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Finance Committee Packet July 7, 2025MARCH 3, 2025; FINANCE COMMITTEE MEETING AGENDA PAGE 1 FINANCE COMMITTEE MEETING AGENDA MONDAY, JULY 7, 2025 MEETING BEGINS AT 12:00 PM 100 MIKAELA WAY, AVON CO 81620 1.CALL TO ORDER AND ROLL CALL 2.APPROVAL OF MAY 7,2025 MINUTES 3.PUBLIC COMMENT [Public comments are limited to three (3) minutes. The speaker may be given an additional one (1) minute, which may be approved by a majority of the Committee.] 4.NEW COMMITTEE MEMBERS: INTRODUCTION OF NEW FINANCE COMMITTEE MEMBERS (PAUL REDMOND, CHIEF FINANCE OFFICER) 5.PUBLIC HEARING: EARLY CHILDHOOD EDUCATION CENTER FUNDING AGREEMENT (PAUL REDMOND, CHIEF FINANCE OFFICER) 6.WORK SESSION: PRESENTATION ON 15 SUN ROAD (PAUL REDMOND, CHIEF FINANCE OFFICER) 7.NEXT COMMITTEE MEETING DATE: September 8, 2025 8.ADJOURNMENT FUTURE AGENDAS: MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK MIGUEL JAUREGUI CASANUEVA AT 970-748-4001 OR EMAIL MJAUREGUI@AVON.ORG WITH ANY SPECIAL REQUESTS FINANCE COMMITTEE MEETING MONDAY, MAY 5, 2025 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 5th 2025 1 | 2 1. ROLL CALL Present in Person: Committee members John Widerman, Lisa Post, Steve Coyer and Councilors Kevin Hyatt and Lindsay Hardy. Present Virtually: Committee Member Clark Rogers, Town Manager Eric Heil Absent: Committee member Markian Fedeschuk. Staff: Deputy Town Manager Patty McKenny, Chief Financial Officer Paul Redmond, Finance Manager Joel McCracken, Financial Analyst Chase Simmons, Recreation Director Michael Labagh and Chief Administrative Officer Ineke de Jong as Secretary. The meeting was called to order by CFO Paul Redmond at 12:05 p.m. 2. APPROVAL OF MARCH 3RD, 2025 MINUTES Committee member Lisa Post moved to approve the minutes. Committee member John Widerman seconded that motion and it passed 4 to 0 with the 4 voting committee members present. 3. PUBLIC COMMENT There was no public comment. 4. WORK SESSION: RECREATION CENTER REFRESH (MICHAEL LABAGH, RECREATION DIRECTOR) Recreation Director Michael Labagh took the Finance Committee through the Recreation Center presentation including the background of the rec center since opening its doors. He then jumped into the Facility Condition Assessment study / evaluation which evaluates all the components for maintenance & upkeep. And then showed an overview of the minimum refurbishment required including the roof, water slide, hot tub repairs, HVAC and plumbing, electrical infrastructure, pool pumps and a few other items. Then he took the group through a potential addition, showing the basic expansion option, and the financial considerations and significant operational impact of the closure needed for this renovation. Some questions & comments raised by the committee: 1) Is this expansion mainly to increase capacity? Just to keep up with a growing community? Will we attract more people? Will we add additional programs & offerings? 2) What is the breakdown of local versus visitors use of the rec center facility? 3) What is the facility’s useful life after renovations? How far forward will it push the facility’s capacity? 4) Should the rec center be relocated to the area near Walmart, planning area A where a park is planned? And then we could repurpose the current building for something that needs to be in close proximity to the park. 5) Would admission prices be raised to balance supply & demand? 6) Would a reservation system return to manage capacity better? 7) Would a parking structure be included in the expansion plans? Parking is so expensive and perhaps habits should change to “walk or bike to your workout”. 8) The estimated cost of $7.7Mln does not seem accurate and reviewing and getting a more accurate number to present would be helpful for everyone. 9) Could there be a cost benefit to doing 3 levels in the addition, do a cost analysis of going down FINANCE COMMITTEE MEETING MONDAY, MAY 5, 2025 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 5th 2025 2 | 2 half a level and then adding 2 levels on top. 10) If we shut down the pool for 3 months then we should probably go ahead and do all the required pool maintenance for the next 10-20 years? 