09-12-18 Personnel and Finance (#8)

Home Browse Search

CITY OF SOUTH BEND I OFFICE OF THE CLERK Committee Chair White thanked Ms. Hill for her presentation and explained that there will be an opportunity for public input right after the Redevelopment presentation. Redevelopment and TIF James Mueller, Executive Director for the Department of Community Investment with offices on the 14th floor of the County-City Building, stated, We're following up on last night's presentation on Civil City Funds and some of the plans we have to look forward to next year.There is substantial economic empowerment programing in the Redevelopment Funds,and we'll get to the reason why in a moment, which is a change we made this year. Also, we'll look at the macro 2019 goals and then each team will present their three (3) goals. He referred to the review of the different funds that encompass the overall Community Investment budget in the presentation (which is available in the City Clerk's Office). He stated, Tonight, we're looking at the Redevelopment and Development areas, as well as the Redevelopment Admin Fund #433. In revenues, we expect relatively flat property tax revenues going into the TIF areas. The one (1) exception you'll note is the$7 million this year. That included the$4 million payment from INDOT for the relinquishment of what is now Martin Luther King,Jr. Boulevard.That was a one(1)time payment from the State. If you took out that payment, you'd be looking at a little under $18 million, and looking at the River West TIF area, it's projected to be $17.6 million. He continued, In 2020, the property tax caps go into effect and that impacts the TIF areas by a larger percentage than the General and Parks property taxes. The other thing you'll notice is the one (1) area that is increasing from seven point one four(7.14)to seven point nine six (7.96), and that is the River East TIF. That includes two (2) parts, but most notable is the Eddy Street Phase II Development, and because we expect those revenues to come online, we're actually projecting a net increase there in 2020. There would be the property tax cap plus the additional assessed value from that development as planned. That will largely go to pay off the debt service.Across all those funds, we're expecting about$28.4 million, so that's new revenue coming in. There are of course projects that are ongoing or revenues that are ongoing, so the actual appropriation is likely to be higher than that, but it will be funds that are carrying over from previous years. There is about $13.3 million that we're covering in debt service that ranges from Police and Fire Stations to previous fire stations,parks and trails,the bond that we issued earlier this year, and a host of other legacy debt service payments. We also included$4.4 million across the TIF areas for public works projects including a lot of the water capital that was included in the water rate increase a year or two (2)ago. There's $1.5 million in Parks projects which is in addition to the debt service with the bond. This is new money,it was part of the original financing plan for the Parks and Trails project that was just scheduled for 2019. There is $2 million for the Western Streetscape between Falcon and Dundee,which is something we promised the LaSalle Park Alliance. It is really that last stretch from the two(2)previous phases from Western Avenue, so now the streetscape will go from Olive to Falcon. There is $800,000 for the local match for the Coal Line Trail project,which is expected to be completed in 2021,but this is starting the planning and property acquisition and the different components of that project. There is $450,000 budgeted for the Technology Resource Center Operations programming. We are hoping to open the Center at Ignition Park at the Catalyst Two (2) building first (1st) quarter or early second (2nd) quarter in 2019, and then the Redevelopment Commission has already committed funding for four(4)years of operations. It comes out to about $450,000 per year starting next year. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W Jefferson Bvld I South Bend,Indiana 466011 p 574.235.92211f 574.235.9173I TTD 574.235.5567 Iwww.southbendin.gov 6