On the agenda

1. 3

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   Review of the FY2022-2023 Proposed Budget

   approved

   CRA staff presented the proposed FY2022-2023 CRA budget totaling $8,879,910, including TIF revenue, ARPA funds, and transfers, with major expenditures for downtown improvements (Railroad Square), redevelopment incentives, property assemblage, and a new Parking Garage Maintenance Fund. The Board moved for approval after discussion about increased marketing spend, potential property acquisitions (former SunTrust, Montemayor), and CRA plan review.

   • motion:Move for approval of the FY2022-2023 Proposed CRA Budget. (passed)

   📍Montemayor property📍Railroad Square📍Sims Park📍U.S. Highway 19 and Main Street Gateway📍former SunTrust property🏢Arnett-Muldrow🏢Keiser University🏢SunTrust👤Peter Altman👤Peters#American Rescue Plan Act funds#Aquatic Center#Business Assistance Grants and Loans Program#CRA Plan Review#Exterior Commercial Facade Grants#FY2022-2023 Proposed Budget#Fitness Center#Parking Garage Maintenance Fund#Railroad Square Improvement Project#Recreation Center#Series 2016 Refunding Note#Series 2020 Parking Garage Note#Tax Increment Financing (TIF)#Tax Rebate Grants

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   [00:01:30] So that is being proposed as the same. [00:01:45] For revenues, we're proposing a total of $8,879,910. [00:01:55] The makeup of that amount includes tax increment financing from the county. [00:02:02] We're estimating that the CRA will receive $2,867,870. [00:02:11] And that's calculated based on an operating millage rate of 7.6076 from the county. [00:02:20] And as of now, there hasn't been a proposed change to that millage, so we're expecting [00:02:25] it to stay the same. [00:02:28] The next source of revenue is the American Rescue Plan Act funds. [00:02:32] And we're proposing a total of $2,203,000. [00:02:38] And that funding will go toward the downtown area improvements in the amount of $1.8 million, [00:02:46] $1.9 million, and then $350,000 to go toward the Business Assistant Grants and Loans Program [00:02:55] within the CRA. [00:02:57] The next source of revenue is surplus land sales, totaling $200,000. [00:03:04] And then a transfer from the general fund of TIF, our tax increment financing, totaling [00:03:10] $3,204,280. [00:03:14] And that was calculated based off of an 8.5 mills. [00:03:17] But as we continue to finalize both the operating budget for all funds, but including the CRA, [00:03:27] we'll adjust that as part of the final review. [00:03:31] And then lastly, we'll have a rollover of prior funds totaling $404,760 to balance out [00:03:39] the budget for next fiscal year. [00:03:45] First category of expenditures include personnel. [00:03:48] And this is just the total for funding, again, 25% of city manager salary and benefits along [00:03:59] with a full-time marketing manager position. [00:04:03] So the total in personnel services for next year is proposed at $147,150. [00:04:12] I do want to point out the third line from the top, part-time wages. [00:04:17] You'll see that nothing is budgeted for next fiscal year. [00:04:21] So this category originally funded our shuttle drivers for the parking garage. [00:04:32] And we're proposing to create a separate maintenance fund for the parking garage. [00:04:39] And so those positions will be included in that fund and no longer in the CRA. [00:04:44] However, the CRA will fund that fund. [00:04:49] So there's a transfer that will be presented at the end of the PowerPoint presentation. [00:04:56] So just in general, the parking garage does incur some other operating expenses, which [00:05:03] includes security services, electrical. [00:05:08] We're proposing to include a maintenance worker, one from the public works, to be primarily [00:05:15] dedicated to the parking garage. [00:05:17] And so later on, you'll see that a transfer from the CRA to the general fund to cover [00:05:25] that will be included. [00:05:28] There is a contract, or at least an agreement, with Kaiser University and the future hotel [00:05:38] to contribute to the maintenance of the parking garage. [00:05:42] And so any revenue, once that's finalized, any contributions toward that will go directly [00:05:48] back into the CRA fund. [00:05:54] So the next category is our operating expenditures. [00:05:59] And I apologize about the font. [00:06:02] It looked much better when I viewed it earlier. [00:06:05] But in total, we're proposing just over $2 million in operating expenses. [00:06:11] And I've highlighted a few categories, our expenditure lines, that changed significantly [00:06:17] from last fiscal year. [00:06:20] And I'll start with the first one, which is ads and