1999 AGN FEB 09 I01 - Laserfiche WebLink

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. . ... . ..... . . . . . . . . _..,._ .__.._. :... . . .___ .. ._._. .... .. . . . .. _ .._.. _. .. _.. .. I: : ... ...__. __... Mid-Yea� Budget Review January 9, 1999 Page 5 of 8 would have been required to set aside funds to pay off the assessment district and the write-dovcm amount anyway. As always, Agency staff will seek funding support from outside agencies for current projects so that the low/mod funds committed thereto may be released to minimize the negative ca�hflows. Mt Vernon Project Area The Mount Vernon Project Area has experienced substantial growth in values over the last two years, with increases of 10.4% in 1998 and 1 �.8% in 1999. The completion of various housing projects produced the gains. This growth allows Mount Vernon to consider the issuance of bonds for the first time. The growthrate should moderate somewhat in the future since the various housing projects have sold out. The cashflo�v forecast assumes that the Agency issues bonds for $5.5 million during this fiscal year. After issuance costs, about $4.9 million will be available for projects. The cashflaws a�sume $2.4 million of that amount is loaned to the low/mod fund to help retire the 1996 Notes and AD 94-1, leaving approximately $2.S million for projects. As Rancho Mediterrania sells out, Mount Vemon will receive an estimated $0.9 million in loan repayments over the next 2-3 years. Consequently, this project area can consider a $3.4 million short-term program with the remaining $2 million recovery predicated on the Agency's success in revitalizing its housing fund. The Project Area Committee should commence project prioritization with this figure in rnind. West Valle �� Project Area The West Valley Project is experiencing slightly negative trends in assessed values, principally due to the lack of development and decreasing assessments upon property transfers: However, this project azea should secure substantial long-term growth due to the influence of the hospital and the large stock of vacant or underutilized properties, assuming that environmental issues do not impede private development. The cashflow assumes that the Agency issues bonds secured by the tax increments from this project area in the amount of $3 million. Of this amount, approximately $850,000 would be irnmediately avaiiable for projects with the balance escrowed until such time as the tax increments can support the additional debt (projected for 2003/04). The initial bond proceeds are largely committed to the LJ Snow Ford Project with future drawdowns shown as committed for public improvements. This project will run very tight cashflows until such time as newprivate development generates value. This project suffers from relatively high pass through payments to affected t�ing entities. Downtown No. 1 Project Area Downtown 1'�to. 1 project values are flat due to its developed chazacter. No major changes in values are projected. The project azea's tax increment stream is largely