Backup — original pdf

Backup

Annual General Obligation Bond Sale & CIP Update Joey Kellar, Division Chief – Treasury Steven Linett – Budget and Performance Manager General Obligation Debt • Property Tax Rate has 2 components Tax Rate Operating & Maintenance (O&M) (General Fund) Debt (Debt Service Fund) • Debt Service tax rate set each year at level needed to fund principal and interest payments on debt issued and pledged with property tax • Pays both existing debt service and debt service associated with upcoming General Obligation bond sale General Obligation (GO) Debt • GO Debt = Public Improvement Bonds, Certificates of Obligation, and Contractual Obligations – $1.68 billion in outstanding General Obligation debt – Issued once per year – Backed by property (ad valorem) taxes and “full faith and credit” of the City Types of GO Debt Purpose Voter Approval City Term Public Improvement Bonds (PIBs) Capital Improvement projects and capital assets Yes 20 years Certificates of Obligation (COs) Real property: land, buildings, right of way, construction of a public work No 20 years Contractual Obligations (PPFCOs) Personal property: equipment, machinery, vehicles, information technology No 7 years Steps to Sell or Issue Debt Spring 2023 Develop CIP Plan August 2023 for FY2023-24 Annual Capital Budget Appropriations Reimbursement Resolutions Spring/Summer/Fall 2024 Develop Bond Sale Schedule Preliminary Official Statement Council Action on Bond Sales Bond Sales and Closing • Work on upcoming bond sale began Spring 2023 • Debt to be sold in upcoming bond sale supports projects and appropriations (authority to spend) previously approved by City Council • Use of Reimbursement Resolution allows projects to begin now and get funded later • Consistent with IRS regulations • Consistent with Financial Policies regarding cash management • Results in lower interest costs GO Bond Sale – Series 2024 September Sale: Public Improvement Bonds (PIBs) - $256.80 M • 2012 Bond Program: $2.20M • Transportation - $2.20 M • 2016 Bond Program (Transportation): $39.00 M • 2018 Bond Program: $142.60 M • Affordable Housing - $25.00 M • Parks and Recreation - $30.00 M • Flood Mitigation/Open Space/Water Quality - $15.00M • Library & Cultural – $14.90 M • Public Safety - $10.40 M • Health - $7.300 M • Transportation - $40.00 M • 2020 Bond Program: $66.00 M • 2022 Bond Program: $7.00 M GO Bond Sale – Series 2024 • Entire bond sale supports projects and related appropriations already approved by City Council • After September 2024 bond sale, there will be approximately $1.38 billion in remaining voter authorized but unissued general obligation bonds • 2006 Bonds - $4.000 M • 2012 Bonds - $7.280 M • 2016 Bonds - $318.905 M • 2018 Bonds - $344.410 M • 2020 Bonds - $360.000 M • 2022 Bonds - $343.000 M GO Bond Sale Anticipated Timeline • Summer 2024 – Prepare Preliminary Official Statement or bond offering document • August 29, 2024– Council Action: Authorize General Obligation Bond Sales • September 2024 – Bond Sale • October 2024 – Closing and Delivery of Bonds Bond Program FY24 Spending and Plan (thru July 31, 2024) Public Improvement Bond Program 2016 - Prop 1: Transportation and Mobility 2016 Bond Total 2018 - Prop A: Affordable Housing 2018 - Prop B: Libraries, Museums, and Cultural Arts Facilities 2018 - Prop C: Parks and Recreation 2018 - Prop D: Flood Mitigation, Open Space, and Water Quality Protection 2018 - Prop E: Health and Human Services 2018 - Prop F: Public Safety 2018 - Prop G: Transportation Infrastructure 2018 Bond Total 2020 - Prop B: Transportation and Mobility 2020 Bond Total 2022 - Prop A: Affordable Housing 2022 Bond Total Total FY24 Spending Plan $132.1 $132.1 $42.1 $36.2 $12.9 $14.2 $9.0 $15.7 $23.8 $153.9 $87.5 $87.5 $30.0 $30.0 $403.6 FY24 Actual Year-to-Date $59.5 $59.5 $27.4 $13.0 $21.7 $20.0 $10.0 $13.0 $23.7 $128.7 $50.0 $50.0 $24.9 $24.9 $263.2 % of FY24 Plan 45.1% 45.1% 65.0% 35.8% 167.9% 141.0% 111.8% 82.9% 99.3% 83.6% 57.1% 57.1% 83.1% 83.1% 65.2% *Plan and actuals in millions Bond Programs in FY2025-29 CIP Plan Public Improvement Bond Program 2016 - Prop 1: Transportation and Mobility 2016 Bond Total 2018 - Prop A: Affordable Housing 2018 - Prop B: Libraries, Museums, and Cultural Arts Facilities 2018 - Prop C: Parks and Recreation 2018 - Prop D: Flood Mitigation, Open Space, and Water Quality Protection 2018 - Prop E: Health and Human Services 2018 - Prop F: Public Safety 2018 - Prop G: Transportation Infrastructure 2018 Bond Total 2020 - Prop B: Transportation and Mobility 2020 Bond Total 2022 - Prop A: Affordable Housing 2022 Bond Total Total FY25 FY27 FY26 Plan Plan Plan $39.0 $90.1 $120.4 $39.0 $90.1 $120.4 - $6.8 $16.9 $22.1 $26.0 $30.3 $3.4 $21.1 $16.7 $9.3 $19.1 $26.1 - $1.2 $2.3 - - $11.3 $11.8 $12.0 $7.1 $46.7 $86.1 $110.6 $63.2 $83.6 $117.6 $63.2 $83.6 $117.6 $77.3 $93.7 $121.2 $77.3 $93.7 $121.2 $439.5 $383.9 $226.1 FY28 Plan $15.6 $15.6 - $2.3 - $0.4 - - $9.7 $12.5 $35.0 $35.0 - - $63.0 5-Year FY29 Plan CIP Plan $12.5 $277.5 $12.5 $277.5 $23.7 - $80.7 - $41.2 - $54.9 - $3.5 - $11.3 - $47.2 $6.5 $6.6 $262.5 $9.2 $308.5 $9.2 $308.5 - $292.3 $292.3 - $28.3 $1,140.8 *Plan in millions Questions?