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The Master Plan Study reviewed alternative financing methods for <br />the City's share of improvement costs. <br /> <br />The most likely means of funding the local share is through the <br />issuance of G.O. bonds or through creation of a tax increment <br />district and issuance of tax increment G.0. bonds. The minimum <br />local funds considered for a bond issue should include the local <br />funding share for both Stages I and II without hangar <br />development. This would allow ready access to funds for <br />development of a building area essential to the success of the <br />airport as well as airside development. It also would create a <br />pool of funds which the city will need to begin land <br />acquisition. This is necessary since the City must invest funds <br />first and then is reimbursed by State and AIP funds. <br /> <br />The minimum bond issue required for the development plan is <br />$760,000 plus bonding costs. Issued at 8%* for a 20 year term, <br />the annual debt retirement would be approximately $77,000. This <br />is approximately equivalent to a one and a half (.5) mill city- <br />wide tax increase. The city has available bonding authority for <br />such an issue under its legal debt limit. <br /> <br />An alternative financing method to bonding would be the use of <br />accumulated funds through a revolving loan. The advantages to <br />this would be avoiding the expense of a bond offering and more <br />favorable interest rates. <br /> <br />Table 2-9 compares the development costs of the airport to the <br />positive economic impacts of the airport. Favorable benefit to <br />cost ratios are apparent over the 20 year period. <br /> <br />*A non-~a×ab!e 1987 bond for $2.$ ~______-~nn was issued at 7.05% <br />interest. <br /> <br />2-42 <br /> <br /> <br />