07-25-2011 City Council Special Meeting PacketCity of Grand Island
Monday, July 25, 2011
Special Meeting Packet
City Council:Mayor:
Jay Vavricek
City Administrator:
Mary Lou Brown
City Clerk:
RaNae Edwards
M
o
7:00:00 PM
Council Chambers - City Hall
100 East First Street
Larry Carney
Linna Dee Donaldson
Scott Dugan
Randy Gard
John Gericke
Peg Gilbert
Chuck Haase
Mitchell Nickerson
Bob Niemann
Kirk Ramsey
Call to OrderCity of Grand Island City Council
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda
Items form located at the Information Booth. If the issue can be handled administratively without Council action,
notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak.
Please come forward, state your name and address, and the Agenda topic on which you will be speaking.
MAYOR COMMUNICATION
This is an opportunity for the Mayor to comment on current events, activities, and issues of interest to the community.
Call to Order
Pledge of Allegiance
Roll Call
Invocation
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act
in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state
law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
City of Grand Island City Council
Item -1
Discussion Concerning Municipal Equalization Funding and
Property Taxes
Monday, July 25, 2011
Special Meeting
City of Grand Island
Staff Contact: Mary Lou Brown
City of Grand Island City Council
Council Agenda Memo
From: Mary Lou Brown, Finance Director
Meeting: July 25, 2011
Subject: Municipal Equalization Funding and Property Taxes
Item #’s: 1
Presenter(s): Mary Lou Brown, City Administrator
Background
The State of Nebraska offers a funding source to municipalities through State Statute
sections 77-27,139.01 to 77-27,139.04. Based on the calculation of state aid,
municipalities may receive dollars from the Municipal Equalization Fund. Grand Island
has not qualified for the MEF funds in the past several years due to the fact that the City’s
property tax levy is lower than the State average rate. Population is also a factor in the
calculation. The last time that Grand Island received MEF funds was in 2004-2005. This
payment was based on the mill levy of 2003-2004. In 2004-2005 the City’s levy was
reduced below the average level and the City no longer qualified.
Discussion
The study session will focus on an overview of the property tax levy and its relationship
to the MEF funds. Based on estimates, it appears that the current property tax levy would
need to be increased from .2725 to a minimum of .3097247 in order to qualify for MEF
funds at the lowest level. At the highest level, the increase would be .07722472 which
would increase the levy from .2725 to .3497247. Incremental revenue to the City is
identified along with the impact to property owners.
As Council considers the 2012 budget proposal, this information is presented for
educational purposes. The proposed budget does not include an increase in the City’s
property tax levy.
Conclusion
This item is presented to the City Council in a study session to allow for any questions to
be answered and to create a greater understanding of the subject.
YorkKearneyScottsbluffNorfolkSchuylerGrand IslandLincolnGeringLexingtonMcCookColumbusBeatriceSewardBlairChadronAllianceSo. SiouxNebraska …PapillionHoldregeWayneFremontSidneyOgallalaHastingsNo. PlattePlattsmouthOmahaCreteLaVistaBellevueRalston
2011 Levies
Municipal Equalization Funding (MEF)Scenarios
Item -2
Discussion Concerning Community Redevelopment Authority 2011-
2012 Budget
Monday, July 25, 2011
Special Meeting
City of Grand Island
Staff Contact: Chad Nabity
City of Grand Island City Council
Council Agenda Memo
From: Chad Nabity, Regional Planning Director
Meeting: July 25, 2011
Subject: Community Redevelopment Authority 2011-2012
Annual Budget
Item #’s: 2
Presenter(s): Chad Nabity, Regional Planning Director
It is my privilege to present to you the budget for the Community Redevelopment
Authority for 2011-2012. This plan and budget continues the high-quality services that
have enabled the CRA to partner with the City of Grand Island, private developers and
businesses, and with property owners in the blighted and substandard areas to make
Grand Island vibrant, clean, safe, and attractive.
The CRA budget for 2011-2012 is offered to you with a review of the responsibilities of
the CRA. Those responsibilities and abilities are outlined in State Statutes and are
summarized, in part, as follows:
The creation of Redevelopment Authorities was authorized by the Nebraska Legislature
in order to provide communities with the ability to address certain areas of a city in need
of improvement and development. Powers granted to Community Redevelopment
Authorities are outlined in Chapter l8 of the Statutes and include the ability to expend
funds to acquire substandard or blighted areas, make public improvements, and assist
with development and redevelopment projects in specified areas. The Authority has
virtually the same powers as any political subdivision, including borrowing money,
issuing bonds, undertaking surveys and appraisals and asking for a levy of taxes.
