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PROJECT FINANCING TERMS

SECTION

PROJECT FINANCING TERMS

The tables below present a proposed financing strategy that leverages the estimated RTA state sales tax increment revenues.

The calculation of annual SSTIF revenues produces a cash flow stream that is minimal in the early years of the projection and

grows over time. At the time of financing, the city will evaluate two main options to leverage the SSTIF revenues.

Option A:

Combine the SSTIF revenues with excise tax revenues into a combined revenue bond.

Option B:

Issue Certificates of Participation and use the projected SSTIF revenues as an identified revenue stream

to pay the debt service on the COPs.

Both options will require the city to use an alternate revenue source to cover debt service during the early years of the financing

when SSTIF revenues are insufficient to service the debt. The city will be reimbursed by SSTIF revenues in the later years of the

financing as they grow over time. The analysis assumed a 30-year financing at a 4.75% interest cost with interest only payments

through 2032. A detailed analysis is included in Appendix B.

The city anticipates working with the state and DURA to develop the most efficient financing vehicle.

Use of State Sales Tax Increment

Total Estimated SSTIF

$128,172,900

Par

$56,000,000

Interest Costs

$72,090,000

Total Debt Service

$128,090,000

Financing Sources and Uses

Par

$56,000,000

Premium

$2,080,000

Total Sources

$58,080,000

Costs of Issuance

$560,000

Deposit to Project Fund

$57,520,000

Total Uses

$58,080,0000

Table 15

Table 16