The Joint Review Board for the City of Owen met on Wednesday, December 11 with all taxing jurisdictions represented.
Brian Reilly from Ehlers went over the cash flow analysis for TID #3 and TID #4. TID #3 is scheduled to close in 2033, but Reilly felt that the TID, which was previously declared distressed, could close as early as 2028. This is due in part because of new development in the TID. He said the debt has been paid off. All that remains is to pay back the funds advanced by the city from the General Fund.
TID #4 is set to close in 2037. Depending on what happens with some temporary loans and any new construction in the TID, it might not be able to pay back all of what it owes the General Fund. One loan has been paid off. There are still two bonds to be paid and three loans that will have to be converted to permanent financing. Reilly suggested waiting until the city sees the taxes for 2025, due in 2026 before making any decisions on permanent financing. Some of the money owed on that debt might have to be paid by the water and sewer utilities to make things cash flow.
Reilly also said that the city won’t be able to create any more TIDs until TID #4 is closed. They are at 25.13 percent of equalized value and 12 percent is the maximum allowed. He said they don’t have to close a TID, they just can’t create a new one until they are below 12 percent.
TID #3 was created in 1996 and terminates in 2033. It showed revenue of $42,566 and expenses of $2,000 for 2023. The ending fund balance was -$177,999. TID #4 was created in 2004 and terminates in 2037. It showed revenues of $498,220 and expenses of $1,809,424 for 2023. The ending fund balance was -$932,410.
The Joint Review Board approved the Resolution Acknowledging Filing of Annual Reports and Compliance with Annual Meeting Requirement.