File #: 16-0718    Version: 1 Name: Debt Capacity Model for Capital Investment Plan
Type: Report Status: Agenda Ready
File created: 8/17/2016 In control: Work Session
On agenda: 9/13/2016 Final action:
Title: Discussion of Financing Model for Capital Investment Plan
Sponsors: Eric Stuckey, Russ Truell
Attachments: 1. Franklin Debt Capacity Update 8 12 2016, 2. Capital Funding Model - September 2016 09-09-16.pdf, 3. CIP Funding Model - BOMA - 09132016 09-09-16.pdf
Related files: 16-0576

 

DATE:                                                               August 4, 2016

 

TO:                                          Board of Mayor and Aldermen

 

FROM:                                          Eric Stuckey, City Administrator

                                          Russ Truell, Assistant City Administrator

                                          Michael Walters Young, Budget & Analytics Manager

                                          

SUBJECT:                                          

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Discussion of Financing Model for Capital Investment Plan 

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Purpose

The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning revenue forecasts for the FY 2017-2026 Capital Investment Program and its effect on the modelling of debt capacity for capital projects.  

 

Background

Continuing a conversation begun last month with the visit from the City’s financial advisory firm, Public Financial Management, the discussion this evening will center around a refinement of available revenues - both cash and debt - for the FY 2017-2026 Capital Investment Program.

 

The preliminary results from PFM are attached. Overall, the analysis from a month ago showed the City can remain within recommended debt capacity metrics, medians and comply with the City’s Debt Management Policy by embarking upon a series of new projects which rated highly through the Board’s initial CIP ranking process.  

 

The financing model attached herein and developed by staff is a further refinement of that effort. It includes detailed funding needs for each project in Phase I of the CIP, detailed 10-year forecasts for major internal funding sources, a summary of existing resources, projected resources after Phase I CIP projects are completed and a revised debt capacity analysis and funding usage of the resources raised through the Invest Franklin initiative.

 

Financial Impact

This is a report only.  No financial impact results from the presentation of the model.

 

Recommendation

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Staff recommends consideration of the findings of the model in capital investment decisions by the Board.