Item A: Downtown Financing Strategy

Home Browse Search

ATTACHMENT J Downtown Urban Renewal – Funding Option Under this funding scenario, council would need to amend the Downtown Urban Renewal District Plan to increase the spending limit, which would continue the redistribution of taxes. The City Manager recommended this funding option at the February 10, 2010 work session provided that: a)the district stop functioning after the projects are complete (estimated for 2019); b)a review panel of community members is established to prepare an annual report on spending; and c)language in the plan is modified to allow four specific projects only. 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 Continue Downtown District tax increment financing o Amend Downtown District (see section A below): o Spending limit increase by $16.15 million: - ? allows initial access to funds for projects ? each project would need secondary URA Board/Budget Committee approvals End District when projects completed (estimated for FY2018/19) - Includes parking fund for police in FY19 o Total sources through FY19 ~ $21.7 million o Uses of Funds All recommended projects o Police funded through parking fund when URA assumes debt repayment for o Broadway Place Garages (See section B below) Total uses through FY19 ~ $21.7 million o How it Works Redistribution of taxes. See the cash flow projection below that shows how the various sources are available to pay for project and on-going costs. Implementation Debt issuance costs ~$150,000 o Costs Interest on new debt ~$2.2 million o Project legal and professional services ~$150,000 o Project and district administration through FY19 ~ $900,000 o Impact on Not a new tax; no change in tax bill from this funding option o taxpayers The bonded debt tax rate impact from the Downtown District is $1.66 for the o average household per year ($0.0105/$1000 of assessed value). (See Attachment E for an example tax statement.) Effect on M5 tax No change in M5 tax rate cap from this scenario rate cap Financial Impact on County $150,000 (FY10 est.) o overlapping taxing Net Schools less than $31,000 (FY10 estimate) - See section D below o districts (For more information see the report on the plan – Attachment L Chapter 9.)