DEBT SERVICE TEMPLATE

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					WORKSHEET FOR DEBT SERVICE ESTIMATES
FY 2013-2014 BUDGET
PREPARED BY: OFFICE OF FINANCIAL MANAGEMENT
                           September 7, 2011


Basic assumptions will vary on the basis of taxable vs tax-exempt bonds.
The nature of the projects will determine which assumptions apply.

One major variation depends upon the need for funding a debt service reserve.
     Debt Service Reserves will generally be required for agency restricted fund bond projects not subject to a University General Receipts pledge.
     The sizing below provides for a debt service reserve based upon maximum principal and interest due in any year.

The estimates vary by the expected repayment period which should equal the useful life of the project.

This worksheet has been designed to calculate bond size and net debt service, given the project amount.

Annual debt service estimates are rounded to the next $1,000 for budgetary convenience.



TAX-EXEMPT PROJECTS
                                                                                                               NET                      NET
                                                             BOND SIZE            BOND SIZE              DEBT SERVICE              DEBT SERVICE
         REPAYMENT                     PROJECT                   WITH              WITHOUT               REQUIREMENT               REQUIREMENT
           PERIOD                         COST              DS RESERVE           DS RESERVE              WITH RESERVE            WITHOUT RESERVE
           -----------                  -----------            -----------          -----------              -----------              -----------
          20 YEARS                    $1,000,000             $1,130,000           $1,020,000                $116,000                 $106,000                 $5,000            $5,000

           10 YEARS                   $1,000,000             $1,190,000           $1,020,000                $172,000                  $149,000                $5,000            $5,000

           7 YEARS                    $1,000,000             $1,240,000           $1,020,000                $227,000                  $188,000                $5,000            $5,000

           5 YEARS                    $1,000,000             $1,330,000           $1,020,000                $315,000                  $244,000                $5,000            $5,000


TAXAB L E PROJECTS
                                                                                                               NET                      NET
                                                             BOND SIZE            BOND SIZE              DEBT SERVICE              DEBT SERVICE
         REPAYMENT                     PROJECT                   WITH              WITHOUT               REQUIREMENT               REQUIREMENT
           PERIOD                         COST              DS RESERVE           DS RESERVE              WITH RESERVE            WITHOUT RESERVE
           -----------                  -----------            -----------          -----------              -----------              -----------
          20 YEARS                    $1,000,000             $1,140,000           $1,020,000                $125,000                 $113,000                 $5,000            $5,000

           10 YEARS                   $1,000,000             $1,200,000           $1,020,000                $183,000                  $158,000                $5,000            $5,000

           7 YEARS                    $1,000,000             $1,260,000           $1,020,000                $242,000                  $198,000                $5,000            $5,000

           5 YEARS                    $1,000,000             $1,350,000           $1,020,000                $333,000                  $254,000                $5,000            $5,000


ASSUMPTIONS

          PROJECT                    INTEREST RATES ON BONDS                     DISCOUNT &         INTEREST RATES                     ANNUAL                            ANNUAL
         LIFE (YEARS)                TAX-EXEMPT        TAXABLE                  ISSUE COSTS         ON DS RESERVES                   BANK FEES                          BANK FEES
            -----------                 -----------     -----------                 -----------          -----------                   -----------                        -----------
               20                       7.500%          8.500%                      2.000%               0.500%                         0.05%                              0.05%
                                                                                                                                    OF BOND SIZE                       OF BOND SIZE
              10                        6.750%                 8.000%               2.000%                   0.500%                $5,000 MINIMUM                       $5,000 MIN

               7                        6.000%                 7.500%               2.000%                   0.500%

               5                        5.500%                 7.000%               2.000%                   0.500%




                                                                                                                           f392253b-9db4-4e3b-985b-c7a1014f89b6.xls;9/11/2012

				
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