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Option 2 scenario <br /> • Financing secured with City interfund loan <br /> • As of July 31, City has $85 million cash balance excluding police and fire pension fund <br /> balances <br /> • As of July 31, City has $55 million cash balance excluding bond proceeds for the Lake <br /> Decatur dredging initiative and the fire station replacement initiative <br /> • Interfund loan from the water utility <br /> • Interfund loan on the water utility will not place the water utility in a compromised position <br /> Option 2 scenario interfund loan repayment to the water utility <br /> Year Minimum Projected <br /> Repayment Repayment <br /> Amount Amount <br /> 2019 295,031 300,000 <br /> 2020 122,535 300,000 <br /> 2021 125,661 300,000 <br /> 2022 128,874 300,000 <br /> 2023 132,176 300,000 <br /> 2024 135,571 300,000 <br /> 2025 139,059 181,816 <br /> 2026 142,645 <br /> 2027 146,330 <br /> 2028 150,117 <br /> 2029 154,011 <br /> 2030 158,012 <br /> 2031 151,794 <br /> Total 1,981,816 1,981,816 <br /> • Interfund loan repayment plan is targeted to be the "projected repayment amount", from <br /> the City General Fund to the Water Fund, where the interfund loan will be repaid in full <br /> before the end of fiscal year 2025, subject to available cash position in the City General <br /> Fund <br /> • Interfund repayment plan will at minimum be the "minimum repayment amount', where <br /> the interfund loan will repaid in full before the end of fiscal year 2031 <br /> Conclusion <br /> • City Administration recommends financing through the interfund loan from the water utility <br /> • Financing through the interfund loan will save the City General Fund $500,000 to <br /> $800,000 in financing costs over the period (dependent upon final loan structure) <br /> As presented to the Council in the documentation supporting the August 6, 2018 Council <br /> approval of the project, this project has a project savings amount guaranteed by Johnson <br /> Controls in the amount of$2,537,234. <br /> • The Johnson Controls guaranteed savings exceeds the project investment of$1,981,816 <br /> by$555,418. <br /> • On an annual basis, Johnson Controls and the City of Decatur will evaluate the actual <br /> savings achieved. <br /> • In the event the guaranteed annual savings are not achieved in any given year, Johnson <br /> Controls will reimburse the city with the difference between the guaranteed annual <br /> savings and the actual savings achieved. <br /> Page 2 of 3 <br />