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

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

Oct 17, 2022 364 likes •443 views

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

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SLIDE 1

FINANCING ALTERNATIVES

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SLIDE 2

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

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SLIDE 3

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

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SLIDE 4

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
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SLIDE 5

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
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SLIDE 6

FOR MOUNT HOLLY RESIDENTS… THE CHOICE IS:

$62.95 or $185.93