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Balancing Financial Issues

Balancing Financial Issues. Murdock Village Debt Revenue Shortfall Jail Expansion / Capital Projects. Goals. Reduce Murdock Debt and develop a plan to retire all outstanding debt Address Revenue Shortfall – maximize services to the Community

malorie-scholz
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Balancing Financial Issues

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  1. Balancing Financial Issues Murdock Village Debt Revenue Shortfall Jail Expansion / Capital Projects

  2. Goals • Reduce Murdock Debt and develop a plan to retire all outstanding debt • Address Revenue Shortfall – maximize services to the Community • Capital Projects – re-think projects and best use of funds

  3. Murdock Village • Re-direct capital and fund balances to pay down debt • Develop a plan to pay-off remaining Debt

  4. Revenue Shortfalls • Re-direct Capital Projects to fund Operations • This strategy will allow the County to ramp down slowly to less operations and services.

  5. Jail Expansion / Capital Projects • Capital Project Discussion at the April 22nd budget workshop • Focus (that day) will be on Ad Valorem projects only • Staff recommendations on: - Projects Continued, delayed. eliminated, or re-engineered.

  6. Capital Projects Millage rate review • Funds Facilities, Parks, EMS, Sheriff projects • Not Roads or Utilities • Total Millage rate = .9887 • .6 mills was for special rebuilding projects • .3887 – in place for a long period of time for ongoing projects

  7. Funding Generated by .9887 Millage • Best estimate using forecasted de-valuations: • .6 mill produces approx 11 Million • .3887 produces approx 7 Million

  8. Concept I – Key Elements • Pay Murdock Village Debt down by between 30 -40M (29M balances, 11M – re-direct capital • This reduces external debt from 93.3M to 53.3M. • Retire remaining debt over 20 or 30 year periods using part of the Capital Project Millage Rate • Could still build Jail expansion now, but borrow over 10-year period • Balance the use of the .6 Millage over paying off Murdock, paying the jail loan and the revenue shortfall.

  9. Concept 1

  10. Concept 1

  11. Benefits of Option I • Reduces Murdock Debt and sets the County on a course for retiring all debt • Still builds the jail now • Directs substantial funds to operations to help stabilize revenue shortfalls

  12. Benefits of borrowing for the Jail versus Murdock • Murdock would be a taxable structure where the jail is not • Taxable = higher rate = more interest

  13. Revenue Shortfall recommendation • Heavy use of Capital re-direction • More services provided • Ease the impact of lower services • Will continue to need to find efficiencies and longer term strategies

  14. What is needed from the Board today? • Discussion and direction to going forward with this approach.

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