Richland Renaissance: Just Sound Financial Planning
Is it possible for
Though the idea understandably sounds atypical for government, that is precisely the goal of Richland Renaissance. Since the County announced plans for its sweeping capital improvement and community revitalization initiative, questions about the financing abound. Some even have hinted at
There's no voodoo. And the only economic wizardry exhibited is the financial acumen displayed to protect
Before digging into all the details, it is worth noting the County's proposed Biennium Budget I was not only balanced, it did not include a tax increase. The County's first-ever two-year budget laid a foundation of paying for initiatives with no tax increase for the general operation of the County. By the time Richland Renaissance moved from an interesting notion to a great possibility, the practice of using available resources to achieve a financial goal was common under County Administrator
Now that you have all the pre-requisite information, following are the basics of Richland Renaissance finances:
No. 1: The COST: Some amazing figures have been bandied about, but the County's bottom line for Richland Renaissance is estimated to cost
No. 2: on-hand cash: The County's financial team was restructured in 2017 to put the County's financial house in order. In doing so, a variety of inadequacies were fixed to improve tracking of expenditures (money paid out) and revenues (money brought in - taxes and fees). In short, the financial team uses modern financial strategies, including cost savings, to identify needs and the money to fund them. The team identified
No. 3: More Funding Sources: Another important source of funding will be money received from the sale of County properties. These funds also will assist in reducing the amount that will have to be borrowed for the project.
No. 4: learn the LINGO: In addition to
BANs are outstanding for no longer than a one-year period. At the end of one year, the County may pay the interest on the BAN, roll it into a new BAN and add any additional money to the new BAN that it needs for that year. The benefit of the BAN is that the County prepares a budget in advance so that it knows how much money is needed for the project(s) during a 12-month period. By matching the budget with the amount of the BAN issued each year during construction, the County is only paying interest on the money it needs for that one year while the projects are being constructed. Borrowing the necessary money on a short-term basis reduces the total borrowing costs of the County, thus saving valuable resources for other projects.
When the projects are complete and the last BAN comes due, the County will refinance the amount of debt outstanding from the BAN with an IPRB. While the number of years the IPRB will be outstanding has not yet been determined, it will likely be somewhere between 10 and 20 years. The good news is the annual debt payments will be paid by a portion of the millage that is currently levied and will not require a tax increase. How does that work? Quite simply, some of the County debt that we have now will be paid off, and we will use the millage that was used for the old debt to pay for the IPRBs. IPRBs do not count against the County's debt ceiling, so that it is preserved for the future.
No. 5: Short-term, long-term:
No. 6: nothing will be overlooked: Anyone concerned about Richland Renaissance impacting other County projects, can rest easy. Richland Renaissance will not disrupt the County's ability to proceed with its planned capital needs. The transportation program is not connected financially to the Richland Renaissance project. Other capital needs, such as new magistrate offices, are factored into the funding plan for Richland Renaissance.
In closing, here's something you should know: For several months leading up to the
We want you to be just as informed. The public is invited to attend a community meeting on Richland Renaissance beginning
Following Assurances on Immigration, Rep. Curbelo Supports Government Spending Package With Multiple South Florida Priorities
Liberty’s French Operation to Add New Products and Grow Headcount
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News