A five-member board, appointed by the Mayor with the approval of the City Council,
governs the CRA. The CRA is administered by a Director and devotes the overwhelming
share of its resources to highly visible and effective programs. The CRA funds its
programs primarily through assessments on taxable properties within the Grand Island
city limits.
BLIGHTED AND SUBSTANDARD AREAS
There are Seven (7) designated Blighted and Substandard Areas within the Grand Island
City Limits (see attached map). The City of Grand Island has the authority to designate
up to 35% of the community as blighted and substandard. At present, 16.66% of the City
has been designated blighted and substandard. The CRA has contracted with Olsson
Associates to conduct a Blight Study for an area between Anna Street and Stolley Park
Road west of Greenwich Street including the County Industrial tracts located in that area.
It is expected that the study will be recommended for Council approval later this year.
CRA MISSION
The CRA’s mission is to reduce, slow or eliminate blighting influences on property in
those areas that have been designated as blighted and substandard. They do this by
encouraging new investment and improved infrastructure in older areas of the community
through the use of tax increment financing. They also take an active role in purchasing
and demolishing properties that need to be cleared. These properties are then made
available for redevelopment.
FISCAL RESOURCES
General Revenues For 2011-2012,
The CRA is requesting property tax revenues of $431,384, slightly more than the amount
requested for the 2010-2011 and 2009-2010 budgets and down from $475,000 in 2008-
2009 and down from $500,000 in 2007-2008. The CRA is requesting the same levy that
was approved last year for normal CRA activities. In addition to the amount requested by
the CRA, City Administration is suggesting that Council approve funding for Lincoln
Park Pool as part of the CRA budget by increasing the levy to $0.026 per $100/valuation.
Historically, the levies and tax asking have been:
2010-
2011
2009-
2010
2008-
2009
2007-2008 2006-
2007
2005-
2006
2004-
2005
0.017742 $0.018076 $0.020790 $0.0225655 $0.022824 $0.023625 $0.024287
$425,000 $425,000 $475,000 $500,000 $477,204 $456,540 $457,391
At the June 29, 2011 meeting, the Community Redevelopment Authority approved the
proposed budget establishing a preliminary request of $0.017742 for each hundred dollars
of valuation for an anticipated $431,384 based on an estimated taxable valuation of
$2,431,429,948.
In addition to the $0.017742 levy that CRA is requesting, City Administration is
suggesting that the CRA levy be raised to the full amount allowed by law which is
$0.026. The additional funding would be directed by Council toward the renovation of
the Lincoln Park Pool. This additional levy is expected to generate $200,787. This
funding would be used to pay off bonds issued for the purpose of rebuilding the Lincoln
Park Pool. Council and CRA would have to approve a redevelopment plan for this
project, plans for the redevelopment of the pool and an interlocal agreement between
Council and the CRA prior to CRA issuing any bonds for the project. If Council decides
to move forward with this method of financing the Lincoln Park Pool project, Council
can refer the modified budget back to the CRA at the July 26th Council meeting. The
CRA can consider this amended budget and levy request at their meeting on July 27th.
Program Funding
The Community Redevelopment Authority has the ability to assist private developers and
governmental entities with the commercial, residential or mixed-use redevelopment
projects throughout the City. Specific detail on projects is as follows:
· Purchase of Dilapidated Properties/Infrastructure. The 2011-2012 budget includes
$100,000 for the acquisition of substandard properties in the blighted and substandard
areas and for the provision of infrastructure. The Authority will consider any property
within a designated area. The Authority budgeted $100,000 in the 2010-2011 year
and did not spend $2,002 for additional expenses associated with the purchase of the
building on South Locust in 2009-201.
· Facade Development : $150,000 has been budgeted for the façade development
program, including grants and interest buy down; these projects are unidentified at
this time. This program has been used extensively in the Downtown area but is
available to all blighted and substandard areas. In addition, CRA has committed
$300,000 each to new façade projects at Skagway and the Grand Theater over the
2011, 2012 and 2013 fiscal years.
· Train Horns: A total amount of $240,000 has been reserved for participation in the
way side horn project in Downtown Grand Island. This project is a joint project
funded by the City and the CRA through an interlocal agreement. Final approvals
from the railroad are moving forward. This will be a reimbursement to the City. Most
likely, $140,000 will be reimbursed to the City this fiscal year.
· Other Projects: $100,000 has been reserved for other projects in the blighted and
substandard areas. In the 2010 fiscal year, funding in the other projects was used:
o to fund very large façade improvement requests from Skagway and the
Grand Theater,
o to fund the demolition of the oldest part of the Grand Island Christian
School at Five Points,
o to purchase and demolish the old VooDoo Lounge Building at 3235 S.
