Agenda Date: 09/22/2015
Subject:
Title
Resolution approving the 2016 Operating Plan and Budget for Highline Business Improvement District
Body
|
Presented By: |
Michael Penny, City Manager |
POLICY QUESTION:
Does city council support the approval of the 2016 Operating Plan and Budget for Highline Business Improvement District?
BACKGROUND:
The Highline Business Improvement District (the "district") was organized to provide financing for public improvements and services within the Highline Business Area, commonly known as the Ridge at South Park. The district is governed by a board of directors consisting of five electors of the district appointed by city council (the "directors"). The directors will serve through 2016.
STAFF ANALYSIS:
All capital improvement for which the district was organized have been completed and are in service. No additional improvements are planned for 2016.
FISCAL IMPACTS:
In 2015, the district successfully negotiated a mutual agreement with the bondholder of the Series 2000B Bonds for a reduction and payoff of the 2000B bond debt. This reduced the overall bond debt that was subsequently refinanced with a loan from CoBiz Bank in the amount of $3,000,000. The refinancing resulted in a reduction from the previous bond interest rate of 8.75%, to a loan interest rate of 3.60%. An overall present value savings of $1,299,525 was achieved by the district.
Terms of the 2015 CoBiz loan requires the district to impose a debt service mill levy up to the maximum of 37.000 mills, for payment of the loan principal and interest. The vastly improved debt amortization schedule is attached as Exhibit C to the Operating Plan.
As a result of the Series 200B bond refinancing, the district negotiated with the beneficiaries of the 2003 agreement for a reduction in the obligation from $389,112 to $150,000 and payoff; for a total savings to the district of $239,112. Also, the district intends to perform a payoff of the 2001 Advance and Reimbursement Agreements, totaling $331,181 (as of 7/31/15) of principal and interest. This obligation is projected to be paid off entirely by late 2016.
STAFF RECOMMENDATION:
Staff recommends that the resolution approving the 2016 Operating Plan and Budget for Highline Business Improvement District be approved.
PROPOSED MOTION:
Proposed Motion
I move to approve the resolution approving the 2016 Operating Plan and Budget for the Highline Business Improvement District.