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HomeMy WebLinkAboutResolution 2019-17 06/24/2019 CITY OF SPRINGFIELD, OREGON RESOLUTION NO, 2019-17 A RESOLUTION RATIFYING AN AMENDMENT TO THE GLENWOOD URBAN RENEWAL PLAN TO UPDATE THE FINANCIAL ANALYSIS OF THE PLAN WHEREAS, in November 2004, the City of Springfield voters approved formation of the Glenwood Urban Renewal District; WHEREAS, the City Council approved the Glenwood Urban Renewal Plan (Plan) by Ordinance 6103 on December 6, 2004 and transferred authority to exercise the urban renewal powers to the Springfield Economic Development Agency (SEDA) Board of Directors, under Ordinance 6107 on December 6, 2004; WHEREAS, consistent with ORS 457.085, the Plan contains a financial analysis to determine the feasibility of the Plan and a fiscal impact statement that estimates the impact of the tax increment financing upon all affected taxing entities in the urban renewal area, both until and after the indebtedness is repaid; WHEREAS, in 2018, SEDA completed an updated financial analysis of the Plan to determine whether the performance of the Plan has been consistent with the initial financial analysis and projections of the impact of tax increment financing on the Plan's affected taxing entities; WHEREAS, Section 900D of the Plan provides that amendments that clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by the Plan or other such modifications which do not change the basic planning or engineering principles of the Plan may be approved by SEDA in resolution form; WHEREAS, on June 10, 2019, SEDA approved the Plan amendment updating the financial analysis of the Plan which is attached as Exhibit A to this Resolution; and WHEREAS, the City Council has reviewed and evaluated the Plan amendment to update the financial analysis of the Plan, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: The City Council ratifies and approves the Glenwood Urban Renewal Plan amendment to update the Plan's financial analysis as described in the attached Exhibit A. Section 2: This Resolution will take effect upon adoption by the Council and approval by the Mayor. ADOPTED by the Common Council of the City of Springfield this 24 d. of June, 2019, by a vote of 6 for and 0 against. •Mayor ATTEST: REVIEWED &APP••VED AS TO 'y City e order DATE: # FM•S OFFICE OF CI 'TT R EY Exhibit A. Page 1 of 14 SPRINGFIELD ECONOMIC DEVELOPMENT AGENCY, AN URBAN RENEWAL AGENCY OF THE CITY OF SPRINGFIELD RESOLUTION NO. 2019-02 A RESOLUTION TO AMEND THE GLENWOOD URBAN RENEWAL PLAN TO UPDATE THE FINANCIAL ANALYSIS OF THE PLAN WHEREAS, in November 2004, the City of Springfield voters approved formation of the Glenwood Urban Renewal District; WHEREAS, the City Council approved the Glenwood Urban Renewal Plan (Plan) by Ordinance 6103 on December 6, 2004 and transferred authority to exercise the urban renewal powers to the Springfield Economic Development Agency (SEDA) Board of Directors, under Ordinance 6107 on December 6, 2004; WHEREAS, consistent with ORS 457.085, the Plan contains a financial analysis to determine the feasibility of the Plan and a fiscal impact statement that estimates the impact of the tax increment financing upon all affected taxing entities in the urban renewal area, both until and after the indebtedness is repaid; WHEREAS, the Plan was initially estimated to last until approximately 2025; WHEREAS, in 2018, SEDA completed an updated financial analysis of the Glenwood Urban Renewal Plan to determine whether the performance of the Plan has been consistent with the initial financial analysis and projections of the impact of tax increment financing on the Plan's affected taxing entities; WHEREAS, Section 900D of the Plan provides that amendments that clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by the Plan or other such modifications which do not change the basic planning or engineering principles of the Plan may be approved by SEDA in Resolution form; WHEREAS, this amendment will also be brought to the City Council for ratification; WHEREAS, SEDA has consulted and conferred about this amendment with the Plan Area's other affected taxing entities; WHEREAS, the updated financial analysis determined that it will take longer to retire the debt