*Only comments discussed are reflected below, all detailed content items of the presentation are in attachment A.
Contents include operating budget and a separate one City for Champions Budget is just an estimate, Jim is still awaiting sales tax base calculation from the state.
Figures are very much just place holders for budget purposes because the figures for City for Champions will change and evolve.
No approval requested at this time that will come in November and December.
Concerns raised on staffing costs and funds coming in prior to spending.
Board states that they want to see the income prior to commitment of funds.
Also the budget shows dollar amounts the same for each of the project element sponsors, which will not likely be the case as each project will have different costs.
Ivywild increase came from school AV and small increase from personal property, approximately $142,000 in personal and approximately$685,000 from school increase in property value from the improvements that were built.
Copper Ridge is about a 55% increase.
UMB .12% interest rate on invested funds
North Nevada project isn’t appreciating from recent construction; the assessed value isn’t going up as much as some of the board anticipated. The reason is because it is a year and a half delay in showing due to taxes is paid in arears.
Question arose if the operating fund balance would be available for C4C costs, Jim Rees stated that these are independent of that; this is just the general fund. Thuy stated that the C4C revenue and expenses are kept separate per the resolution.
Peter Scoville asks if there is a way to allocate any of the these funds [general fund] towards C4C since there is concern of losing money on the front end of that thing [C4C]
Jim Rees states that we won’t lose money because how the funding works is we should actually start to see some state tax dollars rolling in even this year, and the resolution allows the Authority to start drawing from that to pay its admin costs.
Board asks Jim for information on CLA’s tracking to see C4C costs so far
For time being we are absorbing that cost, but the eligible costs will be charged the to the C4C expenses. We can reach back and be reimbursed for our financial analysis and legal costs to date associated with reviewing and negotiating the Resolution. CLA will research this by checking their previous invoices and Dan Hughes’ legal fees.
Ivywild Administration costs showing at $60,808, which includes a remainder that was unpaid from previous years, so it will not continue that high in the future.
Debt Service Fund North Nevada Project: Bond principal amount of 1.2 million dollar balance reflected is only for the current amount not the prior years. The total balance owed can be footnoted at the end of the report under debt service.
North Nevada weighs heavily on the board because it needs to turn around and the board needs to know how that is going to happen. The board keeps getting reassurances from the developer that it will all work out in the end somehow, but they are still concerned as to how that will happen.
Board shares concerns that the “projections from a few years ago for N. Nevada bonds would still not make this thing (default) whole.”
City Auditorium is still in the pre-development stages, but no activity has been seen.
Questions arose about any provisions on the city auditorium for discontinuing it as a URA.
*Board Member Colvert enters, she was held up at the Downtown Review Board meeting.
Copper Ridge number is just a place holder and the projection source is unknown, it pertained to the development agreement.
Board asks if the money collected form Copper Ridge is being held, the answer from Chair Neville; most are in escrow and some goes to the metro district (tax increment related to the mill levy for the district).
Jim Rees explains that the discrepancies sometimes arise with the county over changes in valuation due to property owners objecting to the valuation and we have to have a contingency to cover a potential refund.
Board asks if the money collected on Cooper Ridge is just going to sit there for the next 20 years. Jim Rees states that the agreement has some certain triggers in it so if we don’t get to a certain point then we could, he believes, disband the whole thing. Nolan Schriner asks, “Then where will the money go?” Jim Rees responds “back to the taxing entities unfortunately Nolan.”
Board Member Colvert asks the purpose of the contingency on Copper Ridge, since no other projects have one. Thuy responds that for the other projects, we usually zero out the remaining fund balance of whatever is left gets remitted to the school district or the metro districts or to the developers for admin fees.
City for Champions number are very very preliminary.
Board Breaks for Lunch