avenue trail east of North Rouse Avenue. East Aspen Street comes to an end at Bozeman Creek; and the use along this section is largely residential with a retail store (butcher shop) at the southeast corner of North Rouse Avenue and East Aspen Street. During FY11, the NURB received positive feedback from the Northeast Neighborhood Association (NENA) on the project and Gaston Engineering completed a feasibility study and cost estimates. Construction of the bridge was estimated between $52,470 and $57,715. The Board has previously budgeted $60,000 for the bridge. This year the new draft floodplain and floodway map was prepared and is now subject to review and comment prior to its final adoption. This map has dramatically impacted the area where the bridge is proposed, and the costs of that 217 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 6 bridge installation are now double the original estimate because of the additional span that will be needed. As a result, the monies previously budgeted will fund approximately half of the project. Also, questions have been raised about whether there is adequate room for the bridge installation given physical constraints of the area. The Board realizes that the right-of-way for East Aspen Street and the location of the street within that right-of-way need to be identified in light of the potential for future infrastructure improvements. Since this is an older part of town, original corner pins are not easily found. A survey of this right-of-way was completed a few years ago, but that survey must be reviewed to determine the edges of the street right-of-way, which will make future street improvements easier to design as well as allow property owners to know exactly where their property lines are located. This information may also help with the future improvements to North Rouse Avenue. Quiet Zone – Feasibility Study $ 25,000 Board members have expressed an interest in pursuing a quiet zone for the North Wallace Avenue railroad crossing. The first step in that process is to complete a diagnostic review of the crossing to identify the type of improvements needed to allow for a quiet zone. The Board also recognizes that the railroad crossing at North Rouse Avenue is close enough to this district that it also impacts the lives of the residents within this tax increment financing district. It is hoped that this diagnostic review will provide information that will encourage others to recognize the viability and desirability of funding the installation of the quiet zones at both locations. If the diagnostic review reveals that a quiet zone is determined beneficial to the community and financially feasible, the Board may choose to actively pursue community support for installation of a quiet zone on the North Wallace Avenue crossing. This may include some financial commitment toward the construction project, with those monies potentially coming from the tax increment or possibly the bond proceeds. Public Arts Program $ 5,000 The North Wallace Avenue street reconstruction project includes a traffic circle and a median. Those elements are to include pads for the potential future installation of sculptures, possibly through a rotating art program. Given the number of artists within this district and immediately surrounding area, it is important to recognize this component of the district’s character. One option might be to use this funding as matching funds for a grant that would facilitate placement of additional artwork throughout the district. Other options might include using these monies to provide some type of special intersection crossings at the entrances to the district or to provide some type of artistic enhancement on a bridge or bridges providing entrance to the district. Infrastructure Total $ 1,603,700 Rationale: The infrastructure improvements meet Guiding Principle 1 and Goals A & B under Principle 1 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Ensure the health, safety, and security of the District” • Goal A, “Outdated or insufficient infrastructure should be repaired, replaced or 218 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 7 otherwise improved.” • Goal B, “Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.” The spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288, MCA which states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… PARKS, TRAILS AND GREENSPACE District Trails and Depot Pocket Park Area Maintenance $ 5,000 The original trail, landscaping and bench installation were completed in 2012. Landscaping maintenance, including mowing and weed spraying, is on-going. Water is provided, as needed, from an adjacent property. The Board proposes continuing the operation of the temporary irrigation system, weed control and general maintenance. Weed control and general maintenance may also be needed in other District trail areas. The Board is considering additional irrigation improvements to enhance maintenance possibilities as well as an aggressive program to eliminate knapweed in the East Aspen Street right-of-way. Parks/Trails Total $ 5,000 Rationale: The park, trail and greenspace improvements meet Guiding Principle 4 and Goals A & B under Principle 4 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Public open space is essential to a healthy and appealing urban environment” • Goal A, “Procure new land for parks and public open space” • Goal B, “Improve landscaping in existing public spaces.”