SOUTH DRAKE ROAD CORRIDOR IMPROVEMENT AUTHORITY Board of Directors. Oshtemo Township Hall 7275 West Main Street. Thursday July 27, :00 p.m.
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1 7275 W. MAIN STREET, KALAMAZOO, MI Fax TDD SOUTH DRAKE ROAD CORRIDOR IMPROVEMENT AUTHORITY Board of Directors Oshtemo Township Hall 7275 West Main Street Thursday July 27, :00 p.m. AGENDA 1. Call to Order 2. Election of Officers Office of Chair, Vice-Chair, Secretary and Treasurer 3. Approval of Minutes a. July 20, Public Comment 5. Treasurer s Report 6. Drake Road Path Update Draft Budget Discussion 8. Any Other Business 9. Adjournment
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3 THE CHARTER TOWNSHIP OF OSHTEMO South Drake Road Corridor Improvement Authority (SoDA) July 20, 2016 SoDA Board meeting was held at the Township Hall. The meeting was called to order by Chairperson Spurr at 1:00 p.m. MEMBERS PRESENT: Corey Ashley, Vice Chair Kelly Bringman Libby Heiny-Cogswell Dale Shugars Theresa Spurr, Chair Joe Gesmundo Dennis Patzer, Treasurer MEMBERS ABSENT: Deb Jung Jackie Kimble Also present were Planning Director Julie Johnston and Township Attorney James Porter. Minutes Chairperson Spurr indicated that there are three sets of minutes to approve. She asked Attorney Porter if one motion could be made for all three. Attorney Porter confirmed that all three minutes could be approved under one motion. Chairperson Spurr asked if there were any additions, deletions or corrections to the minutes of May 4, June 8 or June 29, Hearing none, she asked for motion to approve the minutes. Mr. Gesmundo made a motion to approve the minutes of May 4, June 8 or June 29, 2016 as presented. Mr. Ashley seconded the motion. The motion was approved unanimously. None. Public Comment
4 2017 Draft Budget Discussion Ms. Johnston gave a summary of the memo provided in the agenda packet. Working with the Township Assessor and Treasurer, staff was able to project the possible tax increment financing revenues for 2017 as approximately $43,295. This dollar amount was based on the increased revenues collected in 2016 and the continued improvements which are occurring at the Corner@Drake project. Projected taxes were determined by the value attached to the building permit for the new construction, the value of the land, and that construction is expected to be 100 percent built in The final taxable value could fluctuate based on the completion date of the project. However, staff projected low to allow for this variability. At the June 8, 2016 meeting, a motion was approved to support the maintenance/snow removal for the Drake Road Non-Motorized Path once it is built. At the meeting, snow removal in the SoDA District was estimated at $6,750. If the path, or a portion thereof, is constructed in the spring/summer of 2017, funds will need to be set aside to manage snow removal for November and December, which equates to approximately $2,700. This leaves a remaining budget in 2017 of $40,595. As presented at the June 29 th meeting, the approximate cost for the Drake Road Non-Motorized Path is $1,035,639. The Township/SoDA will be responsible for 40 percent of these costs which equates to approximately $414,225. It was also discussed at that meeting that because of revenue constraints, the SoDA would likely have to pay the Township back for this 40 percent over time. It is expected that revenue for the SoDA will increase over the next five years as the Corner@Drake project comes to fruition. Based on expected revenues in 2017 and planned construction, we could anticipate tax revenues to increase to around $70,000 a year. Based on this estimate, the SoDA could establish a plan of repayment for the Drake Road Non-Motorized Path costs while still setting aside some funds for maintenance and other possible future projects. Ms. Johnston presented the following proposed budget:
5 APPROVED ACTIVITY REQUESTED THRU GL NUMBER DESCRIPTION BUDGET 06/30/2016 BUDGET Fund TAX INCREMENT FINANCE AUTHORITY (SoDA) ESTIMATED REVENUES Dept 001-Revenue Carryover $0 $0 $ Current Real Property Tax $4,700 $12,834 $43, Miscellaneous $0 $0 $ Interest Earned $0 $0 $200 TOTAL ESTIMATED REVENUES $4,700 $12,834 $43,295 APPROPRIATIONS Dept 728-Economic Development Salary-Staff Supplies Postage Consultants Accounting & Audit Fees Legal Fees Legal Notices Repairs/Maintenance $2, Capital Outlay/Obligated Projects $4,700 $12,834 $40, Capital Outlay/Land Acquisition TOTAL APPROPRIATIONS $4,700 $12,834 $43,295 TOTAL FUND BALANCE: $12, Ms. Johnston informed the Authority that the Township Clerk requested funds be provided for accounting and audit fees for The Clerk recommended between $200 and $300. The Authority discussed the budget numbers and recommended the following changes:
6 APPROVED ACTIVITY REQUESTED THRU GL NUMBER DESCRIPTION BUDGET 06/30/2016 BUDGET Fund TAX INCREMENT FINANCE AUTHORITY (SoDA) ESTIMATED REVENUES Dept 001-Revenue Carryover $0 $0 $1,805 Current Real Property Tax $4,700 $12,834 $43, Miscellaneous $0 $0 $ Interest Earned $0 $0 $200 TOTAL ESTIMATED REVENUES $4,700 $12,834 $45,100 APPROPRIATIONS Dept 728-Economic Development Salary-Staff Supplies Postage Consultants Accounting & Audit Fees $ Legal Fees Legal Notices Repairs/Maintenance $2, Capital Outlay/Obligated Projects $4,700 $12,834 $40, Capital Outlay/Land Acquisition Contingency $2,100 TOTAL APPROPRIATIONS $4,700 $12,834 $45,100 Vice Chairperson Ashley requested the Contingency funds to help cover any unforeseen expenses in Discussion was had regarding what percentage of the budget the contingency should total. Attorney Porter recommended 5 percent because any funds not spent are shifted at the end of the year to the fund balance. Also, if a project comes up in the year that is not a capital outlay, the Board can always approve an amendment to the budget.
7 Mr. Patzer made a motion to approve the budget as amended. Mr. Gesmundo seconded the motion. The motion was approved unanimously. Further discussion was had regarding the budget to pay back the Township for the Drake Road Non-Motorized Path. Mr. Patzer stated that it will be important to review the budget each year to determine how much SoDA can afford. Ms. Heiny-Cogswell indicated that a memorandum of understanding from the SoDA to the Township Board should be considered which spells out how SoDA plans to pay back the 40 percent of the project that is not covered by the grant. Mr. Patzer indicated that the annual discussion of budgets and revenues should be included in the Memorandum of Understanding. Mr. Gesmundo made a motion to direct staff to prepare a Memorandum of Understanding to be reviewed by the SoDA and Township Board on paying back the Drake Road Non-Motorized Path costs not covered by grant funding. Mr. Ashley seconded the motion. The motion was approved unanimously. Any Other Business Ms. Johnston asked the Authority if they would like to meet one additional time before the end of the year or if status updates through was preferred. The Authority indicated that s were preferred unless it was needed for the Authority to convene. There being no further business, the meeting was adjourned at approximately 1:52 p.m. Minutes prepared: August 31, 2016 Minutes approved:
8 SOUTH DRAKE ROAD CORRIDOR IMPROVEMENT AUTHORITY Treasurer's Report JULY 27, 2017 unaudited REVENUES 2017 Budget Previous Activity Activity this Period Available Balance Percent of Budget Carryover $0.00 $0.00 $0.00 $ % Current Real Property Tax $43,095 $0.00 $28, $28, % Miscellaneous $0.00 $0.00 $0.00 $ % Interest Earned $ $0.00 $ $ % TOTAL REVENUES $43, $0.00 $29, $29, % EXPENDITURES 2017 Previous Activity Activity this Period Total Activity Available Balance per Original Budget Percent Used Salary-Staff $0.00 $0.00 $0.00 $0.00 $ % Supplies $0.00 $0.00 $0.00 $0.00 $ % Postage $0.00 $0.00 $0.00 $0.00 $ % Consultants $0.00 $0.00 $0.00 $0.00 $ % Accounting & Audit Fees $0.00 $0.00 $0.00 $0.00 $ % Legal Fees $0.00 $0.00 $0.00 $0.00 $ % Legal Notices $0.00 $0.00 $0.00 $0.00 $ % Repairs/Maintenance $2, $0.00 $0.00 $0.00 $2, % Capital Outlay/Obligated Projects $40, $0.00 $0.00 $0.00 $40, % Capital Outlay/Land Acquisition $0.00 $0.00 $0.00 $0.00 $ % TOTAL EXPENDITURES $43, $0.00 $0.00 $0.00 $43, % REVENUES 2017 $29, EXPENDITURES 2017 $0.00 NET BALANCE 2017 $29, TOTAL FUND BALANCE: $42,028.56