marketing. [00:06:25] We're proposing $110,000 compared to last year's $50,000. [00:06:30] And that's just to increase our marketing efforts for next year. [00:06:36] The next category is our redevelopment incentives, which has a change from last year. [00:06:45] We're proposing $910,000 compared to the $1.2 million last year. [00:06:51] But that $910,000 is going to be dedicated to fund our exterior commercial facade grants, [00:06:58] tax rebate grants, and our business assistance grant program. [00:07:04] The next category, our line that changed significantly from last year, is our property assemblage. [00:07:10] So we've programmed in $800,000 just to fund some future property acquisitions. [00:07:22] I'll let the city manager speak more on this, but nothing's set in stone. [00:07:25] And this amount is just basically to begin the financing or funding of those purchases. [00:07:32] But we will require future financing. [00:07:35] Do you want to speak more to that? [00:07:38] For purchases that, for instance, if we are able to enter into an agreement for the former [00:07:48] SunTrust property, we would need more funding than what we've established here. [00:07:54] So as we indicated to you when we brought the expenditure forward for your consideration, [00:08:02] if we're going to hold it short term, then we would go to the water and sewer fund. [00:08:06] If it's going to be a longer-term hold, then we would ask you if we could go forward with [00:08:12] the sale of a bond for the purchase of the property. [00:08:19] And this also could potentially be used for the Montemayor property. [00:08:26] Thank you. [00:08:28] The last expenditure item that I'll discuss is our program costs for parking garage. [00:08:36] As you can see, we have nothing programmed in the CRA for next year, but that's because of the [00:08:41] establishment of the Parking Garage Maintenance Fund. [00:08:46] The next category are our capital projects. [00:08:50] And we did discuss this as part of our work session earlier of the capital improvement program. [00:08:57] However, for next fiscal year, we do have $2,925,000 programmed in for downtown area improvements. [00:09:07] And that amount for next year is primarily dedicated to the Railroad Square Improvement Project. [00:09:14] We do have $75,000 programmed in for streetscape improvements and $380,000 programmed for our [00:09:21] U.S. Highway 19 and Main Street Gateway Project. [00:09:26] $330,000? [00:09:27] $330,000. [00:09:28] Sorry. $330,000. [00:09:34] The last category are our transfers out. [00:09:38] And as you can see, we're anticipating our proposing to you $3,353,350 in transfers. [00:09:50] The first transfer is to the General Fund for Administrative Services, and that totals $303,520. [00:09:59] We also have the transfer to the newly established Parking Garage Maintenance Fund, $196,000. [00:10:08] And again, any contributions that we get from Kaiser University and the Future Hotel will come back directly to the CRA fund. [00:10:17] The next transfer is to our General Debt Service Fund, and that is to cover annual debt service requirements for CRA debt. [00:10:26] And those are the Series 2016 Refunding Note and then our Series 2020 Parking Garage Note. [00:10:37] And the final transfer is to the General Fund to cover the CRA loan, and that's the annual $619,320 that we have programmed in. [00:10:50] And that's all I have. [00:10:56] Open it up for public comment. [00:10:59] Seeing no one coming forward, I'll bring it back to the CRA. [00:11:06] Questions? [00:11:11] Move for approval. [00:11:14] Second. [00:11:15] To the maker. [00:11:17] Nothing right now. [00:11:18] Second. [00:11:19] Yeah, I had a question. [00:11:20] I'm trying to get back to it. [00:11:27] Yeah, go ahead, Peter, if you've got a question. [00:11:31] Peter, go ahead. [00:11:34] Yes, sir. [00:11:36] Just as a note, the downtown capital profits of $2.9 million is showing where I think the American Rescue Act money has been corrected, [00:11:49] at least as advised to the railroad square and all of that improvement. [00:11:56] I do think that is a significant part in the middle of town that grows out from there. [00:12:08] And I'm still hopeful, but I also see some of the incentive dollars that have landed within the budget that can be used, [00:12:16] hopefully to implement some of the Muldrow recommendations. [00:12:21] I'm really hopeful that this agency will have some follow-up meetings and sort of recap where we are and where we're going. [00:12:29] It doesn't need to be part of this budget. [00:12:31] I also understand the review of our CRA plan is in the works, which hopefully will give us plenty of input as we move forward. [00:12:43] But as the CRA is a citywide