Minutes 04/28/1987 - Laserfiche WebLink

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r- "- .- TUESDAY, APRIL 28, 1987 Financing Plan Listed below is a schematic plan for financing the above described obligations, recognizing that the Sewer Bond Fund is simply a construction account into which will be deposited or transferred funds to be used for paying our contractual obligations for Capital Improvements and for buyback of plant capacity from PSA as covered in our agreement with the County. The balance in the Bond Fund at present is zero (0) (excluding the certificate of deposit valued at $3,514,927 at maturity). Phase I SEWER FUND (FY 86-87) $1,692,011 WATER FUND (FY 86-87) $1,391,238 $1,147,600 (as needed) \J I (Available if needed) ~ I SEWER BOND FUND -0- NOTE: This will leave $544,411 in the Sewer Fund which is classified as a major contingency, and a fairly large surplus in the Water Fund (hopefully, $1,391,238). The exact amount of transfer from these funds will be subject to the actual cost of expanding the City's Plant, taking into account change orders, contingencies, etc. Phase II It is possible that the City will not have to divert waste to the Upper Smith River Plant. This will be dependent upon the actual increase in rate of water consumption by the industries involved. However, if some diversion becomes necessary, it will probably be for a period of only four months. If this occurs, an additional trans- fer of $36,537 could be made from either the Sewer or Water Fund to cover this cost dependent upon the actual status of either of these funds. Phase III CERTIFICATE OF DEPOSIT (including interest) $3,725,823 * \ $3,677,609 (as needed) \ I SEWER ~~~D FUND SEWER FUND (FY 89-90) $1,698,896 (Available if needed) / I * Current CD will mature 6/30/88 at $3,514,927. Assuming current CD interest rate of 6% for an additional year, this would be $3,725,823 by FY89-90. NOTE: If our revenue and expenditure estimates are reasonably close there will be sufficient money in the Sewer Fund (including the Certificate of Deposit and interest) to pay for the Phase III costs without having to sell bonds or adjust sewer rates through FY89-90. However, the Sewer Fund balance will be monitored closely from now to July 1, 1989, at which time a decision would be made as to whether a bond issue or other financing will be needed to meet the City's obligations as outlind in Phase III above. A bond referendum could be scheduled for November 1989, for an amount to be determined at that time.