11) Expect low voter appetite for mill levy to pay for this expansion. Steve Coyer left the meeting at 12:37 p.m. As this was a work session, no motion was made. Eric Heil left the meeting at 1:03 p.m. 5. PRESENTATION: 1ST QUARTER GENERAL FUND R EVIEW (CFO PAUL REDMOND) Chief Financial Officer Paul Redmond presented the 2024 financial update. We ended the year with a surplus, even after moving out $2,600,000 dollars to fund the public works garage. The finance team has started quarterly meetings with each division/department to see how they are tracking on the 2025 budget. It has been well received and all departments are right on track with their 2025 budget. As this was a presentation, no motion was made. 6. WORK SESSION: 2026 BUDGET PROCESS TIMELINE (CFO PAUL REDMOND) Chief Financial Officer Paul Redmond explained that staff will be starting the 2026 budget process soon. We kick off with department presentations to Council between now and July. Then next steps are review of the Town’s health plan and staffing projections for the next 3-5 years. Finance is assessing what projects would potentially build out and what growth is expected and the impacts they will have on community needs for staffing levels. In the summer staff will review capital projects and a deep-dive budget review with each division/department. As this was a work session, no motion was made. FINANCE COMMITTEE MEETING MONDAY, MAY 5, 2025 HYBRID MEETING; IN-PERSON AND ON TEAMS Finance Committee Meeting, May 5th 2025 3 | 2 7. NEXT COMMITTEE MEETING DATE Monday, July 7th at 12:00 p.m. 8. ADJOURNMENT Committee Chair John Widerman moved to adjourn the meeting. Committee member Lisa Post seconded that motion and the meeting adjourned, the time was 01:20 p.m. Respectfully Submitted by: Ineke de Jong, Chief Administrative Officer. These minutes are action minutes and only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. 970.748.4088 predmond@avon.org TO: Finance Committee FROM: Paul Redmond, Chief Finance Officer RE: Early Childhood Education Center Funding Agreement DATE: May 28, 2025 SUMMARY: This report presents a draft funding agreement between the Avon DDA and Town of Avon to provide funding to Eagle River Valley Childcare (“ERVC”) for the construction of an early childhood education facility on the eastern part of Planning Area E, Village (at Avon). The Vail Valley Foundation is the organization that is leading the design, funding, construction and programming of this Facility. Vail Valley Foundation formed ERVC as a non-profit entity to oversee this Facility and hopefully additional early childhood education facilities in Eagle County. ERVC is controlled by the Vail Valley Foundation. The funding agreement approves remittance of $400,000 of Avon DDA tax increment financing funds received by the Avon DDA to the Town of Avon, who will then provide the funds to ERVC. The Avon DDA Plan describes the procedure for approval of use of tax increment financing revenues and approval of projects. BACKGROUND: This Facility will be 13,600 sq.ft. with twelve classrooms and will have capacity for 160+ children ages 0-5. The estimated construction cost is $13,500,000. Vail Valley Foundation is in the process of raising these funds from private donors and through investments by various employers based in Eagle County that secure a limited number of enrollment positions. Vail Valley Foundation hopes to begin construction this July and complete construction and open by October 2026. The Town of Avon received the Property as a dedication for school purposes under the Village (at Avon) Planned Unit Development Guide and the Consolidated, Amended, and Restated Annexation and Development Agreement (“CARADA”). Vail Valley Foundation conducted a request for proposal process for an Operator and selected Access Early Education and founder Jennifer Knott, who has successfully opened early childhood education facilities in Glenwood Springs, Rifle, Grand Junction and Crested Butte. On April 8th, 2025 the Avon Town Council approved a 50-year land lease with ERVC with the lease beginning on May 1, 2025. Avon Contributions: In addition the 50-year Land Lease, the Town of Avon would contribute the following:  Construction of a bus stop (estimated costs $50K to $70K)  Installation of Photovoltaics and Battery Capacity (estimated costs $100,000)  Cash contribution of $400,000, coming from the Avon Downtown Development Authority funds and conditioned upon approval of agreement between Town of Avon and Avon DDA  Complimentary passes to Avon Recreation Center for all employees of the Facility  Waiver of Use Tax, Sales Tax, Real Estate Transfer Tax (estimated value of $270,000)  Waiver of Plan Review and