Title
An Ordinance authorizing the City of Lee's Summit, Missouri to waive the Lee's Summit Housing Authority's payment in lieu of taxes for the Authority's fiscal year ended September 30, 2020 in the estimated amount of $33,874.16. (F&BC 3/8/21)
Body
Issue/Request:
The City is considering the recurring annual request of the Lee's Summit Housing Authority to waive the Authority's Payment in Lieu of Taxes (PILOT) payment for the Authority's fiscal year that ended September 30, 2020, in the estimated amount of $33,874.16.
Background:
The Lee's Summit Housing Authority is a tax-exempt agency that operates the 116 units at Lee Haven and Duncan Estates housing developments, to provide low-income housing for residents of the City. The Authority is primarily dependent on U.S. Department of Housing and Urban Development for funding. The City and the Lee's Summit Housing Authority have an agreement that requires the Authority to make a Payment in Lieu of Taxes (PILOT) to the City each year equal to the lesser of (i) 10% of the total of the total rental payments minus utility expenses or (ii) the Authority's estimated County property taxes.
For more than 15 years, the Housing Authority has requested the City waive the PILOT payment in order to use the monies to maintain and improve the facilities and keep costs as low as possible for its residents.
The Lee's Summit Housing Authority has requested the City waive the 2020 PILOT payment in the estimated amount of $33,874.16.
Proposed City Council Motion:
FIRST MOTION: I move for second reading of an Ordinance authorizing the City of Lee's Summit, Missouri to waive the Lee's Summit Housing Authority's payment in lieu of taxes for the Authority's fiscal year ended September 30, 2020 in the estimated amount of $33,874.16.
SECOND MOTION: I move for adoption of an Ordinance authorizing the City of Lee's Summit, Missouri to waive the Lee's Summit Housing Authority's payment in lieu of taxes for the Authority's fiscal year ended September 30, 2020 in the estimated amount of $33,874.16.
Impact/Analysis:
The requested waiver amount of approximately $33,874.16 is the same estimated amount as the City waived for Fiscal Year ending on September 30, 2019. The City has not budgeted the receipt of the PILOT as revenue in anticipation of a waiver request from the Housing Authority.
Presenter
Bette Wordelman, Finance Director
Recommendation
Staff recommends approval of An Ordinance authorizing the City of Lee's Summit, Missouri to waive the Lee's Summit Housing Authority's payment in lieu of taxes for the Authority's fiscal year ended September 30, 2020 in the estimated amount of $33,874.16.
Committee Recommendation
At the March 8, 2021 Finance and Budget Committee meeting a motion was made by Councilmember Felker, seconded by Vice Chair Lopez, that this Ordinance be recommended for approval to the City Council. The motion passed unanimously.