Minutes 03-07-2017 - Laserfiche WebLink

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12 Commissioner McKee said the TIFIA loans will be $400 million borrowed, and asked if the interest rate could be clarified. Jeff Mann said 5% was in the financial model, but 3% is more likely. Commissioner McKee asked if the date of the first TIFIA loan payment could be identified. Danny Rogers said payment is not due until after the project is completed, with the first five years being interest only. He said the first payment is due in 2032. Commissioner McKee asked if it is an interest payment starting in 2032, or if it is a deferred interest payment. Danny Rogers said the interest is delayed until the later on. Commissioner McKee asked if the interest accrues to principal. Jeff Mann said yes. Commissioner McKee asked if it is known what the principal will have risen to in 2032. Danny Rogers said this information can be obtained. Commissioner McKee said he thinks it is around $550 million. Commissioner McKee said in the life of these TIFIA loans, the original amount of the loan is $400 million with the deferred interest raising it to $550m. He asked if the total interest paid from 2032 to 2062 on the original loan could be identified. Danny Rogers said that is in the finance plan, and he will get that information. Commissioner McKee said he estimates it is about $750 million in interest at 5% interest. Danny Rogers said this information has been provided to staff previously, and he does not have it on hand this evening, but he can obtain it. He said he does not think the total is that high. Commissioner McKee asked if the total of the interest and the principal paid by 2062 on these loans could be identified. He thinks it may be over $1 billion. Commissioner McKee asked if the total amount of interest and principle paid in 2062 on the TIFIA loans is included in the $2.5 billion number presented before the BOCC, or does $2.5 million only take the plan to 2035. Danny Rogers said $2.5 billion is the cost to build the project plus the interest that is incurred during the term of the Full Funding Grant Agreement (FFGA). He said the cost of the money being borrowed to finance the local share of that, outside of the window of the FFGA, is not included in the $2.5 billion. Commissioner McKee said all of his questions related to the TIFIA loans are not included in the $2.5 billion. Danny Rogers said only a portion of the interest that is within the current FFGA, where the money is being borrowed to advance the federal participation, is what is eligible for federal funds. He said incurred after that is not included in that cost. He said "after that" would be 2030. Commissioner McKee said the first payment on the TIFIA loans are not made until 2032, so none of them would be included. Danny Rogers said the majority of the interest incurred on the TIFIA loans would not be included in the $2.5 billion. Commissioner McKee said with that the projects cross the $3 billion mark. Jeff Mann said a lot of these questions will be answered in the Davenport report. Commissioner McKee said the residents here tonight deserve answers. Commissioner McKee said he appreciates Commissioner Jacobs question regarding a plan for if the 1/2 cent sales tax falls short. He asked if there is 30% contingency. Jeff Mann said yes. Commissioner McKee asked if the average overrun on projects such as these is known.