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ATTACHMENT B <br />Riverfront District Financial Capacity The Riverfront District has two primary sources of funding: “tax increment” and “program revenue.” Tax increment is property tax revenue collected by the District. The amount of tax increment that we can collect and spend is limited in two ways: a) the spending limit (“maximum indebtedness”) of $34.8 million, and b) the Plan termination date of June 30, 2024. Both the spending limit and the termination date were established by Council in 2004. Current estimates indicate that the termination date will likely be a limiting factor resulting in a spending limit of approximately $2 million less than the maximum. In other words, the District may not collect enough tax increment revenue through FY24 to realize the full amount of maximum indebtedness. In addition to tax increment revenue, the District also has program revenue, which are dollars from non-property tax sources, such as land sales and rental income. Program revenue is tracked separately from tax increment revenue because program revenue can be used for different purposes, such as providing funding for River Loans, and expenditures of program revenue are not included in maximum indebtedness. Council, acting as the Agency Board, has approved projects in the last year and a half (e.g. Downtown Riverfront Park and Plaza, infrastructure, and the Quiet Zone three eastern crossings). After taking into account funds spent, committed, and earmarked, there is about $6 million not yet committed. This estimate includes tax increment and program revenue funding sources through FY24. However, some of the previously approved projects have new additional costs that need to be factored in. Information on each of those categories of new costs follows the chart below that summarizes the estimated amount of funds remaining in the District for future projects, which is $3.4 million. Est. Capacity for additional expenditures through FY24 $ 6.1M <br />New Costs for Previously Approved Projects Infrastructure Increase – Downtown Riverfront $ 0.2M Borrowing/Interest $ 1.2M Quiet Zone Increase $ 1.3M $ 2.7M <br />Potential funds available for future projects $ 3.4M a <br />Infrastructure Increase – Downtown Riverfront: The City is constructing the infrastructure needed to serve the new riverfront park and the redevelopment site, including streets and utilities. The <br />a Section 700 of the Riverfront Urban Renewal Plan requires that the Agency Board approve all projects, other than loans, in excess of $250,000. This is in addition to the Agency Board’s budget review and approval process. <br />October 28, 2019, Work Session – Item 2