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HomeMy WebLinkAbout01/08/2004 Draft Recommendations for Town of Southold Land Preservation Funding Through the Year 2025 RECEIVED 8 January 2004 Draft Prepared by Southold Land Preservation Committee Financial Working Group Tom McAdam, Chairman John Cushman Bill Edwards Patricia Finnegan, Esq. John Sepenoski Melissa Spiro Ray Huntington JAN 9 200~ Southolcl Town Cleric JAN 1 3 2004 Preface: LPCFWG Funding Report At the regular meeting of the Southold Town Board on September 9, 2003 the Town Board resolved to create the Land Preservation Committee Finance Work Group to: · Estimate the Town's land preservation funding needs until the year 2023. · Recommend to the Town Board decisions that would secure that funding. · Deliver a draft report to the Board by December 31, 2003. and appointed membership of John Cushman, Melissa Spiro, John Sepenoski, William Edwards, Patricia Finnegan, Raymond Huntington and Thomas Mc, Adam Further detailed charge: In consultation with the Town Board, make operating assumptions of acreage to be acquired and costs per acre both for PDR and Fee Simple acquisitions. Estimate acreages [to be] acquired by Suffolk County, private easements, Town of Southold and by any other realistic means. Preservation: how much, when and at what cost to whom. Estimate the sources and level of funding for Town acquisitions based upon the current program, for example, CPF, grants and traditional bonding. Revenue: how much, when, from whom. · Review and recommend a policy regarding bonding against CPF revenues. Bonding: against the Community Preservation Fund income stream. · Estimate the impact on taxes if the proposed plans were carried out. Impact: upon property taxes. Recommend other potential sources of funds or steps that would strengthen financing of the Town's program. Steps: toward improving financing of the Town's program. This report is organized by the italicized headings that paraphrase the detailed charge... A Summary Recommendation with Statement of Assumptions follows: Summary Recommendation and Assumptions: In 2004, begin securing authorization to incrementally borrow $38 million by issuing bonds against the Community Preservation Fund income stream. In 2005 begin authorization to incrementally borrow an additional $79 million with General Fund bonds. Determine time expectations and means with which to accelerate preservation - change the program -- establish process capability to preserve farmland and open space in the near term. Issue serial bonds and bond anticipation notes to meet cash flow requirements from preservation operations, and not before. Make accounting changes: deposit proceeds from CPF and GF bonding in the Community Preservation Fund (CPF) account and pay preservation expenses as needed from this one account. Details and further recommendations are provided in later parts of this report. Recommendations in this report are based upon interpretation of the Town's goals and assumptions as to: what types and quantities of land are to be preserved, when preservation is to occur, certain other assumptions applicable to the study pe#od. Statement of Assumptions: · The study period is 2004 through 2025 (20 years). The price per acre of Development Rights or Conservation Easements (EASE) and Fee Title (FT) acquisitions will increase at an average rate of 6% per year from a 2004 level of $28,000 per acre and $40,000 per acre, respectively. · The Community Preservation Fund income stream will increase at an average rate of 8% per year. · The interest rate on municipal bonds sold will be 5%. Of 6700 acres of residentially zoned land to be preserved, the Town will pay to preserve 4000 acres - the balance to be preserved by others. The land will be preserved at a rate that preserves 20% of the land remaining to be preserved each year. · Minimum total cost is an objective. Other assumptions may produce other recommendations. Preservation: How Much, When at Whet Cost to Whom LPCFWG Fllndlng Report The Goals of the Town are understood to be to: · Preserve our rural heritage. · Preserve 80% of the open A-C acreage. · Preserve 80% of the open R-80 acreage. · Reduce by 60% the potential density of the above acreage. Interpretation of Goals and Determination of Assumptions: · Preservation was defined, Southold Town goals were interpreted and assumptions were made concerning acreage to be acquired (preserved) by both Fee Title (FT) and Easement (EASE or PDR). s Preservation was defined and additional historically based assumptions were made concerning how much acreage would be preserved by others (County, Trust, Private) - with the remainder to be preserved by the Town. · Time frame and rate of preservation of the remainder to be preserved were assumed to permit scheduling of funding. · Price of the acreage to be preserved was projected. The town goals need refinement to drive the financial analysis. We need to know how much of what kind of land preservation is to be funded when... Refined Town Goals: Preserve(1) 80% of the total acreage of the subdivideable A-C, R-80 and R-40 parcels. · Exclude all parcels within the hamlet centers and the HALO extension. · Limit potential residential density (PRD) to 60% of that which could exist under July 2003 zoning. · Front load preservation. Cumulative target to be based upon 20% of the remaining target acreage being preserved each year with virtual completion by 2023. il) "Preserved", for the work of the LPCFWG, shall mean, "land on which the Town, or other qualified government or trust, owns the development rights or complete title in perpetuity prohibiting development. Or, subdivision open space where site plan approval and subsequent deed(a) similady prohibit development." · Such ownership is represented by covenants, restrictions, easements or complete title in a recorded deed, · "Preserved" land does not include land which only the owner, or an unqualified group, perceives as "preserved" or "prot;mted". Nor does it include land only stayed from development by temporary enrollment in an agricultural district or land otherwise only temporarily pledged to preservation. (2) "Protected" land means land that will likely not be built upon even thought it does not have a perpetual prohibition on development. It includes: churches, cemeteries, museums, park districts, subdivision parks, schools and water utilities as well as village, town, county, state and federal land and land owned by qualified land trusts Preservation: How Much; When at what Cost to Whom. How Many Acres will be Preserved? DGEIS Table 3-1 provides "buildout" values for subdivideable land in zones A-C, R-80 and R40 land + others... Zone Total Acres "available" for Development A-C 10,400 5,196 R-40 7,322 561 R-80 7,819 2,666 8,433 acres Goal is to preserve 80%, 8,433 (80%) = 6,738 acres Historically about 60% of all preservation is by the Tow~ 6738 (60%) = 4,043 acres, ... say 4000 acres to be preserved by Southold.. Therefore, preserve 4000 acres of A-C, R-80, R-40 zoned land. At What Rate will the Preservation take place. It is likely that the least cost will arise out of preservation sooner rather than later. We will assume that in 2004, 20% of the 4000 acres will be preserved and that 20% of the acreage remaining un-preserved each year will be preserved. Acres to acres per Year go year 25~0 512 ~ 4i 2048 410 2010 7 1049 210 2011 8 839 168 2012 9 671 134 2013 10 537 107 2014 11 429 ,8~ 2015 12 3;44 2016 13 275 2017 14 220 44 2018 15 176 L~19 16 141 28 2020 17 113 23 2~ 18 g0 18 19 72 14 2023,20, 58 12 20241 21 46 9 2025 22 37 7 I~~ 20% of the Rarna!nlng Unpreserved Acreage Preserved per Year / If 4000 Additional Acres are Preserved, How will it Change the Town? YellowToGreen3.)ds "Mainland" on~ Robins leland ................ ~ ~"-*~ ......... " ............... ~' Parcels Acres I ~/ellow unprotected on CPF List 69,; 9263 sum of next two yellow unprotected onCPFLi~t onFLl(1) 33E 6648 I yellow unprotected on CPF list Not on FLI 358 2615 I green )mtected 36; 580~ sumofnexttwo green )rotected on FLI 1341 2862 I gree~ )rotected Not on FLI 228~ 2944 I gree~ Com. Fac. 378! 96(: sum of next two green Com. Fac. on CPF List 15 202 green Com. Fac. Not on CPF 363: 758 green Com. Fac. on FLI 3: 41 ref. green Com. Fac. on CPF List on FLI I 33 ref. 382 yellow Unprotected on CPF List 694 9263 5263 After preserving green Protected 362 580E 9806 an additional green Com. Fac. 378 96C 960 4000 acres White Developed x 1305~ 13053 Total Jnknown 29082' 29082 sum Existing: December 2003 Unprotected 32% Protected m Unprotected II Protected [] Com. Fac. [] Developed (1) FLI = Farmland Inventory Protected in this display means Preserved and/or Protected. After Preservation of an additional 4000 Acres Unprotected 18% De~eloped Com. Fac. Preservation: How Much, When at what Cost to Whom LPCFWO Funding Report Pricing of Real Property for Estimation of Future Preservation Costs: A review of Southold Easement purchases (EASE) from 1986 to 2003 (see exhibit 1) indicates a unit value of $28,000 per acre for 2004. Similarly, a review of Fee Title purchases (FT) indicates a unit value of $40,000 per acre for 2004. While in actuality each parcel is unique, these values will be used as the general base values for estimating futura unit pdces for Easement and Fee Title purchases. It is widely accepted that improved real property generally appreciates at a rate 2 to 3% more than the rate of inflation. If we assume a long term inflation rate of 3%, real property should normally appreciate at an average annual rate of 5%. Properties on the North Fork will likely appreciate at more than 5% -- perhaps one percent more or 6%. North Fork property is both limited in supply and accessible to immense purchasing power coming from the West. Currently appraisers appreciate preperty comparable to that which we seek to preserve at an annual rate of 15% but it is unlikely that such a rate can be sustained for a long period such as twenty years. Therefore, the likely unit price of land to be preserved in 2004 is $28,000 for Easements and $40,000 for Fee Title with 6% escalation in future years. Estimation of Future Preservation Revenue: The Community Preservation Fund ( CPF - Chapter 6) is a very s~gnificant revenue stream for future land preservation (see table: Combined Actual/Projected Revenues). This income is from a 2% fee on real property transfers on all types of improved property in excess of $150,000 and on ail vacant land in excess of $75,000. Revenue for 2004 is estimated at $3.6M(3) based upon data from the beginning of cash flow in 1999. Since this revenue stream is a percentage of valuation transferred, escalation should be at least proportional to the change in values discussed above. It is reasonable to expect that this income stream will escalate at a higher rate than the properties being purchased for preservation. Over time, as properties appreciate, the threshold exemption values will become a smaller fraction of the deal and a larger fraction of the pdce will be exposed to the 2% tax. The CPF fee is charged against all types of real property transfers. The fee is applicable to commercial properties, residential properties and smaller lot properties which tend to appreciate at rates greater than large lots, farms or large open spaces that are the primary targets of preservation. Therefore, the CPF income stream is expected to escalate at an annual rate of 8% from a base of $2.7M (3) (discounted for bonding conservatism from $3.6M). Revenue: How Much, When and from Whom. LPCFWG Fundln9 Repo~ Existing and potential income streams were identified in table Combined Actual/Projected Revenues- Land Preservation 12/31/03 Year CPF (2%) Southold TOS Revenue for Interest F'ederal CPF (2%} Bonds Bond Issue Debt Service Income NYS Grants Grants Total 1984-200,~ 14,300,045 6,146.359 376.556 548,884 504.185 21.876,029- 2004 3,000,000 2.600,000 10,000,000 816,932 150,000 297,000 1,350,000 18,213,932 2005 3,240,000 18,500,000 ' 1,512,208 106,000 102.000 120,000 23,580,208 2006 3,499,200 11,550,000 5,000.000 1,494,318 237.480 104,040 122,400 22,007,438 2007 3,779,136 5,500,000 9,130,000 1,901,650 248,228 106,121 124,848 20,789,983 2008 4,081,467 12,600,000 2,616,405 259,631 108.243 127.345 19,793,091 2009 4,407,984 10,400.000 3.625,491 271.734 110,408 129,892 16.945.509 2010 4,760,623 ! 8,400.000 4,444.198 284,588 112,010 132,490 18,134,515 2011 5,141,473 6.600,000 5,112.657 298,248 114,869 135,139 17,402,386 2012 5,552,791 4,800,000 5.525,122 312,774 117,106 137.842 16,445.695 2013 5,997,014 3,650.000 5,777,009 328,228 119,509 1;~0,599 16,012,359 2014 6,475,775 2,400,000 6,065,367 344,679 121.899 143.411 15,552,132 2015 6,994,917 1,260,000 6,247,344 362,202 124,337 148,279 15,135,080 2016 7554,510 200.000 6,222,378 380,876 126,824 149,205 14.633,793 2017 8,158,871 6,231,111 400,785 129,301 152.189 15,072,317 2018 8,811,581 6.226,822 422,023 131,948 155,233 15,747,607 2019 9516507 6,099.915, 444,690 134,587 158,337 16,354.037 2020 10,277,828 5,174,683 ' 468,892 137,279 161,504 16,220,186 2021 4.800,000 5.177,946 140,024 104,734 10,282,704 2022 5,162.130 142,825 168029 5,472.984 2023 4,432,940 '145.681 'i71,390 4,750,011 2024 3,421,370 148,595 174,817 3.744.782 2025 2,577,809 151,567 178314 2,907,689 Totals 115,550,722 36,150,000 79,240,000 102,012,164 5,697,614 3,475,782 4,948.183 349,074.465 Preservation: How Much, When at what Cost to Whom. ,PCP, Ve F~,~ Eadier Analysis: The Land Preservation Committee Cash Flow Analysis of 5/15/03 is a "try-to-pay- as-you go" cash-flow study. It was updated (12/11/03) to: · Encrypt deals not yet completed. · Use two scenarios: * "Pay-as-you-go" (spend only the revenue on hand including authorized but unissued bonds and projected CPF income with acreage as the variable). , "Accelerated" (spend the revenue on hand including authorized but unissued bonds, projected CPF income and proceeds from CPF bonding starting with 800 acres in 2004 and declining 20% per year thereafter. · Escalate the unit price of Easement and Fee Title acreage at 6%/year. · Escalate the Community Preservation Income Stream at 8% per year. This analysis shows restrain on acreage as early as 2005. 