From the Issue Summary:
On December 5, 2007, City Council approved a resolution to issue full faith and credit obligations of up to $5 million. A portion of these obligations ($3.725 million) will be used to finance Cooley road and other infrastructure improvements for the Juniper Ridge Urban Renewal Area. This debt is expected to be issued in January 2008.
Tax increment revenues from the Juniper Ridge Urban Renewal Area will be used to repay the $3.725 million in full faith and credit obligations. Current tax increment revenues total approximately $150,000. With the addition of Les Schwab, the increment revenues are expected to total $300,000.
Because tax increment revenues from the Juniper Ridge area are currently not sufficient to allow the Agency to issue its own tax increment debt, the Agency has to rely on City issued full faith and credit debt for the Juniper Ridge Urban Renewal Area for now. In the future, when increment revenues are adequate, the Agency will be able to issue its own tax increment debt for infrastructure improvements.
The attached Intergovernmental Agreement provides a pledge of tax increment revenues by the Agency for repayment of the $3.725 million City full faith and credit debt and future City full faith and credit obligations up to $10 million.
This just days after announcing that current budget shortfalls are going to force cuts in many other services, including police and fire services. And now we're going to dig an even deeper hole?
What is it going to take to force our Council to deal with the reality of our city's financial situation?
And can someone tell me why the BURA board is the City Council? How did that ever come about? You look at this stuff and it looks like two groups working with each other, and then you realize is is the exact same people wearing two hats!
And you look at the Intergovernmental Agreement itself, and you see its signatories are two city employees, John Russell and Eric King. WTF?