01/09/85 - Laserfiche WebLink

Home

' dal~s (From Page 1).. increment (From Page 2) sells revenue bonds to finance the Jail. In this type of financing, the County Board can wear two "hats"; as they serve as both directors of the Issuer corporation and as county board members. The County enters Into a year-to-year lease for the term of the financlng. CertlfJcates of Par~lc]~;Latlon~ This method Is similar to the "63-20" form of lease-revenue flnanclng, but it does not require the creation of a non-profit corporation. The project Is financed through the sale of certificates of partlclpatlon In the lease. This option carries .more risk for the Investor and consequently results in a higher rate of Interest. Regardless of the financing technique chosen for your project the flnanclal advisor is an Important part of the project team. The financial advisor can help you answer the crucial questions surrounding the financing of a Jail: Whlch financing alternatlve is best suited to your situation? · How can project financlng be structured to best fit the needs of the County? · What are the tax Impacts of project financing? · What is the most effective approach to a referendum? · How do you sollclt and negotiate lease f Inancing packages? Public Financial Systems' quallficatlons to assist your organizatlon In financing a jail facllity are unmatched. PFS brings knowledge of Jail financing that can only be gained from experience. We are currently working on ten jail projects throughout this region. These projects run the full range of design options and project f inanclng. This possible resources to your project]. do not have to coordinate the key elements of the project between several flrms, This approach also keeps costs to a minimum, You are not paylng two firms to do the same thing, Perhaps the greatest advantage of the PFS approach Is that your plan wlll be financially feasible. The most common weakness of tax increment financing is the fallure of the plans to be based on an accurate analysls of the flnanclal potential. The inabil ity of a community to finance planned projects with the tax Increment that will be generated creates some very difficult decisions. Public Financial Systems helps you avoid these s ituatlons. Let Publlc'Flnanclal Systems bring our Innovative and technlcalty sound approach to tax Increment flnanclng to your community. , UNSTEADY RISE IN BORROWING PREDICTED A recent report from Citicorp Information Services suggest that borrowing by state and local government will follow an unsteady path In the coming years. The report, entitled "United States Economic Forcast 1984-89 Quarterly Revlew," suggests that the net flows of state and local borrowing will rise slowly over the next few years, before dropping off. near the end 'of the decade. This trend would Increase the amount of outstanding debt over the next few years, but return to 1984 levels by 1989. Interest rates on long term municipal debt, according to the report, are predlcted to Increase 150 basis points over the next year. The Citlcorp report also forecasts a rapid rlse In state and local spendlng. The level of spending Is projected to Increase by 44% between 1984 and 1989. T~e 1989 ~igure would be almost double the amount of spending In 1979. Increased spending on publ lc works, education, and economic development are cited as major factors In the spending growth.