Title
City Council Budget Retreat
Body
Summary and Background Information:
As required by the city charter, the city manager is responsible for preparing and submitting to Council a recommended budget for the next fiscal year. The city manager desires the development of the budget to be a consultative dialogue so that the recommended budget reflects the council's goals and priorities. This presentation sets out the city manager's budget proposals for council's consideration and discussion.
Reunion Information
In 2001, the City entered into an agreement with Shea Homes, Fulenwider, Buffalo Hills Ranch, LLC, and Potomac, LLC to consolidate eight previous agreements that were primarily annexation agreements. Then in 2003 the City entered into an intergovernmental agreement with the Reunion Metropolitan District (“Reunion”) based on and supplementing the 2001 agreement.
The 2003 agreement focused on sharing sales and use tax revenue and building permit revenue generated by development within the Reunion boundaries. The purpose was to reimburse Reunion for building public improvements that the City was responsible to build. The revenue share was set at 33% of 3% sales and use tax and 33% of building permit fees. Road impact fees were to be credited to Reunion instead of the land owners. The IGA has a 20 year life that expires on January 1, 2022.
Oakwood Homes has taken over as the master developer from Shea. Representatives of Oakwood/Reunion have requested that the revenue sharing agreement be extended. The City staff need your direction on whether or not to negotiate the terms for an extension of the agreement.
The projects proposed to be funded by the extension of the agreement include:
|
Transportation Project |
Engineer’s Estimate (‘20 $) |
|
Chambers Road / North of 104th |
$ 15,670,000 |
|
112th Avenue Phase 3 |
$ 15,500,000 |
|
High Plains Parkway |
$ 14,410,000 |
|
Potomac Parkway |
$ 12,625,000 |
|
96th Avenue |
$ 15,600,000 |
|
112th Avenue Phase 2 |
$ 9,200,000 |
|
Chambers Road / South of 104th |
$ 4,567,000 |
|
Landmark Drive |
$ 6,530,000 |
|
First Creek Bridge at 96th Avenue |
$ 4,400,000 |
|
112th Avenue Phase 4 |
$ 5,100,000 |
|
|
|
|
Sub-Total Transportation |
$ 103,602,000 |
|
|
|
|
Drainage Project |
|
|
Second Creek North Outfall Channel Phase 2.1 |
$ 12,610,000 |
|
Second Creek O'Brien Canal Relocation Phase 2.2 |
$ 6,680,000 |
|
Second Creek Regional Detention Pond Phase 2.3A |
$ 9,117,000 |
|
Ragweed Draw Regional Detention Pond B |
$ 8,740,000 |
|
Third Creek Drainage Outfalls |
$ 615,000 |
|
Second Creek Channel Improvements Phase 2.3B |
$ 1,910,000 |
|
Ragweed Draw Channel Improvements |
$ 6,690,000 |
|
Second Creek Water Quality Pond |
$ 1,375,000 |
|
|
|
|
Sub-Total Drainage |
$ 47,737,000 |
|
|
|
|
Total |
$ 151,339,000 |
|
* estimated hard and soft costs |
|
Revenue remittance summary:
• Through year-end 2019, a total of $10.9 million has been remitted to the District
• During the first and second quarters of 2020, an additional $178,940.53 and $393,148.66 has been remitted, for a total of $11.5 million to date
• The three year (2017-2019) average total amount remitted to the District is $1.2 million
• The five year (2015-2019) average total amount remitted to the District is $1.0 million These historical averages are important in considering future revenue generation expectations
Staff Responsible (Department Head): Roger Tinklenberg
Staff Member Presenting: Roger Tinklenberg/Sheryl Carstens
Financial Impact: N/A
Funding Source: N/A
Staff Recommendation: Information is provided for council discussion and to provide guidance to the city manager & staff.