HomeMy WebLinkAboutCOW 2016-11-14 Item 4C - Powerpoint Presentation Shown at Meeting - Public Safety Plan: Bond Planning DiscussionBond Planning Discussion
Public Financial Management, Inc..
1200 Fifth Avenue, Suite 1220
Seattle, Washington 98101
November 14, 2016
TN
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Facilities Plan Expenditures
Facilities Plan expenditures funded from UTGO bonds are anticipated in 2017 — 2021
Some smaller expenditures— approximately $1 -2 million annually for fire
equipment and apparatus — anticipated between 2022 -2036
Under IRS rules for tax - exempt debt, the City must have a reasonable expectation that
85% of bond proceeds will be spent within 3 years of the bond issue date
Within 6 months, 5% of the proceeds must be committed through a binding
obligation
cn
0
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$30
$25
$20
$15
$10
$5
$0
Facilities Plan — Estimated Annual Expenditures (UTGO Bonds)
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ONE ON OHO 0q/ Oq'/ 0q/ 0q/ Oq'/ 0q/ 0q/ 0q/ 0q/ 0q/ 000 Ors 00) Ors O1) Or5 O1O
Calendar Year
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Plan of Finance - Timing Considerations
Plan is for bonds to be issued in multiple series over time
20 year final maturity limitation applies to each series of bonds
Timing of tax revenue for payment of bonds issued in 2016
Bond proceeds are expected to be used during 2017, to fund design and related
expenses
Taxes may be added to tax levy rolls in 2017, if bonds are issued in 2016
Tax collected April 30 and October 31, 2017
For bonds issued in 2016, debt service will be payable in 2017
Payments due June 1 and December 1, 2017
For bonds issued in 2017, tax revenue would not be available until 2018
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Key Dates in Financing Process
Date
Event
November 9
Initial Results of bond election of 11/8
November 14
Bond rating agency call /meeting
November 14
City Council Committee of the Whole
November 18
Receive bond rating
November 21
City Council Meeting — passage of Bond Ordinance
November 22
Bond Official Statement posted
November 29
Official certification of election results
November 30
Potential Bond sale date
December 2
Submit excess levy request to County
December 22
Bond closing — proceeds received
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5.00%
4.00%
3.00%
2.00%
1.00%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
' -t
Municipal Market Data (MMD) "AA" GO Yield Curve
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
—Current (11/8/2016) —1 Year Ago (11/9/2015) 2 Years Ago (11/7/2014) —3 Years Ago (11/8/2013)
Bond Buyer 20 -Bond GO Index vs. 30 -Year Treasury
Three Years: November 2013 to November 2016
51,O �O �O �O �O �O �O
51/ (1, �O �O
f Source: TM3 and Bond Buyer
—20-Bond GO Index 30 -Year Treasury
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Contact Information
-PFM
Public Financial Management, Inc.
Susan Musselman
Director
(360) 445 -0238
musselmans @pfm.com
Duncan Brown
Senior Managing Consultant
(206) 858 -5367
brownd @pfm.com
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