11-08-1989 Council Agenda - Laserfiche WebLink

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District law or from projects undertaken by any City or HRA, a City may elect, by resolution of the City Council, to transfer control of such projects and any underlying tax increment financing districts to the EDA. After the transfer, the EDA may exercise all powers the City or HRA had with respect to the project. The EDA must covenant and pledge to perform the terms, conditions and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the City with respect to the program, and the EDA will become obligated on the bonds when the program is transferred. Such transfer, however, will not relieve the City of its full faith and credit pledge and tax levying responsibilities with respect to the bonds issued by the City. If the City should decide to retain jurisdiction over any development district, the City Council could still transfer the tax increments to the EDA pursuant to the annual budget so long as the tax increments are used in a manner consistent with the development district plan and tax increment financing plan adopted by the City. 2. General Fund Moneys of City. The Authority is required to send its budget to the City Council with an estimate of the amount of money the Authority expects to need from the City to do Authority business during the next fiscal year. This is the procedure under which the City may give to the Authority money from the City's general fund for the Authority to use. The benefit of using City general fund moneys lies in the fact that such moneys are not as limited in use as moneys from other sources. In short, general fund moneys may be contributed by the City to the Authority and used for any economic development purpose, so long as appropriate findings are made and safeguards are imposed to show that such use will be made to promote economic development within the City. Such use includes write - downs, grants or loans (including working capital loans) to companies to induce them to locate or expand in the City and the purchase of limited partnership interests. 3. Bonds. An Authority may use the proceeds of various types of bonds to fund its activities. a. Tax Supported General Obligation Non -Tax Increment Bonds of the City. The City could issue tax supported general obligation ( "G.O. ") bonds which are not secured by tax increments and give the Authority the proceeds of its G.O. bonds to use in connection with development activity. The bonds would be subject to 23 Page 25