Agenda - 06/11/2007
CITY OF WOODBURN
URBAN RENEWAL AGENCY
JUNE 11, 2007 - 6:45 P.M.
KATHRYN FIGLEY, MAYOR
W ALTER NICHOLS, COUNCILOR WARD 1
RICHARD BJELLAND, COUNCILOR WARD II
PETER MCCALLUM, COUNCILOR WARD III
JAMES COX, COUNCILOR WARD IV
FRANK LONERGN~, COUNCILOR WARD V
ELlDA SIFUENTEZ, COUNCILOR WARD VI
CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET
1. CALL TO ORDER
2. ROLL CALL
3. CONSENT AGENDA
A. Urban Renewal Agency minutes of June 26, 2006
Recommended Action: Approve the minutes.
1
B. Urban Renewal Budget Committee minutes of May 19, 2007
Recommended Action: Approve the minutes.
3
4. PUBLIC HEARINGS
A. Public Hearing to Consider the Woodburn Urban Renewal 5
Agency's 2007-08 Budget
Recommended Action: Conduct a public hearing and
receive public comment on the Budget Committee's recom-
mendation, including allowable budget adjustments that do
not change the tax levy requirement.
5. GENERAL BUSINESS
A. Resolution adopting a budget for fiscal year 2007-08, making 11
appropriations and levying taxes
Recommended Action: Adopt the resolution.
B. Reimbursement Agreement for Services, Materials and 13
Projects
Recommended Action: Approve and authorize the Chair of
the Agency to execute the attached reimbursement
agreement between the Woodburn Urban Renewal Agency
and the City of Woodburn for fiscal year 2007-08.
6. PUBLIC COMMENT
7. ADJOURNMENT
June 11, 2007
Urban Renewal Agency
Page i
3A
LRBA~ RENEWAL AGENCY :\lEETING lYlINUTES
JUNE 26, 2006
TAPE
READ~G
~ DATE. COU:"lCIL CHA:\IBERS, CITY HALL, CITY OF WOODBURi'J,
COLNTY OF MARION, STATE OF OREGON, JlJNE 26,2006.
CONVENED. The Urban Renewal Agency meeting convened at 6:45 p.m. with Chair
Figley presiding.
UOIO ROLL CALL.
Chair
Member
Member
Member
Member
Member
Councilor
Figley
Bjelland
Cox
Lonergan
McCallum
0Jichols
Sifuentez
Present
Present
Present
Present
Present
Present
Present
Staff Present: City Administrator Brown, City Attorney Shields, Finance Director
Gillespie, City Recorder Tennant
0017 CONSENT AGENDA.
..\.) approve Urban Renewal Agency minutes of June 12,2006.
:\ICCALLUM/NICHOLS... adopt the Consent Agenda as presented. The motion
passed unanimously"
(i(LF) RESOLUTION 06-01 ADOPTING A BUDGET FOR FISCAL YEAR 2006-07.
~lAKING APPROPRIATIONS. AND LEVYING TAXES.
~ICHOLS/:\ICCALLUM... adopt Resolution 06-01 as presented. On roll call Yote, the
motion passed unanimously.
IIII-:"h REL\IBLRSE:\IENT AGREEME~T FOR SERVICES. :\'IATERIALS. AND
PROJECTS FOR FISCAL YEAR 2006-07.
Staff n.:commended the approval and authorization to sign a reimbursement agreement
\\ ith the City \vhich will reimburse the City for payments made out of City funds for
"tb.m rc.:nc\\,;ll projects and lIliscdbneoLls c:<..pcnsc:s since State law requires urhan
rCl1c\\ al revenues recci \"{~d arc to be used for debt retirement such as bonds, loans, or
contuctual anangcmcnt.
BJELL,\:\D,<'IICHOLS... approve and authorilc the Chair of the ,\gency and the City
\Jministrator to cxecute the attached reimbursement agreement between the Woodhunl
I "lh~\I~ RL"t1c.:\\;.ll Agency ~\t1d the Citv ,)1' Woodblllll ilJ!' tiscal year 2,i)(J()-IJ7.
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:).I::;C I - \.ll'.tt1 Rcne\\ al Agency \Iil111tcs, June 2,(l, 200t)
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VRBAN RENEWAL AGENCY MEETING MINUTES
JUNE 26, 2006
rAPE
READING
~)} 08 ADJOL'RN'IENT.
