Urban Renewal 2011-12 Budget Message

2011-2012 Budget Message for the Florence Urban Renewal Agency
 

Since the beginning of FURA in 2007, we have been planning and building a foundation to undertake a major infrastructure project to upgrade the water line capacity and portions of the waste water lines in the old town area. This budget reflects that undertaking. The total revenue projections are $2,901,317. This includes a carryover of $380,000, tax increment of $270,317, interest income of $1,000 and loan proceeds of $2,250,000. 

In preparation for obtaining financing of the Infrastructure Improvement Project FURA commissioned a study by Tashman Johnson LLC. When we prepared this budget we wanted to be conservative in our estimate of the tax increment and used only 90% of the projected revenue from the study. 

The expense projections are very bare bones. There is no paid staff, we have an IGA with the city to reimburse for staff time and supplies. Our payment on the Library loan is $28,000. Of the loan proceeds, 2.250M is projected to be available for the infrastructure work. The remaining 250K would stay in a restricted reserve against the loan. Costs related to the loan will be charged to the project. The debt service for the first year of the loan is expected to be 450K. This project is the only one the agency plans for this year. Last year we funded a grant program for preservation and rehabilitation projects. We authorized 39 grants and 38 of them will be completed by the end of June. 1 project, the ice machine mural, has been granted an extension so the budget reflects a carryover of $5,000 for this project. The grant projects took a large amount of staff time to track and process. We are reducing the cost of staff time because this project is almost complete. Although there will be increased public works time, that expense will be charged to the infrastructure project. 

We were audited again this year, along with the city audit, with a clean report. This audit cost us $1,000 this year versus $3,000 last year. Last year was our first audit and required more time to set it up. However, we have allowed $3,000 for this budget assuming that it will be more complex because of the grants.

The land acquisition of the Barnett property is completed. The website will go live this month so the budget reflects the cost of maintenance and server time of $1,500. 

Please be aware that the figures we have used to calculate the loan proceeds, costs and debit service are our best estimates since we are still in negotiations with possible lenders. 

We continue to take a conservative approach to the funding of this district but are happy to have reached the point where we feel ready to start on this long awaited goal to improve the water and waste water infrastructure. We appreciate your service to the agency as budget committee members. 

Thank you,

Nola Xavier, Chair
Florence Urban Renewal Agency