Council 7-28-2026 [28:33-33:34]

And then we are assuming the repayment term to be 20 years, so the max you can repay bonds is 20 years, so we can't go out any farther than that, so we are assuming the maximum repayment, and then estimate interest expense to be a little over 1.2 million. What I do want to point out with the interest expense is we are running this off of 5.5% interest rates. I did get fresh off the press today from our pricing director, interest rates as of today, so again, estimate at 5.5, and then today it would be closer to 4.5. So there is buffer built in, so to kind of give you an idea of that 4.5 interest rate, you would be looking at around 995,000 interest versus the 1,210,000. So I just wanted to make sure, you know, we're kind of showing maximum numbers. And then as Allison mentioned, with the issuance of these and being able to use capitalized interest, we are able to manage the property tax levy, meaning that the property taxes that the library asked for in 2026 would be the same that they would ask for in 2027, so there would be no increase from a taxpayer to issue these months. And we are in our assumptions assuming 2026 assess value, as I mentioned in general, in the geocupacity calculation, because that's the latest data that we have. So we never make assumptions and growth or anything like that when we're projecting out. And then if we go to the last slide, so if you're a visual person like I am, this is a graph. And so the teal bars are those 2013 geobonds, again, falling off in 2027. And then in the yellow are the 2026 geobonds, and in that kind of barber shop, looking bold, that is the estimated capitalized interest, again at around 80,000. And the reason just touching on this so for the first year in 2027, we're assuming interest only. So there's no principle in that first year. So after we do that, the only other option we have to help manage without to not increase taxes is to use capitalized interest. So that's why we're using it is to be able to manage property taxes so that there isn't an increase to a taxpayer. So that's why that is. And again, we would assume that would be lower just based on if interest rates come in lower and as of today, if we sold them today. So I didn't want to throw that in there as well as to why there is capitalized interest in that first year. Just to clarify, are there any questions? This has to increase in sales rate. Yes, right, great, yes. That's a lot of interest to pay though. Now that's for 27 correct, no increase in 27, and this is showing away through 2045. Correct. And so on the graph, if you see, we're assuming, okay, we're holding your property tax levy constant. We don't know where AV is going to come in the next 20 years, right? If, I mean, and the law could change, I mean, there's so many things that could change. So right now we're saying, yes, we can say there's no property tax levy increase for 2027. I can't tell you for 20 years what's going to happen, right? But that would, we would be able to manage the levy with everything we know as of today with these payments that we have on these future years. So to us, there would be no levy increase unless something would change, which could have happened as you all know, I'm sure, but with everything we know today, yes, they would be able to manage their property tax levy with no increase with these bonds being issued. Now, if they decide to, you know, there could be additional bonds or anything like that, but like with these alone, we can say that no property tax levy increase. Good. Yeah. Any question? So we're looking at, like, $285,000 in fees and attorneys, so we have, so all the fees, so we get all those fees from, so we like attorneys, so yeah, like bond council, local council, if we, again, depending on method of sale, we would go through maybe an S&P rating. And what I'm showing today is like cost insurance being $200,000 for the method of sale that we'll probably end up issuing, it will be lower than $200,000. So again, with the buffer, like, we're kind of like, here's our max, you know, if we do everything, and if it's that kind of the highest point, like $200,000, what we would say, but it'll, we can protect that it would most likely come in lower than that, especially depending on how we end up selling the bonds. You know, we could go bond bank with these competitive, those are still conversations that we're having with Allison over the next few weeks as well. So, and that's all, you know, we get that from our pricing director to, like, that direction. You know, if interest rates flip or something happens, we want to be able to pivot and really put the library in the best position on what's going to get them the best on day of sale. So, so yes, $200,000 is what we're asking me right now for cost insurance, at a conservative number. Okay. Any further questions?