Building Permit Fees (estimated value of $113K) Page 2 of 3  Avon would receive a de minimus ownership interest in the Facility so that it is exempt from property taxes to all jurisdictions. PROJECT REVIEW: The Avon DDA Plan specifically contemplated the use of Avon DDA tax increment financing to support construction of an early childhood education facility. The third recital of the Funding Agreement references the language in the Avon DDA Plan as follows: WHEREAS, Section 5.3 of the Avon Downtown Development Authority Plan document, dated Oct 2, 2023 (“DDA Plan”), states in part, “Support for early childhood education facilities will also enhance the attractiveness of the Downtown Area as a desirable place for workforce living ; Section”; 6.5 of the DDA Plan identifies an early childhood education center as a project that may benefit from financial support from the DDA; and Section 7.3.b. of the DDA Plan contemplates that Avon and the DDA would enter into agreements to provide financial assistance in support of development projects consistent with the DDA Plan; PROCESS: Section 8.0 of the Avon DDA Plan states: 8.0 PROJECT APPROVAL PROCESS. Projects which are proposed to be financed in whole or in part with DDA tax increment financing sources shall be reviewed by the DDA Board to determine if such project advances the purposes and objectives in this DDA Plan. The DDA Board shall conduct such work sessions as are appropriate. Projects be subject to: review and recommendation by the Avon Planning and Zoning Commission as set forth in the Avon Development Code; review, comment and recommendation by the Avon Financing Committee; and review and concurring approval by Council. The DDA Board, Avon Planning and Zoning Commission, Avon Finance Committee and Council shall each conduct a public hearing prior to taking final action or providing a recommendation. Avon Staff is scheduling public hearings by Avon Planning and Zoning Commission on June 9, 2025, Avon Finance Committee on July 7, 2025, and Avon Town Council on July 22, 2025. FINANCIAL CONSIDERATIONS: The DDA is asked to consider a funding agreement with ERVC. The DDA would make a financial donation not to exceed $400,000 over a three-year period dependent on the cash flow of the DDA. Per the DDA documents, at least fifty (50%) percent of the DDA revenues should be designated for Community Housing. The revenues anticipated in 2025 are $412,000. 50% would amount to $206,000. Property tax revenues are received in the fall after Eagle County conducts all property tax collections. The funding would be used for the construction of the Early Childhood Education Center. Projected funding to ERVC is as follows: 2025 – estimated $200,000 2026 – estimated $200,000 TOTAL $400,000 RECOMMENDATION: Staff recommends approval of a funding agreement. This will be a great use of DDA funds and benefit our community by adding much needed additional pre-school capacity serving the Avon community. Attachment A, is a draft fund agreement with ERVC and is subject to attorney review. If Page 3 of 3 approved, Staff will bring Resolution 25-01 Amending the 2025 budget to an Avon DDA meeting later this summer. TOWN MANAGER COMMENTS: The estimated cost for the ERVC facility has increased over the last year. The Town of Avon offered support in a variety of areas in addition to providing the land. We understand that VVF is raising $13+ million to fund construction of the facility. This project represents a collaborative partnership to achieve a high quality and high capacity facility that will serve an important public need. The Northwest Colorado Council of Governments early childhood education report documents the need and importance of such facilities to support the regional workforce. I support this project and the funding from the Avon DDA. PROPOSED MOTION: “I move to approve the Eagle River Valley Childcare Funding Agreement with the Town of Avon as presented subject to review and revision by the Town Attorney”. Thank you, Paul ATTACHMENTS: ATTACHMENT A: Draft ERVC Funding Agreement DRAFT DRAFT Funding Agreement – Early Childhood Education May 30, 2025 Page 1 of 2 FUNDING AGREEMENT EAGLE RIVER VALLEY CHILDCARE FACILITY THIS FUNDING AGREEMENT (“Agreement”) is entered into on July 1, 2025, by and between the Avon Downtown Development Authority, a Colorado Authority (“DDA”), and Town of Avon, a Colorado Home Rule Municipality (“Avon”), (collectively referred to