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City Council Regular Meeting Minutes <br /> May 14, 2002 <br /> Page 4 <br /> 0 <br /> 2 Thistle indicated that the report was based on current funds and current obligations in <br /> 3 each of the four TIF Districts. He added that the analysis did not include: inflation, <br /> 4 investment revenue, additional development, increase/reduction in class rate. <br /> 5 <br /> 6 Kenzie Terrace is a redevelopment TIF District created in 1982 and expiring in 2008. <br /> 7 There is a$247,000 per year Community Center Bond payment through 2010 to pay off <br /> 8 the existing funds on the Kenzie TIF District. <br /> 9 <br /> 10 The Chandler TIF District is a redevelopment district created in 1985 that expires in <br /> 11 2011. Projected revenue plus the existing fund balance will support a TIF budget through <br /> 12 2011 of approximately$1,560,000. Future increments will continue to decline through <br /> 13 2004 due to the compression of housing class rates. <br /> 14 <br /> 15 Apache Plaza I is a redevelopment TIF District created in 1993 and expiring in 2019. <br /> 16 Increments received are being utilized to pay outstanding debt related to the Cub Foods <br /> 17 bonds in the amount of$205,922 per year through 2013. Projections indicate that the <br /> 18 district, with its existing fund balance, will continue to be able to support this annual debt <br /> 19 service through the last three years of scheduled debt service on the bonds, 2011 through <br /> 20 2013, during which a total three -year deficit of approximately$70,000 will occur. <br /> 21 Thistle indicated that this was a minor shortfall that should not be a problem for the city <br /> 0 to cover. <br /> 24 Apache II is a redevelopment TIF District created in 1993 and expiring in 2019. <br /> 25 Increments received are being utilized to make annual payments on a pay-as-you-go note <br /> 26 with Hellickson Dental. Pay-as-you-go refers to a method of subsidy whereby the <br /> 27 developer finances the improvements and takes on the risk and the City agrees to pay the <br /> 28 developer as increments are received. Due to the projected reduction in increment it is <br /> 29 estimated to take until the year 2007 to pay the full amount of the note, originally <br /> 30 scheduled for payoff in 2005. <br /> 31 <br /> 32 Councilmember Host asked how they missed on Apache I. Thistle stated that it was <br /> 33 largely due to the change in state tax laws. <br /> 34 <br /> 35 The Council thanked Thistle for the analysis. <br /> 36 <br /> 37 C. Presentation of 2001 City and Housing and Redevelopment Authority Audits. Stuart <br /> 38 Bonniwell City Auditor, will be present. Resolution 02-025, re: Consider approval of <br /> 39 2001 City Audit. <br /> 40 Stuart Bonniwell came forward to review the 2001 City and Housing and Redevelopment <br /> 41 Authority Audits. <br /> 42 <br /> 43 Summary of Fund Equity: <br /> • General Fund $ 1,042,702 <br /> • Special Revenue Funds $ 354,585 <br /> 46 • Debt Service Funds $ 1,447,601 <br /> 47 • Capital Project Funds $ 3,965,606 <br /> 48 <br />