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HomeMy WebLinkAboutFIN 2017-04-18 Item 2A - Discussion - 2017-2018 Capital Funding PlanCity of Tukwila INFORMATIONAL MEMORANDUM TO: Finance & Safety Committee CC: Mayor Ekberg FROM: Peggy McCarthy, Finance Director DATE: April 12, 2017 SUBJECT: 2017 -2018 Capital Funding Plan ISSUE Discuss the 2017- 2018 capital funding plan. Allan Ekberg, Mayor BACKGROUND As documented in the 2017 -2018 Biennial Budget and the 2017 -2022 Capital Improvement Plan, limited tax general obligation (LTGO) bond issuances are planned to help finance the 42nd Ave S and 53rd Ave S Residential Street projects and the Public Works shops, which are part of the Public Safety Plan. Additionally, the TIB Redevelopment three -year bond anticipation note matures on December 1, 2017. Should developer proceeds not be received to pay off this debt as originally planned, a refinancing or repayment from other sources may be considered. A summary of capital funding needs follows: DISCUSSION An $8.4 million bond sale to finance the City's portion of the residential street projects is being considered for issuance this summer. The bid award for the 42nd Ave S project is scheduled for May 2017 with construction beginning in June 2017. The bid award for the 53rd Ave S project is scheduled for September with construction beginning in September. As the December 1, 2017 maturity date nears for the TIB Redevelopment bond anticipation note, options for payoff or refinancing will be discussed and an action plan determined. 1 Fund Project Description Funding Needed by -- 2017 Budget /CIP 2018 Budget /CIP TOTAL Funding Source 2017 1 Residential Streets, Fund 103 42nd Ave S July $4.6 million $1.8 million $6.4 million LTGO 2 53rd Ave S October $1 million $1 million $2.0 million LTGO 3 Total Residential Streets, Fund 103 $8.4 million comO combined issue 4 Urban Renewal, Fund 302 TIB bond anticipation notes December $2.25 million $2.25 million Land sale proceeds or LTGO refinancing 2018 5 Public Safety Plan, Fund 306 Public Works Shops 1St Quarter $6.15 million $23.3 million $29.5 million LTGO DISCUSSION An $8.4 million bond sale to finance the City's portion of the residential street projects is being considered for issuance this summer. The bid award for the 42nd Ave S project is scheduled for May 2017 with construction beginning in June 2017. The bid award for the 53rd Ave S project is scheduled for September with construction beginning in September. As the December 1, 2017 maturity date nears for the TIB Redevelopment bond anticipation note, options for payoff or refinancing will be discussed and an action plan determined. 1 INFORMATIONAL MEMO Page 2 The Public Safety Plan timeline indicates that site selection for the Public Works shops will occur in January 2018. The timing and other details for this bond issue will be determined later in 2017 or earlier in 2018. RECOMMENDATION For information only. ATTACHMENTS Budget and CIP pages Public Safety Plan timeline Public Finance Management slides 2 2017 - 2018 Biennial Budget Revenue and Expenditure Summary Residential Streets Fund p��7� City of Tukwila, Washington 141?r &,t `` 6) Q` 266 3 Actual Projected Budget Percent Change 2014 2015 2016 2016 2017 2018 2018 -17 2017 -18 Operating Revenue r8VTCities $ 268,442 $ 277,052 $ 283,503 $ 273,078 $ 280,000 $ 285,000 2.53% 1.79% Investment Earnings 1,418 1,477 1,929 1,800 1,500 1,600 - 16.67% 6.67% Total Operating Revenue 289,860 278,530 285,432 274,878 281,500 286,600 2.41% 1.81% Capital Project Revenue Intergovernmental Revenue Federal Grants 189,894 217,343 159,331 838,950 . 