:"lICHOLS/SIFUENTEZ... meeting be adjourned. The motion passed unanimously.
Thc meeting adjourned at 6:50 p.rn..
APPROVED
KATHRYN FIGLEY, CHAIR
ATTEST
Mary Tennant, Recorder
City of Woodburn, Oregon
: J l ~L ::. - l rhan R:n c\\ a I . \:;cnc y \ [i l1utcs, J llnc 26, 20()()
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3B
t:RBAN RENEWAL BUDGET COMMITTEE MINUTES
May 19, 2007
DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF
\-lARION, STATE OF OREGON, MAY 19,2007.
CO:"lVENED. The Budget Committee met at 9: 14 a.m. with Chairman Milne presiding.
ROLL CALL.
Alma Grijvala
Don Judson
Stan \;l11ne
Rene Perez
John Rcinhardt
Cindi Vetter
Absent
Prcsent
Prcsent
Absent
Prescnt
Absent
Richard Bjclland
Jim Cox
Frank Lonergan
Pcte McCallum
Walt Nichols
Elida Sifuentez
Prescnt
Present
Absent
Prcsent
Present
Absent
Staff Present: City Administrator Brown, Finance Director Gillespie, Police Chief Russell, Public
Works Director Tiwari, Community Services Director Row, Community Development Allen, City
Recorder Tennant
Also prcsent: Mayor Figley
Tape 1
Side A
13.5
PUBLIC HEARING ON URBAN RENEWAL BUDGET FOR FISCAL YEAR 2007-
2008.
Chairman Milne declared the hearing open at 9: 15 a.m. for the purpose of rcceiving public
input on Woodburn's Urban Renewal budget.
Administrator Brown read his Budget Mcssage on the proposed budget for fiscal year 2007-
08 tn the amount of$2,375,695 which is 3.4% less than fiscal year 2006-07. He statcd that
this is a debt service budget which will reimburse the City for the Agency's share of the
completion of the Front Street improvement project in addition to supporting debt service
payments, maintaining the required reserve for debt service, reimbursing the City for
administrative costs, and provide for a small contingcncy. It is anticipatcd that thc Urban
Renc\Val District will rcceive approximately $493,000 in tax revenues during fiscal year
2007-08. It was also noted that project budgets for urban rcnewal will not be adoptcd until
such time as the borrovving capacity increases in future years. He provided an overview of
projects proposed to be completed with more detailed information on issues surrounding the
Front Street improvement project which included funding issucs relating to the
undcrgrounding of utility lines.
(\)mmittee mcmber Cox stated that the budget message provided an overall explanation on
the urban rene\\ al budget and the rC3son for the simplicity of this budget versus the regular
City budget.
Administrator 81'0\\ n stated that he has only been providing this budget information at the
lime of the hearing since it has lmly in\oh'ed debt senice. HO\\<..'hT. next year he
,ulticinaks h~l\ in~ a ('clniul II111,rl)\ Clllent Pl:tn as l,art ot' the dUClll1lCllt and will il~cl:,klc ,U1
I '--' I
,\:,jen() \\"\lrkshop as part ufthe hudget process follo\villg the regular City hudget C!P
'.\ \lrk~hup.
IJ,lgC 1 - l I hall Relle'.\ all:3udget (\m11l1Ittee \Iinutes. \lay 19, 2(1()7
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URBAN RENEWAL BUDGET COMMITTEE MINUTES
May 19, 2007
:'\0 onc in thc audicnce commentcd on the proposcd Urban Rencwal budget for fiscal year
2007 -08.
273 REINHARDT/NICHOLS... recommend to the Urban Rencwal Agency approval of the
fiscal year 2007-08 Urban Renewal budget in the amount of52,375,695. The motion passed
unanimously.
:"lICHOLS/BJELLAND.... budget hearing be closed and meeting adjourned. The motion
passcd unanimously.
The meeting adjourned at 9:25 a.m..
John Reinhardt, Secretary
t\.linutcs prepared by: Mary Tennant, Recorder
City of Woodburn, Oregon
!)a~e.2 - lrb~lI1 Rene\\al BlIdgd Cummittee \lil1l1kS, \lay ]l), 21)07
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June 11, 2007
TO:
FROM:
Mayor and City Council through J:)Y Administrator
Ben Gillespie, Finance Directornry:
SUBJECT:
Public Hearing to Consider the Woodburn Urban Renewal Agency's
2007 -08 Budget
RECOMMENDATION:
Conduct a public hearing and receive public comment on the Budget
Committee's recommendation, including allowable budget adjustments that
do not change the tax levy requirement.
