Record — Page 0106
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- Technology Services
Hi, Ken.
I'm sorry that I am just getting back to you now. I lost your e-mail in the torrent that I get every day.
The $500,000 BAN will be paid back in June of 24.
The authorization is for $850,000, and we have received $398,601 so far from the MSBA.
So the new BAN amount (taken out in June 24) only has to be for $850,000-$398,601 = $451,399.00
I have a pending MSBA reimbursable amount of $50,068. Assuming we get that, the new BAN amount will only have to be for $401,331.00 ($451,399-$50,068)
There is $32,987.30 left in the budget for the project. Assuming that they spend it all and submit for reimbursement and get it, that would be another $18,245 in
reimbursement. The new final BAN amount would be $401,331-$18,245 or $383,086.00.
The payoff schedule would be as follows:
FY23 Year 1 - no paydown
FY24 Year 2 - no paydown
FY25 Year 3 - $49,754
FY26 Year 4 - $166,666
FY27 Year 5 - $166,666
Total BAN Paydowns: $383,086.00.
You could long-term bond for the amount, or you could continue to BAN the amounts with the above paydowns. If you have the free cash, it would make sense to
pay off the BANs completely, because the interest rate you will be charged on the BANs will be more than the interest rate you will get by keeping the money in the
bank.
Does this help?