1999 AGN FEB 09 I01 - Laserfiche WebLink

Browse Search

.. . .. ....... ... ..... ........ _._._.__. .. _ _ _:. . .. .. .._ __.,.. .. ... . ...... :__. . ._._. _:__ Mid-Year Budget Review January 9, 1999 Page 7 of 8 Santa. Ana River Project Area Santa Ana River has been the other stalwart performer for the Agency with valuation gains of b.5�/o and 12.0% for the last two yeazs respectively. This has produced healthy cashflows with which to support debt service and new project development. The project area issued bonds in 1998, which delivered roughly $4.4 million in projeet funds. This project area's time limitation for entering into debt has lapsed and it is prohibited from entering int� any new long-term debt. Because this project azea is one of the most solvent, it has been relied upon to help address the housing issues. The project area has contributed $2.875 million in the projections. It is assumed that just $0.9 million is returned within the next 2-3 years after the Rancho Pvlediterrania project is closed for a net long-term contribution of $2 million. This project area can enterta.in new project activities totaling $2.0 million over the next three years. Because a portion of the Santa Ana River Project's funds are escrowed until defined tax increment thresholds aze satisfied, commencement of projects will need to await release of these funds. An annual test is performed and it is projected that release will occur in FY 2001. The Project Area Committee should develop project priorities using the $2 million figure. Rancho Mill Project Area Rancho Mill has a current assessed value, which is below the base year value so it does not generate any tax, increment revenue. With development of the Rancho Estates Project, it is projected that modest tax increments will begin to accrue in FY 2001. All of the future tax increments from this project have been committed to the low/mod fund to pay for the MAP Program contributions which were made for Rancho Estates and Colton Ranch. � No other project contributions are conternplated although Agency staff expends considerable time maxketing the area and trying to utilize other funding sources to facilitate ne� business development. Administration The Administration Fund is an internal allocation fund. Essentially, each project azea and the low/mod fund contribute towazd the Agency's operational costs in accord with an estimate of the relative staff resources spent on each project area. The current administratimn budget is $1.2 million but that is expected to stabilize at about $1 million annually. SUMMARY AND CONCLUSION The Agency must confront difficuit choices during the next year principally due to its over encumbrance of the housing fund. Projects, which were supposed to cover costs, __ _ _ __ � _ __ _ _