BACKGROUND:
On May 19, 2007, the Budget Committee concluded a hearing on the
Woodburn Urban Renewal Agency's 2007-08 budget and unanimously
recommended that the budget document be forwarded to the Board of the
Urban Renewal Agency for the next phase of the budget process.
As required by Oregon Budget Law, the notice of this hearing date, along with
the financial summary, was published in The Woodburn Independent on June 6,
2007. The financial summary documents an Agency budget totaling $2,375,695.
DISCUSSION:
No changes to the Budget Committee's Recommended Budget are proposed.
FINANCIAL IMPACT:
The proposed budget is consistent with the budget policies adopted by the
Budget Committee in January 2007.
Agenda Item Review: City Administrator .- Sc~-::/'- City Attorney -f\./ l '5
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WOODBURN
ORE G 0 N
I n cor p 0 rat e d ,1 8 8 9
May 19, 2007
Urban Renewal Agency Budget Committee
270 Montgomery Street
Woodburn, OR 97071
RE: ProDosed Urban Renewal Budeet for 2007-08
Ladies and Gentlemen:
Presented for your approval and recommendation to the Woodburn Urban Renewal Agency is
the proposed Urban Renewal budget for 2007-08. The recommended budget of$2,375,695
represents a decrease of $84,305 (3.4%) from the revised budget for 2006-07. The budget will
reimburse the City for the Agency's share of completing the Front Street improvement project.
The budget also supports debt service payments for the borrowing transacted in 2005-06,
maintains a required reserve for debt service, reimburses the City for administrative costs, and
includes a small contingency.
Statute requires the Agency to expend funds for debt service. Except for the small amount
reserved for contingency, and a reserve maintained for debt service but accounted for in a
separate object, this budget is a debt service budget. The Front Street project is a joint
City/Agency project, budgeted in the City's Capital Plan. The Agency reimburses the City for
its share of costs. Reimbursements are made in accordance with an agreement between the City
and the Agency. Debt was contractually established between the City and the Agency and will
be reestablished prior to June 30, 2007 for another year. Because the tax increment received on
an annual baSIS was insufficient to fund projects on a pay-as-you-go basis, the Agency borrowed
S 1.85 million in 2005-06 to complete Front Street. A debt service payment of $228,000 is
included in thiS budget. 5342,000 morc is set aside as a debt service reserve, pursuant to the
bl)ITowing agreement.
:\0 project budgets are recommended for 2007 -08. The Agency will adopt project budgets as
borrowing capacity im.:n;ases in future years. Because the Agency is currently involved in only
unt; project, and becausc decisions remain to be made rcgarding projccts to be undertaken in the
funlre, no Capital budget or CIP plan is prcsentcd for 2007-08. This is the last year this budget
'\ III be so clbbrevi..lted. :\ downto\vn plan is being compkted, \v hich will rccommend projeds
~hat \vill form d:e OdSIS for the Agency's SIX-year capital pl:1ns beginning in 20m~-()l) anJ
,l1l1tlnUlI1g tl1rl.lu::;h the life ufthe program, rhe Do\Vnto\'o\1 Plan is schedukd to be tinisheJ in
-;cptcmbcr 2CiU-:-. \Vhen it IS, :.tndc\dJltiunal tinaneial analysis rebted to Jebt timing is dune, ,\
,-,)l11pn:hcn~l\C .\.::Sency ;}Udgd .1llJ ":clpitallmprovement plJl\ C,\l1 be devdoped.
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This budget includes $1,760,000 for the Front Street project, which is $176,000 more than was
approved in 2006-07 and increases by more than $600,000 the Urban Renewal Agency's total
contribution to the project. In theory, these monies are available to be used on the project. The
Crban Renewal plan anticipated funding sidewalk work on Highway 214 that was or will be
tinanced from ODOT sources. The Plan also included a new connection from Front Street to
Highway 214, which will probably not be built due to wetland and engineering constraints. The
Plan may also include a larger City share in the widening of Highway 214 than will be required.
The Plan represented a snapshot of renewal need in time and is not controlling on a project-by-
project basis. The Agency can dedicate funds to projects that are not in the Plan if those projects
tit into the expenditure categories outlined in the Plan, and the Agency can dedicate more or less
funding to projects identified in the Plan than was originally estimated based on changing needs
and priorities. In reality, however, reprogramming monies to the Front Street project delays the
availability of monies for other uses, such as commercial rehabilitation or housing projects.
