Item A: Downtown Development Financial Tools

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Division of Tax Impact on Overlapping Taxing Jurisdictions in FY07 Downtown District School District 4J ? permanent tax rate $575,160 School District 4J ? local option levy 0 School District 4J ? bonded debt 81,685 Lane Community College ? permanent tax rate 74,786 Lane Community College ? bonded debt 27,661 Lane Education Service District ? permanent tax rate 26,636 Lane County ? permanent tax rate 154,902 Lane County ? bonded debt 15,388 City of Eugene ? permanent tax rate 848,369 City of Eugene ? library local option levy 0 City of Eugene ? youth/schools services levy 0 City of Eugene ? Downtown UR special levy 0 City of Eugene ? bonded debt 37,956 Totals $1,842,543 Downtown District ?Maximum Indebtedness? Oregon Statutes require each district that receives property taxes to include a ?maximum indebt- edness? limit in their urban renewal plans. The Downtown District amended its plan in 1998 to include a maximum indebtedness limit of $33 million. ?Maximum indebtedness? is not a legal debt limit. It is, instead, more like a spending limit. Certain expenditures of the district are included in the ?maximum indebtedness? calculation and certain expenditures are excluded.For instance, interest on debt is excluded from the calculation, but administrative expenses or direct cash payments for projects are included in the calculation. There is about $4.6 million left under the $33 million limit in the Downtown District. It is currently projected that the district will have collected sufficient tax revenues to meet the $33 million limit in FY09. In order for the district to enter into any obligations that exceed about $4.6 million, there will have to be a ?substantial amendment? to the district?s plan. This process is determined by Oregon Statute and the district?s plan. Certain types of substantial amendments require a special City-wide notice. These substantial amendments include: Changes in the maximum indebtedness; and Expansion of the district boundaries by more than 1% The shortest possible time to complete the process for this type of special amendment is approximately 100 days. The major steps involved in this type of amendment are: Eugene Redevelopment Advisory Committee may meet to discuss the proposed plan amendments and make a recommendation to the City Council to proceed City Council meets to initiate plan amendments Urban Renewal Agency submits plan amendments and report on the plan to taxing bodies affected by the district for review and comment