714,000 - -14.89% 0.00% State Grants_ 227,618 51,034 149,638 1,432,000 n nnn J1Z.� 00 -37.15% 19.44% v Bond Procee - 4,400,000 5 600,000 2,800,000 27.27% -50.00% Plan/DevelopmentContributions - 38,242 - 2,850,000 1,902,000 1,273,000 - 33.26% - 33.07% Total Capital Project Revenue 417,512 306,619 308,969 9,520,950 9,116,000 5,148,000 - 4.25 % - 43.53% Transfers In 100,000 474,000 200,000 200,000 - - 0.00% 0.00% Total Revenue 787,372 1,059,148 794,401 9,996,828 9,397,500 6,434,600 - 5.99% - 42.17% Capital Projects Overhead (Salaries & Benefits) - 162 - - - - 0.00% 0.00% Cascade Mew Safe Routes to School 282,883 127,961 - 928,000 - - 0.00% 0.00% Thomdyke Safe Routes to School 405,508 820,699 - - - - 0.00% 0.00% 42nd Ave S Roadside Barriers 50,727 47,353 90,443 - - - 0.00% 0.00% 42nd Ave S Phase III 299,917 321,663 218,128 5,300,000 5,851,000 2,465,000 10.40% - 57.87% Residential Street Prioritization Study - 24,431 169,070 - - - 0.00% 0.00% Cascade View SRTS Phase II - 1,698 150,649 - 814,000 - 0.00% 0.00% 53rd Ave S - 60,313 151,941 3,173,000 2,613,000 2,610,000 -17.65% -0.11% Traffic Calming - - - - 75,000 - 0.00% 0,00% Small Roadway Improvements - - - 350,000 - 350,000 0.00% 0.00% Total Capital Projects 1,039,035 1,404,280 780,231 9,751,000 9,353,000 5,425,000 -4.08% -42.00% Beginning Fund Balance 1,415,955 1,164,292 819,161 56,842 833,331 877,831 1366.05% 5.34% Change in Fund Balance (251,663) (345,132) 14,170 244,828 44,500 9,600 - 81.82% - 78.43% Fund Balance $ 1,164,292 $ 819,161 $ 833,331 $ 301,670 $ 877,831 $ 887,431 190.99% 1.09% 266 3 2017 - 2018 Biennial Budget Expenditure Detail - Other City of Tukwila, Washington Debt Service Account Number Actual 2014 2015 Protected 2016 2016 Budget 2017 2018 200.00.591.580.71.14 2014 GO Bond Principal $ $ 141,000 $ 149,000 $ 878,333 $ 150,000 $ 153 000 591.581.71.14 LOC Principe _ 2,250,000 200.00.591.950.71.15 2015 LTGO Bond Principal - - 220,000 - 225,000 230,000 200.00.592.181.83.14 LOC Interest/Commitment Fee - 18,118 33,825 - 40,000 40,000 200.00.592.580.83.14 2014 LTGO Bond Interest - 108,404 111,919 - 110,175 107,775 200.00.592.950.83.15 2015 LTGO Bond Interest - 102,107 172,576 - 165,975 159,225 208.00.591.280.71.00 2017 LTGO Bond Principal (PW Shops) - - - - - 92,000 208.00.592.280.83.00 2017 LTGO Bond Interest (PW Shops) - - - - - 400,000 209.00.591.950.71.00 2017 LTGO Bond Principal (42nd /53rd) - - - - - 172,000 209.00.592.950.83.00 2017 LTGO Bond Interest (42nd /53rd) (1) - - - - 500,000 210.00.591.220.71.00 2003 LTGO Refunding Bond Principal 93,000 - - - - - 210.00.591.750.71.00 2003 LTGO Refunding Bond Principal 372,000 - - - - - 210.00.592.220.83.00 2003 LTGO Refunding Bond Interest 4,650 - - - - - 210.00.592.750.83.00 2003 LTGO Refunding Bond Interest 18,600 - - - - - 211.00.591.180.71.00 2008 LTGO Refunding Bond Principal 476,000 504,000 524,000 524,000 544,000 576,000 211.00.591.950.71.00 2008 LTGO Refunding Bond Principal 119,000 126,000 131,000 131,000 136,000 144,000 211.00.592.180.83.00 2008 LTGO Refunding Bond Interest 173,600 145,040 124,880 124,880 103,920 71,280 211.00.592.950.83.00 2008 LTGO Refunding Bond Interest 43,400 36,260 31,220 31,220 25,980 17,820 212.00.591.950.71.00 2009 LTGO SCORE Bond Principal 159,200 - - - 171,600 179,200 212.00.592.950.83.00 2009 LTGO SCORE Bond Interest 282,551 - - - 255,861 249,088 213.00.591.950.71.00 2017 UTGO Principal - - - - - 681,000 213.00.592.950.83.00 2017 UTGO Interest - - - - - 2,000,000 214.00.591.180.71.00 General Obligation