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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br />(C) Capital Assets
<br />Capital assets activity for the year ended June 30, 2011 was as follows:
<br />BeginningEnding
<br />balanceIncreasesDecreasesbalance
<br />Governmental activities:
<br />Capital assets, not being depreciated
<br /> Land$2,215,459002,215,459
<br /> Total capital assets, not being depreciated2,215,459002,215,459
<br />Capital assets, being depreciated
<br /> Improvements 3,747,984003,747,984
<br /> Infrastructure2,645,718002,645,718
<br /> Total capital assets being depreciated6,393,702006,393,702
<br /> Less accumulated depreciation for:
<br /> Improvements (2,234,081)(163,316)0(2,397,397)
<br /> Infrastructure(1,374,134)(101,160)0(1,475,294)
<br /> Total accumulated depreciation(3,608,215)(264,476)0(3,872,691)
<br /> Total capital assets, being depreciated, net2,785,487(264,476)02,521,011
<br /> Governmental activities capital assets, net$5,000,946(264,476)04,736,470
<br />(D) Noncurrent Liabilities
<br />The Urban Renewal Agency issues tax increment bonds to finance major construction projects within its
<br />districts. These bonds are serviced by property tax increment revenues. When an urban renewal district
<br />is first created, the assessed property value within the district boundaries is established as a “frozen
<br />base”. The urban renewal agency receives property taxes related to the incremental increase in the
<br />property value that is in excess of the “frozen base”.
<br />On May 25, 2011, the Agency issued $7,900,000 of Downtown Urban Renewal District Tax Increment
<br />Bonds, Series 2011 A, bearing a fixed interest rate of 5.20% and maturing on June 1, 2020. The
<br />proceeds of the bonds were used to refund $4.4 million in debt service associated with the City’s
<br />Broadway Garages limited tax bonds and $3.5 million in financial assistance to Lane Community College
<br />for construction of their new Downtown campus.
<br />The refunding of the City’s Broadway Garages Limited Tax Bonds resulted in an economic gain despite
<br />the net cost from refunding. The economic gain realized in this refunding was $84,000 and the net cost
<br />resulting from the refunding was as follows:
<br />Cash flow requirements to service old debt$5,574,191
<br />Less: Cash flow requirements for new debt(5,600,976)
<br />Net cash from refunding$(26,785)
<br />continued
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