5115/03 "Try-To-Pa ,-As-You-Go" =Year 2003,2004 2005 2006 2007!2008 Balance(MS) 10 0 (4) (~9)(14) (19) Acres 224 392 250 250 250 250 2/14103 "Pay-As-You-Go" Year 2003 2004 2005 2006'2007 2008 Balance (MS) 14 1 1 I 1 1 Acres 101 702 110 112 115 118 1616 1258 Comparing the 12/14/03 "Pay-As-You-Go" to the "Accelerated": 12/14/03 "Pay-As-You-Go" ['Year1200312004120051200612007120081 IBalancel;M$)l 14 I 1 I I I 1 I 1 I I I IAcres I 101 I 7021 1101 1121 11511181 12/14/03 "Accelerated" Year 2003 2004 2005 2006 2007 2008 Balance(MSI)14 (31 /21) (~36/(;47)(56/ ~Cres 101 800 640 512 410 328 Complete spreadsheets can be found in part two of this report. Study of Borrowing! A,qainst the Community Preservation Fund income Stream. u,c~w~ Funding RelX~t Three Options were designed and examined: Omion 1-Pay-as-you .-ilo: Spend only projected CPF income and the revenue on hand (including authorized but unissued bonds). The acreage preserved wilt be a variable according to the funding available. Option-l.5 - Pay-as-you-go with CPF Bonding: Spend projected CPF income and the revenue on hand (including authorized but unissued bonds) as well as the proceeds from CPF bonds. The acreage preserved will be a variable according to the funding available. Option 2 - Combined: Spend projected CPF income, the revenue on hand (including authorized but unissued bonds) as well as the proceeds from CPF bonds and the proceeds from General Fund (GF) bonds yet to be issued. The acreage preserved to be 800 in 2004 declining 20% per year thereafter and totaling 4000 acres. General Comments: The Tow~ currently has about 14 million dollars available for land preservation which, even with continued cash flow from the CPF, is insufficient for the amount of preservation implied by the goal. The Town may borrow against the Community Preservation Fund (CPF) revenue stream. The cost of the CPF Debt service will not be part of the tax levy because it will be paid out of the CPF income stream. Debt issued as GF Bonds will have debt service that will be part of the tax levy and a public referendum has become customary, but is not required. Temporarily surplus proceeds from either "type" of bond may earn interest that must be placed in a segregated account for the purpose of retiring the generating debt. While in this study we talk about "CPF Bond/Debt" and Town of Southold or" TOS or GF Bonds/Debt", in both cases the security is the general faith and credit of the Town. Options: Review of Option 1 shows that the CPF revenue stream is insufficient to meet the funding required for the assumed amount of land preservation. Review of Option 1.5 shows that the CPF revenue stream with CPF borrowing is insufficient to meet the funding required for the assumed amount of land preservation. Rather, only roughly a third of the assumed goal could be met. While the CPF revenue stream is estimated to total $105 million before sunsetting, only a conservative 33% of that is to be borrowed keeping our credit rating high and interest rates Iow. Review of Option 2, which borrows $ 38 million against the CPF revenue stream and adds $79 million of TOS Bonds, shows sufficient funding to meet the assumed town goal of 4000 acres of preservation on a front loaded schedule of 20% of the acreage remaining un-preserved each year. // Comparison of Potential Tax Impacts by O9tion Pay As You Go Pay As You Go Bonds CPF & TOe Bonds Cum Year Acres Acres Tax$$ Acres Acres Tax$$ Acres Acres Tax~ 2004 722 722 40 146 722 722 40 146 800 800 40 162 2005 87 809 74 164 1251 1973 74 399 640 1440 74 291 2006 88 897 73 181 0 1973 73 399 512 1952 73 395 2007 90 986 74 200 6 1979 74 400 410 2362 93 478 2008 91 1078 73 218 12 1991 73 403 328 2690 128 544 2009 93 1171 73 237 19 2010 73 407 262 2952 178 597 2010 95 1265 71 256 25 2035 71 412 210 3162 218 640 2011 96 1362 71 275 32 2067 71 418 168 3330 251 674 2012 98 1460 65 295 38 2105 65 426 134 3464 271 701 2013 100 1560 59 316 41 2146 59 434 107 3571 283 722 2014 102 1662 59 336 46 2192 59 443 86 3657 297 740 2015 104 1766 58 357 51 2243 58 454 69 3726 306 754 2016 106 1871 52 378 56 2299 52 465 56 3782 305 765 2017 108 1979 52 400 61 2360 52 477 44 3826 305 774 2018 110 2089 52 422 24 2384 52 482 36 3862 305 781 2019 112 2200 45 445 45 28 3890 299 787 2020 114 2314 39 468 39 23 3913 254 791 2021 3 2317 39 469 39 18 3931 254 795 2022 3 2321 39 469 39 14 3945 253 798 2023 39 0 39 217 0 2024 39 0 39 168 0 2025 126 0 Total 2273 2337 3948 Average 57 56 214 /$ o ~ /? Impact upon Property Taxes. u~c~w; · Cost to borrow funds was determined. · The effect on tax rate and the typical tax bill was determined. · Cost vs. tax bill relationships were presented in table format. Basic Taxation Numbers, Town of 8outhold Tax Year is December I thru November 30 2002-2003 2003-2004 Fiscal Year is January 1 thru December 31 2003 Rounded 2004 Rounded Number of Tax Bills Mailed (totalI ' 18,199 Number of Tax Sills Mailed (excluding exempbons/ 17,587 17,600 T~'picel Assessed Value of a Taxpa~/er 6,956 7,000 6,956 7,000 Assessed Valuation of Whole Tovm 98,928,528 99M 101,872,561 102M ~ Valuation of Part Town (w/o Greenport~ 94,866,965 97,788,938 Equalization Rate 0.023 0.0171 Full Value {c,elculatedI 5,957,459,707 6 Bill~on Town Tax RMe for General, Hw~ & Community Dev. $173.082/K $177.630/K Cak;ulated Values... Every $100K of additional expe~litura results in ($) on tax rate $1.01 $1 $0.98 $17,055,730 raised by taxes ~1173.082/K rate Every $100K of add~ expenditure results in ($) on typical tax bill $7.07 $7 $6.86 $7 IS 700011{1.011KI= ...end of Assessors' data - source Scott Russell 10/1/03 - (see attached Tax Sheet) uFdat~:] 12/9/03 - Accounting & Finance Department - source, Compb'oller celculMions F.