Cash Flow Projection

Revelations:

A.  We will borrow $12 million pledged against land and buildings valued at $38 million, an excellent incentive for financiers. 
      $10 million will come from private investors and 2 million will come from the land seller.

B.  All debt will be repaid in just five years but with a contract payoff of 10 years if we need it.

C.  We can defer fees from children and elderly.  Up to 75% of non-elderly adults can be financed by the village. 
      This means that 70% of the first 500 residents do not have to have money to move in!

The Cash Flow Projection is based on the following assumptions:

A.  75 persons are over the age of 65.  All of these persons will pay their $40,000 residency fees over a period of 10 years at $333 per month.

B.  103 persons will be under the age of 18.  They will pay their own $40,000 residency fee over 4 years upon adulthood.

C.  The balance of 300 residents are able to work.  Only 50% of them will be able to make the initial $40,000 residency fee payment.   The remaining 50% will work fulltime and pay their rseidency fee over a 3 year period beginning in year 2.

D.  All residents will assist in construction the first year.

E.  Residents working outside will earn $12 per hour.  Most of these jobs will be created by the Village.  Because there are no profit takers the $12 per hour is easily doable.

F.  All mortgages are at 7%.

G.  Grid Power will be utilized the first 18 months then solar systems will be added at $5,000 per home.  330 homes will agerage $40 per month in power.   30 trades buildings will average $416 per month in power bills on the grid.

H.  Food costs the first year is $4 per person per day with most purchases from Sam's.  This assumes an average occupancy of 50% during the phase in year.  The same food costs are assumed the second year for 100% occupancy while the farm is phased in.  Year 3 is with a fully functioning farm.

I.  A sixth neighborhood (50 homes) will be sold at $60,000 per resident.  This will generate extra revenue and is justified because those residents will not have to do construction work nor will they assume any risk as they will come in when the Village is up and running.

J.  A seventh neighborhood (50 homes) will be built to act as an assisted living facility for income production.