There are numerous financing models the Town could consider, but the two presented at the Financial Summit frame the alternatives in the clearest terms. The total cost of the 20-year EP financing plan was $46.5 million ($32 million principal + $14.2 million interest), with higher annual payments for a shorter period. The total cost of the 30-year LD plan was $60.5 million ($32 million principal + $28.5 million interest), with lower annual payments for a longer period.
The summary table below displays a 25-year LD option, i.e. a “middle” option, alongside the two options presented at the Financial Summit, for discussion purposes. These three options represent the spectrum very well. More detail on each option is provided in the attachments.
|Facts & Figures||30-year level debt||25-year level debt||20-year equal principal|
|Total Project Cost||$60.5 million||$53.8 million||$46.2 million|
|Total Interest Cost||$28.5 million||$21.8 million||$14.2 million|
|Cost Avoid (vs. 30 yrs.)||$0||($6.7 million)||($14.3 million)|
|Peak Year (FY23)||$7.54 million||$7.68 million||$8.32 million|
|Average Tax Bill Incr.||$157/year, 30 years||$167/year, 25 years||$179/year, 20 years|
|Req’d SSF to stay @ 6%||$8.3 m (FY 20-26)||$9.2m (FY20-26)||$13.0 m (FY20-26)|
|Budget Impact||Service Solvency||Exclusion / Svc Solvency||Debt Exclusion|
You can view the full financial summit presentation here.