~ach Million of bonded indebt~neea ~5% f~r 20 years is ($) on typical tax bill · $6.01 $6 $7000 assessed value assumed, amortization cost includes $7K to issue bond Each million borrowed 20 years has average amo~zation cost of $85,250/year (85250)(1.01)/100K= $0.86 on 2003 tax rate (85250/(7.07~/100K= $6.03 on t'/pica12003 tax bill (85250)(.98)/100K= $0.84 on 2004 tax rate $585 $6 (85250)(6.86~/100K= $5.85 on typical 2004 tax bill Every $100,000 of additional expenditure results in an increase of about $1 on the tax rate. Every $100,000 of additional expenditure results in an increase of about $7 on the typical tax bill. Each $1,000,000 of bonded indebtedness has an average debt service cost of $85,250 per year. (@5%/yr. for 20 years plus fees) Therefore, each $1,000,000 of bonded debt has an average cost of $6 per typical tax bill ($7000 assessment assumed), and a 10 million dollar debt would, therefore, add $60 to that bill. The Tow~ tax is about 20% of the total tax bill. Calculation of additional borrowing on the tax bill: In 2003, each $100K of additional expense (debt service) costs $1 per K on the Tax Rate. With a typical assessment of $7000 the effect of borrowing $1 million on the typical tax bill is $7. If wa issue $1 OM of new debt we pick up $852,500 of additional debt service cost, therefore, ($7)($8.525)= $60 more on the typical tax bill (all rounded numbers). Impact upon Property Taxes (continued) ~ Fu~,~ ~ Town Services Potential Cost Avoidance Calculation: · $29.3M (2004) Budget divided by 21000 people is $1395/capita in services. · With 2.4 people per household times $1395/capita, that's $3349 in services per household. In A-C and R-80 it takes 2 acres to extinguish 1 household. But, since some land purchased for openspace would not yield 1 household per 2 acres, a more conservative value of 1 household per 3 acres is used for approximation. If 3 acres preserved avoids 1 household, that's $1116 per preserved acre potential cost avoidance in 2004, with a cumulative future effect that can be escalated at 3%. School Services Potential Cost Avoidance Calculation: · 13,086 developed acres (48% Of 29,082 acres) produced 3400 students or 0.26 students per acre. · Each student cost $12,000 to educate in 2004 -- 2/3 of that cost is assumed to be variable and therefore avoidable. · (cum acres preserved)(0.26 students)($ avoidable cost to educate a student) = Potential Avoidable Cost. 2005 example: (762 acres)(0.26)($9000*103%) = $1,836,572 potential avoidable cost. Since 17,600 tax bills were sent out (distributed equally) that is $103 per tax bill. Relationships: Spreadsheets in this report use these relationships to analyze scenarios addressing various amounts of land to be preserved at different rates. Steps Toward Improved Financinq of the Town's Pro,qram L~ve F~ ~ This report identifies a financial program to support significant land preservation and as such provides the board with additional means with which to declare the Town Board's land preservation objective(s). Such declaration is essential to galvanizing staff action, community support and further analysis that can now be more readily performed, The Town Board to establish a land preservation objective (albeit tentative) that includes how much of what type of land is to be preserved and at what rate such preservation is to be planned. After objective establishment the analyses in this report to be refreshed in light of the objective. If the objective established by the Town Board remains as assumed, determine time expectations and means with which to accelerate preservation - change the program - - establish process capability to preserve 4000 acres of farmland and open space in the near term. In 2004, begin securing authorization to incrementally borrow $38 million(+) by issuing bonds against the Community Preservation Fund income stream. In 2005 begin authorization to incrementally borrow an additional $79 million with General Fund bonds. Issue sedal bonds and bond anticipation notes to__meet cash flow requir~-m~nts from preservation operations~ Continue to withhold issuance of authorized bonds until the cash is actually needed. Make use of bond anticipation notes if issuance is delayed too long. Establish a Sense-of-the-Board resolution that the Town Board would not wait to authorize additional bonds through referendum - rather, it would authorize a limited issue ~hr~wn authodtyif a burst of preservation was possible. 7. Clarify which costs are chargeable to the Community Preservation Fund and draw all preservation expenses from this fund except those inappropriate to the CPF. Redesign the accounting of land preservation to operate from one set of accounts applying all flow ~__rovgh the Com_~servation Fund (Chapter 6), By Board resolution, ~__~nge the resolution language[on bonds authorized but not yet issued to agree with CPF application.-~ 8. Do not use the NYS Environmental Facilities Corporation for typical land preservation. Consider it for highly special cases only -- typically those related to environmental infrastructure such as road runoff control. General use of this resource would bog down the preservation process due to its mechanics and criteria. 9, Take steps to change the Community Preservation Fund Law to further extend end (sunset) date to help retire out-year debt service. 10. Continue pursuit of grant opportunities to minimize borrowing and maximize schedule front loading. Such opportunities are already well identified as to source but significant political application continues to be required to convert opportunity to success. Two" of · .. ·' ::~TOwn. of..$:o~uthO,Id' · ..Land: Pr. ese~atio'n .Funding T:hrough the Yea.r 20:25 8 December 2004 Draft ..Contains reference, information, schedules, construction and ., other pertinent support data. MEMORANDUM To: Finance Working Group From: Bill Edwards Date: December 14, 2003 Subject: Projections Attached find revised versions of three financial projections: 1. Cash flow through 2020 assuming a "pay as you go" strategy of spending only the revenue on hand (including authorized but unissued bonds) as well as projected CPF income. 2. Cash flow through 2020 assuming the accelerated preservation plan proposed by Ray Huntington, starting with 800 acres in 2004 and declining 20% per year thereafter. 