Laserfiche WebLink
ACTIA 2002-26.01 <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 />Page D-9 <br />