Front Street was planned as a three-phase project to underground overhead utility lines, widen
and replace pavement, and install curbs, gutter, sidewalk, lighting and landscaping from
Settlemier A venue to the high school. Project costs were originally estimated at $2,600,000,
with an Agency share of $2,051,000. Public Works eIP funds, Traffic Impact Fees (TIFs),
Economic Development loan monies and, potentially, local improvement district funding
rounded out sources needed to build the project. Phase I, from the Settlemier intersection to
Cleveland Street, was completed in 2006 at an Agency cost of $611,000 and a total cost of
5925,000. Phase II was intended to underground utilities between Cleveland Street and
Hardcastle A venue and in the adjacent alley, and complete streetscape work. Phase III, from
Hardcastle Avenue to the high school, was intended to underground utility lines, renovate and
widen the roadway, and install curbs, gutter, sidewalk, lighting, and landscaping. Project costs
for the final two phases were revised in 2006-07 from the original estimate of nearly $1. 7 million
to $2.3 million, The Agency's share was increased $140,000 to help offset this increase.
Additional City revenue sources were also dedicated to the project to make up the difference.
During 2006-07, as project engineering and discussions with Portland General Electric (PGE)
progressed, it became clear that changes to the scope of work are required, which further and
dramatically increase project costs. These include the need to reconstruct existing Front Street
:-,idewalk~ to replace sidewalk on side-streets resulting from unanticipated utility undergrounding
in those locations; additional sections that must be undergrounded on side-streets due to PGE's
system configuration; PGE's system conversion charges~ and grade changes through the
Hardcastle Strcet intersection. These changes incrcase the estimated cost of the project to
'54,091,600,
Staff identified funds to address cost increascs, including raising the total urban renewal share of
the project, tapping into STP Exchange monies, drawing from gas-tax resurfacing funds,
increasing the use of TIFs to allO\\oablc limits, and sceking a CDBG grant. Together, these
..,upport approximately 53.1 million of the cstimated 54.1 million cost. To fund the remainder,
staff proposcd grant funding, and rcquiring PGE to absorb 5500,000 through forced
undergrounding. .~s I write this message, staff is preparing an application for 5300,000 in
CDBG funding and has applied for a 5250,000 Immeuiate Economic Opportunities grant from
the State of Oregon. The City Council has also adopted an ordinance establishing a process for
t'orming undcrground utility districts, the tirst step in the forced utility undcrgrounding process.
n~csc snurC2S still k~l\'e a funding gap of approximatdy 5250,000 which may be closed through
,,~JitlUn.d ;:!,Ll,1t ,-'ppurtun,tics. ur '.1;111(11 .:an bc closed by dedicating additional urhan renewal
\l,d .:;t)' hllldtng l() the prujCd If It \s c,-ttndcd ll1to 2UO~-()9. The City Council \\ dl SO,Jn
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conduct a public hearing to decide whether it will require PGE and the utilities sharing their
poles to participate in the cost of utility undergrounding. The Council will weigh the benefits of
undergrounding carefully, as a forced conversion will allow some of these utilities to pass their
costs on to rate-payers. In the alternative, the Council may decide to forgo undergrounding on a
portion of North Front Street, to reduce project costs by an amount that eliminates the use of
forced undergrounding as a financing mechanism. In either case, amounts included for the
project in this year's urban renewal budget will not change.
At the five year mark, there may be temptation to feel that urban renewal has not done enough to
change the appearance of the downtown. It's important to remember that urban renewal is an
incremental process. Changes occur one at a time, over time. Urban renewal requires time to
build momentum, and it builds momentum in two ways.
First, tax increment increases gradually, until a borrowing can be supported. Then work is done.
While that work is being done and that debt is being serviced, funding increases to build capacity
to borrow again so more work can be done. And so on. Depending on cost, one project, such as
Front Street, may be all an urban renewal agency can afford for a period of years. So it is
important that agencies select projects carefully, to have the greatest positive influence on private
investment. Our Agency has done this, thus far. The Downtown Plaza created a city-center
where none existed, and has had a positive influence in upgrading the appearance of surrounding
businesses. The Plaza is viewed as a pivotal asset and a key attractor to mixed use development
in the Downtown Plan that is currently being drafted. Likewise, the Front Street project is
integral to providing easy access to the Downtown; necessary if more people are going to live in
the area, and if businesses there are to thrive.
