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Advisors present multi-year finance plan tied to casino revenues; council urged to keep $15M reserve
Summary
Financial advisors presented a multi-year plan on June 17 tying capital spending to guaranteed casino payments and recommending a $15 million reserve plus a $30 million short-term line of credit.
The city's financial advisor presented a multi-year strategic finance plan on June 17 outlining options to fund an estimated $250 million of capital projects tied to revenues from the new Cordish casino. The advisor, David Rose of Davenport & Co., described a conservative approach that centers on (a) preserving an initial $15 million "downturn reserve" from Cordish's guaranteed payments, (b) establishing a $30 million short-term line of credit to provide interim cash flow for pay-as-you-go projects, and (c) borrowing only for roughly two-thirds of the identified projects while paying the remainder in cash as revenues materialize.
Rose said Cordish has negotiated a schedule of guaranteed upfront payments to the…
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