1999 AGN FEB 09 I01 - Laserfiche WebLink

Browse Search

.. . ... .. . . . .. . . .. . . . . .. . .. ...... . ....__ ,... .. L _... .. ... .__... ..._ . . ... .. . ... . .. . : ._. .... . . I , .. . . ..... .. .... . Mid-Year Budget Review January 9, 1 J99 Page 6 of 8 committed taward pass through payments to the San Bemardino Valley Municipal Water District in accord with a prior agreement related to the Santa Ana River Project Area. This agreerraent allowed' a higher bonding amount in the Santa Ana River Project Area. One project is contemplated during the next few years, the Vanir OPA. This project is expected to be financed with a Transient Occupancy Tax financing structure with a portion of the public improvement costs rebated to the project developer. Downtown No, 2 Project Area Downtown No. 2 values have also been relatively flat and no major changes are expected. Like with Downtown No. 1, this project area commits all of its tax increment toward payment of the pass through payments to the San Bernardino Valley Municipal Water District in accord with a prior agreement related to the Santa. Ana River Project Area. This project area has a carry over deficit of just over $22,000 that must be remedied through a loan agreement from another project area ar the City. Coolev Ranch Proiect Area Cooley Ranch has experienced a roller coaster ride the last few yeazs. Assessed values declined significantly from earlier in the decade as businesses closed shop and properties were marked down by the assessor's office. The mark downs are still occurring, with over $17 million in appeal reductions recorded during 1999 and a similar amount expected next year. These declines are expected to taper off and vaiues should move in a positive direction with development of the TMI Site, Giant RV, Spike's, and others. Nevertheless, because of the significant value losses over the last few years and the decline in property tax increments, the project area suffers from excessive indebtedness. Adjusting for receipt of ane time revenues, the project area debt service fund runs deficits of $400,000 to $500,000 annually for the nea�t few years. T'hese deficits are proposed to be covered from fund balance and by minimi�ing new project obligations. The TMI property acquisition has delivered approximately $1.5 million in delinquent taxes to help establish a reasonable fund balance with which to cazry these annual deficits. Though a positive trend for the City general fund, the increase in sales tax production from the Centerpointe Shopping Center and the American RV Expo is placing additional fmancial pressure on the Cooley Ranch Project Area. The Agency reunburses the City for a11 sales taa�es which are rebated to the Developers under the various OPA's/DDA's. T'his burden amounts to $530,000 in the current year. Cooley Ranch cashflows improve considerably when the subject sales tax rebate agreements expire over the next 5-7 years. It is assume� that Cooley Ranch contributes $1.25 million towazd the low/mod fund obligations with short-term repayment of approximately $400,000 and the balance scheduled in the distant future when the low/mod fund becomes solvent again. _ __ _ � __ _ :: .