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ACTIA 2002 -26 <br /> APPENDIX E <br /> POLICY REGARDING PROGRAM FINANCING COSTS <br /> INTENT <br /> ACTIA wishes to implement all of the PLAN projects as soon as possible. in order to do this, <br /> demands for funds may temporarily exceed income during the duration of the Program. In order <br /> to meet these demands, ACTIA may borrow against future income. Should this become <br /> necessary, the cost for such financing shall be attributed to Capital Projects included in the <br /> PLAN and any PLAN programmatic expenditures requiring advanced funding. <br /> POLICY <br /> It is difficult if not impossible to determine which projects are using borrowed funds and which <br /> projects are using accumulated income. In order to simplify and provide equity to all <br /> SPONSORS, the following policy shall be used. <br /> If the ACTIA Board determines that it is in the best interest of the PLAN to sell bonds, or <br /> otherwise incur financing costs to develop projects, the cost of bonding and financing, including <br /> interest payments, shall be considered a PLAN cost and shall be identified in the ACTiA <br /> Strategic Plan as the first priority repayment. The financing costs will reduce the overall funding <br /> level available to be distributed to all projects. <br /> if Programmatic Expenditures in the PLAN require the advancement of funds, funds shall be <br /> repaid to ACTIA with interest. Interest shall cover the specific Programmatic Expenditure share <br /> of financing costs and interest. <br /> Final 5/16/02 Page D -9 <br />