Locust;
o to finance the installation of water lines along Poplar Street between 9th
and 12th Streets; and
o to fund additional façade projects that were approved based on the 2010
budget but not carried over into the 2011 budget.
This funding can be assigned to specific projects including but not limited to
infrastructure improvements in the blighted and substandard areas that would
support larger redevelopment plans. The CRA has used this funding item in the
past to fund additional façade improvement projects and to make grants to fund
specific projects for the Business Improvement Districts, the Grand Island Parks
Department, Fonner Park, The Central Nebraska Humane Society, St. Stephens,
Habitat for Humanity and other community groups for specific projects that meet
the mission of the CRA.
CONCLUSION
A continued aggressive approach toward redevelopment will be the focus for the CRA in
2011-2012. The investments this community has made in housing, redevelopment efforts,
infrastructure and economic development, bode well for the future of the community.
2008 2009 2010 2011 2011 2012
Actual Actual Actual Budget Forecasted Budget
CONSOLIDATED
Beginning Cash 952,497 1,236,622 1,547,542 980,091 980,091 772,491
REVENUE:
Property Taxes 750,800 755,133 648,172 667,783 667,783 935,687
Loan Proceeds - - 0
Interest Income 41,968 15,630 20,137 8,000 8,000 8,000
Loan Income (Poplar Street Water Line)1,000
Land Sales 15,152 47,335 - 50,000 30,000 70,000
Other Revenue - 24,473 24,516 - 10,000 10,000
TOTAL REVENUE 807,920 842,571 692,826 725,783 715,783 1,024,687
TOTAL RESOURCES 1,760,417 2,079,193 2,240,368 2,415,663 1,695,874 1,797,178
EXPENSES
Auditing & Accounting 5,000 7,601 5,392 7,500 3,975 5,000
Legal Services 2,143 4,829 3,060 10,000 4,000 10,000
Consulting Services - - - 10,000 5,000 10,000
Contract Services 34,362 26,122 173,875 40,000 50,000 55,000
Printing & Binding 568 - - 1,000 - 1,000
Other Professional Services 4,112 - - 5,000 - 5,000
General Liability Insurance - - - 250 - 250
Postage 142 159 202 200 850 200
Legal Notices 828 750 613 800 - 800
Licenses & Fees - - - - - -
Travel & Training - - - 1,000 - 1,000
Other Expenditures - - - 500 - 500
Office Supplies 105 38 328 500 810 500
Supplies - - 300 - 300
Land 33,090 129 448,720 100,000 2,002 100,000
Façade Improvement 207,871 241,793 354,015 150,000 150,000 150,000
South Locust - - - - - -
Other Projects - 2,858 - 800,000 280,000 100,000
Property Taxes BID Fees - - - 11,000
2nd Street BID - - - -
Outstanding Façade Improvement Grants - 132,250 132,250 500,000
Railroad Horns - 240,000 - 240,000
Other Committed Projects - 17,700 17,700 97,500
Debt Payments Interest Fees (Lincoln Pool)- - - 200,787
Bond Principal 142,543 161,927 199,617 161,611 215,415 252,659
Bond Interest 93,031 85,445 74,453 81,172 61,381 50,747
TOTAL EXPENSES 523,795 531,650 1,260,276 1,759,783 923,383 1,792,243
INCREASE(DECREASE) IN CASH 284,125 310,920 (567,451) (1,034,000) (207,600) (767,556)
ENDING CASH 1,236,622 1,547,542 980,091 655,880 772,491 4,935
LESS COMMITMENTS - - - - -
AVAILABLE CASH 1,236,622 1,547,542 980,091 655,880 772,491 4,935
CHECKING 786,622 637,868 514,467 355,880 420,420 (347,136)
INVESTMENTS 450,000 909,674 465,625 300,000 352,071 352,071
Total Cash 1,236,622 1,547,542 980,091 655,880 772,491 4,935
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2011- 2012 BUDGET
2008 2009 2010 2011 2011 2012
