Alternative Funding Strategies Finally, the financial analysis considered alternative funding strategies for the LVCCLD. The potential alternative funding sources included bonding strategies, raising existing taxes or implementing new taxes. The following assesses each of these strategies. Bonding Strategies A potential funding strategy considered is the issuance of bonds to generate additional proceeds for investment in the District’s facilities. While bonding strategies would raise additional funding; this strategy would result in recurring debt services payments (principal and interest). Bond funding would potentially allow the District to mitigate against some construction cost inflation and advance implementation of its strategic plan quicker than a purely pay-as-you-go funding model. Two bond options have been estimated by the District’s financial advisors – Hobbs, Ong and Associates and PFM - one for a medium-term 10-year bond and one for a longer-term bond of 20 years. The ramifications of both these bonds on the available capital project fund spending are included below and in detail on page 24. The final chart of the section includes a comparison of the resulting capital projects fund for payas-you-go, medium term bond, and long-term bond financing after being adjusted for construction cost inflation.
FY '22
FY '24
FY '25
FY '26
FY '27
FY '28
FY '29
FY '30
FY '31
FY '32
FY '33
$138.8 M
$124.5 M
$116.8 M
$111.4 M
$103.7 M
$99.5 M
$91.8 M
$88.7 M
$81.0 M
$79.0 M
$71.3 M
$70.2 M
$66.5 M
$61.6 M
$61.9 M
$53.9 M
$58.2 M
$46.6 M
$55.0 M
$52.6 M
$50.8 M
FY '23
$40.3 M
FY '21
$34.5 M
$25.5 M
FY '20
$29.6 M
$49.8 M $21.9 M
$47.5 M
Pay-As-You-Go
$50.0 M
Medium Term Bond
$131.1 M
Medium Term Bond Capital Fund End of Year Balance (Base Case Revenue Scenario)
FY '34
Applied Analysis | Page 8