LRB � RESEARCH AND ANALYSIS SECTION ANALYSIS

NOVEMBER 29, 2006 AGENDA                       ITEM 36, FILE 060992

 

FINANCE & PERSONNEL COMMITTEE                                  JAMES CARROLL  

File #060992 is a substitute resolution authorizing the sale and issuance of general obligation bonds for providing assistance to blight elimination, slum clearance, redevelopment, and urban renewal projects.

Background and Discussion

 
  1. The Comptroller�s Office annually submits initial-borrowing resolutions for projects and programs approved in the 2007 adopted budget.

  1. The resolution authorizes the sale of general obligation bonds in the amount of  $2,700,000 for providing financial assistance to blight elimination, slum clearance, redevelopment, and urban renewal projects.
 
  1. The borrowing will provide funding for the following:
 

Development Fund - $2,200,000 - This program funds projects that are too small or do not qualify for TID classification. The department proposes using the appropriation to fund priority projects, including fa�ade grants, the fa�ade style program, retail investment fund, brown-field cleanups, business improvement district support, commercial revitalization, job training, new homes incentives and neighborhood street improvement. 

Business Improvement Districts (BID) - $500,000 � This funding provides prevailing market rate interest loans to qualifying BIDs.  The department prepares an annual priority list, without firm commitments for various BID Fund projects. 

Fiscal Impact 

Until the actual structuring of the debt issue is determined by the Public Debt Commission, details relating to the long-term fiscal impact will not be known. Depending on actual sale date in 2007, a maximum of 6 months interest would be incurred during the year.  If sold after July 1, 2007, there would be no fiscal impact in 2007. 

Cc:  Marianne Walsh       Prepared by:

Craig  Kammholz      Jim Carroll,  X8679   Mark Nicolini      LRB Research & Analysis

                W. Martin Morics                                                                                   November 22, 2006

                Richard Li