R-1999-26 - Laserfiche WebLink

Browse Search

e e The next report is found on page 7 and is a report of the Long Range Plan for the Authority Debt Service Fund, which portrays the activity of the fund if the refunding occurs as projected. Please pay particular attention to the expense line item labeled "Reallocate for Capital Purchase" This amount totals $700,000 for the two fiscal years 1999-00 and 2000-01. How this $700,000 is generated is by continuing to charge the participating entities the debt service amounts we are now charging for the next two years. The Authority will take the difference between the current debt service and the new debt service and set that amount aside for the Capital Purchase. On page 8 is a report titled Work Sheet Showing Growth of Funds. This sheet has been provided several times and is now being updated for the projected refunding impact. In reviewing the sheet, we see that the funds set aside totaled $528,690 at September 30, 1998. Those funds have grown to $988,771 as of June 30, 1999 (which is not individually shown on the work sheet) and are projected to be $1,145,857 by September 30, 19~9. Activity in FY 1999-00 is projected as being the continuance of the $176,295 Capital Reserve Billing Fee, a payment from Morgan's Point of $250,000 for additional capacity they want to purchase, Refunding Savings of $100,000, Release of Contingency Amount (caused by the Refunding) of $200,000, and interest income of $81,124. In FY 2000-01, the projection includes Billing for Capital Reserve of $176,295, Refunding Savings of $600,000 and Interest Income of $97,648. Page 10 shows the monthly calculation of deposits into the fund and the interest earned. The bottom line is that the refunding, if successful, will bridge the gap between current funding plans and the amount we have due in August 2001. Last year, we projected that the City might have to transfer $400,000 in FY 1999-2000. Because of the favorable report on refunding, it looks like that transfer will not be needed. If everything on the work sheet were to happen, the Authority would only need about $85,000 to complete the purchase. That exact amount should be known before we prepare the FY 2000-01 budget and an appropriate transfer can be made. On page 9, the changes in capacity ownership are shown. You will note that, percentage wise, Morgan's Point significantly increases the amount of the capacity they own. This is because of the $250,000 contribution they are making next year. In closing, I am very pleased that we are finally at the point where we can refund the debt, however, the window is very short. There is a good chance that the Authority will need to have a joint meeting with the City Council on September 8, 1999 to approve the issuance of the refunding debt. I will have more details at the meeting. 2