Item A: Downtown Financing Strategy

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2. One-Time Impact Below is information on the remaining cash in the Downtown District that would be provided to the County for redistribution to the overlapping taxing districts (one-time funds). History of one-time funds In 1998, council decided to finance the library with Downtown Urban Renewal funds. The least expensive way to do this was to use City of Eugene borrowing, which was repaid by downtown urban renewal funds. At that time, the urban renewal system was changing significantly and revenues were unpredictable. Since the City's General Fund was back-up in the event that urban renewal revenues were short of being able to pay the bonds, the borrowing was structured to have a cushion that would protect the General Fund. A debt service reserve fund was also maintained to protect the General Fund from having to pay the debt service on these bonds. Council approved these fiscally responsible measures for financing the library, and safeguarding the General Fund. The cushion that was built into the library financing plan was used to pay for a reduced level of administration in the District, and to pay for additional cash contributions to the library project. The total contribution from the Downtown District to the library project was about $25 million of the $36 million, representing nearly 70 percent of the capital cost for the new Library. In 2004, with the construction of the library complete, the City Council amended the Downtown Urban Renewal Plan to: allow funding for other activities, including economic revitalization strategies; o extend the termination date to June 30, 2024; o add the Downtown Revitalization Loan Program (DRLP); o create a public advisory committee to advise staff (Eugene Redevelopment Advisory o Committee); add the requirement for specific URA Board approval of projects greater than $250,000 o (other than loans); and require a public hearing for minor amendments to the plan of $100,000 (Section 1200, C o of the existing Plan). Current Estimate of One-time Funds Available from no Longer Collecting Tax Increment The chart below sets out the current estimate of the amount of funds that could be available for redistribution to the overlapping taxing districts, if the Downtown District stopped collecting tax increment in FY11. This is an estimate based on the FY10 budget, current expectations about the items in the budget, and projected activity in FY11 that will be needed to carry out the Beam project. As shown, by the time administration of the Beam project, plus additionally approved projects to reach the $33 million cap, are undertaken, an estimated $3.2 million is left in tax increment funds for the Downtown District (“Reserves/Amount available” FY11).