Second, private investment must take root, and grow. Urban renewal will not succeed if the
Public is the only actor. The Public's role is to invest in projects that foster private investment.
This means providing infrastructure: streets, utilities, and open spaces - the things public
agencies do best; and the creation of incentives to entice private investors who would otherwise
look elsewhere to generate returns on their investments, until such time as those incentives are no
longer necessary because increasing property values and enhanced economic vitality are
investment incentive enough. Ultimately the success of urban renewal relies on private
mvestment, willingness to invest in properties and business ventures, the amount or timing of
\vhich cannot be accurately predicted.
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The projects the Agency undertakes and the programs it implements must generate the maximum
private investment in the urban renewal a~. This is why a thoughtful and thorough
development strategy, in the form of a downtown plan, is so important. Staff is making a
concerted effort to \vork with the consulting team and the cummunity to prepare an implement-
~ble plan that addresses all of the factors that influt:nce private investment in, and the vitality of,
:.l uowntown: traffic circulation, parking, housing mix, development opportunities, design
~<:4ulrements. p~Htnashlps, incentives and financing options. business development, and
marketlllg. I ,1m excited <1bout this study, and 3m looking fOf\vard to its completion and the
[Jositivl: dIeet it \"ill have on \Voodburn's urban r~newal program. In the meantime, I am
pleased to pn:scnt this budget to yOU, <1nd look fOr\vard to answering any questions you may have
["cg::lrding it.
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URBAN RENEWAL
DEPARTMENT: URBAN RENEWAL
DIVISION: DEBT SERVICE
FUND: DEBT SERVICE
PROGRA~t DESCRIP'IION
This program n:pays the urban Renewal Agency's debt obligations. Statute requires that urban
renewal funds be expended to support debt service. Revenues derived from property tax
increment support the fund. Urban renewal agencies do not have permanent tax rates; they
obtain funding through tax increment financing. Tax increment financing allocates revenues to
an agency based on the amount of the urban renewal area's excess or "incremental" value, the
amount of assessed value above a base value that was frozen at a specific point in time.
Woodburn's Urban Renewal frozen base value is based on the 2001 tax year. Urban renewal
does not place an additional burden on taxpayers. Rather, it shifts existing tax growth to the
Agency from the taxing entities that would have otherwise continued to receive it had the
Agency not formed. In Woodburn's case, these entities include the City of Woodburn, the
County of Marion, the Woodburn School and Fire districts, Chemeketa Community College and
the Chemeketa Cooperative Regional Library Service, and the Willamette Special Education
District. Pursuant to State Law, the State of Oregon "backfills" on an annual basis the amounts
shifted away from the School district. Proceeds for 2007-08 are estimated at $493,000. Debt
obligations for 2007-08 are established in two ways: by contractual arrangement with the City of
Woodburn, for charges associated with audit, legal, and consulting services and for the Front
Street project; and for debt service of a $1,850,000, ten-year, obligation entered into with Bank
of America during 2005-06.
PROGRAM Fl;'llA:"lCIAL SUMMARY
Obiact CldSS 2004-05 2005.06 2006-07 2006-07 2007 -08 2007.08 Change Change
Expended Expended Amended Yr End Est. Baseline Reeom'd ($) (%)
Debt Service 285,947 806,758 1,823,500 520,000 1,999,500 1,999.500 176,000 9.65%
Equity 0 0 636,500 0 376,195 376,195 -260,305 -40.90%
TOT AL EXPENDITURE 285,947 806,758 2,460,000 520,000 2,375,695 2,375,695 -84,305 -3.43%
RECOM:\IE~DED BUDGET
The recommended budget of S2,375,695 for 2007-08 represents a decrease of S84,305 (3.4%)
from the revist:d budgt:t for 2006-07.
The Debt Service Budget of 51,999,500 increases 9.7 percent over 2006-07 and reflects
budgeting for the Front Street widening and renovation project (51,760,000). This budget also
supports the cost of servicing the debt incurred in 2005-06 to borrow funds to pay for rene\val
t)roj~cts (522X,OOO) and r~imburscs the City for special administrative, legal, and auditing
~I.:r'v ices supportmg the urb:m r~newal program (56,500).
