Development of Sample Debt Repayment Plans
with Varying Growth Assumptions
of Future Revenues or Tax Receipts
At the early stages of planning to meet future
capital facilities needs, it is helpful for local
governments to examine various repayment
plans for a specific financing. Repaying the
financing over a shorter period of time means
less total interest expense but a higher tax levy, etc., while a longer
term payback means a smaller current expense but greater total interest cost.
L.J. Hart & Company can provide several options based upon current market conditions,
tax collection rates, assessed valuation growth assumptions, etc., with no obligation on
the part of the issuer. Once this data is available, it then becomes easier for the local
decision makers to select a plan that best meets their goals and enhances the chances for
voter approval in the event an election is necessary.
Our basic service is to help local governments borrow money on a tax-exempt
basis to meet their capital facilities and equipment needs. These are some of
the services we provide in the process of reaching that goal.
