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.