Summary of Results by Bond Issuance
Construction Costs
T-Hangars		$870,000	$43,500	per T-Hangar
Site Prep		$409,075
Admin & Engineering		$69,000
Construction Svcs		$30,000
Total Construction Costs		$1,348,075
Revenue Returns
Issue Year	2011
Rental Rate	$255	per month
Escalation	1%	rent rate escalates 1% per year, starting in Year 3, reflecting occasional lease renewals and
		new lease agreements.
Occupancy	95%	95% occupancy achieved in Year 3 and maintained thereafter.
Revenues	$1,990,706
Bond Term	Interest Rate	Interest Costs	Net Subsidy*	Average City Subsidy, First 12 Years	Breakeven Year	Present Value, 6% Discount**	Present Value, 5% Discount**
12 Year	4.00%	$425,824	($141,806)	($83,975)	2031	($40,366)	$59,832
20 Year	4.77%	$876,486	$308,856	($45,140)	2034	($67,565)	($7,645)
30 Year	5.11%	$1,461,344	$893,713	($25,175)	2034	($67,968)	($48,790)
Bonds valued over a 30 year period
*Represents total payments from other hangars needed to pay principal and interest on new debt.
A negative number means that the new hangars receive no subsidy to pay off principal and interest.
** Present value is revenue from all T-Hangars less ongoing expenses for all T-Hangars, less debt payments on new T-Hangars.
Recommendation:
*12 Year bond
*Develop revenue account system for T-Hangars at airport (if needed)
Account system should allow for tracking all costs, balance of debt, and net subsidies from general fund to pay debt
*Policy: no T-Hangar can subsidize additional T-Hangars until the revenue received from the new t-hangars
has fully paid off the principal and interest on construction.