FINANCE, ADMINISTRATION, RECREATION, SERVICE,
ENGINEERING and GORMAN FARM
COMMITTEE MEETING MINUTES
January 4, 2011
The Finance, Recreation, Service, Engineering and Gorman Farm Committee met at 6:00 pm on January 4, 2011. Present were Councilmembers Smiley-Robertson (who was called away at 6:30), Vonderhaar, and Schaefer. Also in attendance during portions of the meeting were Jack Cameron, George Snyder, Dave Nichols, James Jeffers, Jim Bothe, and Sandra Murphy. Also in attendance were Tom Bowers or Anchor and Brian Seedhouse of Fifth Third Bank.
I. TIF Bonds
George Snyder, Tom Bowers and Brian Seedhouse presented information concerning the Evendale Commons TIF Bonds. Essentially, the TIF agreement calls for Anchor to secure Variable Rate Bonds for two years after the first payment to the TIF. The first payment representing multiple years occurred in August 2010. Anchor would like to have there letter of credit release in May 2011. Because of the current low interest rate on new bonds, Evendale will obtain more money from the TIF if the refinancing occurs before rates increase.
There are three options available to Evendale without a Charter change.
The first option would be to issue bonds at a rate of about 6%. The rate is about 2% higher than the market rate because they would be secured by the TIF revenue alone. If the property taxes paid fall below that necessary to pay principle and interest, the risk of loss falls solely upon the bond holders. Under this scenario at the current rate, Evendale would net about $2,300,000 divided over the next twenty five years assuming that there is a continuation of the same tax revenue steam. This nets about $92,000 annually for Evendale. That stream would go up as there is further development of the property. It goes down if vacancies develop and the property values go down or the taxes are not paid.
The second option is for Evendale to issue and then buy the bonds. The bonds would show as an investment on the investment ledger. The bonds would be valued at $4,385,000. The principle could only be used if the bonds were sold. Typically, these types of bonds do not do well in the
secondary market. Evendale would keep all moneys generated after the Princeton City Schools are paid. Interest and principle payments would be credited to the General Fund. The remaining payments would stay in the Evendale Commons TIF Fund and restricted in accordance to the TIF documents. The 6% is a much higher rate than Evendale receives on its investments. Currently the annual amount for interest, principle and Evendale’s share is estimated to be $353,000 annually. The downside is that the risk of loss falls solely upon Evendale.
The third option is simply to spend some Evendale’s reserves and pay off the bonds. Evendale gets the $353,000 annually. Accounting for the money would have to be determined. The cost of issuing bonds is also saved. Again the Risk of loss if the revenue expected is not generated is upon Evendale.
The committee deferred making any recommendation and will discuss the matter next committee meeting.
II. Gorman Farm
Sandra Murphy presented a written report which is attached. The Committee requested that the Farm present a time line for developing the Five Year Plan at the next committee meeting. Councilmember Vonderhaar reported that he, representatives of URS, the Recreation and Service Departments and Sandra Murphy met to discuss the location of the Evendale trail. Councilmembers Smiley Robertson and Schaefer wanted to see the five year plan before considering the trail location to be maintained by the Service department.
Finally, Sandra noted that this year the spring festival will be Farm Babies, not Shearfest.
II. Engineering/Service
The Monet project and the Glendale-Milford project are on hold until late March or April because of the weather.
The storm water requirements are almost complete and an attempt will be made to present it as an Ordinance at the January Council meeting.
Jim Bothe noted that we have used 300 tons of salt and $13,000 on overtime for snow removal so far this year. 275 tons have been replaced.
Finally, the discussion about the old Evendale School driveway lots continued without resolution.
III. Recreation
Because Councilmember Smiley-Robertson had to leave the meeting, the recreation fees were not discussed.
IV. Finance
Annual report for 2010:
Unencumbered balance: With Evendale Commons TIF $14,266,577.42
Without Evendale Commons TIF $13,799,198.29
(December earnings tax was $844,828.12, about $54,000 more than last year and for the year was $10,807,937.90. The amount of money that was appropriated in 2010, but not spent by the departments was greater than anticipated totaling in all funds $1,744,564.11). The total amount encumbered in 2011 from 2010 is $1,093,468.26. George will report the total of that encumbered balance returned at prior excess as the year progresses.
Excluding Evendale Commons TIF, the Village spent $430,653.14 of its unemcumbered balance.
George indicated that he will be presenting the transfer ordinance to move money into special funds and will present an ordinance creating a Phi Lambda Pi petty cash fund at the January meeting.
V. Administration
Jack Cameron discussed the continuation of the master plan implementation with Tim Burke. The next steps are zoning revisions, zoning map revisions and design standards for some areas. It is hoped to have draft language available by April 1.
The Committee, now consisting of Councilmembers Vonderhaar and Schaefer recommended that an Ordinance changing the Council meeting night and another one allowing Jack Cameron to use the title Director of Development when involved in economic development functions be placed upon on the January Council agenda.
The meeting adjourned at 8:40 pm.
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Christian J. Schaefer
Committee Chairman
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