- to include enhancing boulevards and public rights-of-way by planting and maintaining trees where appropriate and controlling weeds The spending of TIF funds on park and open space improvements is allowed under 7-15-4255, Authority to provide or contract for services related to urban renewal, of the Montana Code Annotated. Specifically, item (1b) states that “Every municipality shall have power to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements” NEIGHBORHOOD DEVELOPMENT PLANNING Depot Rehabilitation Project $ 1,000 The Northeast Urban Renewal Board recognizes the importance of the depot within the district. Stabilization of the depot was accomplished, and some renewed interest in reuse of the depot has been expressed. If permission can be obtained from the railroad, the Board has expressed its strong interest in taking any necessary steps to preserve and rehabilitate the structure. 219 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 8 Planning Total $ 1,000 Priority III Rationale: Neighborhood Development Planning meets Guiding Principle 2 and the Goal under Principle 2 of the adopted Northeast Urban Renewal District Plan: • Guiding Principles, “Balance commerce and livability in the District within the mixed-use framework” AND “Honor the unique character and vitality of the District” • Goal, “Harmonize commercial and industrial development with residential quality of life” • Implementation Action, “Where historic structures are affected by public or private development, seek out the advice and assistance of local, state, or federal historic preservation professionals for opportunities to renovate existing historic structures.” This funding proposal is for Neighborhood Plan implementation activities which are meant to encourage developers to build on parcels within the Northeast Urban Renewal District. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was created to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. Board proposes to award grants to reimburse developers for costs allowable under Section 7-15- 4288, MCA, but limited to public infrastructure. These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, which grants the City the power to formulate and coordinate a workable program as specified in Section 7-15-4209, MCA, which states : (1) A municipality may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. (2) Such workable program may include, without limitation, provision for: (b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements; by encouraging voluntary rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas or portions thereof. Additionally, Section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… 220 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 9 ADMINISTRATION Part-time staff and other Administrative Services $ 13,000 The Board needs staff to assist with District Plan implementation. $10,000 is to be transferred to the Economic Development Division to offset the cost of staff time used to assist the NURB with District Plan implementation. $3,000 is budgeted to cover administrative services. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” The Board has previously requested money for public noticing and mailings in the District to inform property owners about NURB implementation and activities. This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” Bond Counsel services $ 30,000 The Board has decided it wishes to proceed with the issuance of bonds during FY17 to cover the costs of infrastructure improvements, as noted above. Some initial costs have been incurred this fiscal year; however, most of those costs will occur next fiscal year. Section 7-15-4290, MCA states “(1)(a) The tax increment derived from an urban renewal area may be pledged for the payment of revenue bonds issued for urban renewal projects or of general obligation bonds, revenue bonds or special assessment bonds issued to pay urban renewal costs described in 7-15-4288 and 7-15-4289.” Bond payment $ 55,000 It is anticipated that bonds will be sold this fiscal year to fund the infrastructure improvements previously identified in this work plan. The budget includes bond proceeds in the amount of $1.5 million. This amount may vary slightly based on the terms and interest rate of the bond sale. Based on the budgeted amount, it is projected $110,000 will be needed annually to repay those bonds. It is anticipated the bond sale will occur in the latter half of the fiscal year, so only one semi-annual payment, in the amount of $55,000, will be needed. Bond reserve $ 33,000 TIF bonds are required to have 30 percent of the projected annual payment held in reserve. Based on the budgeted amount, it is projected $110,000 will be needed annually to repay those bonds. The TIF bond reserve is projected to be $33,000 annually. Engineering consultant services $ 60,000 While it is anticipated that most of the engineering consultant costs will be charged against the specific projects, the consultant attends Board meetings and provides other assistance to the Board; and there is a potential that the consultant will be asked to provide additional services during