Murray Redevelopment Agency outlines fund balances and sunset dates for downtown and other districts

Redevelopment Agency staff on Oct. 21 presented updated fund balances for Murray City’s RDA districts, reporting which districts are still collecting increment, which are approaching expiration, and how restricted housing funds and reimbursements are scheduled to be paid.

Agency finance staffer Brenda Moore told the board the Cherry Street district stopped collecting in 2023 and now holds about $41,000; staff plan to contribute that remaining balance toward a stormwater retention pond on Jensen Lane in fiscal 2026 and then close the area. Moore said East Vine’s increment collections run through 2028 and the area had $90,000 in balance after spending about $229,000 on part of a Vine Street repaving project in fiscal 2025.

The largest balances are in Fireclay and the Central Business District (CBD). "Fireclay ends in 2033," Moore said, noting the district collected about $2 million in increment last year and has an area balance of about $5.3 million (including accrued interest), with a 20% low-income-housing requirement that holds roughly $1.4 million. The Fireclay district transfers $371,000 a year to the wastewater fund for infrastructure repayment; Moore said that repayment will conclude in 2033. In the CBD, increment currently stops in February 2034; Moore said the agency has the option to extend the district two years but recommended against extension at this time because no repayment-driven projects require it. The CBD reported about $1.1 million in increment last year, a $1.5 million contractual parking obligation to Rockworth tied to construction of a parking structure and an unrestricted deficit of roughly $458,000 in the area balance.

Moore also summarized the Smelter site (no low-income requirement, $2.7 million unrestricted balance after spending last year) and said the overall redevelopment fund currently shows about $9.1 million, of which roughly $2.9 million is restricted for low-income housing. Board members asked for clarifications on the 20% low-income calculation; Moore explained it is calculated annually "on the increment revenue" after subtracting amounts repaid to the school district.

Board members and staff discussed existing reimbursement agreements with the school district, which require annual repayments (Moore said the city reimburses the district about $400,000 a year under the CBD agreement). Moore said that, given projected revenue and some near-term savings (for example, an Enbridge gas-line project that will not require city reimbursement), the RDA fund could reach roughly $13 million next year if all budgeted items occur.

Moore and board members noted several districts are holding money with no immediate projects identified and discussed options for using those balances for infrastructure, housing, or other eligible projects.

Ending: Moore recommended closing or winding down districts when collections cease and applying remaining restricted balances according to the district rules; the board did not take formal action at the Oct. 21 meeting and asked staff to return with any recommended allocation decisions if projects are identified.