Bonds 97,273 101,270 105,268 105,268 107,933 110,598 214.00.591.950.71.00 2010A LTGO SCORE Bond Principal 267,728 278,730 289,733 289,733 297,068 304,403 214.00.592.180.83.00 Interest on Long -Term Extemal Debt 58,210 54,806 50,755 50,755 46,955 42,681 214.00.592.190.85.00 Debt Registration Costs - - - - - - 214.00.592.950.83.00 2010A LTGO Bond Interest 160,215 150,844 139,695 139,695 129,235 117,471 216.00.591.280.71.00 General Obligation Bonds 212,000 220,000 - - - _ 216.00.592.220.83.00 2000 LTGO Refunding Bond Interest 17,280 8,800 - - - - 217.00.591.950.71.00 General Obligation Bonds 395,000 405,000 420,000 420,000 435,000 445,000 217.00.592.950.83.00 Interest on Long -Term Extemal Debt 152,675 140,825 128,675 128,675 117,300 104,250 218.00.591.760.71.00 General Obligation Bonds 97,788 99,507 93,737 93,737 96,428 99,196 218.00.592.760.83.00 Interest on Long -Term External Debt 15,342 13,623 19,393 19,393 16,702 13,934 220.00.591.950.71.00 2017 LTGO Bond Principal - - - - - _ 220.00.592.950.83.00 2017 LTGO Bond Interest - - - - - _ Subtotal General Obligation Debt Service 3,215,510 2,654,333 2,745,675 2,936,689 ' 3,175,132 9,259,921 233.00.592.950.83.00 Interest on Long -Term External Debt - 346,784 286,005 286,005 271,830 257,655 233.00.591.950.71.00 LID #33 Bond Principal - 605,000 670,000 600,000 450,000 445,000 Total Other 3,215,510 3,606,117 3,701,680 3,822,694 3,896,962 9,962,576 263 4 2017 - 2018 Biennial Budget City of Tukwila, Washington Revenue and Expenditure Summary Urban Renewal %v,,o -et Talft& sate t rocee4S 280 5 Actual 2014 2015 Projected 2016 2016 Budget 2017 2018 Percent Change 2016 -17 2017 -18 Operating Revenue Miscellaneous Revenue Investment Earnings $ 1,216 $ 868 $ 5,198 $ 3,602 $ 3,600 $ 3,600 -0.06% 0.00% Total Miscellaneous Revenue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Total Operating Revenue 1,216 868 5,198 3,602 3,600 3,600 -0.06% 0.00% Capital Project Revenue Sale of Tukwila Village/KC Library - 500,000 - - - - 0.00% 0.00% Sale of Tukwila Village/Phase 1 - - - 4,325,000 2,230,000 - -48.44% 0.00% Sale of Tukwila Village/Phase 2 - - - - 1,003,000 - 0.00% 0.00% Sale of Tukwila Village/Phase 3 - - - - - 1,286,000 0.00% 0.00% Sale of Longacres - - - 1,600,000 - - 0.00% 0.00% Sale of Gregor House - - - - 250,000 - 0.00% 0.00% Sale of Newporter - - - - - 775,000 0.00% 0.00% Sale of Motels - - - - - 2,250,0) 0.00% 0.00% Gain/Loss on Invest of Cap. Asset - - - - - - 0.00% 0.00% Interfund Loan 1,900,000 - - - - - 0.00% 0.00% Bond/Line of Credit 3,850,000 2,250,000 - - - 0.00% 0.00% Total Capital Project Revenue 5,750,000 2,750,000 - 5,925,000 314:•,000 4,311,000 - 41.22% 23.77% Transfers In - - - - - - 0.00% 0.00% Total Revenue 5,751,216 2,750,868 5,198 5,928,602 3,486,600 4,314,600 - 41.19% 23.75% Capital Projects Tukwila Village 15,571 14,538 25,907 75 '00 35,000 11,000 - 53.33% -68.57% City Facilities 138,024 14,534 117,295 2,2 1,000 - - 0.00% 0.00% 118 Redevelopment 3,663,770 1,968,703 680,835 15,000 25,000 25,000 66.67% 0.00% Total Capital Projects 3,817,365 1,997,775 824,037 ,340,000 60,000 36,000 - 97.44% - 40.00% Interfund Load Repayment 1,900,000 - - - - - 0.00% 0.00% Transfer to General Fund 1,000,000 500,000 - 2,075,000 1,800,000 6,050,000 - 13.25% 236.11% Total Expenses 6,717,365 2497,775 82 ,037 4,415,000 1,860,000 6,086,000 -57.87% 227.20% Beginning Fund Balance 1,902,602 936,453 1 89,546 1,873,602 370,706 1,997,306 - 80.21% 438.78% Change in Fund Balance (966,149) 253,093 (818,839) 1,513,602 1,626,600 (1,771,400) 7.47% - 208.90% Ending Fund Balance $ 