as the “Parties”). RECITALS WHEREAS, Eagle River Valley Childcare desires to support early childhood education in the Avon community and construct a 13,600 sq ft facility to be located on the eastern portion of Planning Area E, in the Village (at Avon) (“Facility”); WHEREAS, Avon approved a Land Lease with Eagle River Valley Childcare stating that Avon, through the DDA, would provide $400,000 in funding to support the construction of the Facility; WHEREAS, DDA and Avon desire to promote an early childhood education center in the Avon community; WHEREAS, Section 5.3 of the Avon Downtown Development Authority Plan document, dated Oct 2, 2023 (“DDA Plan”), states in part, “Support for early childhood education facilities will also enhance the attractiveness of the Downtown Area as a desirable place for workforce living; Section”; 6.5 of the DDA Plan identifies an early childhood education center as a project that may benefit from financial support from the DDA; and Section 7.3.b. of the DDA Plan contemplates that Avon and the DDA would enter into agreements to provide financial assistance in support of development projects consistent with the DDA Plan; WHEREAS, Avon and the DDA find that the construction and operation of the early childhood education facility proposed by Eagle River Valley Childcare will promote the purposes stated in Section 1.2 of the DDA Plan, will provide an attractive, high-quality amenity for full-time residents in the area, and will promote the healthy, safety and general welfare of the Avon community; and WHEREAS, Section 8.0 requires the DDA, Avon Planning and Zoning Committee, the Avon Finance Committee and Avon Town Council to hold a public hearing on projects proposed to be financed in part by the DDA, and the DDA held a public hearing on June 2, 2025, the Avon Planning and Zoning Commission held a public hearing on June 9, 2025, the Avon Finance Committee held a public hearing on July 7, 2025, and the Avon Town Council held a public hearing on July 22, 2025. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND COVENANTS CONTAINED HEREIN, AVON AND ERVC AGREE AS FOLLOWS: 1.CONSTRUCTION SUPPORT: DDA agrees to remit to Avon FOUR HUNDRED THOUSAND DOLLARS ($400,000) (“Construction Support”) commencing on October 1, 2025, and payable each year in the amount of 50% of the total tax increment funds received, less administrative costs, until the total Construction Support amount has been paid to Avon. Avon agrees to use the funds to remit to Eagle River Valley Childcare exclusively for the purpose of defraying the cost of construction of the Facility. 2.Term of Agreement. This Agreement shall be effective until the Construction Support is paid in full to Avon, and then this Agreement shall automatically expire. 3.Modification. This Agreement contains the entire agreement between the Parties, and no agreement shall be effective to change, modify, or terminate in whole or in part unless such Attachment A DRAFT DRAFT Funding Agreement – Early Childhood Education May 30, 2025 Page 2 of 2 agreement is in writing and duly signed by the Party against whom enforcement of such change, modification, or termination is sought. 4.NO WAIVER OF GOVERNMENTAL IMMUNITY: Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to Avon or the DDA, its officials, employees, contractors, or agents, or any other person acting on behalf of Avon and the DDA and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes. 5.NO THIRD-PARTY BENEFICIARIES: Nothing contained in this Agreement is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party, including any agent, sub-consultant or sub-contractor of contractor. Absolutely no third-party beneficiaries are intended by this Agreement. Any third-party receiving a benefit from this Agreement is an incidental and unintended beneficiary only. 6.Article X, Section 20/TABOR. Avon and DDA understand and acknowledge that Avon and DDA are subject to Article X, §20 of the Colorado Constitution ("TABOR"). The Parties do not intend to violate the terms and requirements of TABOR by the execution of this Agreement. It is understood and agreed that this Agreement does not create a multi-fiscal year direct or indirect debt or obligation within the meaning of TABOR and, therefore, notwithstanding anything in this Agreement to the contrary, all obligations of the Parties are expressly dependent and conditioned upon the continuing availability of funds beyond the term of the Parties’ current fiscal period. Financial obligations of the Parties payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available in accordance with the rules, regulations, and resolutions of the Parties, and other applicable law. Upon the failure to appropriate such funds, this Agreement shall be terminated. 