Actual Actual Actual Budget Forecasted Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2011- 2012 BUDGET
CRA
GENERAL OPERATIONS: 01
Property Taxes 493,602 487,610 442,832 425,000 425,000 431,384
Property Taxes-Lincoln Pool Levy 200,787
Interest Income 41,561 14,889 19,804 8,000 8,000 8,000
Loan Income (Poplar Street Water Line)1,000
Land Sales - 47,335 - 50,000 30,000 70,000
Other Revenue & Motor Vehicle Tax 1,300 8,959 12,156 10,000 10,000
TOTAL 536,463 558,792 474,791 483,000 473,000 721,171
GILI TRUST 07
Property Taxes 66,410 65,817 65,694 65,780 65,780 33,000
Interest Income - -
Other Revenue 1,108 277 8
TOTAL 67,518 66,094 65,702 65,780 65,780 33,000
CHERRY PARK LTD II
Property Taxes 62,743 91,836 32,832 59,180 59,180 59,180
Interest Income 251 497 301 -
Other Revenue - -
TOTAL 62,994 92,334 33,133 59,180 59,180 59,180
GENTLE DENTAL
Property Taxes 3,497 4,427 4,479 4,202 4,202 4,202
Interest Income 3 1 2 -
Other Revenue 947 2,610 -
TOTAL 4,447 7,037 4,481 4,202 4,202 4,202
PROCON TIF
Property Taxes 18,138 17,925 17,972 19,162 19,162 19,162
Interest Income 53 36 5
Other Revenue 972 232 1,172
TOTAL 19,163 18,193 19,148 19,162 19,162 19,162
WALNUT HOUSING PROJECT
Property Taxes 93,632 62,942 33,089 74,472 74,472 74,472
Interest Income 100 207 26
Other Revenue 10,825 12,395 11,180
TOTAL 104,557 75,544 44,296 74,472 74,472 74,472
2008 2009 2010 2011 2011 2012
Actual Actual Actual Budget Forecasted Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2011- 2012 BUDGET
BRUNS PET GROOMING
Property Taxes 9,536 9,575 10,502 4,986 11,000 11,000
Interest Income -
TOTAL 9,536 9,575 10,502 4,986 11,000 11,000
GIRAD VET CLINIC
Property Taxes 3,242 4,940 13,855 4,940 14,000 14,000
Interest Income - - - - - -
TOTAL 3,242 4,940 13,855 4,940 14,000 14,000
GEDDES ST APTS - PROCON
Property Taxes 1,195 14,809 1,195 15,000 15,000
Interest Income - - - - - -
TOTAL - 1,195 14,809 1,195 15,000 15,000
SOUTHEAST CROSSINGS
Property Taxes - 8,866 12,109 8,866 14,000 14,000
Interest Income - - - - - -
TOTAL - 8,866 12,109 8,866 14,000 14,000
POPLAR STREET WATER
Loan Proceeds (Property Taxes Collected)- - - - - 1,000
Interest Income - - - - - -
TOTAL - - - - 1,000
TC ENCK
Property Taxes - 5,500
Interest Income - - - -
TOTAL TC ENCK - - - - 5,500
CASEY'S FIVE POINTS
Property Taxes - 15,000
Interest Income - - - -
TOTAL CASEY'S FIVE POINTS - - - - 15,000
SOUTHPOINTE HOTEL
Property Taxes - 22,000
Interest Income - - - -
TOTAL SOUTHPOINTE HOTEL - - - - 22,000
JOHN SCHULTE CONSTRUCTION
Property Taxes - 3,000
Interest Income - - - -
TOTAL JOHN SCHULTE CONSTRUCTION - - - - 3,000
PHARMACY PROPERTIES INC
Property Taxes - 8,000
Interest Income - - - - TOTAL PHARMACY PROPERTIES INC - - - - 8,000
KEN-RAY LLC
Property Taxes - 5,000
Interest Income - - - -
TOTAL KEN-RAY LLC - - - - 5,000
TOTAL REVENUE 807,920 842,571 692,826 725,783 749,796 1,024,687
2008 2009 2010 2011 2011 2012
Actual Actual Actual Budget Forecasted Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2011- 2012 BUDGET
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting 5,000 7,601 4,392 7,500 3,975 5,000
Legal Services 2,143 4,829 3,060 10,000 4,000 10,000
Consulting Services - - - 10,000 5,000 14,000
Contract Services 34,362 26,122 84,977 40,000 50,000 55,000
Printing & Binding 568 - - 1,000 1,000
Other Professional Services 4,112 - - 5,000 5,000
General Liability Insurance - - - 250 250
