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<br />Project-Related Items: Attachment C provides project-related information. <br /> <br /> <br />ANALYSIS OF FUNDING OPTIONS <br />A brief description of the four funding options is provided below. A comparison analysis is included <br />in Attachment D. Example property tax statements for the median Eugene home under each funding <br />option are in Attachment E. <br /> <br />#1. Existing Resources <br />(Described more fully in Attachment F) <br />Under this funding scenario, existing resources include both ongoing proceeds and return of excess <br />revenues from the Downtown Urban Renewal District; liquidating the Downtown Revitalization Loan <br />Program; and reprogramming existing General Fund. (See Attachment G for a full explanation of <br />liquidating the Downtown District.) Existing resources do not include facility reserve or selling other <br />assets. Summary points: <br />? <br /> <br />Least impact to tax bills (a $1.66 savings/year for the median home) <br />? <br /> <br />Funds generated from terminating tax increment financing in the Downtown District would be <br />utilized for the bulk of the project costs <br />? <br /> <br />Requires reallocating existing General Fund by $450,000 per year <br />? <br /> <br />Requires issuance of new debt that will tie-up new General Fund revenue for 20-year term <br />? <br /> <br />Discontinues Downtown Revitalization Loan Program <br />? <br /> <br />No vote required <br />? <br /> <br />Interest cost on debt = $5.2 million <br />? <br /> <br />Total cost = $24.7 million <br /> <br />#2. General Obligation Bond <br />(Described more fully in Attachment H) <br />A General Obligation (GO) Bond is a borrowing or issuance of debt, the repayment of which is backed <br />by a property tax levied upon all taxable property in the City. Under this funding scenario, the City <br />would ask voters to approve an $8.2 million GO Bond ($8 million for project plus bond issuance costs) <br />to fund the LCC project. Funds generated from terminating tax increment financing in the Downtown <br />District would be utilized for the remaining project costs. Summary points: <br />? <br /> <br />New cost to taxpayer of $7.34/year for 20 years for the median home <br />? <br /> <br />Requires issuance of new debt (aside from the GO Bond) that will tie-up new General Fund <br />revenue for 20-year term <br />? <br /> <br />Vote required <br />? <br /> <br />Interest cost on debt = $5.7 million <br />? <br /> <br />Total cost = $25.5 million <br /> <br />#3. Local Option Levy <br />(Described more fully in Attachment I) <br />A local option levy is a limited-term property tax that is paid by all property owners within the City <br />limits. Under this funding scenario, the City could ask voters to approve a local option levy for $5.7 <br />million over five years to fund additional police officers. Funds generated from terminating tax <br />increment financing in the Downtown District would be utilized for the remaining project costs. <br />Summary points: <br />? <br /> <br />Largest amount of debt issued and largest amount of interest paid of all the funding options <br />? <br /> <br />New cost to taxpayer of $7.34/year for the median home <br />? <br /> <br />Levy needs to be approved by voters every five years <br />? <br /> <br />Requires issuance of new debt that will tie-up new General Fund revenue for 20-year term <br /> Z:\CMO\2010 Council Agendas\M100308\S100308A.doc <br /> <br />