that is necessary to accomplish the Plan Projects consistent with the project list and the maximum indebtedness in the Plan; and WHEREAS, SEDA is amending the Plan to reflect the updated financial analysis. RESOLUTION NO. 2019-17 Exhibit A. Page 2 of 14 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of SEDA, an Urban Renewal Agency of the State of Oregon, as follows: 1. Section 500B of the Glenwood Urban Renewal Plan amendment is hereby amended as follows: 500B. ANTICIPATED START & FINISH DATES OR PROJECT ACTIVITIES The project activities shown in Table 2 will begin in 2005. The sequencing and prioritization of individual project activities shown in Table 2 and 2a will be done by the urban Renewal Agency and any citizen advisory bodies that the Agency calls upon to assist in this process. The priority of projects and annual funding will be as established in the annual budget process. Completion dates for individual activities may be affected by changes to local economic and market conditions, changes in the availability of tax increment funds, and changes in priorities for carrying out project activities, especially with public partners like Lane County, Willamalane Parks District, and others. Tax increment revenue collections will cease when the principal and interest on the maximum indebtedness authorized under this Plan can be fully repaid. 2. Section 500F, Updated Financial Analysis, will be added to the Glenwood Urban Renewal Plan as set out in Exhibit A attached hereto and incorporated herein: 3. This Resolution shall take effect upon adoption. Adopted by the Springfield Economic Development Agency, an Urban Renewal Agency of the City of Springfield, by a vote of 7 for a e a_ against, this , 10th day of June , 2019. (1 absent. Van f,ordon) / i U1 AQ- Sheri Moore, Chair Springfield Economi Development Agency Attest: Tudtal) as ASIC APPROVED Leon Stoehr, Secretary REVIEWED& O AS TOFo ,;. Springfield Economic Development Agency ✓' 7/+ DATE: ri�'.,/G' OFFICE 0 CI A ORNEY SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 3 of 14 • 500F. UPDATED FINANCIAL ANALYSIS In 2018,the Agency completed an updated Financial Analysis of the Plan. Methodology,Assumptions,and Results • This section describes the steps used in the analysis to forecast TIF revenue and determine borrowing capacity,and highlights all key assumptions.Those steps are: 1. Determine the consolidated tax rate 2. Forecast future assessed value 3. Calculate TIF revenue 4. Determine borrowing capacity 1.Determine the consolidated tax rate The consolidated tax rate for a URA is equal to the sum of all permanent tax rates,as well as any general obligation bond levies approved by voters prior to October 6,2001. It does not include local option levies and any general obligation bond levies approved since October 6,2001 (including any bonds that may be approved in the future). Exhibit 1 shows the consolidated tax rate by tax code area(TCA)for the URA.The URA encompasses seven separate TCAs:426,428,446,480, 1908, 1918,and 1906.Analysis is conducted separately for each TCA,as they have different consolidated tax rates.No overlapping taxing districts in the URA have a general obligation bond approved by voters prior to October 6,2001. Exhibit 1. Consolidated Tax Rate by TCA • Tax Code Area Jurisdiction Name Type 426 428 446 480 1908 1918 1906 Lane County Permanent $ 1.2793 $ 1.2793 $ 1.2793 S 1.2793 $ 1.2793 $ 1.2793 $ 1.2793 City of Springfield Permanent $ - $ - $ - 5 4.7403 $ - $ - $ 4.7403 Glenwood Water District Permanent S - $ 4.1425 $ - S - $ 4.1425 $ . $ - Willamalane Park&Rec Permanent S 2.0074 $ 2.0074 $ 2.0074 $ 2.0074 $ 2.0074 $ 2.0074 $ 2.0074 Goshen RFPD Permanent $ - $ - $ 1.7196 $ - $ - $ 1.7196 $ - Subtotal Gen.Govt. $ 3.2867 $ 7.4292 $ 5.0063 $ 8.0270 $• 7.4292 $ 5.0063 $ 8.0270 Lane Community College Permanent S 0.6191 $ 0.6191 $ 0.6191 $ 0.6191 $ 0.6191 S 0.6191 $ 0.6191 Lane ESD Permanent $ 0.2232 Si 0.2232 $ 0.2232 $ 0.2232 $ 0.2232 S 0.2232 $ 0.2232 Eugene School District Permanent $ 4.7485 $ 4.7485 $ 4.7485 5 4.7485 $ - $ - $ Springfield School District 19 Permanent $ - $ - $ - $ - $ 4.6412 $ 4.6412 $ 4.6412 Subtotal Education $ 5.5908 $ 5.5908 $ 5.5908 $ 5.5908 $ 5.4835 $ 5.4835 $ 5.4835 Total All $ 8.8775 $13.0200 $10.5971 $13.6178 $12.9127 $10.4898 $13.5105 Source:Tiberius Solutions using data from Lane County,FYE 2018 2.Forecast Future Assessed Value Exhibit 2 shows the assessed value of the URA from FYE 2009 to FYE 2018.There are only two TCAs (428 and 480)that currently have an assessed value higher than their frozen base value(i.e.,positive increment value). If the total assessed value of a TCA is equal to or less than its frozen base value,that TCA is excluded from the calculation of TIF revenue. SEDA RESOLUTION NO.2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 4 of 14 • Exhibit 2.Assessed Value by TCA,Glenwood URA,FYE 2009 to FYE 2018 TCA % FYE 426 428 446 480 1908 1918 1906 Total Change 2009 $ 70,510 $ 51,680,320 $ 773,437 $ 78,298,174 $ 10,819 $ 222,275 $ - $131,055,535 2010 $ 81,510 $ 49,908,010 $ 842,910 $ 75,365,802 $ 10,114 $ 223,313 $ - $126,431,659 -3.5% 2011 $109,400 $ 50,875,221 $ 839,812 $ 73,102,256 $ 21,229 $ 213,532 $ 36,948 $125,198,398 -1.0% 2012 $107,220 $ 53,100,126 $ 885,158 $ 72,002,778 $ 21,866 $ 200,709 $ 36,578 $126,354,435 0.9% 2013 $149,300 $ 53,980,497 $ 776,622 $101,033,793 $ 22,522 $ 200,709 $ 36,578 $156,200,021 23.6% 2014 $158,700 $ 55,036,222 $ 730,327 $102,291,583 $ 23,198 $ 86,364 $ 36,578 $158,362,972 1.4% 2015 $131,600 $ 54,048,104 $ 788,697 $111,240,771 $ 23,894 $ 85,436 $ 37,675 $166,356,177 5.0% 2016 $ 1,000 $ 54,639,799 $ 200,998 $114,569,230 $ 24,611 $ 127,286 $ 37,675 $169,600,599 2.0% 2017 $ 1,000 $ 55,887,606 $ 208,023 $115,528,422 $ - $ 128,572 $ - $171,753,623 1.3% 2018 $ 1,000 $ 56,328,896 $ 214,263 $116,367,614 $ - $ 128,586 $ - $173,040,359 0.7% 2018 Frozen Base $111,997 $ 45,330,623 $ 841,886 $ 58,891,137 $ 6,544 $ 198,830 $ 3,179 $105,384,196 AAG R 2009-2018 3.1% 2014.-2018 2.2% Source:Tiberius Solutions using data from Lane County,FYE 2009 to FYE 2018 SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 5 of 14 Exhibit 3 shows assessed value by property type in the URA.Real property comprises 85%of the total assessed value,and an additional 13%of assessed value is from personal property.The remaining 2% is composed of manufactured and utility property value. Exhibit 3.Assessed Value by Property Type;Glenwood URA,FYE 2009 to FYE 2018 TCA FYE Real Personal Real Manuf. Personal Manuf. Utilities Total Change 2009 $ 95,059,434 $ 30,211,997 $ 147,619 $ 2,687,585 $ 2,948,900 $131,055,535 2010 $ 98,507,479 $ 22,383,186 $ 184,203 $ 2,252,521 $ 3,104,270 $126,431,659 -3.5% 2011 $ 96,537,413 $ 25,045,530 $ 192,908 $ 408,947 $ 3,013,600 $125,198,398 -1.0% 2012 $ 98,889,386 $ 24,173,415 $ 209,893 $ 491,421 $ 2,590,320 $126,354,435 0.9% 2013 $ 129,658,630 $ 23,008,713 $ 194,457 $ 472,421 $ 2,865,800 $156,200,021 23.6% 2014 $ 133,851,784 $ 20,925,192 $ 217,597 $ 416,999 $ 2,951,400 $158,362,972 1.4% 2015 $ 136,735,320 $ 25,895,197 $ 204,764 $ 470,006 $ 3,050,890 $166,356,177 5.0% 2016 $ 143,528,187 $ 22,294,457 $ 220,693 $ 482,362 $ 3,074,900 $169,600,599 2.0% 2017 $ 143,093,102 $ 24,799,598 $ 202,627 $ 457,296 $ 3,201,000 $171,753,623 1.3% 2018 $ 147,511,639 $ 21,711,324 $ 254,451 $ 445,854 $ 3,117,091 $173,040,359 0.7% AAGR 2009-2018 5.0% -3.6% 6.2% -18.1% 0.6% 3.1% 2014-2018 2.5% 0.9% 4.0% 1.7% 1.4% 2.2% Source:Tiberius Solutions using data from Lane County,FYE 2009 to FYE 2018 Over the past nine years,from FYE 2009 to FYE 2018,the Area has experienced average annual growth of 3.1%).This growth rate is indicative of an area where most properties experience the maximum- allowed 3.0%per year growth from appreciation and very little additional development activity occurs. Over the past five years,from FYE 2014 to FYE 2018,the Area has experienced slower growth,of only 2.2%per year. Real property in the area(land and buildings) has grown at an average annual growth rate of 5.0%per year over the past nine years but only 2.5%per year over the past five.The longer-term trend is buoyed by particularly strong growth from FYE 2012 to FYE 2013 when new development must have come on the tax rolls.The assessed value of real property in the Area increased by over$30M that year alone, more than it has increased in the next five years combined. The experience of FYE 2014 illustrates the strong impact that even a small number of