936,453 $ 1,189,546 $ 370,706 $ 3,387,204 $ 1,997,306 $ 225,906 - 41.03% -88.69% %v,,o -et Talft& sate t rocee4S 280 5 6 2017 - 2018 Biennial Budget City of Tukwila, Washington DEPARTMENT: N/A FUND: City Facilities Fund RESPONSIBLE MANAGER: Bob Giberson Description FUND NUMBER: 306 POSITION: Director The City Facilities fund is used for new construction or major reconstruction of city facilities, k Revenue and Expenditure Summary CIty Facilities 291 2014 Actual 2015 Projected 2016 2016 Budget 2017 2018 Percent Change 2016 -17 2017 -18 Revenue Bond Proceeds $ - $ - $ - $ - 6,150,000 $ 23,343,00 0.00% 279.56% Total Revenue - - 6,150,000 23,343,000 0.00% 279.56% Expenditures Capital Projects Public Works Shops - - - - 6,150,000 2,302,000 0.00% -62.57% Total Capital Projects - - - - 6,150,000 2302,000 0.00% -62.57% Total Expenditures - - - - 6,150,000 2,302,000 0.00% -62.57% Beginning Fund Balance Change in Fund Balance - - - - - - - - - - - 21,041,000 0.00% 0.00% 0.00% 0.00% Ending Fund Balance $ - $ - $ - $ - $ - $ 21,041,000 0.00% 0.00% 291 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: 42nd Ave South Phase III Project No. 99410303 DESCRIPTION: Design and construct street improvements, drainage, sidewalks, bike facilities, and driveway adjustments. JUSTIFICATION: Provide pedestrian and vehicle safety, drainage, and neighborhood revitalization. STATUS: Phase III (S /C Blvd (154th) - S 160 St), Design began in 2012, construction in 2017. Project No. 99410303 Phase IV (S 139 St - S 131 PI) in beyond. Project No. 99410301 Phase 1 90-RW15 (S /C Blvd (154) - 144 St) $3,796 & Phase II 94 -RS02 (144 -139) $1,850, both completed. MAINT. IMPACT: COMMENT: Reduce pavement, shoulder, and drainage work. Only Phase III is shown in active years. Project includes Surface Waters Gilliam Creek 42nd Ave S Culvert project for $1.3m and is part of the Walk & Roll Plan. Seattle City Light's funding is a 60/40 underground split. FINANCIAL Through Estimated in $000's 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL EXPENSES Phase IV Design 1,000 125 1,125 Land (RN/) 100 100 Const. Mgmt. 750 322 560 1,632 Construction 2,534 1,086 3,800 7,420 Undergrounding 2,467 1,057 3,524 TOTAL EXPENSES 1,000 125 5,851 2,465 0 0 0 0 4,360 13,801 FUND SOURCES Seattle City Light 1,077 462 1,539 Surface Water 144 4 148 Other Utilities 1 150 136 287 Bond 4,600 1,800 6,400 City Oper. Revenue 855 121 24 67 0 0 0 0 4,360 5,427 TOTAL SOURCES 1,000 125 5,851 2,465 0 0 0 0 4,360 13,801 2017 - 2022 Capital Improvement Program 2 7 PROJECT: DESCRIPTION: JUSTIFICATION: STATUS: MAINT. IMPACT: COMMENT: CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 53rd Ave S (S 137th St - S 144th St) Project No. 99110301 Design and construct urban residential street improvements that include curb, gutter, sidewalk, undergrounding, and illumination. Street will coordinate with Water $1.1m, Sewer $185k, and Surface Water $920k CIP projects. Provide pedestrian and vehicle safety, drainage, and neighborhood revitalization. Undergrounding is included at this time. Reduce pavement, shoulder, and drainage work. State TIB grant for $2.14M for roadway and drainage., See additional pages in Enterprise funds under 53rd Ave S Projects. Seattle City Light is now negotiating a 60/40 underground split and undergrounding costs have been added to project. Bond for $2 million. FINANCIAL in $000'x) Through Estimated 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTA EXPENSES Design 83 107 3 193 Land (RM/) 2 98 100 Const. Mgmt. 435 435 870 Construction 1,050 1,050 2,100 