Estimated Costs and Funding of New Facility
In creating the Capital and Facility Acquisition Plan, NSSRA estimated new facility construction and land
acquisition costs of $3,850,000 (without interest). Taking into account a 20 year bond issuance that includes
interest costs of $831,531, the total estimated cost for the new facility is $4,681,531. NSSRA’s goal is to have
$770,000 of the costs of the new facility supported from outside sources including NSSRA Foundation, grants,
and donations through a capital campaign targeting all supporters and users of NSSRA. Partner agencies and
NSSRA will fund the remaining costs through partner agency contributions, 20 year bond issuance, NSSRA fund
balance allocation and sale of current NSSRA building.
The following is a detailed explanation and corresponding tables that demonstrate the estimated costs and
funding sources for a new facility for the next 25 years assuming an acquisition date in 2018.
Partner Agency Contributions for New Facility: $3,217,531
1.
Partner Agency Contributions 2014 – 2018: $616,000
Based on the estimated acquisition date of 2018, the Capital and Facility Acquisition Plan will require partner agencies
to contribute $123,200 annually until a new facility is acquired. These funds will be reserved in a capital account to be
applied to the purchase of a new facility.
2.
20 Year Bond Issue 2019 – 2038: $2,601,531
On page 9 is the Estimated Debt Service after Call Provision table from Eric Anderson of BMO Capital Markets. This
table demonstrates the costs of a 20 year bond issuance by NSSRA for $2,540,000. A call provision is embedded that
allows use of funds from the sale of the building and capital funds collected from outside sources to be applied toward
the payment of bonds at year eight. Please note the list of assumptions perta ining to the bond issuance.
• An estimated all-inclusive interest rate of 3.95% is being used
• $2,540,000 is financed
• In year eight of the bond issuance, the call provision is utilized with $770,000 going toward bond payoff coming
from the sale of the building ($500,000) and the remaining amount of funding from outside sources ($270,000)
o The current NSSRA building will be sold after acquisition of the new facility. Proceeds from the sale
($500,000 will be reserved and applied to bonds at call in year eight of bond issuance.
o Funds raised after the acquisition of the new facility through a capital campaign and from
NSSRA Foundation for the new facility ($270,000) will be applied to bonds at call in year eight of bond
issuance.
3.
Explanation of Why $2,540,000 of the Facility Cost will be Financed Through a 20 Year Bond Starting in 2019:
Initial Estimated Facility Costs (without interest): $3,850,000
Cash Available for Purchase of Facility in 2018*: $1,310,000*
Amount Financed Through 20 Year Bond Issuance: $2,540,000
*Source of Funds Available for Purchase in 2018:
NSSRA Partner Capital Contribution 2014 – 2018 ($123,200/year x 5 years) $ 616,000
NSSRA Fund Balance Allocation $ 194,000
NSSRA Foundation Capital Donation in 2018 $ 250,000
Private Family Donation in 2018 $ 250,000
Total Cash toward Facility in 2018 $1,310,000
NSSRA Facility Acquisition Plan
7