Ordinance No. 20459 - Laserfiche WebLink

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Chapter 7: Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460 The total cost of all Projects is estimated at $17.2 million between FY2010/2011 and FY2017/2018, including interest, premium and other costs. The Projects will be funded with a combination of urban renewal tax increment financing under ORS 457 and other sources. The Agency may apply for funding from other federal, state, and local grants in order to complete the projects. In addition, the public facilities included within the Plan may also be funded in part with other public funds, such as systems development charges and general obligation bonds, among other sources. Oregon Revised Statutes require that each urban renewal district that receives property taxes include a "maximum indebtedness" limit in their urban renewal plan. "Maximum indebtedness" is a required spending cap for all property tax expenditures over a period of time. "Maximum indebtedness" is not a legal debt limit. It is more like a spending limit. Adopting a maximum indebtedness figure does not authorize or obligate the Agency to spend money or enter into debt. Within the maximum indebtedness limitation, the Agency Board has the ability to fund projects over time, either with cash or by issuing debt. Certain expenditures are included in the maximum indebtedness calculation and certain expen- ditures are excluded. For instance, cash payments for projects and administrative expenses are included in the calculation, but expenditures made from sources other than tax increment revenues are not included in the spending limit, such as Downtown Revitalization Loan Program funds. In addition, interest on debt is not included in maximum indebtedness, nor is the refinancing of existing indebtedness. The specific limitations of the maximum indebtedness amount are spelled out in the Plan. The City Council amended the Plan in 1998 to include a maximum indebtedness limit of $33 million. The $33 million figure represented the amount that the Agency was allowed to cumulatively spend in tax increment revenues starting in 1998. That figure was based on the estimated cost of building a new main library, plus continuation of the administrative costs in the district, preparing annual financial statements, disposing of the former Sears building on 10 Avenue and Charnelton Street, overseeing completion of the Broadway Place and Overpark elevator projects, and administering the loan portfolio. It included an annual inflation factor of 5% on project costs, and excluded existing debt. As of FY10, the maximum indebtedness limit of $33 million has almost been fully spent or com- mitted, with the bulk having been spent on building the downtown library. The amount of remaining maximum indebtedness at any given time is an estimate based on both actual historic spending and estimated future commitments. The amount currently remaining Report on the 2010 Amendment 11