Urban Renewal Agency reviews proposed budget; agency staff say revenues tied to projected projects

The Dundee Urban Renewal Agency opened a public hearing on its proposed urban renewal budget. Agency staff outlined a draft budget that includes materials and services, debt-service estimates and an appropriation for potential project expenses tied to anticipated tax-increment financing from proposed developments.

Staff presented an estimate of tax-increment revenues under several build scenarios (examples discussed included hypothetical projects of $60 million, $40 million and $20 million in new assessed value) and explained how those increments translate to revenue available to the urban-renewal district after applying the county’s assessment ratios. Staff said the agency’s draft budget includes amounts for materials and services ($70,000), debt service and a proposed $320,000 project-level appropriation identified as a possible water-line upgrade (upgrading a 6-inch to a 12-inch line on Fifth Street) for which staff hoped to pursue external funding.

Agency members asked for clarification about previously committed expenditures for streets and for how to allocate costs on sections of Ninth Street that cross the urban-renewal boundary; staff said those allocation questions would be resolved in follow-up work. Staff also described planned project earmarks and noted an estimated ending fund balance in the draft budget.

No final adoption vote was taken for the urban-renewal budget; agency members asked staff to reconcile a few items and agreed to revisit the budget at a subsequent noticed meeting once the council’s general budget discussion is finalized.