BC 2007 05 07 Work Session - Laserfiche WebLink

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May 7, 2007 (Work Session) Page 356 roadway improvements; park and recreation improvements, parking decks and the next steps. There was a lengthy question and answer session. Questions included: why is the N.C. Department of Transportation not paying for road improvements; how will the university buildings be taxed after the twenty- fifth year; why has the cost of the project varied so much; is it possible to change the 50/50 split in the interlocal agreement over the 25-year period; is the projected growth rate of 9.25 percent liberal or conservative; has Kannapolis considered issuing Certificates of Participation for the infrastructure; what is the definition of spin-off development; does the County have any oversight of the project; who will take ownership of the project/buildings; who will get the revenues; can future Boards of Commissioners be bound legally; can county projects be added to the project list; can modifications to the project list be discussed; what is the Board's next step; and when does a decision need to be made. Recess of Meeting Chairman Carruth called for a short recess at 6:52 p.m. The meeting was reconvened at 7:03 p.m. Kannapolis City Council - Adjourn of Meeting Mayor Misenheimer adjourned the Kannapolis City Council meeting. Discussion of Concept for Administering Excess TIF District Revenues Chairman Carruth presented the following information on a concept to administer excess revenues generated by the TIF district for discussion. 1. Current board policy stipulates that once the audit for the previous fiscal year is completed in early December, all designated funds in excess of 158 are transferred into our Capital Reserve Fund. This is in essence, the county surplus. Last FY, this was $3.37 million. 2. The new revenue generated from the value growth in the Kannapolis TIF district, if not figured into the budget, will appear as excess fund balance at the end of the year. 3. On an annual basis, once Castle-Cooke pays 1008 of taxes due, then the county will take one of the following two actions: a. IF the amount of taxes collected equal or exceed the county's share of the debt coverage amount, then the county provides the total amount needed to Kannapolis to cover the county's agreed upon debt coverage amount; or, b. IF the amount of taxes collected is less than is needed to meet the county's share of the debt coverage amount, then the county is only obligated to provide the amount collected to Kannapolis. 4. Excess funds at the end of the year will be transferred into the Capital Reserve Fund, as per the current policy, to meet capital needs for the following year. 5. No county revenues generated from properties located outside the Kannapolis TIF District shall be considered in meeting the county's obligation to the Kannapolis District. 6. Excess TIF District Revenues at the end of each year will be allocated into capital reserves, as per the current BOC policy, and will be designated by the following formula: a. School Capital Reserve Fund: Capital needs of the Cabarrus County and Kannapolis City School Systems (708). b. Secondary Road Improvement Fund: Contributions toward right-of-way acquisition to assist with improvement of the secondary road network in Cabarrus County, in partnership with the NC DOT and local municipalities (15°s).