Item A: Downtown Financing Strategy

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through FY2010/2011. Additional projects for the downtown safety initiative are expected to use some of that remaining capacity prior to the 2010 Amendment. In the 2009 legislative session, HB 3056 was approved and includes changes to ORS 457, the urban renewal statutes. One of those changes is that increases in maximum indebtedness may not exceed an aggregate of 20% of the original maximum indebtedness of the plan, including an 1 indexing from July 1, 1998 to July 1, 2009. The index that may be used is the inflation rate included in the initial maximum indebtedness calculations. Under the provisions of this new statute, the $33 million original maximum indebtedness would increase to $56.4 million, using the original 5% inflation rate from July 1, 1998 to July 1, 2009. The greatest maximum indebtedness figure allowed (without overlapping taxing district concurrence), including a 20% increase from that amount, would be $67.7 million. In order to complete the four projects, it is estimated that an increase of $16,150,000 is needed in the maximum indebtedness limit. The increase is calculated as follows: LCC Project $8,000,000 VA Clinic 2,500,000 Farmers Market 500,000 Garage Debt (principal only) 4,810,000 Legal/Debt Issuance/Administration 1,190,000 Total Funds Needed for Projects $17,000,000 Less: Amount Remaining Under Current Spending Cap -850,000 Net Amount of Maximum Indebtedness Increase $16,150,000 Not Included in Maximum Indebtedness Cap: Interest on LCC Project Debt (estimated) 2,200,000 Interest on Parking Garage Debt 1,500,000 *It should also be noted that when the garage debt is paid off, the City’s Parking Fund will continue to pay for the cost of police officers. That amount is not included in the chart above. The increase in maximum indebtedness of $16,150,000 would result in a revised maximum indebtedness figure of $49,150,000, which represents cumulative spending in the Downtown District from 1998 to the end of the Plan. This revised maximum indebtedness amount is the estimated amount needed to accomplish the projects under the current project assumptions and to provide for district administration. It is within the limits established under ORS 457.470. Table 6 in Exhibit E includes information about future revenues and expenditures in the district. The timing and amounts for individual project activities will be determined by the Agency Board each year during the annual budget process. Completion dates for individual activities may be 1 This provision may be changed if written concurrence is obtained from the overlapping taxing districts that impose at least 75% of the taxes under permanent rate limits in the Plan Area. 13