Undergrounding 1,125 1,125 2,250 TOTAL EXPENSES 85 205 2,613 2,610 0 0 0 0 0 5,513 FUND SOURCES Utilities W /S /SWM 25 25 Awarded TIB Grant 900 900 Remainder of grant in SWM 1,800 Seattle City Light 675 675 1,350 Bond 1,000 1,000 (2 000 City Oper. Revenue 60 205 38 35 0 0 0 0 0 338 TOTAL SOURCES 85 205 2,613 2,610 0 0 0 0 0 5,513 2017 - 2022 Capital Improvement Program 8 3 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: TIB Redevelopment (Motels) Project No. 91330201 DESCRIPTION: Tukwila International Blvd (TIB) Redevelopment Project is for the acquisition and disposition of properties within and adjacent to the City's Urban Renewal Area. JUSTIFICATION: Improve the neighborhood's safety by eliminating the high amounts of crime associated with the motel properties; Traveler's Choice Motel, Boulevard Motel, Great Bear Motel and the Spruce Motel, STATUS: City has completed the purchase and demolition of the four motels and the smoke shop. MAINT. IMPACT: Upkeep of property until development. COMMENT: Debt service costs are not shown (see Attachment A). FINANCIAL Through Estimated in $000's 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL EXPENSES Project Location L ` s ;, L._ , Engineering 353 105 25 25 t ii • Ir . ‘,., 508 Land (RNV) 5,205 iM Bt 916081 r. ----1 i 81.1` —i \ 11. ' !4 47)` 1 l ��r ' °� GIS A 5,205 Const. Mgmt. 2 100 102 Construction 710 710 TOTAL EXPENSES 5,560 915 25 25 0 0 0 0 0 6,525 FUND SOURCES Awarded Grant 0 Land Sale 2,250 2,250 Bonds 6,100 6,100 City Oper. Revenue (540) 915 25 (2,225) 0 0 0 0 0 (1,825) TOTAL SOURCES 5,560 915 25 25 0 0 0 0 0 6,525 2017 - 2022 Capital Improvement Program 47 9 Project Location L ` s ;, L._ , 11 • t ii • Ir . ‘,., fJ1 4 //I/ L ..%� , iM Bt 916081 r. ----1 i 81.1` —i \ 11. ' !4 47)` 1 l ��r ' °� GIS A ` ..... S 1. 2017 - 2022 Capital Improvement Program 47 9 CITY OF TUKWILA CAPITAL PROJECT SUMMARY 2017 to 2022 PROJECT: Public Works Shops Project No. 91630601 DESCRIPTION: Construct a new City Public Works maintenance and operations center, combining all operational functions at one location. Facility may also include a City Clerk & Police Records Center and Police evidence storage. Existing Public Works operations and maintenance areas are inadequate structurally and seismically. Current JUSTIFICATION: land for staging dirt and vactor materials is only temporary. Project includes selling dirt/vactor land, Minkler Shops, and George Long Shops to acquire the real estate to build an equipment operations center that meets current codes. STATUS: Separate from the Public Safety Plan. Was formerly known as City Maintenance Facility. MAINT. IMPACT: Improves safety and efficiency for First Responders and maintenance operations. COMMENT: Based on usage and benefits, it is estimated that the Water, Sewer, and Surface water enterprise funds will fund 50% of the Public Works Shops with the other 50% funded by Streets, Facilities, & Equipment Rental. FINANCIAL Through Estimated in $000's 2015 2016 2017 2018 2019 2020 2021 2022 BEYOND TOTAL EXPENSES Design /PM 150 2,302 100 2,552 Land (R/W) 6,000 6,000 Const. Mgmt. 0 Construction 20,941 20,941 TOTAL EXPENSES 0 0 6,150 2,302 21,041 0 0 0 0 29,493 FUND SOURCES Enterprise Funds 14,746 14,746 Councilmatic Bond 14,747 14,747 Proposed Sale of Land 5,000 5,000 Mitigation Expected 0 City Oper. Revenue 0 0 (23,343) 2,302 21,041 (5,000) 0 0 0 (5,000) TOTAL SOURCES 0 0 6,150 2,302 21,041 0 0 0 0 29,493 Site location to be determined. 