The Office of the City Auditor in cooperation with the Redevelopment Agency (Agency), the Mayor's Budget Office, and the Finance Department has reviewed the financing options for the Redevelopment Agency's 1995-96 through 1999-2000 Capital Improvement Program. Our review revealed the following:
Revised estimates increased Agency tax incoments by $10 million during 1995-96 through 1999-2000;
As a result of increased estimated Agency tax increments, the Agency may be able to increase its tax allocation bonding capacity by as much as $66 million during the 1995-96 through 1999-2000 period; and
As of 1999-2000, the Agency's ending capital reserves could be increased by as much as $36 million.
In our opinion, the Agency should finance its 1995-96 through 1999-2000 Capital Improvement Program by issuing a $26 to $30 million variable rate demand bond during 1995-96 and to the extent possible using tax allocation bonds in 1996-97 through 1999-2000.