Postsge 142 159 202 200 850 200
Legal Notices 828 750 613 800 800
Licenses & Fees - - -
Travel & Training - - - 1,000 1,000
Other Expenditures - - - 500 500
Office Supplies 105 38 328 500 810 500
Supplies - - - 300 300
Land 33,090 129 448,720 100,000 2,002 100,000
DEBT
Bond Payments/Fees (Lincoln Pool)200,787
PROJECTS
Façade Improvement 207,871 241,793 354,015 150,000 150,000 150,000
South Locust - - - -
2nd Street BID - - - -
Outstanding Façade Improvement Grants - - - 132,250 132,250 500,000
Railroad Horns - - - 240,000 240,000
Other Committed Projects - - - 17,700 17,700 97,500
Other Projects - 2,858 - 800,000 280,000 100,000
Property Taxes BID Fees - - - - 11,000
- - - -
TOTAL CRA OPERATING EXPENSES 288,221 284,279 896,308 1,517,000 646,587 1,492,837
GILI TRUST
Bond Principal 47,158 51,009 55,158 51,001 59,654 31,627
Bond Interest 18,622 14,779 10,622 14,779 6,126 1,263
Other Expenditures - -
TOTAL GILI EXPENSES 65,780 65,788 65,780 65,780 65,780 32,890
CHERRY PARK LTD II
Bond Principal 36,824 39,729 42,864 39,729 48,035 49,894
Bond Interest 22,356 19,451 16,316 19,451 11,145 9,286
TOTAL CHERRY PARK EXPENSES 59,180 59,180 59,180 59,180 59,180 59,180
GENTLE DENTAL
Bond Principal 2,127 2,236 2,395 2,276 2,566 2,760
Bond Interest 2,075 1,966 1,807 1,926 1,636 1,442
TOTAL GENTLE DENTAL 4,202 4,202 4,202 4,202 4,202 4,202
PROCON TIF
Bond Principal 10,601 9,064 10,183 9,467 10,829 11,782
Bond Interest 8,561 10,098 8,979 9,695 8,333 7,380
TOTAL PROCON TIF 19,162 19,162 19,162 19,162 19,162 19,162
2008 2009 2010 2011 2011 2012
Actual Actual Actual Budget Forecasted Budget
COMMUNITY REDEVELOPMENT AUTHORITY
FY 2011- 2012 BUDGET
WALNUT HOUSING PROJECT
Other Expenditures
Bond Principal 33,055 35,321 37,743 39,151 40,331 43,096
Bond Interest 41,417 39,151 36,729 35,321 34,141 31,376
TOTAL WALNUT HOUSING PROJECT 74,472 74,472 74,472 74,472 74,472 74,472
BRUNS PET GROOMING
Bond Principal 9,536 9,575 10,502 4,986 11,000 11,000
Bond Interest - - - -
TOTAL BRUNS PET GROOMING 9,536 9,575 10,502 4,986 11,000 11,000
GIRARD VET CLINIC
Bond Principal 6,242 4,940 13,855 4,940 14,000 14,000
Bond Interest - - - -
TOTAL GIRARD VET CLINIC 6,242 4,940 13,855 4,940 14,000 14,000
GEDDES ST APTS - PROCON
Bond Principal - 1,195 14,809 1,195 15,000 15,000
Bond Interest - - - -
TOTAL GEDDES ST APTS - PROCON - 1,195 14,809 1,195 15,000 15,000
SOUTHEAST CROSSINGS
Bond Principal - 8,866 12,109 8,866 14,000 14,000
Bond Interest - - - -
TOTAL SOUTHEAST CROSSINGS - 8,866 12,109 8,866 14,000 14,000
POPLAR STREET WATER
Auditing & Accounting - - 1,000 -
Contract Services - - 89,899 38,129
Bond Principal - - - - 1,000
Bond Interest - - - -
TOTAL POPLAR STREET WATER - - 90,899 - 38,129 1,000
TC ENCK
Bond Principal - 1,000 5,500
Bond Interest - - - -
TOTAL TC ENCK - - - 1,000 5,500
CASEY'S FIVE POINTS
Bond Principal - 4,000 15,000
Bond Interest - - - -
TOTAL CASEY'S FIVE POINTS - - - 4,000 15,000
SOUTHPOINTE HOTEL
Bond Principal - 21,514 22,000
Bond Interest - - - -
TOTAL SOUTHPOINTE HOTEL - - - 21,514 22,000
JOHN SCHULTE CONSTRUCTION
Bond Principal - 3,000
Bond Interest - - - -
TOTAL JOHN SCHULTE CONSTRUCTION - - - - 3,000
PHARMACY PROPERTIES INC
Bond Principal - 8,000
Bond Interest - - - -
TOTAL PHARMACY PROPERTIES INC - - - - 8,000
KEN-RAY LLC
Bond Principal - 5,000
Bond Interest - - - -
TOTAL KEN-RAY LLC - - - - 5,000
TOTAL EXPENSES 526,795 531,658 1,261,276 1,759,783 988,026 1,796,243