7.Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. The Parties agree that venue in any action to enforce or interpret this Agreement shall be in the District Court for Eagle County, Colorado. AVON DOWNTOWN DEVELOPMENT AUTHORITY: BY:__________________________________ ATTEST:__________________________________ Tony Emrick, Chairperson Chris Neuswanger, Secretary AVON TOWN COUNCIL: BY:__________________________________ ATTEST:__________________________________ Tamra N. Nottingham, Mayor Miguel Jauregui Casanueva, Town Clerk (970)748-4088 predmond@avon.org TO: Finance Committee Members FROM: Paul Redmond, Chief Finance Officer RE: 15 Sun Road DATE: July 2, 2025 SUMMARY: The Town has recently gone under contract to purchase the property at 15 Sun Road, which is listed for sale at $7,140,000. The purchase agreement is for $6,999,720, with an anticipated closing date of September 16, 2025. Finance staff have been reviewing several potential financing options, including interfund borrowing, local bank placement, direct leases, and certificates of participation (“COP’s”). The property currently has a lease with the Walgreens Company, which has the option to renew in 2037. Due to the existing lease, the Town is unable to pursue tax-exempt financing and must consider taxable financing options, which typically offer higher interest rates. This opportunity would allow the Town to move forward with the redevelopment plan in 5-7 years. Staff welcomes any input the Finance Committee has which would be communicated to Council on July 22, 2025. BACKGROUND: The Town of Avon and the Avon Downtown Development Authority (“DDA”) have approved the SUN ROAD Redevelopment Plan. The Town received a $200,000 grant to perform conceptual and fiscal analysis of the Sun Road redevelopment. Avon Station has seen a dramatic growth with transit services (Pegasus, Bustang, Core Transit, etc.) and there is likely a need to redirect these services to a transit hub closer to the interstate. The services requested are: Transit Capacity and Facility Planning: During the Sun Road Redevelopment plan formulation, the concept for a relocated (partial or entire) transit center was discussed as an option. This study will project 25+ year growth for transit in Avon’s existing transit hub and determine if all or portions make sense for Sun Road. This effort will lead the conceptual design phase since mobility requirements will greatly affect access and master-planned site attributes. Conceptual Design: Seeking a design team that is versed in mountain, multi-use, complicated projects that include phased elements. This will likely involve an architecture firm that has experience combining transit-oriented development in a mountain community. The DDA and Planning and Zoning Commission (“PZC”) will be involved early and often in the process, which will likely begin with a design charette involving property owners and interested stakeholders. Final conceptual plans will be vetted with a fiscal analysis. Fiscal Analysis: Once conceptual design plans are finalized with a general level of acceptance from DDA and the Avon Town Council, a detailed financial analysis will be performed. This Request for Proposal (“RFP”) will go out during the design phase. The selected consultant will develop a cost analysis, perform a range of revenue projections, create a financial model, risk analysis, feasibility analysis, and recommendations for potential funding sources. LEASE: The current lease at 15 Sun Road generates annual rents of $410,592. Additionally, the lease allows the lessor to collect 2% of gross revenues, excluding food and prescription drug purchases, and 0.5% of gross revenues for prescription drug and food sales. The lease also permits the lessee to deduct property insurance and property taxes from the gross rents. In recent years, these deductions have been so substantial that they have negated any additional rental revenue beyond the standard rents. If the Town were to purchase this property, the approximate $77,000 in property taxes would be exempt, and the tenant would be charged a possessory interest. Staff