2017 - 2022 Capita! Improvement Program 61 S 0 J TUKWILA PUBLIC SAFETY PLAN FACILITIES PLAN Project Schedule 1/10/2017 site selection • completed completion of site selection /program �. public outreach design and permitting bidding and construction move -in /occupancy (A) Architect Contract Approval (B) Contractor Pre -Con Contract COUNCILMEMBER DECISIONS (D) Site Selection (E) Project Budget Changes (C) Contractor Construction Approval (F) Bond Sale #2 (G) GC /CM CPARB Start Finish % Done 2016 2017 2018 2019 r 2020 2021 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N I D J F M A M J J A S O N D J FIM A M J J A S O N I D CITYISOJ KICK -OFF MTG 10/05/16 10/05/16 100% ■ I CITY VOTE 11/08/16 10/31/19 100% ■ f BOND SALE 12/01/16 12/31/16 100% ■ 4 PUBLIC OUTREACH - SITE SELECTON 01/01/17 12/31/21 0% ollr■ illy-6 -4 .... Om l■ ■■1 Imo ■■ ■ ■ l■ ,m MII■ .m. gm. Wm nom ■ ■■ mem . ,m, mim am mio mow mi. am JUSTICE CENTER 02/06/17 05/25/20 0% 1 _ P o�A STATION 51 4 02/2 /17 271 09/ / s 0% % 1 fA G I 113 1 IL STATION 52 02/20/17 06/05/20 0% I A 1 1 d'1 - B 54 02/20/17 06/05 /20 0% „__ A I t 1; 1 a' ^ :B I ' 1�STATION CITY SHOPS t 02/20/17 04/09/21 0% • 1 11IIII I. t I �,.._ \, D A I • ..C-. site selection • completed completion of site selection /program �. public outreach design and permitting bidding and construction move -in /occupancy (A) Architect Contract Approval (B) Contractor Pre -Con Contract COUNCILMEMBER DECISIONS (D) Site Selection (E) Project Budget Changes (C) Contractor Construction Approval (F) Bond Sale #2 (G) GC /CM CPARB pfm City of Tukwila Finance Committee Meeting: Upcoming Debt Financing April 18, 2017 Public Financial 0,) Management, Inc. 1200 Fifth Avenue Suite 1220 Seattle, WA, 98101 Susan Musselman (360) 445 -0238 Duncan Brown (206) 858 -5367 Overview 1) Summary of Outstanding Debt 2) 2017 LTGO Bonds: Residential Street Projects 3) 2014 LTGO Bonds and Note 4) Future Financings Appendix: Debt Capacity and Market Update 01 Outstanding General Obligation Debt As of April 2017, the City has $27,218,577 of non -voted general obligation debt and $32,990,000 of voted general obligation debt outstanding ® Based on its current debt portfolio, the City will amortize approximately 67% of outstanding LTGO debt within the next 10 years. tn $6 c 0 $5 © PFM Annual Non -Voted General Obligation Debt Service • . . • LTGO Note, 2014 (Taxable) SCORE 2009B (BABs) LTGO Bond, 2014 (Taxable) LTGO Refunding Bonds, 2011 LTGO Ref Bonds, 2008 LTGO Bonds, 2015 SCORE 2009A LTGO Bond, 2013 LTGO Bonds, 2010B (BABs) T-1-1 1 • . . . . . . • • 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2 Outstanding Long -Term Debt Series Name Outstanding Par CaII Date Purpose Coupon Range Final Maturity Insurer LTGO Refunding Bonds, 2008 $2,165,000 n/a Advance refund LTGO Bonds, 1999 6.00% 12/1/19 Assured Guaranty LTGO Bonds, 2010B (Taxable BABs — Direct Payment) 3,575,000 6/1/20 Acquisition E. construction of Southcenter Parkway improvements; emergency preparedness facilities, fixtures, tech. 3.96 — 5.41 %* 12/1/24 n/a LTGO Refunding Bonds, 2011 3,360,000 12/1/21 Advance refund LTGO Bonds, 2003A 3.00 — 4.00% 12/1/23 n/a LTGO Bond, 2013 609,977 n/a Park district facility improvements 3.00 - 4.00% 12/1/22 n/a LTGO Bond, 2014 (Taxable) 3,560,000 12/1/19 Tukwila International Boulevard — property acquisition 0.85 — 4.86 % ** 12/1/34 n/a LTGO Note, 2014 (Taxable) 2,250,000 anytime LIBOR + 1.00% 12/1/17 n/a LTGO Bonds, 2015 5,605,000 6/1/25 Pay and reimburse the City for the cost of certain road construction and related improvements 2.25 — 3.00% 12/1/35 n/a UTGO Bonds, 2016 32,990,000 12/1/26 Pay and reimburse the City