3. A financial recap comparing the overall consequences of the two scenarios. Some points to note: Over the 17-year period projected we will take in $131.2 million in CPF funds. If we follow the Accelerated Preservation path we will preserve 3913 acres through 2020, while under the Pay-As-You-Go approach we will preserve a total of 2810 acres. The financial projections assume no more general revenue bonds than those already authorized. The Accelerated Preservation strategy costs $18.8 million more than the Pay-As-You-Go strategy and preserves 1100 acres more, primarily because it purchases more land early in the period before inflation forces the prices higher. As a result, the cost-per-acre under the Accelerated program is $10K less than under the Pay-as-You-Go scenario. Borrowing under the Accelerated Preservation program tops out in the $68 million range in 2011, not including interest. To properly compare the financial impact of the two approaches we would have to add back into the cost of the Accelerated program the cost of interest paid over the period through 2020 as well as that yet to be paid thereafter. When you buy the property is as critical as how much you pay. The favorable consequences of the accelerated program are reflected in the fact that if we were to win the lottery and even up the land acquisitions in the last year of the program ;~ith a huge purchase of an extra 1100 acres at the then prevailing price, it would cost us an additional $90 million, thus causing the Pay-As-You-Go scenario to cost $72 million more in total than the Accelerated Program. 1 will be out of the country from the 16~ through the 26'~ bot will be picking up my e-mail e~ery day or two. Z OCT. 8.2003 4:iBPM Long Idaad 0~ MUMISTAT SERVICES FAX M~SSAGE DATE: TO: COMPANY: FAX NUMBER: FROM: RE: October 8~ 2003 John Cushman Town of Southoid 765-1366 Bob $1kora Open Space Acquisition Program TOTAL NUMBER PAGES (INCLUDING THIS COVER SI:IF, ET): 12 If you do not receive aU pages, please eau Immediately. N0.001 P.1 Telephone #: 631/331-8888 Advisors, Inc. DEBT SERVICE SCHEDULE TOWN OF SOOTHOLD, SUFFOLK COUN~f, NEW YORK AGRICULUTRAL DEVELOPMENT RIGHTS $1,662,500 @ 9.10% ;onds Dated: iscal Agent: October 1, 1984 Last Maturity:. Date of Sale: The Chase Manhattan Bank N.A., in New York, New York April 1, 2005 September 18, 1984 lscal Year Ending ec. 31st. Bonds Outstand- ing Beginning of Fiscal Year 1985 1986 1987 1988 1989 1990 1,662,500 1,595,000 1,525,000 1,.455,000 %1,385,000 1991 1992 1993 1994 1995 1996~ 1998I 1999I 2ooo 2001 2002 2003 2004 2005 1,310,000 1,235,000 1,160,000 1,085,000 1,010,000 925 000 840 000 755 000 670 000 585 000 500 000 400 000 300 000 200 000 100000 Principal 1st Interest 2nd Interest Due Payment Due Payment Due April 1st. April 1st. October 1st. $ -- $ 75,643.75 $ 75,643.75 67,500 75,643.75 72,572.50 70,000 72,572.50 69,387.50 70,000 69,387.50 66~2~2.~0 70,000 66,202.50 63,017.50 75,000 63,017.50 59,605.00 75,000 59,605.00 56,192.50 75,000 56,192.50 52,780.00 75,000 _52,780.00 49,367.50 75,000 49,367.50 45,955.00 85,000 45,955.00 42,087.50 85,000 42,087.50 38,220.00 85,000 38,220.00 34,352.50 85,000 34,352.50 30,485.00 85,000 -30,485.00 26,617.50 85,000 26,617.50 22,750.00 109,000 22,750.00 18,200.00. 100,000 18,200.00 13,650.00 100,000 --13,650.00 9,100.00 100,000 9,100.00 4,550.00 100,000 4~550.00 -- Total Principal & Interest 151 287.50 215 716.25 211 960.00 205 590.00 199 220.00 197 622.50 190 797.50 183 972.50 177 147.50 170,322.50 173,042.50 165,307.50 157,572.50 149,837.50 142,102.50 134,367.50 140,950.00 131,850.00 122,750.00 113,650.00 104,550.00 Totals $1,662~500 $926;380.00 ~85.0~736.25 $3 439 616.25 DEBT SERVICE SCHEDULE TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK $1,662,500 Acquisition of Open Space Rights Part of $2,708,500 Various Purposes Serial Bonds-1991 Bonds Dated: February 15, 1991 Interest Due: February 15, 1992 and semiannually Paying Agent: Citibank NA Fiscal Year Ending Principal Interest December 3 February 15 R~te Interest Interest February 15 Aunust 15 1992 $ 68,500 6.375% $ 1993 70,000 6.375% 1994 74,000 6.375% 1995 75,000 6.375% 1996 75,000 6.375% 1997 75,000 6.375% 1998 75,000 6.375% 1999 75,000 6.375% 2000 75,000 6.375% 2001 75,000 6.375% 2002 75,000 6.375% 2003 75,000 6.375% 2004 75,000 6.375% 2005 100,000 6.375% 2006 100,000 6.375% 2007 100,000 6.375% 2008 100,000 6.375% 2009 100,000 6.375% 2010 100,000 6.375% 2011 100,000 6.375% 105,984.38 $ 50,808.74 50,808.74 48,577.50 48,577.50 46,218.75 46,218.75 43,828.13 43,828.13 41,437.50 41,437.50 39,046.88 39,046.88 36,656.25 36,656.25 34,265.63 34,265.63 31,875.00 31,875.00 29,484.38 29,484.38 27,093.75 27,093.75 24,703.13 24,703.13 22,312.50 22,312.50 19,125.00 19,125.00 15,937.50 15,937.50 12,750.00 12,750.00 9,562.50 9,562.50 6,375.00 6,375.00 3,187.50 3,187.50 0.00 Total $ 1,662,500 TOI:$1 Prepared by Munistat Services, Inc. 6/24/93 $ 225,293.12 169,386.24 168,796.25 165,046.88 160,265.63 155 484.38 150 103.13 145 }21.88 141 140.63 136 359.38 131 578.13 126 796.88 122 015.63 141 437.50 135062.50 128 687.50 122 312.50 115 937.50 109 562.50 103,187.50 $ 649,230.02 $ 543,245.64 $ 2,854,975.66 Bonds Outstandi Beainnina of Yea $ 1,662,500 i ,594,000 1,524,000 1,450,000 1,375,000 1,300,000 1,225,000 1,150,000 1,075,000 1,000,000 925,000 850,000 775,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 DEBT SERVICE SCHEDULE TOWN OF SOUTHOLD, SUFFOLK COUNTY, NEW YORK $1,675,000 Acquisition of Development Rights Part of $2,695,000 Various Purposes Serial Bonds-1993 Bonds Dated: April 15, 1993 Interest Due: August 15, 1993 and semiannually P~yable Through Depository Trust Company, New York, New York Fiscal Year Ending Principal Interest Interest Interest December 3 February 15 Rate February 15 Au~us~ 15 Total 1993 $ 0 5.000% $ 0.00 $ 27,916.67 $ 27,916.67 $ 1994 78,000 5.000% 41,875.00 39,925.00 159,800.00 1995 80,000 5.000% 39,925.00 37,925.00 157,850.00 1996 94,000 5.000% 37,925.00 35,575.00 167,500.00 1997 83,000 5.000% 35,575.00 33,500.00 152,075.00 1998 84,000 5.000% 33,500.00 31,400.00 148,900.00 1999 84,000 5.000% 31,400.00 29,300.00 144,700.00 2000 83,000 5.000% 29,300.00 27,225.00 ! 39,525.00 2001 81,000 5.000% 27,225.00 25,200.00 133,425.00 2002 80,000 5.000% 25,200.00 23,200.00 128,400.00 2003 79,000 5.000% 23,200.00 21,225.00 123,425.00 2004 79,000 5.000% 21,225.00 19,250.00 119,475.00 2005 76,000 5.000% 19,250.00 17,350.00 112,600.00 2006 76,000 5.000% 17,350.00 15,450.00 108,800.00 2007 88,000 5.000% 15,450.00 13,250.00 I 16,700.00 2008 86,000 5.000% 13,250.00 11,100.00 ! 10,350.00 2009 I 11,000 5.000% 11,100.00 8,325.00 130,425.00 2010 111,000 5.000% 8,325.00 5,550.00 124,875.00 2011 111,000 5.000% 5,550.00 2,775.00 119,325.00 2012 111,000 5.000% 2,775.00 0.00 ! 