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8. Future Loan ReDavments The Table 4 cash flow projects potential cash deficits, such that short-term loans may be required. The deficits are primarily the result of anticipated ongoing ERAF payments to the State to address State budget deficits, in which the Agency is assumed to borrow the required ERAF payment from the Housing Fund. Non-ERAF deficits are assumed to be funded from other Agency financing sources as necessary over the term of the projection. The projection assumes that such loans can be advanced to the Agency to meet any future cash deficits, with the loan principal and interest (assumed at 6%) to be paid on a pay-as- you-go basis in subsequent fiscal years. These short-term loans may be funded from any allowable source noted below. 9. Future Discretionarv Proiects To the extent future tax increment revenues continue to be allocated to the Agency and exceed debt service, contractual obligations, administrative costs, budgeted capital improvement projects, ERAF requirements by the State and short term loan repayments, the financial feasibility analysis assumes that the Agency will exercise its discretion in funding other future projects, programs or activities of benefit to the Merged Project Area, including the repayment of any outstanding indebtedness of the Agency. The anticipated projects, programs or activities that the Agency may undertake as future resources become available have been presented in this Report. B. FINANCING METHODS AVAILABLE TO THE AGENCY The Agency has the legal authority and flexibility to implement the revitalization of the Merged Project Area utilizing any or all of the following sources: (1) city; (2) state; (3) federal government; (4) tax increment funds in accordance with provisions of the existing CRL; (5) new tax allocation bonds; (6) interest income; (7) loans from private financial institutions; (8) lease or sale of Agency-owned property; (9) donations; (10) developer payments; and (11) any other legally available public or private sources. Current provisions of the CRL provide authority to the Agency to create indebtedness, issue bonds, borrow funds or obtain advances in implementing and carrying out the specific intents of a redevelopment plan. The Agency is authorized to fund the principal and interest on the indebtedness, bond issues, borrowed funds or advances from tax increment revenue and any other funds available to the Agency. To the extent that it is able to do so, the City may also supply additional assistance through City loans or grants for various public facilities or other project costs. The Table 4 feasibility cash flow reflects net tax increment revenues of approximately $845,082,000 over the term of the cash flow. In addition, nearly $579,692,000 would be deposited into the Agency's Low and Moderate Income Housing Fund. Other funds may be available to the Agency, as assumed on the Table 4 feasibility cash flow, including Page 24 of 190 Report to the City Council for the Merger of the Keyser Marston Associates, Inc. Santa Ana Redevelopment Projects Page 19 PA0403012.SNT A:CK:gbd 19090.003.004106/28104 75D-34