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8A <br /> Page 2 <br /> The PAL Board of Directors fear that under the current repayment pian, which calis for <br /> loan payments of$250,000 within the next two years, PAL wili have a difficult <br /> time maintaining the programs it has built over the past ysars and would have to <br /> discontinue building capacity in existing programs and implementing much needed new <br /> programs. However, PAL is confident fihat it wil! be able to sustain its programs and <br /> cantinue to grow under the p�opased restructured payment plan. <br /> Attachment B is a budget summary outlining PAL's income items and fund raisers along <br /> with the costs of its programs and other expenses. <br /> Alternative <br /> Keep the cwrrent repayment plan in pface. This would severely affsct PAL's ability to <br /> sustain the services it provides to local youth. <br /> fisca! Impact <br /> The current loan repayment plan calis for $125,000 payments on January 1, 2007, and <br /> January 1, 20p8, followed by payments of$2,100 per mon#h for 20 years. The <br /> recommended restructured plan provides an initial payment of$50,000 on Jahuary 1, <br /> 2007 followed by qua�terly payments of$12,500 beginning on January 1, 2008. The <br /> final quarterly payment will be made on October 1, 2021. <br /> Whi)e the current plan provides for$25Q,000 in repayments in the first two years, the <br /> length o#the pian is 22 years. The recommended restructured plan calls for the <br /> repayment of$100,U00 in the firs#two years, but due ta large quarterly payments, the <br /> loan repayment is shortened to 15 years. <br /> � .��. �'�.�-- <br /> C il Member Hartnett Vice Mayor Rosanne Faust <br /> P Subcommittee Member PAL Subcommittee Member <br /> Attachments <br /> 1. PAL 2046-2007 New PAL Programs <br /> 2. PAL 2006-2�07 Annual Budget Summary <br /> 3. Restructured Loan Agreement <br /> 4. Loan riepayment Schedule <br />