Create a public financing plan for new City Stadium. Projected costs is $72million. In this plan the private loans group (ECL) group will pay 25% of costs (18.75 million) and will be financed through a private loan at 8% interest. The county will pay 25% (18.75 million) and City will be responsible for the remaining 50% (37.5 million). However, City and the County need to determine which sources should be used to finance their portion. Establish a public financing plan that covers the public portion of debt and utilizes funds from at least 3 sources.

Determine the total amount that must be financed

Determine which sources will be used and what changes to those sources must be made

Determine the amount of financing that will be generated from each source.

Determine the timing: when will money collected from each source and when will it be paid back.

Create a table showing the sources of financing, the total amount financed from each source, the annual payment amounts, and the time period of those payments.

You could use General Obligation Bonds typically carry a 3.75% rate, backed by:	You could use Revenue Bonds typically carry a 6% rate, backed by:
City / County Property Tax	Ticket tax/ surcharge
Special District Taxes	Parking tax/ surcharge
Hotel Taxes	Sin Tax
Sin Tax	Sales Tax
*GOB Require a public vote for use	Lease Revenue (Flat lease fee payment, % of naming rights, suites etc. ).

Current Tax Rates and $ Generated

Tax	Current Rate	Annual Income
County Property Tax	1.00%	$475,000,000
City Property Tax	1.00%	$205,000,000
Special District Sales Tax	8.75%	$133,000,000
Hotel Tax	12%	$3,300,000
Sin Tax	12%	$80,650,000

*Assume all income currently generated by each of these taxes is already allocated in the budget.

Stadium Financing Table

Group	Amount to be Financed	Funding Sources	Interest Rate	Annual Payment	Time to pay off	Total Cost	Other considerations
ECL	$18.75 million	Private loan	8%	$2,794,303	10 years	$27,943,029	Cost of capital is high
Capitol County	$18.75 million
Capitol City	$37.5 million

County Plan

Source Backing	Old Tax Rate	Old Income	New Rate	Annual Amount toward debt
Total

City Plan

Source Backing	Old Tax Rate	Old Income	New Rate	Annual Amount toward debt
Total