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-19- <br />Table 6 <br />DEBT REVENUE NEEDS <br />EXISTING AND THREE OPTIONS <br />(Dollars in Millions) <br />Existing O tion 1 Option 2 Option 3 <br />• <br />1983 <br />$18.3 <br />$18.3 <br />$18.3 <br />$18.3 <br />1.984 <br />18.0 <br />16.6 <br />14.7 <br />14.5 <br />1985 <br />22.5 <br />21:2 <br />16.1 <br />15.9 <br />1986 <br />21.6 <br />16.2 <br />15.6 <br />.15.3 <br />1987 <br />19.3 <br />14.5 <br />15.4 <br />15.2 <br />1988 <br />19.7 <br />15.5 <br />15.7 <br />15.6 <br />1989 <br />13.3 <br />9.6 <br />16.2 <br />16.1 <br />1990 <br />17.0 <br />16.2 <br />19.0 <br />19.0 <br />1991 <br />9.8 <br />15.0 <br />15.5 <br />15.7 <br />1992 <br />9.6 <br />15.5 <br />15.0 <br />15.3 <br />1993 <br />10.1 <br />16.3 <br />14.8 <br />15.2 <br />1994 <br />8.0 <br />13.8 <br />14.9 <br />15.4 <br />1995 <br />7.6 <br />13.4 <br />14.8 <br />15.5 <br />The impact of the refunding to the Investment Framework <br />Policies is different for each policy. The refunding would <br />not bring the outstanding indebtedness any closer to the <br />Metropolitan Agency Debt Indicator of $650 million (Policy <br />5). The proposed debt would not decrease as rapidly as is <br />currently scheduled. <br />The Debt Service Policy (planning bond issues so that annual <br />debt service payments will not exceed .25 percent -- Policy 6) <br />is impacted to some extent. From 1984 to 1988, the <br />available capacity in the Policy measure would be increased <br />by as much as .02 percentage points ($6.6 million). The <br />capacity would decrease, in relation to the existing debt, <br />in years after 1988 by as much as .01 percentage points (see <br />Figure 9). <br />Procedure 9 of the Water Quality Management Policy Plan <br />concerns bond issues. Generally, the procedure speaks to <br />correlating the new debt service payments with existing <br />payments, correlating bond issues to capital programs, and <br />correlating funding needs of the MWCC with those of other <br />Metropolitan Agencies. Procedure 9 should be reviewed at <br />the time of any sale of bonds for the MWCC. <br />It is not mandatory that the existing debt of the <br />Metropolitan Council and the MWCC be refinanced, but it is <br />a contingency that should be reviewed prior to designing <br />bond issues for purposes of undertaking the new improvements <br />in the 1981 to 1986 Development Program. <br />The negative side of the refinancing is that much of the <br />debt would be extended for a longer period of time. At <br />today's interest rates, or even at the rates on the existing <br />bonds, the total interest cost would be greater. There is <br />