FqUlty Il)r :UO-:" .O~ induJes :.l S3-1-2,000 rcsef\.e for bond indebtedness and a Contingency uf
')3-1-.[95. rhe rcsern: fur bunJ inJebkJness r~pn:sents 150 percent of the maXlmum debt sef\.ice
.tmount. :.ll1J is r":lJ.uired pursu::mt the .\,;cncy's agreement \vith B:ll1k of America. Contingencies
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represent the amount of funding on hand after 2007 -08 obligations are met. The budgeted
amount will be reduced in future years, as additional debt, related to new projects and programs,
IS incurred.
POLICY ITEMS (Recommended)
~ $1,760,000 in Debt Service increases the Agency's share of Front Street improvements,
from Cleveland Street to the High School including undergrounding utili~ lines,
renovating and widening the roadway streetscape, and renovating and installing curbs,
gutters, and sidewalk, and installing landscaping and lighting.
~ $6,500 in Debt Service maintains the Urban Renewal Agency's share of the cost of a
citywide audit ($2,500), and consulting services associated with project planning and
financing (2,500) and specialized legal services ($1,500).
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June 11, 2007
SUBJECT:
Urban Renewal Agency Board InOUgh City Administrator
Ben Gillespie, Finance Director /4..jJY1
Adoption of Woodburn Urban Renewal Agency's 2007 -08 Budget
TO:
FROM:
RECOMMENDATION:
That the Urban Renewal Agency Board adopt the attached resolution setting
the budget for 2007-08.
BACKGROUND & DISCUSSION:
On May 19,2007 the Budget Committee concluded their hearing on the
Woodburn Urban Renewal Agency's 2007-08 budget and unanimously
recommended that the budget document be forwarded to the Board of the
U RA for the next phase of the budget process.
As required by Oregon Budget Law, the Board conducted a public hearing
earlier this evening to consider a URA budget of $2,375,695. The Board
accepted the Budget Committee's recommendation and made no changes.
FINANCIAL IMP ACT:
The attached ordinance is consistent with the budget policies adopted by the
Budget Committee in January 2007.
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,Agenda Item Review: City Administratof ~
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RESOLUTIO~ NO. 07-01
A RESOLVTION ADOPTING A BUDGET FOR FISCAL YEAR 2007-08, MAKING
APPROPRIATIONS AND LEVYING TAXES.
THE \VOODBVRN LRBAN RENEWAL AGENCY RESOLVES AS FOLLOWS:
Section 1. That thc budgct for fiscal year 2007 -2008 is hcrcby adopted as set forth
helow.
Section 2. That the budgct amounts for the fiscal year beginning July 1, 2007, and for the
purposcs shown below, are hereby appropriatcd:
DEBT SERVICE FUND:
Debt Service
Operating Contingcncy
$ 1,999,500
34.195
TOTAL APPROPRIATIONS
$ 2,033,695
Unappropriated Requirements:
Reserve for Urban Rcncwal Agency Debt
$ 342.000
TOTAL CNAPPROPRIATED REQUIREivlENTS
$ 342,000
TOTAL 2007-2008 URBAN RENE\VAL BUDGET
$ 2,375,675
Section 3. That the Woodburn Crban Rcnewal Agency hercby rcsolvcs to certify to the
County ..\sscssor a rcquest for the Woodburn Urban Renewal Plan Area for the maximum
amount ofre'vcnuc that may he raised by dividing the taxes under Scction lc, A11icle IX ofthc
Oregon Constitution and ORS Chapter 457.
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Legal Counsel
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APPRO\ ED
KA THRY:\ FIGLEY, CHAIR
P ,t:i:,cd h: the . \~CI1(:
S,lhmntLd to the ChaIr
.\pprU\cd hy thc Chalf
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\ Llr\ l( \,,11 Lil1t , Recorder
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June 11, 2007
FROM:
Woodburn Urban Renewal Agency
Honorable Mayor and City Council .
John C. Brown, City Administrat~
TO:
SUBJECT:
Reimbursement Agreement for Services, Materials and Projects
RECOMMENDATION:
It is recommended that the Urban Renewal Agency and the City Council
approve and authorize, respectively, the Chair of the Agency and the City
Administrator to execute the attached reimbursement agreement between the
Woodburn Urban Renewal Agency and the City of Woodburn for fiscal year
2007-08.
BACKGROUND:
Jr RE- -\ewallaw requires tax receipts received by an urban renewal agency
.J e usee. to re ;Ire debt. Indebtedness can be estaolished by issuing bonds or
similar debt instruments, through loans from public or private agencies, or by
contractual arrangement.
