Woodburn_powerpoint_2017_04_10cWoodburn Urban Renewal
Financial Update
Nick Popenuk
April 10, 2017
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Recap of 2016 Conversation
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Overview
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Original Projections vs. Actual Revenue
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Updated Assumptions - 2016
Modeled three scenarios
Selected “medium” option
Does NOT assume speculative development
Personal and Utility Property: 0%
Real Property: 2.25%
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New TIF Forecast - 2016
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Implications - 2016
First Street improvements are top priority for urban renewal
Estimated project cost $6.0M*
Financial capacity
Insufficient in FYE 2017
Potential for FYE 2018
*Was estimated at $6.0M when we last talked, but refined project scope and budget is now $4.7M
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New Analysis: Borrowing Capacity
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Borrowing Capacity: Assumptions
Principal: $2,725,000
Amortization Period: 15 years
Interest Rate: 4.5%
Financing Cost: 2% of principal
Minimum Coverage Ratio: 1.5x
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Borrowing Capacity
Coverage Ratio = 1.5
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Funding Plan
$4,700,000 – total project cost
$2,205,000 – FYE 2018 beginning balance
$500,000 – FYE 2018 cash flow
$2,725,000 – Loan amount*
Surplus TIF revenue $200,000+ each year
*loan amount to be refined based on actual gap at time of financing
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Implications
First Street improvements are financially feasible
Project will tie up future borrowing capacity for 15 years
Future projects dependent upon significant new development, or pay off debt
Surplus annual TIF revenue allows for early repayment of debt, or investment in smaller projects.
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Questions
Nick Popenuk
Tiberius Solutions
popenuk@tiberiussolutions.com
503-740-0501
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