Balancing Financial Issues by izy20048

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									Balancing Financial Issues

     Murdock Village Debt
     Revenue Shortfall
     Jail Expansion / Capital
     Projects


                                1
Goals

   Reduce Murdock Debt and develop a
    plan to retire all outstanding debt

   Address Revenue Shortfall – maximize
    services to the Community

   Capital Projects – re-think projects and
    best use of funds

                                               2
Murdock Village

   Re-direct capital and fund balances
    to pay down debt

   Develop a plan to pay-off
    remaining Debt



                                          3
Revenue Shortfalls

   Re-direct Capital Projects to fund
    Operations

   This strategy will allow the County
    to ramp down slowly to less
    operations and services.


                                          4
Jail Expansion / Capital
Projects

  Capital Project Discussion at the
   April 22nd budget workshop
 Focus (that day) will be on Ad
   Valorem projects only
 Staff recommendations on:

 - Projects Continued, delayed.
   eliminated, or re-engineered.
                                       5
Capital Projects Millage rate
review

   Funds Facilities, Parks, EMS, Sheriff
    projects
   Not Roads or Utilities
   Total Millage rate = .9887
   .6 mills was for special rebuilding
    projects
   .3887 – in place for a long period
    of time for ongoing projects
                                            6
Funding Generated by .9887
Millage

   Best estimate using forecasted de-
    valuations:

   .6 mill produces approx 11 Million
   .3887 produces approx 7 Million



                                         7
Concept I – Key Elements
   Pay Murdock Village Debt down by between 30 -
    40M (29M balances, 11M – re-direct capital
   This reduces external debt from 93.3M to 53.3M.
   Retire remaining debt over 20 or 30 year periods
    using part of the Capital Project Millage Rate
   Could still build Jail expansion now, but borrow over
    10-year period
   Balance the use of the .6 Millage over paying off
    Murdock, paying the jail loan and the revenue
    shortfall.

                                                        8
Concept 1
    Murdock Village
1   Current external Debt:            $    93,300,000
2   (less paydown from reserves)          (29,000,000)
3   (less Capital re-direction (Jail)     (11,000,000)
4                                     $
    Final 20 year borrowing requirement    53,300,000

                                                           5.85%
                                                          20-year

5   Annual revenue for .6 mill                           11,000,000
6   Annual Murdock Debt servcie payment                   4,564,673
7   Amount Available for other uses                       6,435,327

                                                                      9
     Concept 1
7    Amount Available for other uses                  6,435,327



     Jail

 8   10 Year loan - $22 million
 9   Annual Debt Serv ice for the jail                 2,849,000
10   Amount Av ailable for other uses        -         3,586,327

     Revenue Shortfall

      Items to help handle the R ev enue shortfall Problem

11   millage re-direction                               3,586,327
12   Fund B alance (current attrition sav ings)         3,000,000
13   Capital Project R e-direction                     11,000,000
14   Sav ings from Tay lor Street Lease / Trailor rental 244,000
16   Growth Management Fees                             1,000,000
                                                       18,830,327



                                                                    10
Benefits of Option I

   Reduces Murdock Debt and sets
    the County on a course for retiring
    all debt
   Still builds the jail now
   Directs substantial funds to
    operations to help stabilize
    revenue shortfalls

                                          11
Benefits of borrowing for
the Jail versus Murdock

   Murdock would be a taxable
    structure where the jail is not

   Taxable = higher rate = more
    interest



                                      12
Revenue Shortfall
recommendation

   Heavy use of Capital re-direction
   More services provided
   Ease the impact of lower services
   Will continue to need to find
    efficiencies and longer term
    strategies


                                        13
What is needed from the
Board today?


   Discussion and direction to going
    forward with this approach.




                                        14

								
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