CRA, I'm happy, again, [00:12:50] to see that these incentives are discussed so that folks that live in other commercial properties within the city [00:12:59] or other economic nodes can be considered as we look at our redevelopment plan and incorporate some of the work done. [00:13:11] But it's a good start. [00:13:12] And I think one positive note for those who looked at the audit and saw the outstanding debt that the CRA is handling, [00:13:23] much of it still incorporates the original construction or the reconstruction of the Recreation Center [00:13:31] and the Aquatic Center and the Fitness Center, as well as some, I believe, of the Sims Park improvements. [00:13:39] But some of those notes are not real long and still out there. [00:13:47] So all of that debt is a super long standing, and that $3 million that we're coming in every year is going to help us to absorb that debt down. [00:13:58] I think in response to Councilman Peters with his other hat on discussing the levels of debt and difficulties ahead, [00:14:09] I think it's going to be important that we really get a good grip on what this tax increment is doing for us [00:14:16] and have the ability to discuss it when the time comes. [00:14:20] But I appreciate the fact that we're getting through the budget season. [00:14:24] I know it's the hardest season in the finance department, and I'm also excited we have an audit behind us [00:14:31] and an audit firm that perhaps can assist us. [00:14:35] It's going to be very important for us to keep a close patch on where we are as well in terms of performing within our budget and our revenue stream. [00:14:46] Our revenue stream is solid here because it's fixed at this point. [00:14:53] It's not subject to anything now that the property values are set, so we know what we have to spend in this year. [00:15:00] in this division. The revenue projections and general fund, we're going to have to [00:15:06] follow closely as has been stated at the previous meeting. So, thank you for your time. It's [00:15:12] been a long night. I appreciate your patience. [00:15:14] Thank you. Director Peters, you were saying? [00:15:17] So, thank you. And by the way, I would agree also with Councilman Altman about review of [00:15:29] the CRA and kind of where we're going. One of the questions that came to my mind again, [00:15:33] and I don't mean to nitpick a $50,000 item on an $8 million budget, but I did, I was [00:15:40] intrigued to see that we've a little bit more than doubled our ads and marketing budget. [00:15:48] And so, I'd like to, at some point in time, learn a little bit more about that, just exactly [00:15:53] what we're planning to target there with that. So, sometime in the future, some. But I'm [00:16:01] glad to see it, because I think we've got to use this money to generate money. [00:16:06] And I'd be glad to have that discussion and to talk more about the Arnett-Muldrow efforts [00:16:15] and the money that we've appropriated in the budget to implement some of their improvements. [00:16:22] And as long as I have the floor, I'd really like to take the opportunity to express my [00:16:27] appreciation to the courtesy that Councilman Altman has extended to me by canceling our [00:16:34] weekly meetings, by deferring our regular meetings. He really has given me not, I didn't [00:16:50] want to say it in a way that he's giving me a chance to catch up on things, because [00:17:00] he suggested that there were capital projects that weren't implemented, and that perhaps [00:17:09] that that time might be spent better. And I need to tell you that there are capital [00:17:15] projects that weren't implemented over the last year, but those were due to the fact [00:17:21] that there were elevated funding requirements attached to those, and fewer and fewer grant [00:17:30] opportunities available to implement those. So, those were our challenges, and those were [00:17:36] why some of the projects we had hoped to implement weren't implemented. And in retrospect, [00:17:45] now that he said it out loud, I think maybe I could have done a better job during the [00:17:51] year communicating to you that we couldn't implement the project because our estimate [00:17:58] of probable construction costs had come in, and we received disappointing news about projects. [00:18:06] And so I'll make it a goal myself this year to at least give you a quarterly update so [00:18:11] that you know where we are on projects. But as long as we're talking, Pete's meetings

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2. 5Adjournment▶ 18:15
3. 1Call to Order - Roll Call
4. 2

   Approval of July 19, 2022 CRA Meeting Minutes

   Approval of the minutes from the July 19, 2022 CRA meeting.
5. 4Communications