Item A: Downtown Financing Strategy

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District and Purpose Percentage Amount City of Eugene – operating funds 47.0% $1,530,000 Lane County – operating funds 8.6% 280,000 Eugene School District 4j – operating funds * 31.9% 1,010,000 Lane Community College – operating funds 4.2% 140,000 Lane Education Service District – operating funds 1.5% 50,000 Eugene School District 4j – bond funds** 3.9% 130,000 Lane County – bond funds** 0.8% 30,000 City of Eugene – bond funds** 2.2% 70,000 Total 100.0% $3,270,000 * Staff has asked the State about net effect on schools in light of the school funding formula. It is not known yet whether 4j would get use of the additional funds, or whether they would offset State funds that otherwise would come to 4j. **These dollars must be deposited into the jurisdiction’s bond funds to be used to pay debt service on general obligation bonds. 3. Bond Rate Impact Urban renewal nominally affects voter-approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. (Urban renewal does not elongate debt repayment). For the Downtown District, which is a “Reduced Rate” plan, the increase in bonded debt tax rates only affects bonds that were approved by voters prior to October 2001, according to Oregon statutes. An estimate was made of the impact of this small increase in bonded debt tax rates, assuming tax increment financing in the Downtown District was terminated. The bonded debt tax rates would be reduced by about $0.0105 per $1000 of assessed value, which would translate into a tax bill reduction of about $1.66 per year for the average Eugene household. This is about 0.05% of the $2,938 bill for the median taxpayer in the current year. (See Attachment E for example tax statements.)