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.