significant development projects could have on the long-term assessed value growth of the Area in the future. Other property types(utility,personal,and manufactured property)in the area have not performed as well as real property,which is typical.The amount of personal property in the area(machinery and equipment) dropped by more than 25%from FYE 2009 to FYE 2010 and has remained essentially stagnant since that point in time. Utility value in the area has been similarly stagnant over this nine-year period. Manufactured property(i.e.,mobile homes)is separated into two categories:personal and real. Personal manufactured property in the Area lost nearly all of its assessed value from FYE 2010 to FYE 2011 and has remained generally stagnant ever since. Real manufactured property has actually seen growth rates slightly outpace real property. However,this category of property comprises a trivial amount of the overall value of the URA(0.1%of the total)and is inconsequential to the overall forecast of TIF revenues. Based on these historical trends,this forecast assumes that in future years,existing real property in the Area achieves annual growth from appreciation of 3.0%per year,while other property types in the area SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 6 of 14 remain stagnant and see no growth long-term. In addition to appreciation of existing property,this forecast also includes assumptions for"exception value"from new development in the Area. To factor in assessed value of real property from new development,this forecast estimates the average annual new growth.Note that forecasting future levels of speculative development is inherently uncertain. The large amounts of vacant or under-utilized property in the Area,coupled with the ability of the City to invest in the Area through the use of TIF revenue,and the proximity of the Area to the riverfront,the University of Oregon campus,and downtown Springfield are all reasons to believe that the Area should experience significant new development in the future,allowing it to outperform historical trends for assessed value growth. Specifically,this forecast assumes that the URA will see an additional$4,378,500 in assessed value due to new construction each year.This forecast is based on the following assumptions for average annual development activity: One acre of land developed per year $7 million per acre for the real market value of new development(improvement value only) Development mix: 50%multifamily residential, 50%commercial Development proportionally distributed between two main TCAs based on FYE 2018 assessed value: 33%to TCA 428 and 67%to TCA 480. Although it is certain that economic recessions will occur in the future,the timing is unknown,so this forecast does not attempt to predict economic cycles.However,it is reasonable to expect that assessed value growth will exceed these projections in some years,and lag behind in other years, influenced by market cycles.This forecast is intended to approximate a long-term average trend line. 3.Calculate TIF Revenue Gross TIF revenue is calculated as the product of the increment assessed value and the consolidated tax rate each year.However,actual TIF received (i.e.,net revenue)in a given year tends to be lower,due to discounts(from paying early), delinquencies(unpaid taxes),truncation loss(lost revenue due to rounding),and compression loss(for properties where the taxes imposed would exceed constitutional limits).This forecast of net TIF revenue assumes a 5.0%adjustment factor to convert from gross to net revenue. SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 7 of 14 Exhibit 4 shows the updated TIF revenue forecast through FYE 2034,which is the last year that the URA is expected to need to collect TIF revenue to fully incur and repay the maximum indebtedness of the Plan. Exhibit 4.Updated TIF Forecast,Glenwood URA Assessed Value Tax Increment Finance FYE Total Frozen Base Increment Tax Rate Gross Adjustments Net 2018 $ 173,040,359 $ 105,384,196 $ 68,474,750 $ 13.5218 $ 925,901 $ (46,295) $ 879,606 2019 $ 181,975,564 $ 105,384,196 $ 77,400,657 $ 13.5099 $ 1,045,674 $ (52,284) $ 993,390 2020 $ 191,314,121 $ 105,384,196 $ 86,729,637 $ 13.5001 $ 1,170,856 $ (58,543) $ 