CFD Loan
Forgiveness
May 2, 2022
History
2003
CFD-Services
approved by City
Council.
Adopted a policy
of “growth pays
for growth”
2005
City began to
realize special
taxes from
annexed
improvement
areas.
Housing was
booming!
2006-2009
General Fund
loans to CFD for
Fire, Police, and
Parks.
Council Action
and Budget
Process
2008
Housing Market
crash! City
started to feel the
fiscal impacts of
the economic
downturn.
Developers
-stopped building
- abandoned
developments
-d e c l a r e d
bankruptcy or
foreclosed
2009
City started to
restructure, lay-
off, etc. due to
significant
reductions in
revenue.
City stopped any
future CFD loans.
2 Loans
2006 2007 2008 2009 Total Loan Principal
CFD-Fire 322,323.16 418,331.28 $740,654.44
CFD-Police 164,999. 19 529,697.09 $694,696.28
CFD-Parks 77,312.00 73,404. 00 54,571.00 70, 353.99 $275,640.99 Total $77,312.00 $560,726.35 $1, 002,599.37 $70,353. 99 $1,710,991.71 3 Loans
Principal Interest 2012
Payments Total
CFD-Fire $ 740,654.44 $ 476,352.45 ($20, 500.00) $1,196,506.89 CFD-Police 694,696.28 422,274. 84 (49,500.00) $1,067,471.12 CFD-Parks 275,640.99 154,623.39 (11,500.00) $ 418,764.38 Total $1,710,991.71 $1,053,250. 68 ($81,500.00) $2,682,742.39 4 Recommendation
Forgive all three CFD Loans
• CFD Revenues
• Annual increases are not enough
• Shifting personnel from Measure C
• Measure C Sunset
• Eliminate over 30 positions in Public Safety
• Rapidly Growing
• Currently need more Public Safety and Parks Resources • Bond Rating
• Negatively impact
5 Questions?
6