In April 2005 the City Council and Urban Renewal Agency authorized the
execution of a reimbursement agreement for fiscal years 2004-06. In June, 2006,
the agreement was extended for one additional year, through June 30, 2007.
DISCUSSION:
Tax receipts of $493,000 are estimated to be received in 2007-08. As indicated in
the Background, these funds must be used to retire indebtedness.
Since the City and Agency executed the last reimbursement agreement. the
Agency issued $1,850,000 in debt, through a private borrowing. Debt service on
this amount is $228,000 in 2007-08.
.J
,.
.' ~ I,
City Attorney L-
i
Agenda Item Review:
.1 I
City Administrat()J/- u,__
Finance / ,f :>)'/
13
Honorable Mayor and City Council
June 11, 2007
Page 2
.
.
In 2007-08, the City will concentrate on completing the Front street
reconstruction and widening project. The Agency's share of the cost of these
phases of the project was increased to $1,760,000. Budgeting for 2007-08 also
requires the Agency to support the cost of an annual audit, and specialized
legal and consulting services ($6,500). Expenses continue to be budgeted in
City accounts, and reimbursed by the Agency pursuant to this agreement.
Funds necessary to reimburse the City will be provided from the urban renewal
funds on hand.
The attached agreement facilitates the Agency's reimbursement of costs
advanced by the City for the fiscal year. This is the same agreement format
approved by the Council and Agency in 2005 and 2006. Your approval of the
attached agreement is respectfully recommended.
FINANCIAL IMPACT:
The attached agreement facilitates, consistent with the schedule provided in
Exhibit A to the Agreement, debt of the agency, and repayment to the City of a
total for Fiscal 2007-08 of $1 ,7 66,500.
14
AGREEMENT FOR SERVICES BETWEEN WOODBURN URBAN RENEWAL
AGENCY AND CITY OF WOODBURN
This Agreement for Services (Agreement) is entered into between the City of Woodburn
(City), an Oregon municipal corporation, and the Woodburn Urban Renewal Agency
(the Agency), the urban renewal agency of the City of Woodburn, created pursuant to
ORS 457,035 through ORS 457.460.
Recitals
Whereas, by Ordinance No. 2283 the City activated its urban renewal agency pursuant
to ORS 457,055, and designated the City Council of the City of Woodburn to exercise
the urban renewal powers pursuant to ORS 457.045 (3); and
Whereas, by Ordinance No. 2298 the City Council adopted the Woodburn Urban
Renewal Plan (Plan), Section 1100 of which states, in part:
"...the Agency may borrow money from, or lend money to a public agency in
conjunction with a joint undertaking of a project authorized by this plan."; and
Whereas, Section 600 of the Plan identifies as projects which may be undertaken
pursuant to the Plan in the urban renewal area: A) Public Improvements including
construction and repair of parks, streets, and sidewalks; and C) Plan Administration
including personnel and other administrative costs incurred in management of the
renewal plan; and
Whereas, the City and the Agency work in partnership to accomplish the provisions of
the Plan adopted by the City Council and put before the Agency for implementation, and
Whereas, the City and the Agency wish to clarify the relationship between the City and
the Agency with respect to services to be provided by the City to the Agency, and the
Agency's obligation to pay the City for those services, and
NOW THEREFORE, the City and the Agency agree as follows:
Terms of Agreement
In consideration for reimbursement for the costs of services and materials and projects
according to the terms of this Agreement, the City will provide the following services and
materials to the Agency according to the terms of this Agreement:
1. Personnel Services.
1.1 City staff to provide all staff services required to implement and
administer the Plan and any other Agency activities. Staff assigned
to perform functions in support of the Agency will continue to be
P,""uE 1 - CiTY/AGENCY REli,1BURSE\lENT AGREEi,lENT, 2007-08
15
employees of the City and will provide services to implement Plan
as directed by the Agency. The City will not charge the Agency for
these staff services pursuant to this Agreement. Nothing in this
Agreement, however, shall prevent the City from requiring
reimbursement from the Agency for these services in future written
agreements.
1.2 The City Administrator has final and exclusive authority over
decisions to hire, fire and discipline the City employees assigned to
perform functions in support of the Agency, under the City's
personnel rules and policies.
