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Chapter 8: Financial Analysis of the Plan with Sufficient Information to <br />Determine Feasibility. <br /> <br />The financial analysis of the plan shown in Table 5 includes the anticipated tax increment <br />revenues and the indebtedness capacity of those revenues. The analysis shows that the <br />anticipated tax increment revenues are based on reasonable projections of new develop- <br />ment and appreciation in existing property values, and that the projected tax increment <br />revenues are exceed the amount of maximum indebtedness that can be incurred under the <br />Renewal Plan between now and FY09-fO. <br /> <br />The projection of tax increment revenues is based on the foflowing assumptions: <br /> <br />· Existing property assessed values will increase by 3% per year. <br /> <br />· New development will add assessed value of $2 million each year. <br />· For the most part, tax rates for the overlapping jurisdictions are projected to remain <br /> constant. Exceptions are: the special levy for the Downtown Urban Renewal District <br /> will expire in FY09-10; and the Youth & Schools Activities Local Qption Levy will expire <br /> in FY07-08. <br /> <br />The projections result in total resources between FY04-05 and FY09-fO of just under $33 <br />million. These revenues will support the $33 million of existing maximum indebtedness <br />adopted on June 1998, as weft as other expenditures in the plan. The expenditures under <br />the Renewal Plan were based on the following assumptions: <br /> <br />· Project activities are distributed throughout the Renewal Plan period based on available <br /> funds. The timing of individual projects will vary depending on a variety of factors, as <br /> explained in Chapter 7 of this report. <br /> <br />· Administrative activities, including an allocation of central service overhead costs, will <br /> increase due to inflation of 3% per year. <br />· The Urban Renewal Agency will continue to carry a reserve equal to the annual debt <br /> service on the library bonds until those bonds are fully paid off, as well as a balance <br /> equal to two months of operating costs each year, per City of Eugene financial policy. <br /> <br /> 16 <br /> <br /> <br />