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.