1,112,313 2021 $ 201,072,069 $ 105,384,196 $ 96,477,722 $ 13.4919 $ ,1,301,663 $ (65,084) $ 1,236,579 2022 $ 211,266,372 $ 105,384,196 $ 106,661,865 $ 13.4849 $ 1,438,322 $ (71,916) $ 1,366,406 2023 $ 221,914,497 $ 105,384,196 $ 117,299,525 $ 13.4789 $ 1,581,067 $ (79,054) $ 1,502,013 2024 $ 233,034,438 $ 105,384,196 $ 128,408,687 $ 13.4737 $ 1,730,140 $ (86,507) $ 1,643,633 2025 $ 244,644,725 $ 105,384,196 $ 140,007,873 $ 13.4692 $ 1,885,789 $ (94,290) $ 1,791,499 2026 $ 256,764,889 $ 105,384,196 $ 152,116,602 $ 13.4652 $ 2,048,276 $ (102,414) $ 1,945,862 2027 $ 269,415,041 $ 105,384,196 $ 164,754,976 $ 13.4616 $ 2,217,870 $ (110,894) $ 2,106,976 2028 $ 282,615,896 $ 105,384,196 $ 177,943,700 $ 13.4585 $ 2,394,851 $ (119,743) $ 2,275,108 2029 $ 296,389,232 $ 105,384,196 $ 191,704,541 $ 13.4557 $ 2,579,510 $ (128,976) $ 2,450,534 2030 $ 310,757,475 $ 105,384,196 $ 206,059,914 $ 13.4531 $ 2,772,147 $ (138,607) $ 2,633,540 2031 $ 325,744,165 $ 105,384,196 $221,033,348 $ 13.4508 $ 2,973,079 $ (148,654) $ 2,824,425 2032 $ 341,373,548 $ 105,384,196 $ 236,649,077 $ 13.4487 $ 3,182,631 $ (159,131) $ 3,023,500 2033 $ 357,670,595 $ 105,384,196 $ 252,932,061 $ 13.4468 $ 3,401,138 $ (170,057) $ 3,231,081 2034 $ 374,661,032 $ 105,384,196 $ 269,908,012 $ 13.4451 $ 3,628,944 $ (181,447) $ 3,447,497 Total $36,277,858 $(1,813,896) $34,463,962 Source:Tiberius Solutions Note:This forecast assumes the URA would generate more than sufficient TIF revenue in FYE 2034 to repay all indebtedness,and thus a portion of that revenue(estimated to be$2,742,000)would either be "underlevied"in FYE 2034 or returned to overlapping taxing districts after termination of the URA. 4. Determine Borrowing Capacity Net TIF revenue gives a general idea of the revenue generated by the URA each year. However,those numbers are insufficient to understand the total funding available for projects over the life of the URA. Typically,the majority of project funding comes from loans,which allows capital projects to be built sooner,but obligates future TIF revenue for payments of principal and interest on those loans. To determine borrowing capacity, a hypothetical cash flow(i.e., finance plan)was created for the URA. This finance plan takes into account existing fund balance,outstanding debt,and budgeted expenditures, and makes assumptions about the amount and timing of debt that could be incurred in future years,to determine the total remaining borrowing capacity of the URAs. The following assumptions were used to determine the Glenwood URA's borrowing capacity.Note that borrowing capacity is dependent on exact financing terms. Shorter-term loans, higher interest rates,and higher debt service coverage requirements would reduce the amount of borrowing capacity for the URA or lengthen the duration of time needed to achieve the maximum indebtedness of the Plan. Inflation rate: 3.0% Beginning fund balance: $2,815,309 in FYE 2018 Existing loans: 2016 Loan: annual debt service payments totaling$2,097,733 from FYE 2018 through FYE 2025 SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 8 of 14 2018 Loan: annual debt service payments totaling$3,152,469 from FYE 2018 through FYE 2025 Minimum debt service coverage ratio required: 1.25 times annual TIF revenue Interest rates for new debt:5.0% Amortization period for new debt: 5-14 years,depending on issue date.All debt retired in FYE 2034. Timing of new debt: First loan:FYE 2021 Second loan: FYE 2026 Last loan: FYE 2030 Note that there are infinite versions of financing assumptions that could have been modeled based on the specific needs of the URA. Ultimately,the City will make decisions regarding any future indebtedness as part of the annual budget process,based on more concrete loan terms,with the intention to fund specific projects. Based on these assumptions,the Glenwood URA is estimated to achieve its maximum indebtedness in FYE 2033 and pay off all debt in FYE 2034.This would result in$29.1 million of funding for projects from FYE 2019 to 2034(or$24.5 million when adjusted for inflation and presented in constant 2018 dollars). Exhibit 5 and Exhibit 6 show the detailed finance plan. Exhibit 5 shows annual TIF revenue and allocations to debt service,and Exhibit 6 shows annual projects