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County financial advisors say projects are feasible but flag $3M short-term gap without new revenue
Summary
Financial advisers told the Grand Traverse County Board that three proposed capital projects can be financed under conservative assumptions, but scenario modeling shows a roughly $2 million shortfall in the most conservative case and that cannabis and other incremental revenues are key to maintaining positive capital balances.
Grand Traverse County commissioners heard that three proposed capital projects could be financed within the county's current revenue footprint under conservative assumptions, but only if certain incremental revenues or policy choices are applied.
Steven Burke of MFCI, the county's financial adviser, told the board his firm ran three scenarios using 30-year amortizations and a conservative 4.75% interest-rate assumption. Under the baseline scenario, which assumes no additional cannabis revenue or TIF (tax increment financing) receipts, Burke said the county would face a shortfall of about $2,000,000 over the next decade. "I think the most important things here as we look at this are I think all of these projects can be completed within the existing revenue…
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