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Where will that money come from? if the voters
approve, we will borrow through general obligation bonds
$14,050,000. General obligation bonds is the least
expensive way that any hospital can borrow money today
for this type project. The $14,050,000 is what we are
seeking in general obligation bonds. We hope to add
$6 million from the hospital. That is broken as
follows: We have $2 million currently in reserve for the
project, $2 million. Over the next three years, we will be
permitted to make $3 more million to contribute to the
project, and we are anticipating approximately $1 million
in a grant from a private foundation. six million dollars
will come from present reserves. Two million, three million
which will be earned over the next three years and $1
million that we are expecting to get in a grant.
We will also earn interest during construction if the
bonds are issued at the beginning of construction, and that
amounts to a little over $2 million.
As may be able to see, all of these projections are
based on a 12% interest rate. Twelve per cent is the interest
rate that we were anticipating even three weeks ago when
our latest financial feasibility study was completed. Last
week, New Hanover County in this state issued general
obligation bonds at just a little under nine per cent.