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Home My WebLink AboutMN-IURAGOV-2017-04-20Approved: 8/18/17 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MINUTES ITHACA URBAN RENEWAL AGENCY Governance Committee (GC) 8:30 AM, Thursday, April 20, 2017 Third Floor Conference Room, City Hall, Ithaca, NY Present: Eric Rosario, Susan Cummings, Kathy Schlather Excused: David Whitmore Vacancy: 1 Staff: Nels Bohn, Charles Pyott, JoAnn Cornish Guests: None I. Call to Order Chairperson Rosario called the meeting to order at 8:36 A.M. II. Agenda Additions/Deletions ‐ None. III. Public Comments (3‐minute maximum per person) ― None. IV. Review of Meeting Minutes: February 17, 2017 Schlather moved, seconded by Cummings, to approve the February 17, 2017 meeting minutes, with no modifications. Carried Unanimously 3‐0 V. New Business A. Approval of FY2016 IURA Financial Audit Bohn explained that the FY2016 IURA Financial Audit is a clean audit, with no findings and no issues raised. The audit shows the IURA with a $2M fund balance. Rosario observed that Figure 2 of the report indicates a change in the fund balance of negative $89,088, but he assumes that money would be recouped. Bohn replied, yes, except any funds being allocated to new affordable housing projects as grants. Schlather asked why the IURA has a $2M fund balance. Bohn replied that amount includes all IURA HODAG and other loan fund balances, such as revolving loan funds. Ithaca Urban Renewal Agency IURA GC Minutes April 20, 2017 Page 2 of 10 Cummings recalled the Committee discussed illustrating the IURA also has potential assets of $1M from the City of Ithaca. She wondered if there were a way of reflecting that somewhere (e.g., a footnote). Bohn replied that is something IURA staff could address. Moved by Schlather, seconded by Cummings: Approve Audited 2016 IURA Financial Report WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants awarded to the City of Ithaca, and WHEREAS, for financial reporting purposes the IURA is a blended component unit of the City of Ithaca whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca financial statements, and WHEREAS, the IURA contracts separate from the City to have its finances audited within 90 days of the end of its fiscal year to comply with the Public Authorities Accountability Act, and WHEREAS, the IURA received an audited 2016 IURA financial report on March 9, 2016, and WHEREAS, both the IURA Governance Committee and the IURA Audit Committee reviewed the report and attached correspondence and recommends the following; now, therefore, be it RESOLVED, that the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2016, through December 31, 2016, prepared by the accounting firm of Insero & Company is hereby approved. Carried Unanimously 3‐0 B. Review of FY2016 Actual Expenditures vs. FY2016 Budget Bohn walked through the FY2016 budget, noting the IURA actually came in at $37,810 under budget, although most of that was due to staffing vacancies. The IURA did exceed its budget in the “Miscellaneous/Subscriptions” category, mostly because of City stormwater and sidewalk program fees, which the City eventually reimburses the IURA for. IURA GC Minutes April 20, 2017 Page 3 of 10 IURA GC Minutes April 20, 2017 Page 4 of 10 IURA GC Minutes April 20, 2017 Page 5 of 10 IURA GC Minutes April 20, 2017 Page 6 of 10 IURA GC Minutes April 20, 2017 Page 7 of 10 Cummings asked about the status of the IURA’s eligibility for the Greater Tompkins County Municipal Health Insurance Consortium. Bohn replied that he spoke to both the City Controller and the Tompkins County Administrator, but it appears the IURA does not currently fit into the category of eligible organizations. Bohn plans on pursuing the issue further. The Consortium’s rate of health insurance premium increase has been lower than the IURA’s (4% vs. 11%), in recent years. It’s possible the New York State law that established the Consortium would need to be changed for the IURA to become eligible. Rosario suggested inviting Common Council Member Graham Kerslick, City Chief of Staff Dan Cogan, and City Controller Steve Thayer to a future Committee meeting, to help coordinate the IURA’s efforts to join the Consortium. Cummings asked that the subject be added to a future agenda. Bohn responded that the first step should probably be for him to speak with the City Controller and determine if there may be any other mechanism