and costs. Exhibit 5.Annual Tax Increment Revenue and Allocations to Debt Service,FYE 2018 to EYE 2035 TAX INCREMENT FUND Total FYE 2018 FYE 2019 FYE 2020 FYE 2021 Resources Beginning Balance $ 3,973,255 $ 2,815,309 $ - $ - $ - Interest Earnings $ 46,926 $ 41,136 $ - $ - $ - TIE:Current Year $ 31,722,385 $ 879,606 $ 993,390 $ 1,112,313 $ 1,236,579 TIF:Prior Years $ 2,244,571 $ 61,899 $ 61,899 $ 69,906 $ 78,275 Misc.Revenue $ 34,984 $ 25,800 Bond Proceeds $ 3,204,633 Total Resources $ 37,987,137 $ 3,832,933 $ 1,081,089 $ 1,182,219 $ 4,519,487 Expenditures Debt Service Proposed Loan in EYE 2021 $ (13,719,055) $ - $ - $ - $ (979,933) Proposed Loan in FYE 2026 $ (5,064,843) $ - $ - $ - $ - Proposed Loan in EYE 2030 $ (2,771,698) $ - $ - $ - $ LoanD $ - $ - $ - 5 • - $ - 2016 Loan-Scheduled $ (848,522) $ (282,841) $ (282,841) $ (282,841) $ 2016 Loan-Early Payment $ - $ - $ - $ (1,166,572) 2016 Loan- Penalty $ - $ - $ - $ (11,666) 2018 Loan-Scheduled $ (927,197) $ (37,088) $ (445,054) $ (445,054) $ - 2018 Loan-Early Payment $ - $ - $ - $ (2,006,331) Total Debt Service $(23,331,314) $ (319,929) $ (727,895) $ (727,895) $ (4,184,565) Debt Service Coverage Ratio 2.75 1.36 1.53 1.26 Transfer to URA Projects Fund $ (13,558,660) $ (3,513,005) $ (353,194) $ (454,324) $ (334,922) Total Expenditures $(36,889,974) $ (3,832,933) $ (1,081,089) $ (1,182,219) $ (4,519,487) Ending Balance $ - $ - $ - $ SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 9 of 14 TAX INCREMENT FUND FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 Resources Beginning Balance $ - $ - $ ' $ - $ - Interest Earnings $ = $ - $ - $ - $ - TIF:Current Year $ 1,366,406 $ 1,502,013 $ 1,643,633 $ 1,791,499 $ 1,945,862 TIF:Prior Years $ 87,020 $ 96,156 $ 105,699 $ 115,665 $ 126,070 Misc.Revenue Bond Proceeds Total Resources $ 1,453,426 $ 1,598,169 $ 1,749,332 $ 1,907,164 $ 2,071,932 Expenditures Debt Service Proposed Loan in FYE 2021 $ (979,933) $ (979,933) $ (979,933) $ (979,933) $ (979,933) Proposed Loan in FYE 2026 $ - $ - $ - $ - $ (562,760) Proposed Loan in FYE 2030 $ - $ - $ - $ - $ - LcanD $ - $ - $ - $ - $ - 2016 Loan-Scheduled $ - $ - $ - $ 2016 Loan-Early Payment $ - $ - $ - $ - 2016 Loan-Penalty $ - $ - $ - $ - 2018 Loan-Scheduled $ - $ - $ - $ - 2018 Loan-Early Payment $ - $ - $ - $ - Total Debt Service $ (979,933) $ (979,933) $ (979,933) $ (979,933) $ (1,542,693) Debt Service Coverage Ratio 1.39 1.53 1.68 1.83 1.26 • Transfer to URA Projects Fund $ (473,494)- $ (618,237) $ (769,400) $ (927,232) $ (529,239) Total Expenditures $ (1,453,426) $ (1,598,169) $ (1,749,332) $ (1,907,164) $ (2,071,932) Ending Balance $ $ $ $ $ - TAX INCREMENT FUND FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 Resources Beginning Balance $ - $ - $ - $ - $ - Interest Earnings $ - $ - $ - $ - S - TIF:Current Year $ 2,106,976 $ 2,275,108 $ 2,450,534 $ 2,633,540 $ 2,824,425 TIF:Prior Years $ 136,933 $ 148,271 $ 160,102 $ 172,447 $ 185,326 Misc.Revenue Bond Proceeds Total Resources $ 2,243,909 $ 2,423,379 $ 2,610,636 $ 2,805,987 .$ 3,009,751 Expenditures Debt Service. Proposed Loan in FYE 2021 •$ (979,933) $ (979,933) $ (979,933) $ (979,933) $ (979,933) Proposed Loan in FYE 2026 $ (562,760) $ (562,760) $ (562,760) $ (562,760) $ (562,760) Proposed Loan in FYE 2030 $ - $ - $ - $ (554,340) $ (554,340) Loan D $ - $ - $ - $ - 5 - 2016 Loan-Scheduled • 2016 Loan-Early Payment 2016 Loan-Penalty 2018 Loan-Scheduled 2018 Loan-Early Payment Total Debt Service $ (1,542,693) $ (1,542,693) $ (1,542,693) $ (2,097,032) $ (2,097,032) Debt Service Coverage Ratio 1.37 1.47 1.59 1.26 1.35 Transfer to URA Projects Fund $ (701,216) $ (880,686) $ (1,067,943) $ (708,955) $ (912,719) Total Expenditures $ (2,243,909) $ (2,423,379) $ (2,610,636) $ (2,805,987) $ (3,009,751) Ending Balance $ - $ - $ - $ - S - SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 • Exhibit A, Page 10 of 14 TAX INCREMENT FUND FYE 2032 FYE 2033 FYE 2034 Resources Beginning Balance $ - $ - $ 1,157,947 Interest Earnings $ - $ - $ 5,790 TIF:Current Year $ 3,023,500. $ 3,231,081 $ 705,920 TIF:Prior Years $ 198,759 $ 212,768 $ 227,376 Misc.Revenue Bond Proceeds Total Resources $ 3,222,259 $ 3,443,849 $ 2,097,032 Expenditures Debt Service Proposed Loan in FYE 2021 $ (979,933) $ (979,933) $ (979,933) Proposed Loan in FYE 2026 $ (562,760) $ (562,760) $ (562,760) Proposed Loan in FYE 2030 $ (554,340) $• (554,340) $ (554,340) Loan D $ - $ - $ - 2016 Loan-Scheduled 2016 Loan-Early Payment 2016 Loan-Penalty 2018 Loan-Scheduled 2018 Loan-Early Payment Total Debt Service $ (2,097,032) $ (2,097,032) $ (2,097,032) Debt Service Coverage Ratio 1.44 1.54 0.34 Transfer to URA Projects Fund $ (1,125,227) $ (188,870) $ Total Expenditures $ (3,222,259) $ (2,285,902) $ (2,097,032) Ending Balance $ - $ 1,157,947 $ - Note:Table uses actual values for FYE 2018.FYE 2019 through FYE 2034 values are projected. Source:Tiberius Solutions Exhibit 6.Projects and Costs by Year,FYE 2018—FYE 2035 URA PROJECTS FUND Total FYE 2018 FYE 2019 FYE 2020 FYE 2021 Resources Beginning Balance $ - $ 6,080,263 S 402,508 $ - Interest Earnings $ 32,414 $ - $ 30,401 $ 2,013 $ - Transfer from TIF Fund $ 13,558,660 $ 3,513,005 $ 353,194 $ 454,324 $ 334,922 Bond/Loan Proceeds $ 15,624,616 $ 2,729,248 $ - $ - S 6,495,367 Other $ - Total Resources $ 29,215,689 $ 6,242,253 $ 6,463,858 $ 858,845 $ 6,830,289 • Expenditures(YOE$) CMO $ (599,804) $ (149,804) $ (450,000) Finance $ (23,536) $ (12,186) $ (11,350) Property Purchases $ (5,600,000) $ - $ (5,600,000) i Other Projects $ (22,734,442) $ (858,845) $ (6,700,382) Financing Fees. $ (257,907) $ - $ (129,907) Total Expenditures $(29,215,689) $ (161,990) $ (6,061,350) $ (858,845) $ (6,830,289) Ending Balance $ 6,080,263 $ 402,508 $ $ - Cumulative MI used to-date $ 3,644,310 $ 9,886,563 $ 10,270,158 $ 10,726,495 $ 17,556,784 SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 11 of 14 URA PROJECTS FUND FYE 2022 FYE 2023 FYE 2024 FYE 2025 FYE 2026 Resources Beginning Balance $ - $ - $ - $ - $ - Interest Earnings $ - $ - $ - $ - $ - Transfer from TIE Fund $ 473,494 $ 618,237 $ 769,400 $ 927,232 $ 529,239 Bond/Loan Proceeds $ - $ - $ - $ - $ 4,000,000 Other Total Resources r $ 473,494 $ 618,237 $ 769,400 $ 927,232 $ 4,529,239 Expenditures(YOE$) CMO Finance Property Purchases Other Projects $ (473,494) $ (618,237) $ (769,400) $ (927,232) $ (4,449,239) Financing Fees $ (80,000) Total Expenditures $ (473,494) $ (618,237) $ (769,400) $ (927,232) $ (4,529,239) Ending Balance $ - $ - $ - $ - $ - Cumulative M1 used to-date $ 18,030,277 $ 18,648,514 $ 19,417,913 S 20,345,145 $ 24,874,384 URA PROJECTS FUND FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 Resources Beginning Balance $ - $ - $ - $ - S - Interest Earnings $ - $ - $ - $ - $ - Transfer from TIF Fund $ 701,216 $ 880,686 $ 1,067,943 $ 708,955 $ 912,719 Bond/Loan Proceeds $ - $ - $ - $ 2,400,000 $ - Other Total Resources $ 701,216 $ 880,686 $ 1,067,943 $ 3,108,955 $ 912,719 Expenditures(YOE$) CMO Finance Property Purchases Other Projects $ (701,216) $ (880,686) $ (1,067,943) $ (3,060,955) $ (912,719) Financing Fees $ (48,000) Total Expenditures $ (701,216) $ (880,686) $ (1,067,943) $ (3,108,955) $ (912,719) Ending Balance $ - $ - $ - $ - $ - Cumulative MI used to-date $ 25,575,600 $ 26,456,286 $ 27,524,229 $ 30,633,184 $ 31,545,903 • SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 12 of 14 URA PROJECTS FUND FYE 2032 FYE 2033 FYE 2034 Resources Beginning Balance $ - $ - $ - Interest Earnings $ • - $ - $ - Transfer from TIF Fund $ 1,125,227 $ 188,870 $ - Bond/Loan Proceeds $ - $ $ - Other Total Resources $ 1,125,227 $ 188,870 $ - Expenditures(YOE$) CMO Finance Property Purchases Other Projects $ (1,125,227) $ (188,870) $ - Financing Fees Total Expenditures $ (1,125,227) $ (188,870) $ Ending Balance $ $ - $ -.. Cumulative MI used to-date $ 32,671,130 $ 32,860,000 $ 32,860,000 Note:Table uses actual values for FYE 2018. FYE 2019 through FYE 2035 values are projected. Source:Tiberius Solutions Exhibit 7 and Exhibit 8 show the impact of the Glenwood URA on the area's overlapping taxing districts. Note that for school districts and education service districts(ESDs),under current school funding law, property tax revenues are combined with State School Fund revenues to achieve per-student funding targets. Under this system,property taxes that are foregone because of the use of Tax Increment Financing are replaced(as determined by a funding formula at the State level)with State School Fund