FINANCING ALTERNATIVES PRIORITY - TIER "1" PROJECTS COST - PowerPoint PPT Presentation

FINANCING ALTERNATIVES

PRIORITY - TIER "1" PROJECTS COST SUMMARY IMPROVEMENTS AT HOLBEIN, FOLWELL, & BRAINERD SCHOOLS EST. COST INTRUDER DOORS, ROOF & STRUCTURAL IMPROVEMENTS $ 2,497,730.00 HVAC $ 16,452,290.00 REPLACE FIRE ALARM SYSTEMS $ 1,529,506.00 TOTAL PROJECT COSTS $ 20,479,526.00

Project Completion Alternatives 1.Build Piecemeal Without Borrowing 2.Borrow and Build Now

Build Without Borrowing • This Is ‘Pay As You Go’ Financing • Spreads Tier “1” Project Cost Over 20 Years • Uses $1,000,000 from Current Capital Reserve • Then Need To Spend $973,976 Every Year • Assumes No Project Cost Increases Over 20 Years • Uses $275,000 Current Capital Reserve Deposit • Net Annual Cost is $698,976 • $185.93 Average Annual Tax Impact

Borrow and Build Now • This Is Typical Bond Financing • Spreads Tier “1” Project Cost Plus Interest Over 20 Years • Uses $1,000,000 from Current Capital Reserve • Receives State Grant Money - $12,540,209.00 • Local Share Financed - $6,939,317.00 • $275,000 of Annual Debt Service is Offset by Current Capital Reserve Deposit • $62.95 Average Annual Net Tax Impact

FOR MOUNT HOLLY RESIDENTS… THE CHOICE IS: $62.95 or $185.93