for accomplishing the same end (e.g., directly petitioning the Consortium’s Administrator). IURA GC Minutes April 20, 2017 Page 8 of 10 Rosario remarked in either case it may be a good idea to at least invite the City Controller to a future meeting. No objections were raised. Bohn noted, in Exhibit E, Committee members will see some larger than expected income figures, since the IURA received several loan pay‐offs. Cummings urged the City/IURA to install some permanent signage in the “Jungle” at the end of Cherry Street, in the Cherry Street Industrial Park. The existing signs are not durable. There are still a number of homeless people congregating at that location. Bohn and Cornish indicated they would see what could be done. C. Review Analysis of Cash Balances by Restricted Account Bohn explained that the “Bank Account Analysis” chart shows similar balances to last year’s, alternative revenue has offset declines in federal HUD Entitlement funding. D. Review Analysis of CDBG/HOME Accounts Receivable Account Bohn explained the “CDBG & HOME Admin Analysis” chart was created to show the balances in various IURA accounts. The CDBG balance is higher in 2017 than 2016, which demonstrates the IURA is not drawing down CDBG administrative funds at a faster rate to fund current year operations. The HOME balance is marginally lower than the year before, but remains relatively consistent compared to recent years. E. Approval of FY2016 Public Authorities Accountability Reports Moved by Schlather, seconded by Cummings: Approval of Reports Submitted to Authorities Budget Office WHEREAS, pursuant to the Public Authorities Accountability Act, as amended, the IURA is required on an annual basis to submit reports to the New York State Authorities Budget Office (ABO), and WHEREAS, the IURA Director of Community Development is designated to certify accuracy of the reporting, and WHEREAS, the reporting is due to be submitted within 90 days of the end of the fiscal year, and WHEREAS, it is appropriate that IURA members exercise oversight over the staff reporting to the ABO, and IURA GC Minutes April 20, 2017 Page 9 of 10 WHEREAS, at their meeting of April 20, 2017, the IURA Governance Committee reviewed the reporting and recommends the following action; now, therefore, be it RESOLVED, that the IURA hereby approves FY 2016 IURA reports submitted to the New York State Authorities Budget Office, including the following:  Budget report  Annual report  Procurement report  Investment report  Certified financial audit report Carried Unanimously 3‐0 VI. Other Business A. Review of IURA Financials Report: March 2017 Bohn explained the report illustrates the IURA is closing out its 2013 and 2014 HUD Entitlement projects. Most projects are performing well and the IURA is significantly below the required HUD spend‐down threshold of 1.5. The oldest project with unexpended funds is the Spencer Road Sidewalks Project. The City Engineering Division has worked through all the outstanding issues with the neighborhood and developed a construction plan, which has been priced out and prepared for bidding. All loans are in good standing, except Diane’s Downtown Auto, the Canopy Hotel, and The State Theatre, which just made a double payment. IURA staff is working with the Canopy Hotel to determine what the status of the payment as they have no history of delinquency. Bohn indicated he does not believe there is any cause for undue concern. All IURA leases are in good standing. The IURA just received the Southside Community Center’s final outstanding lease payment. B. IURA Strategic Planning Update Bohn remarked the IURA is always looking for real estate projects that create jobs or affordable housing to generate non‐CDBG and non‐HOME funding revenues. The City of Ithaca has recently been drafting its Waterfront Area Plan, including Cherry Street, to broaden allowable uses, which could create new opportunities for marketing the IURA Cherry Street property, as well as its Inlet Island property. C. 2017 HUD Entitlement Grant Program Update Bohn reported the proposed 2017 HUD Entitlement Grant Action Plan was approved by the IURA Board and will go before Common Council for final approval. D. IURA & Common Council Actions of Interest to Committee IURA GC Minutes April 20, 2017 Page 10 of 10 None. VII. Adjournment The meeting was adjourned by consensus at 10:06 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.