New Financial Consultant on Project: “It Would Generate a Net Negative”
FINANCIAL CONSULTANT PFM STATED TODAY WHEN COMPARING THE NET PRESENT VALUE OF REVENUE STREAMS TO THE COST OF PUBLIC FACILITIES: "THE NET EFFECT WOULD BE YOU'D HAVE A FUNDING GAP...IT WOULD GENERATE A NET NEGATIVE."
At the City Council Meeting Workshop today the City’s new financial consultant PFM presented their analysis of the Government Campus Project. PFM presented their financial calculation for the Net Present Value of revenue streams of the project, which was calculated at $138.2 Million. They then went on to present the cost of Boca’s public facilities as part of the project that Boca would have to pay for, which was calculated at $201.4 Million. The result was that the project, as per the consultant, “would generate a net negative” for the city.
The “funding gap” was presented on slide 52 of the presentation that showed a scenario where the city would take out an up front bond based upon forecasted revenue streams at $114 Million to fund the city’s public facilities. When compared to the $201.4 Million that would be needed for these facilities, there existed a “funding gap” of $87.4 Million.
Slide 52 of the presentation presented the "funding gap" between the cost of the public facilities and a potential bond taken out by the city based on forecasted revenue streams.
Andy Thomson asked PFM, “That $200 Million in terms of cost for the public facilities is not included in here at all is it? What would happen if you included that cost to the Net Present value over 99 years?”
PFM responded, “The net effect would be you’d have a funding gap which is kind of what we have…it would generate a net negative.”
CLICK ABOVE TO WATCH PFM STATE PROJECT WOULD "GENERATE A NET NEGATIVE"