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The 800 Pound Gorilla Is Still In The Room <br /> How we are funding the original $54 for phase one <br /> • Grants & other$15 or 27% <br /> • Room tax &WIIF $39 or 73% <br /> How much do we realize from the room tax &WIIF <br /> • According to finance director we get about$1 annually from the room tax but 25% is <br /> allocated to the general fund so only$0.750 is available for wastewater debt <br /> • Last year's tax levy was$55.7 so at 2%, figure $1.1 from WIIF <br /> • Keep the math simple and say we have$2 million from these sources. <br /> How much debt will that service <br /> • ASSUMING we can get interest free debt from the state program for 30 years (hard to <br /> believe anybody would go past 30) it would be $60 million. <br /> We have used/committed $39 or 65% of the total <br /> $12 million to finish phase one—from the warrant item included in today's packet <br /> • Assuming we can get grants to cover 27% like we did for the initial $54 that would leave <br /> $9 of the $12 to be debt financed. <br /> This would bring used/committed up to $48 or 80%of the $60. If the entire $12 is debt that <br /> would be$51 or 85% of the total. <br /> And based on the latest number I have, that would be only about 450 houses or 5%of the <br /> total connected. Even if you doubled it and called it 109,66, that is light years from where you <br /> need to be and you have only 20%(or 15%) of your debt service capacity left. <br /> HOW MUCH CAN WE EXPECT THE STATE TO LOAN US AT 0% - HOW DEEP IS THE WELL?-WHAT <br /> IS THE PLAN?—NOBODY'S TALKING <br /> I have in the past written on this topic and have asked town management to let me know what <br /> I'm missing and/or why they feel we are in good financial shape. I see an 800 pound gorilla that <br /> is not going away. How do you fund project completion without additional revenue sources? <br /> Additional Concern: If we do a debt exclusion and can't get interest free financing and/or grants <br /> we would be exposed to financing the entire $12 at market rates. Exclusions don't take the <br /> money out of the tax base. <br /> On a short term tactical level we may be okay—longer term outlook is challenging. <br /> Action taken to avoid collision —when taken early have more effect than when delayed. <br /> Reallocate the 4% surcharge <br />