Notes and Assumptions
11/7/97

1.

Debt service was adjusted to reflect the latest Alaskan Public Debt Report information less Bank of America income offset

2.

Capital (cash) was reduced from operating expenditure budget by $10 million annually. Beginning in FY 1999 that will be used for debt service. (Possible from savings on cash appropriations to Water & Sewer and schools and funded in new bonding proposal.)

3.

The CBRF rate of return was calculated at 7.16% beginning in FY 1998, reflecting Dept. of Revenue's latest projections.

4.

Tobacco tax revenue will be used in the Build Alaska Fund to support school bonds

5.

Tobacco tax revenues utilize Department of Revenue's latest projections

6.

No interest earnings were calculated on the Build Alaska Fund balance.

7.

The CBRF principal is not reduced by the Build Alaska program in this scenario

8.

A blend of 15 and 20 year bonds and/or more favorable rates could net nearly $1.5 billion from $125 million in debt service

9.

Sale of the Four Dam Pool at $100 million, deposited in the CBRF, could generate an additional $7 million in earnings to service $70 million in debt in the Build Alaska Fund.