HomeMy WebLinkAboutDocumentation_Regular_Tab 12B_06/10/1999~ _
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MEMO
DATE: 6/4/99
TO: THOMAS G. BRADFORD, VILLAGE MANAGER ,~
FROM: CONNIE HOLLOMAN, FINANCE DIRECTOR ~-~~"/d~~~
RE: INTERNAL FINANCING OF CAPITAL PROJECTS
In response to the Redevelopment Committee's request at the May 10, 1999 meeting, I have
researched the possibility of financing our capital projects with funds from the Water Enterprise
Fund. The attached spreadsheet shows paying off the current balance on the loan of credit by July 1,
1999 with money from the Water Enterprise Fund. General Fund would then make monthly
payments back to the Water Fund until August 2006, at which time the debt would be repaid. I think
this is a viable solution to the financing issue.
If you have any questions or need additional information, please let me know.
CJH
Internal Financing of Capital Projects
Transaction FY 98199 FY 99100 FY 00101 FY 01102 FY 02103 FY 03104 FY 04105 FY 05106 FY 06107 FY 07108 FY 08109 FY 09110
General Fund Reserve for Capital 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000
Payment of taxes 40,000) (41,200)
Line of credit - 10/1 50,001 0 0 0 0 0 0 0 0 0 0 0
Line of credit -draws 1,515,570
General fund pmt /water loan 1,565,571)
Line of credit - 9/30 0 0 0 0 0 0 0 0 0 0 0 0
Line of credit -interest (thru 6/99) 37,637 0 0 0 0 0 0 0 0 0 0 0
Funds available for loan pmt 174,363 172,000 170,800 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000
Water fund net workingcapita110/1 2,434,297 1,421,922 1,984,120 2,556,825 3,182,786 3,787,056 4,386,932 4,998,445 5,610,351 6,034,194 6,470,752 6,920,407
Loan to General - 7/1199 (1,565,571) (1,391,208) (1,219,208) (1,048,408 (836,408) (624,408) (412,408) 200,408) (0 (0) 0) 0
General Fund payment 174,363 172,000 170,800 212,000 212,000 212,000 212,000 200,408 0 0 0 0
O/S Loan to General - 9/30 (1,391,208 1,219,208) 1,048,408) (836,408) (624,408) (412,408) 200,408) 0) (0 0) 0 (0)
Net income' 378,833 390,198 401,904 413,961 392,270 387,876 399,513 411,498 423,843 436,558 449,655 463,145
Water fund net working capital 9/30 1,421,922 1,984,120 2,556,825 3,182,786 3,787,056 4,386,932 4,998,445 5,610,351 6,034,194 6,470,752 6,920,407 7,383,552
'Pro'ected 3% annual increase
Financing Options for Capital Projects
Transaction FY 98199 FY 99100 FY 00101 FY 01102 FY 02103 FY 03104 FY 04105 FY 05106 FY 06107 FY 07108 TOTAL
Line ofCredit -
Princi al & Interest Pa ments
General Fund Reserve for Capital 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000
Line of credit balance-10/1 50,001 1,530,636 1,386,770 1,236,070 1,078,211 912,853 739,640 558,199 368,138 169,049
Line ofcredit -draws 1,515,570
General Fund-annual rincipal mt* 34,935 143,866 150,700 157,859 165,358 173,213 181,441 190,061 199,089 169,049 1,565,571
General Fund Interest thru 6/30/99 35,953 35,953
General Fund-annual interest mt** 18,065 68,134 61,300 54,141 46,642 38,787 30,559 21,940 12,911 3,553 356,031
Total General Fund pa ments 88,953 212,000 212,000 212,000 212,000 212,000 212,000 212,000 212,000 172,602 1,957,556
Line of credit balance - 9/30 1,530,636 1,386,770 1,236,070 1,078,211 912,853 739,640 558,199 368,138 169,049 0
Payments made monthly
*Princinal pmts to begin 7/1/99
15 1,829,311 1,919,076 2,013,245 2,112,036 2,215,674 2,324,397
i6 89,765 94,169 98,790 103,638 108,724 94,667 853,494
t3 997,280 1,262,944 1,541,643 1,834,019 1,953,823 2,033,397
32 41,237 53,663 66,700 80,376 91,233 79,575 467,826
421,620
391,984 ~