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TABLE 2 <br />Activities <br />Governmental Activities <br />2007 2006 <br />Revenues: <br />General revenues: <br />Incremental property taxes <br />Other <br />Investment earnings <br />Total general revenues <br />Expenses: <br />Community development <br />Interst on long-term debt <br />Total expenses <br />Increase in net assets before transfers <br />Transfers (net) <br />Increase in net assets <br />Net assets (deficit) beginning <br />Net assets (deficit) ending <br />$ 9,426,640 $ 7,566,125 <br />1,076,826 776,079 <br />910,131 761,079 <br />11,413,596 9,103,283 <br /> <br />5,126,989 6,812,758 <br />1,393,326 1,854,069 <br />6,520,315 8,666,827 <br />4,893,282 436,456 <br />(loo,ooo) (loo,ooo) <br />4,793,282 336,456 <br />(7,735,705) (8,072,161) <br />$ (2,942,423) $ (7,735,705) <br />Downtown development and capital improvements in the Plaza. Redevelopment Project. Area <br />account for approximately $4.0 million of the $11.2 million reserved for redevelopment projects. <br />These improvements will complete the nearly 45-year transformation of the downtown from a <br />declining post-war agricultural-based retail area to a successful regional center for financial <br />services and healthcaze administration and community serving dining and retail. West San <br />Leandro Redevelopment Project Area accounts for $5.4 million or 48.7% of the amount <br />designated for redevelopment capital projects. These reserves reflect remaining bond proceeds <br />that will be used to complete the MacArthur Streetscape project and Doolittle Drive/Airport <br />Gateway improvements to be completed in the future. <br />Tax increment revenue increased by 24.6% in fiscal year 2006-07, to $9.4 million from $7.6 <br />million in the previous fiscal year. This increase primarily reflects net increment increase of <br />49.7% in the West San Leandro Project Area resulting from several large business properties that <br />were reassessed at current value upon sale, an increase of 20.7% in the Low and Moderate <br />Housing, a 8.1% increase in the Plaza Project Area's, and a increase of 23.6% in the Joint Project <br />Area. <br />Twenty percent of tax increment revenue, close to $2.4 million in fiscal year 2006-07, is set <br />aside in the Low and Moderate Housing Fund for affordable housing prof ects. <br />Fiscal Year 2003-04 2004-OS 2005-06 2006-07 <br />Tax Increment <br />$ 7,355 $ <br />7,189 $ 7,566 $ 9,427 <br />