13,775.00 Total $ 1,675,000 $ 439,400.00 $ 425,441.67 $ Prepared by Munistat Services, Inc. 4/8/93 Bonds Outstanding Be~innin~ of Year 1,675,000 1,675,000 1,597,000 1,517,000 1,423,000 1,340,000 1,256,00O 1,172,000 1,089,000 1,008,000 928,000 849,000 770,000 694,000 618,000 530,000 444,000 333,000 222,000 111,000 2,539,841.67 DEBT SERVICE SCHEDULE TOWN OF SOUTHOLD SUFFOLK COUNTY, NEW YORK Total Issue $1,750,000 Agricultural Land Preservation Serial Bonds - 1995 Bonds Dated: November 1, 1995 Interest Due: May 1, 1996 and semiannually Payable Through Depository Trust Company, New York, NY Fiscal Year Ending Principal Interest Interest ~ November I Rate ~ Interest November I 1996 1997 1998 1999 2000 2001 2002 2003 2004 2O05 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $0 75,000 75,0O0 80,000 80,000 80,000 80,000 80,000 90,000 90,000 90,000 90,000 100000 1O0000 100 000 100 000 110 000 110 000 110 000 110 000 Total $1.750.00~0 5.000% $45,700.00 $45,700.00 $91,400.00 5.000% 45,700.00 45,700.00 166,400.00 5.1000/0 43,825.00 43,825.00 162,650.00 5.100% 41,912.50 41,912.50 163,825.00 5.100% 39,872.50 39,872.50 159,745.00 5.100% 37,832.50 37,832.50 155,665.00 5.100% 35,792.50 35,792.50 151,585.00 5.100% 33,752.50 33,752.50 147,505.00 5.100% 31,712.50 31,712.50 153,425.00 5.100% 29,417.50 29,417.50 148,835.00 5.100% 27,122.50 27,122.50 144,245.00 5.100% 24,827.50 24,827.50 139,655.00 5.100% 22,532.50 22,532.50 145,065.00 5.200% 19,982,50 19,982.50 139,965.00 5.300% 17,382.50 17,382,50 134,765.00 5.375% 14,732.50 14,732.50 129,465.00 5.400% 12,045.00 12,045.00 134,090.00 5.500% 9,075.00 9,075.00 128,150.00 5.500% 6,050.00 6,050.00 122,100.00 5.500% 3,025.00 3,025.00 !16,050.00 $542:292.50 $542:292.50 CUSIP 844572EE3 844572EE3 844572EF0 844572EG8 844572EH6 844572EJ2 844572EK9 844572EL7 844572EM5 844572EN3 844572EP8 844572EQ6 844572ER4 844572ES2 844572ET0 844572EU7 844572EV5 844572EW3 844572EX1 844572EY9 Prepared by Munistat/PFA, Inc. 11/13/95 ~~~oooooooo~ o o OCT. B.2003 4:~3PM MUNISTRT SERVICES N0.00~ P,2 L~ng ldad 12 Rooseve[t Avemie Por~ Jefferson Station, New York ! 1776 Phone: (63l) 331-8888 I~x: (631) ~31-8834 MUNISTAT gERVICE INC. Municipal Finance Advisory S~er-v.~cej ~:' Webalt m www, mtm iamt.~m ,ff~-.~~L~ · Serving Munlcl;l~li~lt.~ and SchoolDhtriett in New Yon~ &ate Since 1977, Western New Ye& Office W'dliamsville, New ¥o~k October 8, 2003 John Cushmntl Town Comptroller Town of Southold Town Hall .A~mex Feather Hill, Building 10 620 Traveler Slreet Southold, New Yerk 11971-0959 VIA FAX Re: Proposed Opan Space Acqulaltion Program Deax John: In accordance with your letter of October 1, 2003 and our subsequent conversation regaxcrmg the above referenced matter, the estimated debt service subedoles for each o£ the respective potemial bond issues, sm~ctared at both th~ traditional (50% mis) m~tbod and the level debt se~,ice method, axe tnmamitled herewith. In reapouse to your qu~fione regarding the --.lyaja oftbe Community Preservation Fund CCPF") for the financial commuaity, in order to demoustmte that the projected revenues of tim CPF would be sufficient to pay the debt service on the bonds, financial analysts would be expecting that the CPF could be conservatively projected to generate at least 1.50 times the annual debt service. Thus, fftha debt service were to be $1,000,000 the CPF slmald cooservatively be projected at $1 ,~i00,000..ln addiiion, if the amounts to be borrowed were at the laxger and of the scale, it would be to the Town's banefit if it established a reserve fund with excess C, PF revenues to protect against years wbon the revenues might be less than originally prejeetod,, If the financial commtmity were not convinced that CPF revenues could not support the level of debt being issued the assumption would be that real property taxes would have to be utilized to pay debt service. Such a scenario would reflect negatively on the Town's ability to fineane other needed capital projects (such aa road improvements, etc.) as well es it ability and willMgness to provide the same level of govemmentsl services to its citizens. In sborL there would most likely be downside pressure exerted on the Town's credit rating, thus affecting its borrowing costs. I hope this discussion is of assistance to you. If you have any further questions or require additional data ple~e feel flee to contact me. With ldndest personal regards - Robert F. 8ikore President Enclosures OCT. 8.2003 4:I4PM MUMISTAT SERVICES M0.001 P.3 ESTI~ATED DEBT SE~.VICE $CHEDULII TOWN OF SOLTTHOLD, NltW YORK OPEN SPa, CB ACQUISITION BONDS OPTION I: $10,000,000 TRADITIONAL (~;0% RULE) AMORTIZATION M~THOD Total ~t. Ira, Est Debt Principal ~ 5.00% Service Outstanding Bonds 2005 400,000 500,000 900,000 9,600,000 2006 400,000 480,000 880,000 9,200,000 2007 400,000 460,000 860,000 8,800,000 2008 400,000 440,000 840j000 8~400,000 2009 450,000 420,000 870,000 7,950,000 2010 450,000 397,500 847,500 7,500,000 2011 450,000 375,000 825,000 7~050,000 2012 450,000 352,500 802,500 6,600,000 2013 500,000 330,000 830,000 6,I00,000 2014 500,000 305,000 805,000 5,600,000 2015 500,000 280,000 780,000 5,100,000 2016 500,000 255,000 755,000 4,600,000 2017 550,000 230,000 780,000 4,050,000 2018 550,000 202,500 752,500 3,500,000 2019 550,000 175,000 725,000 2,950,000 2020 550,000 147,500 697,500 2,400.000 2021 600,000 120,000 720,000 1,800,000 2022 600,000 90,000 690,000 1,200,000 2023 600,000 60,000 660,000 600,000 2024 600,000 30jO00 630,000 0 10,000,000 5,650,000 15,650,000 Assuanes bonds issued in 2004; first debt service payable in 2005. Prepared by Munistat Servie~, Ino. Port Jefferson Station, N. Y. 100803 OCT. 8.2003 4:14PM MUMISTAT SERVICES N0.001 P.4 ESTIMATED D]?~T SERVICE $cm~ULE TOWN OF ~O~HO~, ~W YO~ OPEN ~ACE ACQ~ON BO~S DEBT SER~CE ~OR~ATION ~THOD y~r Est. Int. Est Debt princinal t~ 5.00% Service Outstanding Bonds 2005 300,000 500,000 800,000 9,700,000 2006 320,000 485,000 805,000 9,380,000 2007 335,000 469,000 804,000 9,045,000 2008 350,000 452,250 802~250 8,695,000 2009 365,000 434,750 799,750 8,330,000 20[0 385,000 416,500 801,500 7,945,000 2011 405,000 397,250 802,250 7,540,000 2012 425,000 377,000 802,000 7,115,000 2013 445,000 355,750 800,750 6,670,000 2014 470,000 333,5~0 803,500 6,200,000 2015 490,000 310,000 800,000 5,710,000 2016 515,000 285,500 800,500 5,195,000 2017 545,000 259,750 804,750 4,650,000 2018 570,000 232,500 802,500 4,080,000 2019 600,000 204,000 804,000 3,480,000 2020 630,000 [ 74,000 804,000 2,850,000 2021 660,000 142,500 802,500 2,190,000 2022 695,000 109,500 804,500 1,495,000 2023 730,000 74,750 804,750 765,000 2024 765~000 38,250 803,250 0 10,000,000 6,051,750 16,051,750 Assmnes bonds issued in 2004; first debt a~tMce payablein 2005. Prepared by Munistat Services, Inc. Port Jefferson Smfion, N. Y. 100803 OCT. B.200~ 4:14PH MUMISTRT SERVICES M0.001 P.5 ESTIMATED DEBT SERVICE SC~UULE TOWN OF SOUTHOLD, NEW YORK OPEN SPACE ACQUISITION BONDS OPTION H: $20,000~0~0 TRADITIONAL (s0% RULE) AMORTIZATION METHOD Total Iht, In~, Est Debt Outstanding Bond~ 2005 800,000 1,(R)0,000 1,800,000 19,200,000 2006 800,000 960,000 1,760,00{) 18,400,000 2007 800,0{3{) 920,000 