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Introduction to the Funding Analysis Tool

BETA TEST VERSION

Funding the North Topsail BeachBeach Erosion Management Program

Funding Workshop Series # 3A and 3BAugust 11, 2012

PETER A. RAVELLA, PRINCIPAL PAR CONSULTING, LLC

1. Funding Planning Process Schedule Update

2. Introduction to the Funding Analysis Tool (Beta Version)

A. Assumptions

B. Variables

3. Presentation of the Funding Analysis Tool (Beta Version)

A. Using the Tool

B. Feedback Today

C. Review and refinement before September 8

Today’s Workshop Agenda

Funding Plan Workshops

May 12: 1 - Funding Principles & Secrets

June 23: 2 - Funding Concepts

August 11: 3 - Funding Analysis Tool (Beta version)

Sept. 8: 4 - Applying the Tool to the Updated Project Plan

October 6: 5 - Draft Funding Plan & Initiation of Public Review

Dec. 6: Funding Plan Recommendation to BOA

• Dedicated 30-year fund to pay for projects, ensure FEMA eligibility for post-storm recovery, and prepare for possible Static Line Exception

• Proposed Fund Purposes– Design & Permitting

– Project Construction

– Beach Monitoring Program

– Dune Maintenance Program

Working to Establish aBeach Erosion Capitol Fund

Funding Analysis Tool Preliminary Project Assumptions

(Beta Version)

• Project Costs: Placeholder costs included• Project Timing: Four year project interval• State Share: 25% (BEST used 0% to

75%)• Outside Contributions: $500K to $1M – Onslow County– Parking or Beach User Fees– Occupancy Tax Rate Change (Requires legislation)– Others as may be indentified

Funding Analysis Tool Preliminary Bond Assumptions

(Beta Version)

• Bond Issuance: Contemporaneous with Project Phase• Bond Admin Cost: 2%• Bond Interest Rate: 4%• Bond Payback Period: 5 years• Maximum Bond Debt: $35 million at any one time• Repayment Method: Level principle plus interest

Cost Optimization:Can Projects Be Made More Affordable?

• As the funding plan comes into focus, the tool allows the Town to examine the financial feasibility of various project options.

• At the direction of the Town, CP&E is currently re-examining the beach erosion management strategy to determine if project cost savings can be found.

• The September 8 workshop (tentative) is intended to integrate the updated Funding Analysis Tool and any updated project costs and savings.

Expected Improvements to theFunding Analysis Tool Beta Version

• Addition of projects phases and bonds through 2042• Correct any automation/formula flaws• Add capacity to change interest rate for each bond• Improve assessed valuation growth calculation• Ensure conformance with LGC requirements• Incorporate updated CP&E project costs and schedule• Integrate federal project cost & schedule assumptions

Let’s look at the Funding Analysis Tool

Beta Version