Recommended 04-05 Budget
OODBURN
URBAN RENEWAL AGENCY
2004-05
Recommended
Annual Urban
Renewal Budget
Urban Renewal Budget Committee Public Hearing
Draft
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WOODBURN URBAN RENEWAL AGENCY
2004-2005 Recommended Annu'll Program Budget
BUDGET MESSAGE
Urban Renewal Agency Budget Committee
270 Montgomery Street
Woodburn, OR 97071
RE: Proposed Urban Renewal Budl!et
Ladies and Gentlemen:
Presented for your consideration and recommendation to the Woodburn Urban Renewal
Agency is the proposed Urban Renewal budget for 2004-05.
The recommended budget of $896,000 for 2004-5 represents an increase of$791,000
(753.3%) over 2003-04. This budget provides funding to complete the Agency's share of the
first phase of the Downtown Plaza project, and the Agency's share of the cost of the first phase
of the Front Street renovation and widening project. The budget also provides funding to
reimburse the City for certain administrative costs.
Statute requires the Agency to expend funds for debt service. The amount recommended for
2004-05 is presented in a debt service budget. Included are $270,000 for obligations
associated with the Plaza project, $611,000 for Phase I of the Front Street project, and $15,000
to reimburse administrative costs associated with the Agency's share ofa citywide financial
audit, consulting fees for project planning and financing, and legal fees related to issuing short-
term debt. The City will fund the Plaza project and administrative costs. The Agency will
repay the City for its share of costs. Debt will be established contractually between the City
and the Agency, and tax increment monies will be used to repay that debt. This avoids the
cost and complication of small, private issue borrowing. The Front Street project is budgeted
in both City and Agency capital budgets for 2004-05. The Agency will initiate a borrowing in
2004-05 to support its share of costs for Phase I and Phase 11 of the project, and forward it's
share of costs to the City. Additional borrowing is needed in 2006-07 to support the Agency's
share of the final phase of the Front Street project, and other programs and projects in
subsequent years.
The Plaza project was carried forward to, and is increased in, 2004-05. $105,000 was
budgeted in 2003-04, and provided the Agency's share ofthe project, estimated at $175,000.
Design changes increased project costs and the Agency's share of costs. Alternate designs,
which incorporated features identified as desirable by the community during visual preferences
workshops held in 2001, were developed in early 2003-04. A preferred alternative was
presented to and accepted by the community in October 2003, and was shared earlier this year
with your committee. The design includes a fountain and raised gazebo and is estimated at
$400,000. Phased to complete the gazebo at a later date, the remainder ofthe project is
estimated to cost $300,000. The agency's share is estimated at $270,000. No agency funds
have been expended on this project to date. Design, engineering, and bid preparation, and
property purchase negotiations delayed start of construction. Costs associated with these
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Urban Renewal
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WOODBURN URBAN RENEWAL AGENCY
2004-2005 Recommended Annual Program Budget
programmed for FY 2009-10. This reflects uncertainty regarding the amounts available for
projects in that fiscal year. Amounts will likely be equal to, or greater than those programmed
in 2008-09, but will depend on revised estimates of borrowing capacity to be developed later
this spring. Additional capital programming for 2009-10 will be addressed either at mid-year
2004-05, or in the 2005/06 - 2010/11 CIP.
Revised cash flow projections and borrowing capacity estimates will also set the stage for
additional planning work to be conducted by the Agency in 2004-05. That work will build on
the foundation of the urban renewal plan adopted by the City Council in 2001, and identify and
prioritize the specific projects and programs the Agency wants to undertake during the next
several years.
In my message to your committee last year, I discussed the positive effect I believe the Urban
Renewal Program will have on Woodburn's future. This year, as major projects are set to
begin, I can only reiterate that sentiment. I look forward to presenting this budget to your
committee, and to implementing it in the coming year.
JCB
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Urban Renewal
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WOODBURN Ul\IlAN RENEWAL AGENCY
2004~2005 Recommended Annual Program Budget
apportioned tax proceeds were less than estimated. Proceeds were, in fact, 157 percent greater
than estimated, due to the erroneous use of 2002-03 rather than 2001-02 as the frozen base,
miscalculation of timing in placing two major projects in the tax rolls, and a higher than
projected rate used by the County to calculate tax increment. Debt service projections for
2004-05 anticipate no need for an unappropriated balance.