1,720,000 17,600,000 2008 800,000 880,000 ] ,680,000 16,800,000 2009 900,000 840,000 1,740,000 15,900,000 2010 900,000 795.000 1,695,000 15,000,000 2011 900,000 750,000 1,650,000 14.100,000 2012 900,000 705,000 1.605,000 13,200,000 20 [3 1,000,000 660,000 1,660,000 12,200,000 20[4 1,000,000 610,000 1,610,000 11,200,000 20[ 5 !,000.000 560,000 1,$60,000 10,200,000 2016 1,000,000 510,000 1,510,000 9,200,000 2017 [,I00,000 460,000 1,560,000 8,100,000 2018 [,I 00,000 405,000 1,505,000 7,000,000 2019 1,I00,000 350,000 1,450,000 5,900,000 2020 I, 100,000 295,000 1,395,000 4,800,000 2021 1,200,000 240,000 1,440,000 3,600,000 2022 1,200,000 180,000 [ ,380,000 2,400,1300 2023 1,200,000 120,000 1,320,000 1,200,000 2024 1,200,000 60,000 1,260,000 0 20,000,000 11,300,000 31,300,000 Assumes bonds issued in 2004; first debt service payable in 2005. Prepared by Munista~ S~"v/ces, Inc. Port Jefferson Station, N. Y. 100803 OCT. 8.E003 4:14PM MUMISTAT SERVICES M0.001 ESTIMATED DEBT SERVICE SCHRDULE TOWN OF $OUTHOLD, N~W YORK OPEN SPACE AC(~UI~ITION BONDS OPTION IIA - $20,G~,~0 L~V~L D~BT ~RVICE AMORTIZATION METHOD To~[ l~, Int. E~t ~ ,'~ 5.00% Outs~ndin~ 2005 605,000 1,000,000 1,605,000 [9,395,000 2006 635,000 969,750 1,604,750 18,760,000 2007 665,000 938,000 1,603,000 l 8,095,000 2008 700,000 904,750 1,604,750 17,395,000 2009 735,000 869,750 1,604,750 [6,660,000 2010 770,000 833,000 [,603,000 { 5,890.000 2011 810,000 794,500 [,604,500 ! 5,080,000 2012 850,000 754,000 [,604,000 1'{-,230,000 2013 895.000 711,5 O0 1,606,500 13 335,000 2014 940,000 666,750 1,606,750 12,395,000 2015 985,000 619,750 1,604,750 [ 1,410,000 2016 1,035,000 570,500 1,605,500 [0,375,000 2017 1,085,000 518,750 1,603,750 9,290,000 2018 1,140,000 464,500 [ ,604,$00 8, [ SO,O00 2019 1,200,000 407,500 1,607,500 6,950.000 2090 1,260,000 347,500 1,607,500 5,690,000 2021 1,320,000 284,500 1,604,500 4,370,000 2022 1,385,000 218,500 1,603,500 2,985,000 2023 1,455,000 149,250 1,604,250 1.530.000 2024 1,530,000 76,500 1,606,500 0 20,000,000 12,099,250 32,099,250 Assurct~ bonds issued in 2004; first debt service payable in 2005, Prepared by Munistat Services, Inc. Po~ Jefferson Station, N. Y. 100803 OCT. ~.2003 4:15PM HUNI~TAT SERVZCE~ H0.001 EST;MATED D~BT ~ERVICE SCHEDULE TOWN OF $OUTHOLI)~ NEW YORK OPEN ~PACE ACQUISITION BONDS OPTION m: ~o,~oo,ooo TRADITIONAL (50% RUL~) AMORTIZATION METHOD Tote! ~ Int. Eet Debt Princi_ue! (~ 3.00% Servlo~ Outctauding ]~onds 2005 1,200,000 1 ,$00,000 2,700,000 28,800,000 2006 1,200,000 1,440,000 2,640,000 27,600,000 ' 2007 1,200,000 1,380,000 2,580,000 26,400,000 2008 1,200,000 1,320,000 2,520,000 25,200,000 2009 1,350,000 1,260,000 2,610,000 2010 1,3S0,000 1,192,500 2,542,500 22,500,000 2011 1,350,000 1,125,000 2,475,000 21,[50,000 2012 1,350.000 1,057.500 2,407,500 19,800,000 2013 1,500,000 990,000 2,490,000 18,300,000 2014 1,500,000 915,000 2,415,000 16,800,000 2015 1,500,000 840,000 2,340,000 15,300,000 2016 1,500,000 765,000 2,265,000 13,800,000 2017 1,650,000 690,000 2,340,000 12,150,000 2018 1,650,000 607,500 2,257,500 10,500,000 2019 1,650,000 525,000 2,175,000 8,850,000 2020 1,650,000 442,500 2,092,500 7,200,000 202 [ 1,800,000 360.000 2,160,000 5,400,000 2022 1,800,000 270,000 2,070,000 3,600,000 2023 1,800,000 180,000 1,980,000 1,800,000 2024 1,800,000 90,000 1,890,000 0 30,000,000 16,950,000 46,950,000 Aanunes bonds iaaued in 2004; first de. bt se~vie~ payable in 2005. Prepared by Munistat Servicea, Inc. Prat Jefferson Station, N, Y. 100803 OCT. B.2003 4:i5PM MUHISTAT SERVICES NU.UUl W.U ESTIMATED DEBT SERVICE $CHEOULE TOWN OF SOUTHOLD, NEW YORK OPEN SPACE ACQUISITION BONDS OPTION HIA - LEVEL DEBT SERVICE AMORTIZATION METHOD Tot~ Ezt. Int. F.~t Debt P~noio~l ~ 5.00% Sor~ice Oul~umding Bonds 2005 910,000 1,500,000 2,410,000 29,090,000 2006 955,000 1,454,500 27109,500 28,135,000 2007 1,000,000 1,406,750 2,406, 750 27, 2008 1,050,000 1,356,750 2,406,750 26,085,000 2009 1,100,000 1,304'250 2,404,250 24,985,000 2010 1,155,000 1,249,250 2,404,250 23,830,000 2011 1,215,000 1,191,500 2,406,500 22,615,000 2012 1,275,000 1,130,750 2,405,750 21,340,000 2013 1,340.000 1,067,000 2.407,000 20.000.000 2014 1,410,000 1,000,000 2,410,000 18 2015 1,480,000 929.500 2,409,500 17.110,000 2016 1,550,000 855,500 2,405,500 15,560,000 2017 1,630,000 778,000 2.408.000 13,930,000 2018 1,710,000 696,500 2,406,500 12,220,000 2019 1,795,000 611,000 2,406,000 10,425,000 2020 1,885,000 521,250 2,406,250 8,540,000 2021 1,980,000 427,1300 2,407,000 6,560,000 2022 2,080,000 328,000 2,408,000 4,480,000 2023 2,185,000 224,000 2,409,000 2.295.000 2024 2,295,000 114,750 2,409,750 0 30,000,000 18,146'250 48,146,250 Assumes bonds issued in 2004; first debt set'vice pay~le in 2005, Prepared by Munistat Service. s, Inc. Port Jefferson Station, N. Y. 100803 OCT. 8.200B 4:15PM MUMIST~T SERVICES MO.001 P.~ ESTIMATED DEBT SER~CE SCH~t~UL~ TOWN OF SOUTHOLD, ~[EW YORK OPEN SPACE ACQUISITION BONDS OPTION 1V: $40,000,000 TRADITIONAL ($0% RULE) AMORTIZATION METHOD Int. ]F~t Debt S.O0% 9arviea Bonds 2005 1,600,000 2,000,000 3,600,000 38,400,000 2006 1,600,000 1,920,000 3,520,000 36,800,000 2007 1,600,000 1,840,000 3,440,000 35,200,000 2008 1,600,000 1,760,000 3,360,000 33,600,000 2009 1,800,000 1,680,000 3,480,000 31,800,000 2010 1,800,000 1,590,000 3,390,000 30,000,000 2011 1,800,01)0 1,$00,000 3,300,000 28,200,0{)0 2012 1,800,000 1,410,000 3,210,000 26,400,000 20L3 2,000,000 1,320,000 3,320,000 24,400,000 20 ! 4 2,000,000 ] ,220,000 3'220,000 22,4{){),000 2015 2,0O0.0O0 1,120,000 3,[20,000 20,400,000 2016 2,000,000 1,020,000 3,020,000 ! 8,400,000 2017 2,200,000 920,000 3,120,000 16,200,000 20 ] 8 2,200,000 810,O00 3,010,000 14,000,000 2019 2'200,000 700,000 2,900,000 ! 1,800,000 2020 2,200,000 590,000 2,790,000 9,600,000 2021 2,400,000 480,000 2,880,000 7,200,000 2022 2,400,000 360,000 2,760,000 4,800,000 2023 2,400,000 240,000 2,640,000 2,400,000 2024 2,400,000 120,000 2,520,000 0 62,600,000 40,000,000 22,600,000 Assumes bonds issued in 20044 first debt s~cvioe payable in 2005, Prepared by Munistat Services, Inc, Port Jefferson Station, N. Y. 100803 OCT. 8.