Township Funding of Capital Projects - Financial Overview and Future Planning
Explore Lower Makefield Township's funding strategies for capital projects, current debt schedule, need for capital improvements, and capital project funding scenarios for 2025, 2026, and beyond. Learn about the Sewer Trust Fund and its impact on project financing.
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Presentation Transcript
Lower Lower Makefield Makefield Township Funding of Capital Projects Funding of Capital Projects Township
Agenda Agenda Current Debt Schedule Current Debt Schedule Need for Capital Improvements/6 Need for Capital Improvements/6- -year CIP year CIP Capital Project Funding Capital Project Funding 2025 2025 Capital Project Funding Capital Project Funding 2026 2026 2029 & beyond 2029 & beyond Open Space Acquisition Funding Open Space Acquisition Funding Other Considerations Other Considerations
Current Debt Schedule Current Debt Schedule GENERAL RELATED DEBT SERVICE Fiscal Year Ended G.O. Bonds Series A of G.O. Bonds Series of G.O. Bonds Series of G.O. Note Series of 2022 Subtotal General 2013 2016 2018 Debt Service 12/31/2024 12/31/2025 12/31/2026 12/31/2027 12/31/2028 12/31/2029 12/31/2030 12/31/2031 12/31/2032 12/31/2033 12/31/2034 12/31/2035 12/31/2036 TOTAL 180,688 499,206 498,306 494,931 496,413 497,769 498,400 498,281 472,716 447,038 450,853 448,806 445,941 447,150 6,195,809 188,250 190,500 187,375 188,875 194,750 572,142 286,071 1,440,286 974,877 682,306 685,288 692,519 498,400 498,281 472,716 447,038 450,853 448,806 445,941 447,150 8,184,460 180,688 949,750 858,213 345,000 5,510,000 985,000 1,383,327 8,223,327 Principal *: 12/1/2018 9/1/2026 New Money Cur Ref 2011 Fixed 2.125%-5.00% 6/15/2028 Cur Ref 2002A&B Fixed 5.00% Anytime w/ Penalty Call Date : New Money New Money Purpose : Fixed Fixed 2.45% Rate : 2.50%-3.25%
Need for Capital Improvements Need for Capital Improvements Older Facilities (Twp. Bldg./park facilities/pools/golf Older Facilities (Twp. Bldg./park facilities/pools/golf course, DPW bldg.) course, DPW bldg.) Vacant Parcel Development (Snipes, 5 Vacant Parcel Development (Snipes, 5- - mile Woods, Patterson Farm) Patterson Farm) mile Woods, Stormwater Issues/Mandates Stormwater Issues/Mandates Public Safety Public Safety Circulation (aging roads/parking lots/bike path, Circulation (aging roads/parking lots/bike path, intersection improvements/ADA Compliance/bridges) intersection improvements/ADA Compliance/bridges)
Capital Projects funding Capital Projects funding- - 2025 2025 2025 2025 Sewer Trust Fund Balance (as of 4/30/2024) = $22.9 million Sewer Trust Fund Balance (as of 4/30/2024) = $22.9 million Projected Trust Fund Balance at 12/31/2024 = $24 million (assumes 5% ROI) Projected Trust Fund Balance at 12/31/2024 = $24 million (assumes 5% ROI) Fund 2025 Capital Projects with $3 Million from Sewer Trust (one Fund 2025 Capital Projects with $3 Million from Sewer Trust (one- -time draw) time draw) Remaining Sewer Trust Principal preserved (annual earnings becomes revenue source Remaining Sewer Trust Principal preserved (annual earnings becomes revenue source for General Fund) for General Fund)
Capital Projects Funding 2025 Capital Projects Funding 2025- - 2026 2026 Source of Capital Funding Source of Capital Funding - - 2026 2026 - - 2029 2029 750,000 Annual Debt comes off books (2025 750,000 Annual Debt comes off books (2025- -2026) 2026) $8 million from Sewer Operating transferred to Capital Projects $8 million from Sewer Operating transferred to Capital Projects Issue approximately $10 Issue approximately $10 - -million in debt million in debt Approximately $4.5 Million available annually + awarded grants Approximately $4.5 Million available annually + awarded grants Source of Capital Funding Source of Capital Funding 2030 and beyond 2030 and beyond Explore increasing Debt Service Millage for additional borrowing needs Explore increasing Debt Service Millage for additional borrowing needs current millage = 2.63 mills millage = 2.63 mills current 1 additional mill would generate revenue to cover approximately $7.3 1 additional mill would generate revenue to cover approximately $7.3 million in borrowing million in borrowing
Open Space Acquisition/Improvement Funding Open Space Acquisition/Improvement Funding Sources of Funds* Sources of Funds* Borrowing range - $5 million - $15 million Bond Issue or Bank Note *Additional Real Estate Tax Millage may be necessary Uses of Funds Uses of Funds Acquisition Acquisition of Open Space Improvement to acquired Open Space Improvement to existing Open Space
Open Space Debt Open Space Debt $ 5 Million Bond Issue Term 25 Years Annual Average Debt Due - $345,000 Real Estate Millage to support Debt = .63 Mills Average Assessed home ($42,341) - cost to taxpayer for increased Open Space millage = $26.68 per year
Other Considerations Other Considerations Long range Plan needed for Open Space and structures on Open Space Database of useful Life for all assets and replacement schedule developed: Roads/Bridges/Intersections/Trails Buildings -roof, HVAC, FFE, Safety P & R, Golf Course, Pool Assets (Buildings, Mechanical/pools/equipment) Consideration for Maintenance and Operations Cost - new assets placed in service (ie: vacant house leased or utilized for township programming, new park or pool amenities) Consideration for future borrowing to fund Capital Projects
Questions ? Questions ? Barry P. Luber Barry P. Luber Chief Chief Financial Officer Financial Officer
