ATTACHMENT #6

Cash Flow Estimates Related to Lot 5 Development
		Year 1	Year 5	Year 10	Year 20
Parking Revenues from Garage		430,000	484,000	561,000	650,000
	Costs related to Lot 5	(30,000)	(34,000)	(39,000)	(45,000)
	Net Revenue	400,000	450,000	522,000	605,000
Additional Property Tax Revenue
	Property Value - 75,665,000, General Fund	180,000	416,000	531,000	678,000
	Property Value - 75,665,000, Transportation Fund	18,000	42,000	54,000	69,000
	Property Value - 75,665,000, Downtown Service District	34,000	83,000	106,000	135,000
Additional Sales Tax
	Assumed Increase in Sales $10 million	63,000	77,000	98,000	125,000
Total Available		695,000	1,068,000	1,311,000	1,612,000
Cost of Debt Service
$7,245,000 borrowed at 5%		725,000	652,050	561,488	380,363
Difference Betweeen Available Revenue and Debt Service		(30,000)	415,950	749,513	1,231,638
Replacement Revenue - Lot 5		(270,000)	(304,000)	(352,000)	(408,000)
Replacement Revenue - Wallace Deck - 21 spaces for affordable housing units		(41,000)	(46,000)	(53,000)	(61,000)
Cash Flow		(341,000)	65,950	344,513	762,638
NOTES AND ASSUMPTIONS
After initial increase in parking revenues, estimated at 43%, parking revenues increase at 3% annually. Property values increase by 5% annually, and the increases are captured every 4 years at revaluation. Sales taxes increase by 5% annually. Cash flow becomes positive in about year 4, depending on the timing of the start of the project.  Because of the timing of the receipt of property taxes, the Town could need as much as $570,000 or as little as $110,000 in the first year to cover costs. In the projections above, we have assumed that the construction would be 50% complete at the time of property tax assessment pertaining to year 1 shown above.  The Off-Street Parking Fund could absorb the costs until the project yields a positive cash flow in about year 4, under the assumptions above. The 21 affordable housing units would be allocated a parking space each in the Wallace Deck.  Those spaces would not be available for hourly parking. Possible revenues from leasing those spaces is not included in the calculations above.