08-13-1980 Council Agenda - Laserfiche WebLink

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-5- An alternative option that should be considered is to add the amount of debt retirement needed for each year to the annual dues of a city. This would be over the length of the bond issue (20 years). Cities would pay their proportionate share in relation to the amount of dues they presently pay. If the alternative option were selected by a large majority of the cities it would not be feasible to offer additional options. Member Cities Share: Using the same formula as the dues schedule, each city would pay to the building fund, $2 for each $1 it pays in dues. Examples $1 dues X $2.00 Share - $2.00 Building Fund Share $100 dues X $2.00 Share = $200.00 Building Fund Share $1,000 dues X $2.00 Share - $2,000,00 Building Fund Share Examples with Options per $100 dues plus $200 Share Under lump sum option Pay full amount $200.00 Under five year option Pay principal and 10% interest in five annual payments of $52.76 $264.00 Under ten year option Pay principal and 10% interest in ten annual payments of $32.55 $326.00 Alternative Option building debt retirement as part of regular dues payment - An increase of 18 -20% in dues payment in 1981. This increase would then become the base dues amount. In addition to the amount increased for building costs, it would probably be necessary to increase the dues occasionally to maintain services. (OVER) r,