for the cost of constructing fire stations and acquiring related firefighting apparatus /equipment, constructing a justice center 4.50 — 5.00% 12/1/36 n/a Subtotal $54,114,977 SCORE Bonds, 2009A $220,400 1/1/20 SCORE Facility 4.50 — 5.00% 1/1/22 n/a SCORE Bonds, 2009B (Taxable BABs Direct Payment) 5,873,200 1/1/20 5.00 — 6.616 %* 1/1/39 n/a Subtotal $6,093,600 Total — General Obligations $60,208,577 © PFM As of April 18, 2017. * Build America Bonds coupons are shown as gross rates, not reflecting Federal subsidy (35% prior to sequestration). ** A portion of the 2014 Bonds will have interest rates reset every five years, based on the Five Year Advance Fixed Bullet Rate, as published by the Seattle Federal Home Loan Bank. 3 Outstanding Long -Term Debt (continued) Series Name Outstandin • Par( CaII Date Local Improvement District No. 33 Bonds $5,412,500 n/a Public improvements within LID No. 33 Fina Cou • on Ran • e Maturit Insurer 3.15 — 5.375% 1/15/29 n/a Series Name Outstandin • Par(2) CaII Date Water and Sewer Revenue Refunding Bond, 2015 $1,597,704 12/1/20 Advance refunding of the 2006 Water and Sewer Bonds (design / construction of wastewater pumping facilities, force mains and sewer mains, lift stations, and storm drain and water line improvements) Final Cou • on Ran • e Maturit Ins er 2.34% 12/1/26 1) As of January 1, 2017 - 2) As of April 18, 2017 © PFM 4 Residential and Arterial Streets Projects • The City anticipates issuing $8.4 million of Limited Tax General Obligation ( "LTGO ") Bonds to the fund residential street projects: • 42nd Avenue South: Design and construct street improvements, drainage, sidewalks, bike facilities, and driveway adjustments ($6.4 million) • 53rd Avenue South: Design and construct urban residential street improvements that include curb, gutter, sidewalk, undergrounding, and illumination ($2 million) • The chart below shows estimated annual debt service payments for an $8.4 million LTGO bond issued in late summer of 2017: Thousands $700 $600 $500 $400 $300 $200 $100 © $0 P F M Estimated Annual Debt Service - LTGO Bonds, 2017 . . . . . . . . . . . . . M E N N E N . . . . . . . . . . . . . . . . . . . . . . . . . . . . - M E N N E N . . . . . . . . . . . M E N E M N ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ �� �q ti� ti� titi ti� ti� ti� tib tit ti et?) �� 3\ 3ti 3� 3� 3� 3b 31 ‹� 41' 0 �� �r�0 �� ��p �� �r�0 ��\���Q �� \���Q ,0 �p <1\��,tiQ \��� \��A0 �� \�O �\��r�0 ���0 �\r1, �\q, 1�0 1�,rO ��,r�0 0 „,6 Maturity *Assumes "AA" MMD rates as of 4/11/2017 plus 0.50% "cushion" 5 Indicative Time Schedule - Key Steps Activity Date Preliminary decision to issue bonds April Preparation of Bond Ordinance April - May Bid award for 42nd Ave S Project May City Council Committee of the Whole considers Bond Ordinance May City Council Meeting to consider Bond Ordinance May Disclosure Activity May - June Bond rating agency activity May - June Bond sale June Bond closing - proceeds received July Bid award for 53rd Ave S Project September © PFM 6 Review of 2014 LTGO Bonds and Note • In December 2014, the City issued its $2.25 million Limited Tax General Obligation Bond Anticipation Note, 2014 (the "2014 Note ") and $3.85 million Limited Tax General Obligation Bonds, 2014 (the "2014 Bonds ") ' Both were used to acquire properties along Tukwila International Boulevard • The 2014 Note has a final maturity of December 1, 2017 • The 2014 Bond has a final maturity of December 1, 2034, and is subject to optional redemption on December 1, 2019 • At the time of issuance, the City anticipated