9 July 17, 2017 Mtg Date: July 27, 2017 To: From: RE: South Drake Road Corridor Improvement Authority Julie Johnston, AICP Planning Director Drake Road Path Update The Township continues to work towards construction of the non-motorized path on the west side of Drake Road, between Stadium Drive and West Main Street. As a reminder, the asphalt path will be 10 feet in width between Stadium Drive and Driftwood Avenue. It will then change to concrete and reduce to 6 feet in width from Driftwood to West Main Street. This is a joint project between the Township, City of Kalamazoo and Road Commission of Kalamazoo County. The project is now intended to be funded in three phases; Phase I (Federal Safety Grant) Michigan Ave to Green Meadow Ave. Phase II (Transportation Alternatives Grant) Stadium to Michigan. Phase III (Transportation Alternatives Grant) Green Meadow to West Main. Approximately 50 percent of the project is Township funded at $719,000 with $737,000 coming from Federal grant programs, for a total of $1,456,000. All three phases are intended to be constructed in The engineering design for the project and easement acquisition is nearly complete. I ve asked Jamie Baker, Public Works Technical Specialist, to attend the meeting and answer any further questions you might have regarding the Drake Road path W. Main St. Kalamazoo, MI (269)
10 July 19, 2017 Mtg Date: July 27, 2017 To: From: RE: South Drake Road Corridor Improvement Authority Julie Johnston, AICP Planning Director 2017 Draft Budget The taxes collected in 2017 were quite a bit less than anticipated when the budget for SoDA was developed this same time last year. This is likely due to some anticipated projects not being completed in 2017 and therefore not taxed at 100 percent. We planned for $43,095 in taxes and actually received $28,998, a difference of $14,907. Working with the Township Assessor, staff was able to project the possible tax increment financing revenues for 2018 at an increase of approximately $3,500. This dollar amount was based on the continued improvements which are planned at the Corner@Drake project. Projected taxes were determined by the value attached to the building permit for the new construction, the value of the land, and that construction is expected to be 100 percent built in 2017 and therefore collected in The final taxable value could fluctuate based on the completion date of the project. However, staff projected low to allow for this variability. Therefore, a conservative total budget of $32,500 is recommended. At the June 8, 2016 meeting, a motion was approved to support the maintenance/snow removal for the Drake Road Non-Motorized Path once it is built. At the meeting, snow removal in the SoDA District was estimated at $6,750. Unfortunately, the path was not completed in 2017 and therefore no funds were needed for maintenance. The path is expected to be completed in 2018 and therefore some funds should be set aside for snow removal towards the end of the budget year. Staff is recommending $3,000 be set aside for this budget item. This leaves a remaining budget in 2018 of $29,700. The Drake Road Non-Motorized Path is now expected to cost $1,456,000. The Township/SoDA will be responsible for approximately 50 percent of these costs which equates to $719,000. It was discussed in 2016 that because of revenue constraints, the SoDA would likely have to pay the Township back over time. Since the Drake Road Path has not yet been constructed, the 2016 and 2017 budgets will not be spent. With that in mind, the SoDA Board may wish to consider including the current Fund Balance as a carryover in the 2018 budget to assist with the costs of the path. This would increase the 2018 budget from the anticipated $32,700 to $74,728. The capital outlay/obligated projects line item would increase to $71,728. Please see the attached recommended draft budget for further discussion at the meeting W. Main St. Kalamazoo, MI (269)
11 SUGGESTED BUDGET FOR APPROVED ACTUAL APPROVED ACTUAL REQUESTED GL NUMBER DESCRIPTION BUDGET REVENUES BUDGET REVENUES BUDGET Fund TAX INCREMENT FINANCE AUTHORITY (SoDA) ESTIMATED REVENUES Dept 001-Revenue Carryover $ - $ - $ Current Real Property Tax $ 4, $ 12, $ 43, $ 28, $ 32, Miscellaneous $ - $ - $ - $ - $ Interest Earned $ - $ - $ $ $ TOTAL ESTIMATED REVENUES $ 4, $ 12, $ 43, $ 29, $ 32, APPROPRIATIONS Dept 728-Economic Development $ - $ - $ - $ - $ Salary-Staff $ - $ - $ - $ - $ Supplies $ - $ - $ - $ - $ Postage $ - $ - $ - $ - $ Consultants $ - $ - $ - $ - $ Accounting & Audit Fees $ - $ - $ - $ - $ Legal Fees $ - $ - $ - $ - $ Legal Notices $ - $ - $ - $ - $ Repairs/Maintenance $ - $ - $ 2, $ - $ 3, Capital Outlay/Obligated Projects $ 4, $ - $ 40, $ - $ 29, Capital Outlay/Land Acquisition $ - $ - $ - $ - $ - TOTAL APPROPRIATIONS $ 4, $ - $ 43, $ - $ 32, TOTAL FUND BALANCE: $ 42,028.56
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