anticipates this possessory interest to be $7,500 per year. Page 2 of 2 We expect the annual rent to be approximately $500,000, as property taxes will no longer require payment. The lease includes an option to renew in 2037. FINANCING OPTIONS: Staff has reviewed several financing opportunities to purchase this property. The goal is to reduce the annual debt payments to match the projected rental income. One option considered was interfund borrowing, where the Town would use reserves from the Equipment Replacement and Capital Improvement Funds to close with cash. The Town would execute an internal loan at an interest rate matching our current returns from the Colotrust account, which is 4.5%, and then make annual payments back to these funds. However, staff does not think this is viable as it would limit future projects for the Town, including road repairs. Staff also asked a local bank to review financing options. The bank returned with an interest rate of 6.85% and required a large cash payment from the General Fund unrestricted reserves. Additionally, staff asked two investment banks to propose different financing options for a 20-year financing with a 10-year call, including COP’s and Direct Leases. Direct leases are typically cheaper to close but carry a higher interest rate as they are placed directly with a bank. Currently, COP’s offer a lower interest rate than local banks. After reviewing the options, staff recommended a 20-year taxable COP with a 10-year call at an interest rate of 5.97%. This option includes a $1.5 million contribution from the Town’s General Fund to achieve annual debt payments of approximately $500,000. The 2025 unrestricted ending fund balance for the General Fund balance is projected to be $13.8 million and the this contribution would reduce the fund balance to $12.3 million. Staff has asked Piper Sandler to work with the Town’s bond counsel, Butler Snow, to pursue this financing option. TIMELINE: Attached is a previously proposed timetable (Attachment A) outlining the next steps in the process. At the July 22, 2025 Council meeting, Staff will present the Purchase Agreement (Attachment B) and the first reading of an ordinance authorizing COP financing. More updates will be provided to this Committee in the coming weeks and months. Thank you, Paul ATTACHMENTS: Attachment A - Piper Sandler Timetable Attachment B – Purchase Agreement Attachment C – 15 Sun Road Financing Options Town of Avon Certificates of Participation, Series 2025 Timetable – June 4, 2025 Date Event Parties 6/10/25 Kick-Off Call All 7/1/25 First Draft of POS Distributed to Working Group BC 7/9/25 Call to Review POS & Financing Documents All 7/18/25 Second Draft of POS Distributed to Working Group BC 7/21/25 Send Financing Package to Rating Agencies & COP Insurers UW 7/22/25 Council Meeting – Authorize Parameters Resolution I, BC, UW 7/28/25 Rating Call I, UW 7/29/25 Distribute Due Diligence Questionnaire UW 8/5/25 Due Diligence Call I, BC, UW 8/5/25 Receive Rating I, UW 8/6/25 Receive COP Insurance Bids I, UW 8/11/25 Post the POS BC 8/18/25 Pre-Pricing Call I, UW 8/19/25 Pricing & Sign the Certificate Purchase Agreement I, BC, UW 8/28/25 Closing All Financing Team: I - Town of Avon BC - Butler Snow UW - Piper Sandler PA - UMB Su M Tu W Th F Sa Su M Tu W Th F Sa Su M Tu W Th F Sa 1 2 3 4 5 6 7 1 2 3 4 5 1 2 8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 29 30 27 28 29 30 31 24 25 26 27 28 29 30 31 JUNE 2025 JULY 2025 AUGUST 2025 Attachment A pipersandler.com | 1 Town of Avon Taxable COP Numbers Update June 30, 2025 Robyn Moore MANAGING DIRECTOR (303)405-0845 robyn.moore@psc.com Andrew Ma ASSISTANT VICE PRESIDENT (303)405-0852 andrew.ma@psc.com Attachment B pipersandler.com | 2 Taxable COP Sample Numbers •Piper Sandler has structured two COP scenarios with various project fund sizings ($5.8M vs $5.5M) repaid over a 20-year term length. We provide a comparison of financing statistics below and cash flows to the right. •A $5.8 million project fund produces an annual payment of approximately $525,000. A project fund sizing of $5.5 million achieves ~$500,000 of annual repayment based on current interest rates. $5.8M $5.5M Net Proceeds to the Town $5,800,000 $5,500,000 True Interest Cost 5.98%5.98% Total Debt Service $10,513,392 $9,988,212 Avg. Annual Debt Service $525,670 $499,411 Final Maturity 12/1/2045 12/1/2045 Taxable COP Summary Statistics * rates as of 6/6/25 and subject to