~003 4~15PM MUNIST~T SERVICES NO.001 P.10 ESTIMATED DEBT SERVICE SCHEDULE TOWN OF SOUTHOLD, NEW YORK OPEN SPACE ACQUISITION BONDS OPTION IVA - $40,000,000 LEVEL DEBT S~RVICE AMORTIZATION METHOD Yea/ Total Rat, Iht, Eat Debt Pfinoinal (& 5.00% Service Oumt~ndiug Bonds 2005 1.210.000 2.000.000 3.210.O00 38.790,000 2006 [.270.000 1,939.500 3.209,500 37,520.000 2007 1,335,000 1,876,000 3,211,000 36,185,000 2008 1,400,000 1,809,250 3,209,250 34,785,000 2009 1,470,000 1.739,250 3,209,250 33.315,000 2010 1,545,000 1,665,750 3,210,750 31,770,000 2011 1,620,000 1,588,500 3,208,500 30,150,000 2012 ! ,700,000 1,507,500 3,207,500 28,450,000 2013 1,790,000 1,422,500 3,212,500 26,660,000 2014 1,875,000 1,333,000 3,208.000 24.785,000 2015 1,970,000 1,239,250 3,209,250 22,815,000 2016 2,070,000 [,140,750 3,210,750 20.745,000 2017 2,175,000 1,037,250 3,212,250 18,570,000 2018 2,280,000 928,500 3,208,500 16,290,000 2019 2,395,000 814,500 3,209,500 I3,895,000 2020 2,515,000 694,750 3,209,750 11,380,000 2021 2,640,000 569,000 3,209.000 8,740,000 2022 2,775,000 437,000 3,212,000 5,965,000 2023 2,910,000 298,250 3,208,250 3,055,000 2024 3,055,000 152,750 3,207,750 0 40,000,000 24,193,250 64.193,250 Assmnes bonds issued in 2004; first debt set'~ee payable in 2005. Prepared by Munistat Servlc~, Inc. Port Jefferson Station, N. Y. 100803 OCT. 8.200B 4:16PM MUNIST~T SERVICES N0.001 P.11 ESTIMATED DEBT SERVICE SCI~DULE TOWN OF SOUTHOLD, N~W YORK OPEN SPACE ACQUISITION BONDS O~ION V~ ~0,000,0~ ~ION~ (~% R~) ~ORTI~ON METHOD Total. ~r~ Int. Iht Debt Pfincipgl ~ 5.00~ Service Outstanding 2005 2,000,000 2,$00,000 4,500,000 48,000,000 2006 2,000,000 2,400,000 4,400,000 4~,000,000 2007 2,000,000 2,300,000 4,300,000 44,000,000 2008 2,000,000 2,200,000 4,200,000 42.000,000 2009 2,250,000 2,100,000 4,350,000 39,750,000 2010 2,250,000 1,987,500 4,237,500 37,500,000 2011 2,250,000 i,875,000 4,125,000 35,250,000 2012 2,250,000 1,762,500 4,012,500 33,000,000 2013 2,500,000 1,650,000 4,150,000 30,500,000 2014 2,500,000 1,525,000 4,025,000 28,000,000 2015 2,500,000 1,400,000 3,~00,000 25,500,000 2016 2,500,000 1,275,000 3,775,000 23,000,000 2017 2,750,000 l, 150,000 3,900,000 20,250,000 2018 2, 750,000 1,012,500 3,762,500 17,500,000 2019 2,750,000 875,000 3,625,000 14,750,000 2020 2,750,000 737,500 3,487,500 12,000,000 2021 3,000,000 600,000 3,600,000 9,000,000 2022 3,000,000 450,000 3,450,000 6,000,000 2023 3,000,000 300,000 3,300,000 3,000,000 2024 3,000,000 150,000 3,150,000 0 78,250,000 50,000,000 28,250,000 Assumes bonds issued in 2004; first debt service payable in 2005. P~'pared by Munlstat S~-vices, Inc. Port Jefferson 8tation~ N, Y. 100803 '- OCT, 8.2003--4:16RM MUMISTAT SERVICES N0.001 P.12 ESTIMATED DEBT SERVICE SCHEDULE TOWN OF SOUTHOLD, NEW YORK OPEN SPACE ACQUISITION BONDS OPTION VA - $M,0B0,~0 LEVEL DEBT SERVICE AMORTIZATION METHOD Total l~t. Int. E~t D~t Pfinciua{ ~ 5.00% Servi~ Outstanding Bon~ 2005 I. 510,000 2,500,000 4,010,000 48,490.000 2006 1,585,000 2,424,500 4,009,500 46.905,000 2007 1,665,000 2,345,250 4.010.250 45.240.000 2008 1.750,000 2.262,000 4,012.000 43.490.000 2009 1.840.000 2.174.500 4.014.500 4 i .650.000 2010 1.930,000 2,082.500 4,012.500 39.720.000 2011 2.025.000 1,986,000 4.011.000 37.695.000 2012 2,130,000 1,884,750 4,014,750 35,565,000 2013 2.235.000 1.778,250 4,013.250 33.330.000 2014 2,345,000 1,666,500 4,01 [,500 30,985,000 2015 2,465,000 1.549,250 4,014,250 28,520,000 20[6 2,590,000 [~426~000 4,016,000 25,9301000 2017 2,7 [ 5,000 1,296,500 4,01 [,500 23,215,000 2018 2,850,000 1,I60,750 4,010,750 20,365,000 2019 2,995,000 1,018,250 4,013,250 17,370,000 2020 3,145,000 868,500 4.013,500 14.225.000 2021 3,300,000 711,250 4,011,250 10,925,000 2022 3,465,000 546,250 4,011,250 7,460,000 2023 3,640,000 373,000 4,013,000 3,820.000 2024 3,820,000 191,000 4,011.000 0 50,000,000 30,245.000 80.245.000 Assum~ bonds issued in 2004; first debt sm'vice payable in 2005. Prepared by Munistat SaoAces, [nc. Por~ Jefferson Station, N. Y. 100803 ~ooo~oo~o~oooo Community Preservation Fund Debt Service Primarily Supported by 2% Transfer Tax Revenues December 31, 2003 2004 2005 2006 2007 2,600,000 18,500,000 11,560,000 5,800,000 Total 2005 2006 2007 2008 2009 2010 2011 . 2012 2013.. 2014. 201~ 2016 2017 20t8 2019 2020 2021 2022 2023 2024 2025 2026 2027 208,000 209,300 1,480,000 209,040 1,489,250 924,000 208,585 1,487,400 929,775 207,935 1,484,163 928,620 208,039 1,479,538 926,599 208,585 1,480,278 923,711 208,520 1,484,163 924,173 208,195 1,483,700 926,599 208,910 1,481,388 926,310 208,000 '1,486,475 924,866 208,130 1,480,000 928,043 209,235 1,480,925 924,000 208,650 1,488,788 924,578 209,040 1,484,625 929,486 209,040 1,487,400 926,888 208,650 1,487,400 928,620 209,170 1,487,400 928,620 209,235 1,484,625 926,888 208,845 1,488,325 929,198 1,488,788 929,486 927,754 440 000 442 750 442 200 441 238 439 863 440 083 441 238 441 100 440 413 441 925 440,000 440,275 442,613 441,375 442,200 442,200 441,375 442,475 442,613 441,788 208,000 1,689,300 2,622,290 3,065,760 3,063,468 3,056,375 3,053,811 3,056,718 3,058,576 3,057,845 3,060,441 3,056,585 3,056,085 3,062,015 3,063,426 3,065,940 3,066,045 3,067,390 3,062,948 3,067,743 2,860,749 1,370,366 441,788 Totals Prin. + Int. Principal P & 12005-25 P & 12026-27 61,233,664 38,150,000 59,421,610 1,812,154 4,173,104 29,694,628 18,538,212 8,827,720 61,233,664 Existing Debt Schedules Town of Southold Debt December 31, 2003 Year 1984 1991 1993 1995 1998 1999 Total 151 287 215 716 211 960 205 590 199 220 197 622 190 797 183 972 177 147 170 322 173 042 165 307 157 572 149 837 142 102 134 367 140 950 131 850 122 750 113 650 104 556 225,293 169,386 168,796 165,047 160,266 155,484 150,703 145,922 141,140 136,359 131,578 126,796 122,016 141,438 135,063 128,687 122,312 115,938 109,563 103,188 1985 1986 1987 1987 1988 1989 1990 t991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201t 2012 2013 2014 2015 2016 2017 2018 2019 27,917 159 800 157 850 167 500 91,400 152 075 166,400 148 900 162,650 48,553 144 700 163,825 175,188 139 525 159,745 171,327 133 425 155,665 167,447 128 400 151,585 163,567 123 425 147,505 169,445 119 475 153,425 165,080 112 600 148,835 160,715 108 800 144,245 156,350 116 700 139,655 161,743 110 350 145,065 156,893 130 425 139,965 152,043 124 875 134,765 147,193 119 325 129,465 152,100 113 775 134,090 146,765 128,150 141,430 122,100 136,081 116,050 140,475 134,625 128,775 122,925 44,650 167 420 163 660 159 900 156 140 152 380 148 620 144 860 150 865 146 635 142 405 138 175 143 710 139 010 134 310 139 375 134 205 129 035 123 865 128 460 122 820 151,287 215,716 211,960 205,590 199,220 197,622 190,797 t83,972 402,440 367,625 501,638 488,204 576,738 623,796 652,908 808,652 920,107 888,406 857,780 836,961 816,932 712,208 689,318 697,650 681,255 680,776 654,571 647,788 533,640 403,890 397,556 390,730 263,660 252,640 251,385 122,820 Distribution List: Recommendations for Town of Southold Land Preservation Fundin~l Throu,qh the Year 2025, 8 January 2004 Draft - a report of the Land Preservation Committee Financial Working Group. This report will be the subject of Town Board briefings during January. Horton, J Edwards, W. Evans, L. Romanelli, J. Ross, D. Wickham, T. Arm, C. Blum, R Cushman, J. Finnegan, P. Huntington, R. Jarvis, R. Keil, E. Lee, F. McAdam, T. Sepenoski, J. Spiro, M. Zaloom, M.