1.3 Except as specifically provided in other sections of this Agreement
or as set out in a future written agreement of the parties, charges to
the Agency for materials will be the same as any inter-departmental
City charge.
2. Insurance.
2.1 The City will procure and maintain property and liability insurance
covering the Agency's activities at such levels as the Agency
deems necessary and appropriate. The City will not charge the
Agency for insurance premiums pursuant to this Agreement.
Nothing in this Agreement, however, shall prevent the City from
requiring the Agency to pay for this coverage in future written
agreements.
3. Professional and ConsultinQ Services.
3.1 The City and the Agency will consult with one another regarding
selection of independent contractors providing professional and
consulting services, including bond counsel and the financial
advisor for debt issuance for the Agency, if any; general or
specialized urban renewal consulting, and audit services for the
Agency.
4. Leqal Services.
4.1 The Agency may obtain legal services from the City Attorney and/or
outside legal counsel as the Agency determines, in consultation
with the City, best meets the needs of the project or issue at hand.
The Agency shall not reimburse the City for legal services
requested of the City Attorney for the period of this Agreement.
Nothing in this Agreement, however, shall prevent the City from
requiring reimbursement from the Agency for these services in
future written agreements. The Agency shall be responsible for the
P,'..::;r:: 2 - Gin, AGE.'.cY REii,:BURSE~,1EI'4T AGREE,\lENT, 2007-08
16
cost of legal services provided to the Agency by outside legal
counsel.
4.2 If legal services are provided jointly to the City and the Agency, the
City and the Agency will agree on a cost allocation for such
services prior to such services being rendered.
5, Accountinq Services.
5.1 The City shall provide all accounting services related to the
Agency's debt service fund and investment of funds pursuant to this
Agreement. Nothing in this Agreement, however, shall prevent the
City from requiring reimbursement from the Agency for these
services in future written agreements. The City will not charge the
Agency for these accounting services pursuant to this Agreement.
6. Financial Matters.
6.1 Except as specifically provided herein, the City agrees that it will
not make any charge against any Agency account without first
obtaining the approval of the Agency.
6.2 The Agency will cooperate with providing all necessary financial
information to the City for the City to include in its Comprehensive
Annual Financial Report (CAFR).
6.3 The Agency's financial records will be available for inspection by
City at all reasonable times.
7. Public Improvements.
7.1 The City will act as the lead agency for the purpose of constructing
projects in the urban renewal area, and will be responsible for
project design and engineering, obtaining any planning approvals
and permits, for forwarding payment of any standard fees, and for
construction management for construction projects.
7.2 Projects that will be constructed in the urban renewal area during
the term of this Agreement, consistent with those shown on Exhibit
A, are joint projects of the City and the Agency. The Agency and
the City shall share the costs of these projects according to the
reimbursement schedule in Exhibit A.
7.3 All public improvements constructed by the City and Agency during
the term of this Agreement shall be accepted, owned, and
maintained the City after construction is complete.
P~uE 3 -- CITY'AGENCY REI~.lBURSE~;lE~JT AGREEr-..1ENT, 2007-08
17
8. Compensation. Agency shall pay to the City an amount not-to-exceed
$1,766,500 for the services and projects described in this Agreement
during the term of the Agreement. Payment shall be for the amounts
actually expended by the City for the services and projects listed on the
schedule for Agency's payment for such services and projects, which is
attached hereto and incorporated as Exhibit A. Exhibit A may be
amended by mutual agreement of the parties.
9. Term and Termination.
9.1 The term of this Agreement shall be effective July 1, 2007 and shall
continue through June 30, 2008, unless terminated pursuant to this
section.
9.2 Either party may terminate this Agreement at any time by giving the
other party written notice not less than ninety (90) days prior to the
proposed termination date.
DATED this day of June, 2007.
WOODBURN URBAN RENEWAL AGENCY
CITY OF WOODBURN, OREGON
Chair
City Administrator
PAGE 4 - CITy/AGENCY REIMBURSEMENT AGREEMENT, 2007-08
18
EXHIBIT A
SCHEDULE OF SERVICES, MATERIALS, AND PROJECTS REIMBURSED
BY THE WOODURN URBAN RENEWAL AGENCY - 2007/08
Reimbursable
Maximum
Reimbursement
UR Consulting Services
Independent Legal Counsel
Audit Services
$ 2,500
$ 1,500
$ 2,500
Front Street Reconstruction Project
(Phases II and III)
$ 1,760,000
TOTAL
$ 1,766,500
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