revenues. SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 13 of 14 Exhibit 7.Impact to Taxing Districts,General Government _ Glenwood City of Water Willamalane Goshen FYE Lane County Springfield District Park&Rec RFPD Subtotal 2018 $ (89,076) $ (277,047) $ (46,328) $ (139,773) $ - $ (552,225) 2019 $ (99,929) $ (303,433) $ (58,414) $ (156,803) $ - $ (618,578) 2020 $ (112,030) $ (333,363) $ (71,441) $ (175,791) $ - $ (692,625) 2021 $ (124,675) $ (364,638) $ (85,056) $ (195,632) $ - $ (770,000) 2022 $ (137,885) $ (397,313) $ (99,279) $ (216,361) $ - $ (850,839) 2023 $ (151,684) $ (431,443) $ (114,135) $ (238,014) $ - $ (935,277) 2024 $ (166,096) $ (467,090) $ (129,649) $ (260,627) $ - $ (1,023,461) 2025 $ (181,142) $ (504,311) $ (145,844) $ (284,238) $ - $ (1,115,535) 2026 $ (196,850) $ (543,171) $ (162,750) $ (308,886) $ - $ (1,211,656) 2027 $ (213,246) $ (583,734) $ (180,391) $ (334,612) $ - $ (1,311,983) 2028 $ (230,355) $ (626,068) $ (198,798) $ (361,459) $ - $ (1,416,681) 2029 $ (248,207) $ (670,243) $ (218,000) $ (389,471) $ - $ (1,525,921) 2030 $ (266,830) $ (716,331) $ (238,029) $ (418,694) $ - $ (1,639,884) 2031 $ (286,256) $ (764,408) $ (258,916) $ (449,175) $ - $ (1,758,755) 2032 $ (306,515) $ (814,553) $ (280,695) $ (480,964) $ - $ (1,882,728) 2033 $ (327,639) $ (866,846) $ (303,401) $ (514,112) $ - $ (2,011,998) 2034 $ (88,803) $ (233,997) $ (83,065) $ (139,344) $ - $ (545,209) 2035 $ - $ - $ - $ • $ - $ - Total $ (3,227,219) $ (8,897,990) $ (2,674,192) $ (5,063,956) $ - $ (19,863,356) Source:Tiberius Solutions SEDA RESOLUTION NO.2019-02 RESOLUTION NO. 2019-17 Exhibit A, Page 14 of 14 • Exhibit 8.Impact to Taxing Districts,Education _._ Lane Springfield Total General Community Eugene School School Gov't and FYE College Lane ESD District • District 19 Subtotal Education 2018 $ (43,107) S (15,541) $ (330,632) $ - 5 (389,281) $ (941,505) 2019 $ (48,359) $ (17,435) $ (370,917) $ - $ (436,711) $ (1,055,289) 2020 $ (54,215) $ (19,546) $ (415,832) $ - $ (489,594) $ (1,182,219) 2021 $ (60,335) $ (21,752) $ (462,767) $ - $ (544,854) $ (1,314,854) 2022 $ (66,728) $ (24,057) $ (511,803) $ - $ (602,587) $ (1,453,426) 2023 $ (73,406) $ (26,464) $ (563,022) $ - $ (662,892) $ (1,598,169) 2024 $ (80,380) $ (28,979) $ (616,513) $ - $ (725,871) $ (1,749,332) 2025 $ (87,661) $ (31,604) $ (672,363) $ - $ (791,629) $ (1,907,164) 2026 $ (95,263) $ (34,345) $ (730,668) $ - $ (860,276) $ (2,071,932) 2027 $ (103,197) $ (37,205) $ (791,524) $ - $ (931,926) $ (2,243,909) 2028 $ (111,477) $ (40,190) $ (855,031) $ - $ (1,006,698) $ (2,423,379) 2029 $ (120,116) $ (43,305) $ (921,293) $ - $ (1,084,715) $ (2,610,636) 2030 $ (129,129) $ (46,554) $ (990,420) $ - $ (1,166,103) $ (2,805,987) 2031 $ (138,530) $ (49,943) $ (1,062,523) $ - $ (1,250,996) $ (3,009,751) 2032 $ (148,334) $ (53,478) $ (1,137,720) $ - $ (1,339,531) $ (3,222,259) 2033 $ (158,557) $ (57,163) $ (1,216,131) 5 - $ (1,431,851) $ (3,443,849) 2034 $ (42,975) 5 (15,493) $ (329,618) $ - $ (388,087) $ (933,296) 2035 $ - $ - $ - $ - $ - $ - Total $ (1,561,769) $ (563,054) $ (11,978,777) $ -. $ (14,103,600) $ (33,966,956) Source:Tiberius Solutions Exhibit 9 shows the projected property tax revenue from properties within the Glenwood URA that will be received by overlapping taxing districts in FYE 2035,the year after the expected termination of the Glenwood URA. Exhibit 9.Taxing District Revenue in Year After URA Termination Tax Revenue in FYE 2035(Year after Termination) From Frozen From Excess Taxing District Tax Rate Base Value Total General Government Lane County $ 1.2793 $ 134,816 $ 367,143 $ 501,959 City of Springfield $ 4.7403 $ 279,162 $ 965,899 $ 1,245,061 Glenwood Water District $ 4.1425 $ 187,809 $ 347,283 $ 535,092 Willamalane Park&Rec $ 2.0074 $ 211,548 $ 576,099 $ 787,647 Goshen RFPD $ 1.7196 $ 1,795 $ (857) $ 938 Subtotal $ 815,130 $ 2,255,567 $ 3,070,697 Education Lane Community College $ 0.6191 $ 65,243 $ 177,674 $ 242,917 Lane ESD $ 0.2232 $ 23,522 5 64,055 $ 87,577 Eugene School District $ 4.7485 $ 499,427 5 1,362,844 $ 1,862,271 Springfield School District 19 $ 4.6412 $ 968 $ (81) $ 887 Subtotal $ 589,160 $ 1,604,492 $ 2,193,652 Total $ 1,404,290 $ 3,860,059 $ 5,264,349 Source:Tiberius Solutions SEDA RESOLUTION NO. 2019-02 RESOLUTION NO. 2019-17