HomeMy WebLinkAboutNB 5 WTR DEBT SVC 10-16-89NEW B INESS
TO:
FROM'
SUBJECT:
WILLIAM A. HUSTON, CITY MANAGER
RONALD A. NAULT, DIRECTOR OF FINANCE
PROJECTED WATER DEBT SERVICE FUND CASH FLOW
RECOMMENDATION:
Pleasure of the City Council.
DISCUSSION:
During the Budget Workshops the City Council directed staff to
review the Water Debt Service Fund's cash fl0w needs and bring
back to the COuncil alternatives for repayment of amounts due to
the General Fund of approximately $413,000.
Considering the acceleration of repayment of debt assumed from
the Tustin Water Works when the system was acquired, the Debt
Surcharge Fund is in healthy shape through the end of fiscal
1989. There remains only one outstanding $300,000 issue of TWW
Bonds due in November of 1990. Assuming that we will -not call
these bonds early, we have plenty of flexibility on repayment of
the General Fund debt. I have only shown two simplistic options
illustrating a very.straight-forward four year amortization in
roughly $100,000 increments, and a three year option spliting
into two approximately equal payments. It should be quite
evident that there are adequate reserves to come up with several
other options with the exception of repaying fully in fiscal
Finance Director
RAN:is
Attachments
E%pe~se
'-~-',-~ Debt Service
:.:,,~ou~e of Water Fund
ro~,ec~,ed Cash Flow
,7~,, ~,,~ Thru
i985/86 !986/87 !987/88 !988/89 !989/90 I790/9! !99i/92 !992/95
TWW Bonds:
Series !974 8.0% 24000 24000 24000 324000 0 0 0 0
Series !975 8.0%- 24000 24000 24000 24000 24000 509000 0 0
Series 1976 8.0%.,. 2E~c~n ....... 240fic~ 24000 S06000 o. ¢~. n. 0
Series !978 9.5% ~-r. .~.. ~o~o~ ,. ~ ,. -
Sub-Total t19500 Ii9~00 :~:~n 2~ooo 509000
...... ~.~. 654000 .... '..,
~,,~ 420000 490000 510000 =~=~" ....... 530000 535000
Semi-Annual Lease Payments '.~='~?' .~ot, v ~..,~x.x~
(1983 Water Bonds)
Due to the General Fund
Developer Adv. Payments
Total Expense. 607901 590268 I'°:~=~,~,. i'~'"~ ~no,-,~4o o:o~,? 658604
·
Revenue
Revenue from Surcharge o~o~ 887885 79~A50 o*o~oo 8t400(1 o~.,~ 814000
_ ~.,,,, ._ ~o~ ~'~¢'"1 814000
? ~ ~ =~? ' ~ ~a~ 24786' 15687 30974
Interest Income ~o~ ~6,8~ ~8~ .- ,~,
Total Revenue 881175 964867 846055 851720 826545 858786 8~687 844974
~q' Cash Balance ~'~ ~,~, 772871 ~4~. ,.. ~ ,~...,,, ~f198~o_. ~ lq6C~1. .~, ..,~,~o~7~,..
-~ ~7~ ~=~ -On~
End. Cash Balance 6v8~.~ 772871 495452 ~,~ ~o~ 196091 587174 580007