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. 4. I.2!!n§ The cash flow projects potential cash deficits, as discussed above. The deficits are primarily the result of sssumed on-golng ERAF payments to the State as a result of State budget deficits, The cash flow assumes that short-tenn loans can be advanced to the Agency, as necessary, to meet any Mure year deficits. The projection assumes that the Agency may borrow from the Housing Fund In order to meet the ERAF payments. Non- ERAF deficits are assumed to be funded from othar Agency financing sources. Loan principal and Interest (assumed at 6%) to be paid, on a pay-as-you-go basis, within the subsequent fiscal years. The short-tenn loans may be funded from any allowable source outlined above. ' C. PROPOSED FINANCING METHOD, ECONOMIC FEASIBILITY, AND REASONS FOR INCLUDING TAX INCREMENT FINANCING . The anticipated costs to Implemant a program of revitalization In the Merged Project Aree will require significant partlcipetion from the Agency as It Implements activities that promote and achieve the stated goals snd objectives of the Amended Plan. Economic feasibility of the Merged Project Area has been determined based upon a comparative cash flow analysis of the anticipated costs for Implementation of the proposed redevelopment program to the resulting projected resources expected to be generated over the life of the Merged Project Area. The financial fessibillty cash flow summarized on Table 4 was created to represent one scanario of economic feasJblllty, M the discretion of the Agency, other funding sources discussed ebove may also represent viable funding altematlves for economic feasibility of the Amended Plan. Although the Agency may consider other funding sources pennltted In the Amended Plan, not all of the funding sources may be available or be feasible for the Agency to use In financing the antlclpsted costs and revenue shortfalls. In the event that neither the City nor the private markat acting alone could fully bear the costs associated with revitellzatlon of the Merged Project Area, the implementation of a redevelopment program utilizing tax Increment revenues must be considered as a viable financing tool. . Preliminary Report for the Me<ger of 111. Santa Ana Redevelopment Projects JSXIf,I.l:U:I.' ¡¡: Keyser Marston Asacciates, Inc. Page 21 '-"""'CI<oOd ,-.-... 55C-39