HomeMy WebLinkAbout06 Estimated Project Costs and FundingH. J Umbaugh & Associates
Certified Public Accountants
Suite 100 9100 Meridian Square 20 East 91st Stree[ PO Box 40458 Indianapolis, Indiana 46240-0458 Telephone 317 844-7288 Telecopier 317 848-3604
August 29, 1994
Honorable Raymond Parker, Jr., Mayor
and Members of the Common Council
City of Jeffersonville
City-County Building
Jeffersonville, Indiana 47130
Dear Mayor Parker and Members of the Council:
The attached schedules (listed below) present unaudited and limited financial
information for the purpose of discussion and consideration in the preliminary
planning stage of a proposed road project by appropriate officers and officials
of the City of Jeffersonville. The use of these schedules should be restricted
to this purpose as the information is subject to future revision and further
reports.
• Pa e s
2 Estimated Project Costs and Funding of Proposed Road
Improvements
3 Estimated Annual Debt Service Requirement and Potential
Increase in Debt Service Tax Rate Assuming No Tax Increment
Available for Lease Payments
4 Estimated Annual Tax Increment Needed to Eliminate Debt Service
Levy Assuming Development Inside Jeff Twp. City
We would appreciate your questions or comments on this information and would
provide additional information upon request.
~r/ l/.~1 /~.,,..~
~/J ~~ ~
~
~
/ ~~ /l Myron H. Frasier. CPA
J /7
/ Ro er L. Umbau h CPA
B g'
Edward W. Guntz, CPA
Gerald G. Malone, CPA
• Charles A. Dalton, CPA
David C. Frederick, CPA
John D. Julien, CPA
John M. Seever, CPA
Plymouth Office 219 935-5178 Herschel) J.. Umbaugh, CPA
(1915-1989)
JEFFERSONVILLE (INDIANA) REDEVELOPMENT
ESTIMATED PROJECT COSTS AND FUNDING
OF PROPOSED ROAD IMPROVEMENTS
(Per Consulting Engineer)
ESTIMATED PROJECT COSTS:
Construction costs, engineering,
land & contingencies
New Albany -Charlestown Pike $4,500,000
Sanitary Sewer Interceptor 1,000,000
Non-construction costs:
Legal, bond counsel, financial advisor
Q bond ratings, bond printing, & other
bond issuance costs 175,000
0
U
U
Q
U
Capitalized interest (assumes a 30 month
a
construction period and an assumed
Q annual interest rate of 7.5%) 1,293,750
w
Bond discount @ 1.5% 103,500
U
O
Miscellaneous
20,250
Q
m
Total estimated project costs $7,092,500
ESTIMATED PROJECT FUNDING:
Lease Rental Bonds $6,900,000
Estimated interest earnings (assumes a 24
month contruction period and an interest
rate of 3.5%) 192,500
---------------------
Total estimated project funding $7,092,500
(Subject to the comments in the attached letter
dated August 29, 1994 of H.J. Umbaugh & Associates.)
-2-
JEFFERSONVILLE (INDIANA) REDEVELOPMENT
ESTIMATED ANNUAL DEBT SERVICE REQUIREMENT
AND POTENTIAL INCREASE IN DEBT SERVICE TAX RATE
ASSUMING NO TAX INCREMENT AVAILABLE FOR LEASE PAYMENTS
Z
Z
0
U
U
Q
U
m
a
0
w
LL
W
w
0
m
Assumed bond principal $6,900,000 $6,900,000
Assumed average interest rate 6.50% 7.50%
Principal repayment period 20 20
Average annual payment $626,200 $676,800
Rounding & trustee fees 9,800 9,200
Estimated annual lease payment $636,000 $686,000
Net assessed valuation for 1993/94
(Per Clark Co. Auditor) (100's) $1,375,619 $1,375,619
Potential increase in debt service
tax rate with no tax increment assuming
10 % license excise taxes $0.4161 $0.4488
Potential increase in property tax
bill for typical taxpayers assuming
NAV of:
$10,000 $41.61 $44.88
20,000 $83.22 $89.76
30,000 $124.83 $134.64
(Subject to the comments in the attached letter
dated August 29, 1994 of H.J. Umbaugh & Associates.)
-3-
JEFFERSONVILLE (INDIANA) REDEVELOPMENT
ESTIMATED ANNUAL TAX INCREMENT NEEDED TO ELIMINATE DEBT SERVICE LEVY
ASSUMING DEVELOPMENT INSIDE JEFF TWP. CITY
Assumed bond principal
Assumed average interest rate
Principal repayment period
Average annual payment
Rounding & trustee fees
Estimated annual lease payment
Divided by effective tax rate for
Jeff Twp. City for 1993194
($9.3027 per $100 with 17.0692
PRTC)
Net assessed valuation required
(1/3 of true tax value)
Estimated true tax value
(Assumed equal to 70% of cost)
Estimated market value
$6,900,000 $6,900,000
6.50% 7.50%
20 20
$626,200 $676,800
9,800 9,200
$636,000 $686,000
-------- --------
-------- --------
$7.7148 $7.7148
$8,243,900 $8,892,000
$24,731,700 $26,676,000
$35,331,000 $38,108,600
(Subject to the comments in the attached letter
dated August 29, 1994 of H.J. Umbaugh & Associates.)
-4-