HomeMy WebLinkAbout2024.06.18 PPFD Meeting Handout from K Gardner!a4—
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Pasco Aquatics Operating Costs
Current Program
Estimated Construction Costs $37;440,000
Total Project Budget $46,840,000
Necessary Bond Amount $4,000,000
Annual Operational Costs $3,000,000
Annual Revenue $2,200,000
Cost Recovery % 73%
Annual Sales Tax Proceeds (2026) $4,800,000
Annual Debt Service Cost-$3,313,500
Annual Budget Shortfall-$800,000
PPFD Annual Broadmoor Debt Service-$300,000
Annual Surplus Funds $386,500
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Key Take-Aways from 7-Year Cash Flow Model
First year starting fund balance = $3,900,000.00
First Year ending fund balance = $3,777,000.00
Cash Decrease = $123,000.00
Annual cash deficit (subsidy) grows from year 1 to year 7
due to operating costs increasing faster than revenue
growth
Year 1 Deficit $813,699.00
Year 7 Deficit $1,351.028.':i'�
7 year increase = �537,329.00
*When $300k debt service related to road imps c: cements drops
off it will help mitigate the operating deficit increase
Recommended Risk Management Measures
PFD accounting staff should monitor sales tax growth
rate every 6 months
* Determine if growth rate is falling below 3%
* Notify PFD Board of potential cash flow challenges
Ultimate Risk
Does the current construction bonding capacity disguise
a future cash flow challenge?
Are we building based on borrowing instead of
cashflow?
Will construction of phase 2 be funded from cash
accumulation and not by issuing new bonds?