Item A: Downtown Financing Strategy

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ATTACHMENT F Existing Resources – Funding Option (excluding the facility reserve) Under this funding scenario, existing resources include the proceeds from terminating the downtown urban renewal district tax increment financing, liquidating the Downtown Revitalization Loan Program (DRLP), and reprogramming existing General Fund. Existing resources do not include facility reserve or selling other assets. Further information is provided in the chart below and followed by other information specific to this funding option. A simplified cash flow is provided at the end. (Note: The chart format is the same in each funding option attachment.) Sources of Funds Terminating tax increment financing in the Downtown District generates o several funding sources (See Attachment G): New on-going property tax revenue to pay for - ? on-going services ? annual payments on a $7 million General Fund bond Existing excess cash returned to City - $1.5 million - Amount remaining under the $33 million cap - $0.9 million - Liquidating the DRLP - $1.9 million o Reprogramming existing General Fund services to free up $450,000 per year for o part of Downtown Safety Initiative (officers) Total sources through FY19 ~ $24.7 million o See Section A below for items that are not included in this funding option. Uses of Funds All recommended projects o Police officers are funded from new General Fund property tax revenue on- o going at $740,000 starting in FY11 Total uses through FY19 ~ $24.7 million o How it Works See below for a cash flow projection that shows how the various sources are available to pay for project and on-going costs. Implementation Interest on debt ~$5.2 million o Costs Bond issuance costs ~$150,000 o Project legal and professional services ~$150,000 o Project administration through FY19 ~$900,000 o Impact on tax Compared to the current situation, the average taxpayer would pay $1.66 less payers per year under this scenario than if Downtown Urban Renewal were to continue operating. (See Attachment G section 3 for more information and Attachment E for example tax statement.) Effect on M5 tax For schools – Staff has requested information from the tax assessor on this o rate cap and will forward to council when received For general governments – small additional amount available under the tax o rate cap; since there is no compression currently, no impact on revenues to city or county For bonded debt – not included in M5 tax rate cap, so no effect o