using proceeds from a subsequent sale of the TIB properties to repay the 2014 Note .As the maturity date approaches, the City may consider alternatives for repayment or refinancing the 2014 Note © PFM 7 Bond Anticipation Note Considerations The City has several options as it relates to the 2014 Note: 1) Refinance with cash ® City could use proceeds from other sources (i.e. Tukwila Village), if available 2) Refinance with long -term Unlimited Tax GO (voted) debt • If property is used for Justice Center, the City could refinance the 2014 Note with a UTGO bond issue in 2017 (may involve amending the Public Safety Plan) 3) Refinance with long -term Limited Tax GO (non- voted) debt • If property will be used for some other governmental purpose of the City 4) Extension or replacement ® Most flexible option (could be refinanced with other options - cash, LTGO, or UTGO - at a later date) • Process would involve soliciting proposals from existing and potential replacement line of credit providers and bringing a note ordinance back to the City Council in fall 2017 © PFM 8 Future Financings •The City also anticipates issuing additional bonds in the next two years: Project Funding Source Funding Amount ($Million) Year of Issuance Public Works (City Shops) LTGO Bonds $29.5 2018 Public Safety Facilities Plan UTGO Bonds 24.1 2019 Total $53.6 *Funding sources, amounts, and the expected timing are preliminary and subject to change © PFM 9 Public Financial Management, Inc. 1200 Fifth Avenue 1 Suite 1220 1 Seattle, WA 98101 Susan Musselman, Director (360) 445 -0238 1 musselmans @pfm.com Duncan Brown, Senior Managing Consultant (206) 858 -5367 1 brownd @pfm.com Dylan Locati, Analyst (206) 858 -5371 1 locatid @pfm.com 1 pfm Appendix: Debt Capacity and Market Update Calculation of Debt Capacity • The table below summarizes the City's non -voted and total general obligation debt capacity, as limited by statute Non -Voted General Obligation Debt Capacity 2016 Assessed Value for 2017 Tax Year Non -Voted Debt Capacity (1.5% of AV) Less: Outstanding Non -Voted Debt $5,751,820,403 $86,277,306 (27,218,577) Remaining Non -Voted Debt Capacity $59,058,729 Total General Obligation Debt Capacity for General Municipal Purposes 2016 Assessed Value for 2017 Tax Year Total Debt Capacity (2.5% of AV) Less: Outstanding Voted Debt Less: Outstanding Non -Voted Debt $5,751,820,403 $143,795,510 (32,990,000) (27,218,577) Remaining Total Debt Capacity for General Municipal Purposes(1) N) 01 © PFM $83,586,933 12 Market Update 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% Municipal Market Data (MMD) "AA" GO Yield Curve 3 Years .go , 2016 Bonds (11/30/2016) Current (4/11/2017) 2015 Bonds (4/28/2015) © PFM 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 (4/11/2017) 2016 Bonds (11/30/2016) 2015 Bonds (4/28/2015) Bond Buyer 20 -Bond GO Index vs. 30 -Year Treasury Three Years: April 2014 to April 2017 3 Years Ago >�\l 01 O ` ti 01t''' <0 ti O ') O 9) ti O rb 19\1° �\'9\b O ` ti Orb np \A >1).c% •)• an P Q9ti � —20-Bond GO Index 30 -Year Treasury 13 Market Update - Interest Rate Forecasts • Most market participants expect interest rates to rise modestly through 2017 •The chart below shows consensus forecasts from numerous financial institutions 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Quarterly Historical and Forecasted Interest Rates Historical Projected Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Federal Funds Rate (Upper Bound) End of Quarter -4-3-Month Libor N 2 -Year US Treasury Note X10 -Year US Treasury Bond © PFM 14