5 - 2004 BURA Funding Discussion. . ~
Boulder Urban Renewal Au4hority
1300 Canyon Boulevard
PO Box 791
Boulder, CO 80306
303•441-3276
303-441-4070
www.ci. boulder.co.uslbura
MEMORANDUM
July 10, 2003
TO: BiJI2t1 Board of Commissioners
FROM: Brad Power, Execuhve Director
SUBJECT: 2004 BURA Admmistrative Fundmg Issues
On May 13, the BURA Board of Commissioners and the City Council met in a study
session to discuss BURA's future role Although there were expressions of the necessity
for some type of redevelopment function to contmue withm the commumty mto the
future, no defimtive role for BiJRA was erther discussed or concluded. The Council
indicated that the Economic Vrtalrty Action Group (EVAG) should take on the issue of
BURA's future role and that the EVAG's deliberations should help to mform the C~ty
Manager's economic vitality policy and orgamzational structure that will address
economic challenges and pro~ects.
The EVAG has discussed the role of BURA over the course of several meetmgs. The
group ~s m general agreement that redevelopment should be retained as one of the crty's
economic vrtality tools Commissioners Wobbekmd and Rodngue serve on the EVAG
and can provide additional details of the group's recent discussions Commissioner Shull
has also attended the EVAG meetrngs on a regular basis
Although the EVAG has identrfied a BLTRA-type funchon as an important piece of the
puzzle, the BURA Board is well aware of the Crty of Boulder's current fiscal srtuation
and the challenges to established programs. In order to provide the opportumty to meet
the implicit ob~ective of contmumg a redevelopment funct~on, and appropriately factonng
the city budget situation, BURA should consider self-fundmg admmistrative expenses m
2004
As you know, with the retirement of the BVRC bonds last year, BURA's admmistrarive
expenses m 2003 are being drawn from the city's general fund at a level of $250,000
That source of fundmg will cease at the end of the year Based on my observations of the
City Council's discussion of the 2004-OS crty budget, there ~s no possibility of contmued
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funding for BiJRA from the city next year. In order to provide the EVAG and the City
Manager the abihty to mcorporate a viable redevelopment funchon into the anticipated
economic sustamabihty policy, BURA could fund admmtstratrve expenses next year
from the BVRC Revolvtng Loan Fund, the balance of which is currently $531,000 I
have discussed this issue with Frank Bruno and he is willmg to add that possibilrty to the
EVAG's deliberahons on the economic pohcy, which are expected to be concluded by
the end of August.
The long term goal for the city's redevelopment funcrion should be a return to securing
admmistratrve fundmg from mcome generated by a successful redevelopment pro~ect, or
pro~ects In addrtion to Crossroads, there are several other potential redevelopment sites
throughout town that could be considered for a public/pnvate redevelopment effort.
They should be considered soon
I understand the Board's reluctance to draw down a sigmficant portion of the Revolving
Loan Fund for admmistrarive expenses Therefore, and based on a conversation with the
Crty Manager, I am proposmg that BURA's FTE level be reduced to 1 0 for 2004 and
that the Execuhve D~rector position be charged with implementmg the BLTRA work plan,
as rt may be mtegrated into the expected economtc vrtality policy of the Crty of Boulder.
The cost to sustam that posihon next year (salary and benefits) is $91,600 If BUItt1
decides to recommend that, or any other option, the EVAG and the Crty Manager will be
given the recommendatton for considerahon.
BURrVAdmtn/2004 Fundmg