Loading...
HomeMy WebLinkAbout1995-12-20 EURA MINUTES• • • ENGLEWOOD URBAN RENEW AL AUTHORITY SPECIAL MEETING DECEMBER 20, 1995 I. CALL TO ORDER. The Special Meeting of the Englewood Urban Renewal Authority was called to order in Con- ference Room A of Englewood City Hall at 5:40 P.M., Chairman Steve Mulhern presiding. Members present: Havens, Vormittag, Graebner, Mulhern Members absent: Richmond, Smith, Drew Also present: Robert Simpson, Manager of Neighbo rhood & Business Development Harold Stitt, Planning Community Coordinator Chairman Mulhern announced a quorum present. Chairman Mulhern asked that the matter of designating an Executive Director/Executive Secre- tary not be considered at this time, and be discussed at a future meeting. Il. APPROVAL OF MINUTES. April 12, 1995 Chairman Mulhern asked for consid eration of the Minutes of April 12, 1995. Vormittag moved: Havens seconded: The Minutes of April 12, 1995 be accepted as written. AYES: NAYS: Vormittag, Graebner, Havens, Mulhern None ABSTAIN: None ABSENT: Richmond, Smith, Drew The motion carried. ID. 1996 BUDGET. General Fund Debt Service Chairman Mulhern asked Community Coordinator Stitt to present the information on the pro- posed Budgets. 1 Mr. Stitt stated that the State of Colorado requires submission of a General Fund and Debt Service Budget by the Authority, even though the Authority is in default on the Bond Issue. The general fund expenditures for 1995 are slightly under $3,500 to date, and the proposed general fund budget for 1996 is $4,495. Mr. Stitt explained that there is a small "carry-over balance" of Authority money that was made available when the bonds were refunded several years ago. This carry-over balance is used for the "general fund" expenses of the Authority. The "general fund" budget was prepared by NBD staff. Mr. Stitt then reviewed the Debt Service Budget, which was prepared by Financial Services personnel. Even though all revenues which come in to the Authority from property tax or sales tax increments are immediately wired to the Trustee, a "paper trail" must be established for the estimated revenues and estimated expenditures to service the bonds. Discussion ensued. Mr. Havens asked what effect the merger with Health One and Columbia would have on the property tax revenues. Mr. Stitt responded that Health One is not within the Tax Increment Financing District, and will have no effect on property tax revenues coming to the Authority. Financial fees charged by the Trustee, which are taken from the revenues pledged to service the bonds, were briefly discussed. The negative numbers in the Debt Service budget were discussed. Mr. Stitt explained that when the bonds went into default, the Trustee called all bonds due. Revenues coming in are insufficient to pay both the principal and interest. Some of the bonds carry a high-rate of in- terest, which is compounded; thus, each year the total amount outstanding on the bonds in- creases. Mr. Stitt stated that the Trustee requested a ruling from the IRS on whether the pay- ments made to bondholders are on principal or on interest; no ruling has been made to the knowledge of staff, and the bondholders were told to work with their individual tax consult- ants. Mr. Graebner asked whether the King Sooper's modification will affect the property tax reve- nues coming to the Authority. Discussion ensued. Mr. Stitt commented that the improve- ments which King Soopers has indicated will be made to the store may bring in more revenue in sales tax than would have been paid from property taxes by the vacant buildings. Mr. Simpson stated that King Soopers has indicated they want to increase the size of the store, which should have an impact on the sales tax revenues. The redevelopment of the King Soopers at Trolley Square was further discussed. Havens moved: Vormittag seconded: The Urban Renewal Authority accept the proposed 1996 General Fund • • and the Debt Service Fund budgets, and that they be transmitted to the • State of Colorado as required. 2 • • • AYES: NAYS: Vormittag, Graebner, Havens, Mulhern None ABSTAIN: None ABSENT: Richmond, Smith , Drew The motion carried. IV. REVENUE REPORT. Mr. Stitt discussed the 1994-1995 Tax Increment Revenue Report, noting the decrease in reve- nues from property taxes. The property tax revenues in 1994 were $827,880 in 1994, and only $529,609 through November in 1995. Sales tax revenues, however, have increased from $1,870,024 in 1994 to $1,936,867 in 1995. Brief discussion followed. V. CHAIRMAN'S REPORT. Chairman Mulhern reported on efforts initiated by the City to encourage dialogue between the Englewood Urban Renewal Authority and the Trustee regarding restructuring of the bond is- sue. Mr. Mulhern raised matters of concern the Authority should consider, including fiduciary responsibility to the bondholders. Mr. Mulhern suggested it would be beneficial for all mem- bers of the Authority to have a study session, with legal counsel Benedetti in attendance, to consider the ramifications of restructuring versus maintaining the current posture of status quo . Discussion ensued. It was pointed out that the tax increment district affects not only the reve- nues to the City, but also to the School District and any other taxing entities who realize taxes from the district. Brief discussion ensued. The meeting was declared adjourned. tiertrude G. Welty, Recording Sec 3