change; A+ COP rating assumed; issuance costs estimated Year $5.8M $5.5M 2026 $526,595 $499,976 2027 $528,492 $501,548 2028 $524,402 $497,937 2029 $525,009 $499,025 2030 $524,948 $499,455 2031 $524,180 $499,188 2032 $524,753 $500,180 2033 $527,439 $498,390 2034 $523,979 $500,737 2035 $524,851 $497,152 2036 $524,770 $497,894 2037 $527,109 $501,147 2038 $528,230 $498,181 2039 $528,133 $499,302 2040 $526,818 $499,205 2041 $524,285 $497,890 2042 $525,534 $500,357 2043 $525,260 $501,302 2044 $523,464 $500,724 2045 $525,146 $498,623 Total $10,513,392 $9,988,212 Debt Service Schedule Comparison pipersandler.com | 3 Detailed Taxable COP Repayment Schedules Rates as of 6/6/25 and subject to change Year Principal Interest Debt Service 2026 $95,000 $431,595 $526,595 2027 $190,000 $338,492 $528,492 2028 $195,000 $329,402 $524,402 2029 $205,000 $320,009 $525,009 2030 $215,000 $309,948 $524,948 2031 $225,000 $299,180 $524,180 2032 $235,000 $289,753 $524,753 2033 $250,000 $277,439 $527,439 2034 $260,000 $263,979 $523,979 2035 $275,000 $249,851 $524,851 2036 $290,000 $234,770 $524,770 2037 $310,000 $217,109 $527,109 2038 $330,000 $198,230 $528,230 2039 $350,000 $178,133 $528,133 2040 $370,000 $156,818 $526,818 2041 $390,000 $134,285 $524,285 2042 $415,000 $110,534 $525,534 2043 $440,000 $85,260 $525,260 2044 $465,000 $58,464 $523,464 2045 $495,000 $30,146 $525,146 Total $6,000,000 $4,513,392 $10,513,392 $5.8M Project Fund Year Principal Interest Debt Service 2026 $90,000 $409,976 $499,976 2027 $180,000 $321,548 $501,548 2028 $185,000 $312,937 $497,937 2029 $195,000 $304,025 $499,025 2030 $205,000 $294,455 $499,455 2031 $215,000 $284,188 $499,188 2032 $225,000 $275,180 $500,180 2033 $235,000 $263,390 $498,390 2034 $250,000 $250,737 $500,737 2035 $260,000 $237,152 $497,152 2036 $275,000 $222,894 $497,894 2037 $295,000 $206,147 $501,147 2038 $310,000 $188,181 $498,181 2039 $330,000 $169,302 $499,302 2040 $350,000 $149,205 $499,205 2041 $370,000 $127,890 $497,890 2042 $395,000 $105,357 $500,357 2043 $420,000 $81,302 $501,302 2044 $445,000 $55,724 $500,724 2045 $470,000 $28,623 $498,623 Total $5,700,000 $4,288,212 $9,988,212 $5.5M Project Fund pipersandler.com | 4 Disclosure Piper Sandler is providing the information contained herein for discussion purposes only in anticipation of being engaged to serve as underwriter or placement agent on a future transaction and not as a financial advisor or municipal advisor. 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Asset management products and services are offered through separate investment advisory affiliates. © 2025 Piper Sandler Companies. 800 Nicollet Mall, Minneapolis, Minnesota 55402-7036 Walgreen Lease Purchase Lease Rent Annual Rent 410,592.00$ Gross Revenues (2%)100,000.00 Gross Revenues RX (.5%)15,000.00 Total 525,592.00 Possessory Interest'(7,358.29) Insurance (15,000.00) Total Rents Paid 503,233.71$ 7 Year Average 7 Year Average 7 Year Average Scenario with No Cash at Closing Debt Service Payments Annual Payment Scenario with No Cash at Closing Debt Service Payments Annual Payment Scenario with No Cash at Closing Debt Service Payments Annual Payment 20 - Year Direct Lease (10-Year Call) 5.65% 4,330,608.54 618,658.36 30 - Alternate 10 year ramp up 6.25%3,445,645.00 492,235.00 20 - Loan 6.85% - $6.990 Million 6.85%4,505,786.04 643,683.72 20 - Year Direct Lease (Callable Anytime) 6.20%4,533,245.83 647,606.55 30 - Year COP (10-Year Call)6.22%3,738,226.00 534,032.29 20 - Year COP (10-Year Call)6.76%4,671,183.60 667,311.94 20 - Year COP (10-Year Call)5.97%4,362,430.00 623,204.29 Scenario with $1.2 million at closing Scenario with $1.2 million at closing Scenario with $1.6 million at closing 20 - Year Direct Lease (10-Year Call) 5.65% 3,567,353.81 509,621.97 20 - Year COP (10-Year Call) $5.8 Million 6.22%3,678,379.00 525,482.71 20 - Loan (10-Year Call) - $5.4 Million 6.85%3,641,556.45 520,222.35 20 - Year Direct Lease (Callable Anytime) 6.20%3,575,810.61 510,830.09 20 - Year Direct Lease (5-Year Call) 5.80%3,567,167.78 509,595.40 Scenario with $1.5 million at closing Scenario with $2.1 million at closing 20 - Year COP (10-Year Call) $5.5 Million 5.97%3,497,309.00 499,615.57 20 - Loan (10-Year Call) - $4.9 Million 6.85%3,304,375.29 472,053.61 7 year Cost Comparisons for 20 Year Financing(Including Principal and Interest) Piper Sandler (expected closing costs - $200k)STIFEL (expected closing costs - $125k) Bank (expected closing costs - $50k) Attachment C