POLICY ITEMS (RECOMMENDED)
~ $15,000 in Debt Service will support the Urban Renewal Agency's share of the cost of a
citywide audit ($5,000), and consulting services associated with project planning and
financing ($5,000) and legal services associated with issuance of debt.
~ $611,000 in the Capital Improvements budget will provide for the Agency's share of
costs associated with phase 1 of he Front Street widening and renovation project. Phase
1 improves Front Street from Settlemier Avenue to Cleveland Street, at a cost of
$925,000, including under-grounding utility lines and streetscape ($250,000),
renovation and widening the roadway, and installing curbs, gutters, and sidewalk
(675,000).
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Urban Renewal
WOODBURN URBAN RENEWAL AGENCY
2004-2005 Recommended hmual Program Budget
CAPITAL
IMPROVEMENT
PROG
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2004-2005 Recommended Annual
Urban Ren.ewal Budget
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Urban Renewal
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WOODBURN URBAN RENEWAL AGENCY
2004-2005 Recommended Annud! Program Budget
No projects are programmed for FY 2009-10. This reflects the uncertainty regarding the
amounts available for projects during that fiscal year. Amounts will most likely be equal to, or
greater than those programmed in 2008-09, but will depend on revised estimates of borrowing
capacity based on recently revised revenue estimates. Estimates of borrowing capacity will be
revised in 2004; capital programming for 2009-10 will be addressed either at mid-year 2004-
05, or in the Capital Improvement Program for 2005-05 through 20 I 0-11.
Two projects are included in the capital budget for 2004-05: the Downtown Plaza project, and
Phase I of the Front Street improvement project. The Plaza project was initiated as a City
project in 2003-04. This included project design, developing construction drawings and bid
specifications, and purchasing a privately owned lot within the bounds of the area. Parking lot
demolition and Plaza construction are expected to commence in late July 2004. This project
will be completed in two phases. Construction costs for the first phase are estimated at
$300,000, and will incorporate all work except for a gazebo. Phase II will complete the
gazebo, at an estimated additional cost of $100,000. Funds for the gazebo will be collected
through private donations for the Plaza. As it is uncertain when sufficient funds will be
available to build the gazebo, it has not been programmed into the CIP. The agency will
reimburse the City for $270,000 of the project through its debt service fund. Debt will be
established contractually between the City and the Agency. This mechanism avoids the cost
and complication of small, private issue borrowing. Phase I of the Front Street widening and
renovation project will improve Front Street from Settlemier Avenue to Cleveland Street.
Costs for this phase are estimated at $925,000 and include under-grounding utility lines and
streetscape ($250,000), renovation and widening the roadway, and installing curbs, gutters, and
sidewalk ($675,000). The urban Renewal Agency's share of these costs is $611,000. Phase II
will, in 2005-06, improve the section of Front Street from Cleveland Street to Hardcastle
Avenue at an estimated cost of $640,000. That cost will be borne entirely by the Agency.
Phase III will complete the project in 2006-07 to the high school at an estimated cost of
$1,027,606, of which $800,000 will be funded by the Agency.
1 D:wtlWl Aaza 270,CXXJ
2 So. Frcrt, Par Rj to GMaU 611,CXXJ
3 Frat Sreet, GMaU to H31u..d1e 640,CXXJ 640,CXXJ
41\b. FratSreet, t-bcbHletoSR214 llXl,CXXJ llXl,CXXJ
5 9Jfa:E 9reels 28,:m 92,638 12),944
6Sda11aks 14,425 47,Ae 61,634
7~rg lru€lIet 14,lm 45,937 ~,973
8 IJIlta" IrUl:Ilet 5,!nl 19,3:ll 25,247
9 SeIs IILJt::lIlt::It 7,544 24,688 32,232
10 starn serB IIUt::lll:ft 2,335 7,00 9,978
11 irdergard p:w3r Iru..,,,,t 41,927 137,217 179,144
12 FWicM lrut::lllt::ll 5,~ 17,351 22,ffi3
13 Rre 1nptM:lTBis 1r1..H:::::Ilt:::Il 26,fre 00,75'3 113,:<131
lUTPLS 881,000 640,000 lm,ooo 146,292 478,774 o 2,946,066
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Urban Renewal
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