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<br />6:/ /1- Ã!/ <br /> <br />Fiscal Impact <br />The annual cost for the City's share of the debt service payments is about $29,000 with the <br />final payment of interest and principal occurring on July 15, 2019. Since this is a capital <br />expenditure the source of these funds will be the City's capital outlay fund. Funds have been <br />included in the capital outlay fund for the current year's obligation and for obligations from <br />past years. <br /> <br />Alternative <br />Should Council desire not to finance this obligation through the recommended method the <br />City would need to pay the County $271,342 for its share of the balance of the outstanding <br />principal. This would be in addition to the amount the County previously will have paid as of <br />January 2006 for principal ($47,850) and interest ($45,098) since the bonds have been <br />issued. These funds would come from the capital outlay fund reserves and would reduce the <br />funds available for other capital project needs. <br /> <br />Paying of the amount the City owes will make sense if one expects that interest rates will <br />remain at current levels and that the interest rate the City earns on its portfolio remains below <br />4.3% for the majority of the time the bonds are outstanding. It is staff's best guess that these <br />two things won't occur. It is staffs best guess that these two things won't occur. <br /> <br />ft r)~ <br /> <br />Brian Ponty <br />Director of Finance and Financial Planning <br /> <br />Ø&uJ-- <br /> <br />EdWârd Everett ¡ <br />City Manager <br />