the upcoming year that are not specific to any of the projects listed above. When that occurs, those costs will be charged against this line item. 221 Northeast Urban Renewal Board Annual Work Plan and Budget FY17 10 SUMMARY: FY 17 PROPOSED BUDGET URBAN RENEWAL PROJECTS Infrastructure $ 1,603,700 Parks/Trails $ 5,000 Planning $ 1,000 Staff Time $ 10,000 Noticing and Administrative Services $ 3,000 Consultant Costs $ 90,000 Bond Payment $ 55,000 Bond Reserve $ 110,244 Undesignated Reserve $ 136,056 Overall Budget Total $ 2,014,000 222 Revenues:2016-17 Budget TIF Bonds Estimated Beginning Balance $392,500.00 $392,500.00 FY2017 Tax Increment $120,000.00 $120,000.00 Delinquent Increment State shared/entitlement Interest $1,500.00 $1,500.00 Bond proceeds $1,500,000.00 $1,500,000.00 Total Estimated Revenues $2,014,000.00 $514,000.00 $1,500,000.00 Expenditures Budgeted: Maintenance Trails Maintenance $5,000.00 $5,000.00 Subtotal - Maintenance $5,000.00 $5,000.00 $0.00 Infrastructure East Tamarack $385,900.00 $20,000.00 $365,900.00 East Peach Street $387,400.00 $20,100.00 $367,300.00 North Wallace Avenue $100,000.00 $100,000.00 Railroad crossing improvements $50,000.00 $50,000.00 Pedestrian Bridge/East Aspen Street $166,200.00 $21,700.00 $144,500.00 Front Street $193,700.00 $25,300.00 $168,400.00 North Ida Avenue $290,500.00 $37,900.00 $252,600.00 Quiet zone feasibility study $25,000.00 $25,000.00 Public Arts Program $5,000.00 $5,000.00 Subtotal - Infrastructure $1,603,700.00 $305,000.00 $1,298,700.00 Neighborhood Development Planning Depot Rehabilitation Project $1,000.00 $1,000.00 Subtotal - Neighborhood Dev Planning $1,000.00 $1,000.00 $0.00 Administration Bond Costs $30,000.00 $30,000.00 Staff Support $10,000.00 $10,000.00 Administrative Services $3,000.00 $3,000.00 Bond repayment $55,000.00 $55,000.00 Engineering consultant (KLJ)$60,000.00 $60,000.00 Subtotal Administration $158,000.00 $158,000.00 $0.00 Reserves Bond Reserve $110,244.00 $45,000.00 $65,244.00 Undesignated Reserve $136,056.00 $136,056.00 Subtotal Reserves $246,300.00 $45,000.00 $201,300.00 Total Expenditures $2,014,000.00 $514,000.00 $1,500,000.00 Northeast Urban Renewal District 223 R:\Accounting\TIFD_Tax_Increment_Financing_Districts\Fund_144_NE_Urban_Renewal\NE_Urban_Renewal_TIF _Fund_144_Balance_-_05.26.2016.xls\Presentation - 5.26.16 5/26/2016 at 4:05 PM BEGINNING FUND BALANCE: JULY 1, 2007 -$ ADD: REVENUES Property Tax Increment 690,542.63$ Other Grants 5,000.00 Intergovt State Shared Revenue - State Entitlement Share 2,432.98 Interest Income 14,259.73 TOTAL REVENUES 712,235.34$ LESS: EXPENDITURES Office Supplies (52.38)$ Contracted Services/Consultants & Prof Services (184,102.59) Contracted Services/Maintenance Contracts (1,008.00) Contracted Services/Engineers (46,571.24) Contracted Services/General (2,419.00) In-State Travel & Training (70.00) Advertising (215.00) Postage (68.41) Other/General - Capital - Infrastructure & Improvements (20,000.00) Other Financing Uses/Transfers to Other Funds (57,900.00) TOTAL EXPENDITURES (312,406.62)$ CURRENT FUND BALANCE/(FUND DEFICIT)399,828.72$ NE URBAN RENEWAL TIF DISTRICT FUND BALANCE Fund 144 As Of 5/26/2016 224 Community Development Services of Montana 954 Caledonia Street, Butte, MT 59701-9002 Memo PHONE FAX WEB 406-723-7993 406-723-7993 CDSofMontana.com MEMO TO: Brit Fontenot FROM: Janet Cornish JC and Lanette Windemaker LW RE: Schedule/Steps for Bozeman NE URD Bond Issue DATE: May 16, 2016 Week of August 1, 2016 Receipt of Certified Taxable Value of District for FY17. (DOR prepares) Update of Financial Analysis to determine the size of the bond, coverage, terms, etc. (COB prepares) September 5, 2016 • NE URD TIF Board considers and adopts the resolution advising the City Commission regarding the projects and its commitment of TIF funds to the payment of bonds, with findings to support this recommendation. (LW prepares) September 7, 2016 Packet deadline for September 19 City Commission meeting. September 19, 2016 • City Commission considers and adopts a resolution that: o Identifies projects o Provides for and authorizes reimbursement of funds expended before the bond is issued – this provision must be passed within 60 days of when the expenditure occurs o Sets a hearing date (October 17) on the proposed projects and the intent to use TIF bonds (Dorsey prepares) October 2, 2016 October 9, 2016 Public Hearing Notice published twice per City of Bozeman requirements 225 2 October 17, 2016 • Public Hearing on the projects and associated bond issue is held before the City Commission • City Commission considers and adopts resolution that: o indicates its support of these projects, based on findings set forth in the TIF Board Resolution (and public hearing) (Dorsey prepares) o identifies the type of bond, desired terms, etc. that will be used to solicit responses from banks and other institutions. The resolution serves as an RFP and authorization to proceed with the solicitation. (Dorsey prepares) Week of October 17, 2016 RFP distribution Week of October 31, 2016 Bid opening, and analysis. Week of November 14, 2016 Agreement with the selected financial institution to buy bonds November 21 or 28, 2016 • City Commission considers and adopts resolution to sell the bonds per the agreement with the bank. (Dorsey prepares) 226 227