Agenda - 11-19-2013 - 6a - Laserfiche WebLink

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3 1 outstanding debt is $190,958,159. He said payments go down every year moving forward and if 2 nothing is done, all existing debt would be retired by fiscal year (FY) 2033. He noted the 3 reduction in annual payments each year and said this is how the County can begin to afford new 4 debt for new projects moving forward. 5 6 Page 6 - Key Debt Ratio: Tax Supported Payout Ratio— He noted that the County is 7 amortizing debt quickly. 8 Commissioner Gordon asked for the definition of back loading debt. 9 Ted Cole said this is when principal is pushed to the back end of the loan. 10 11 Page 7 - Debt Per Capita— He said the County is at$1400 per person, and this ratio will 12 come down as years pass. 13 14 Page 8 —Key Debt Ratio: Debt to Assessed Value— He said this is the amount of debt 15 outstanding, as it relates to the County's tax base. He said the County has a policy in place to 16 cap this ratio at 3 percent, and the current ratio is well below that number. He said the ratio on 17 the top left of this page illustrates where there is a capacity to take on additional debt. 18 19 Page 9 - Debt Service vs. Expenditures—This illustrates how much county money is 20 going toward debt. This number is capped at 15 percent. He said Orange County is much 21 closer to that policy at 14 percent. He said this is a ratio where there is less capacity as it 22 relates to taking on new or additional debt. 23 24 Page 10- Decline in Tax Supported Debt Service— He said this shows the decline in 25 debt service is tied into the 10 year debt payout ratio. 26 27 Page 11 —Debt Affordability Analysis— He said the county has budgeted for pay as you 28 go capital. He said column f shows total debt service going forward. He said column g 29 assumes that same $25 million per year in appropriation, and column h assumes $4.3 million 30 per year in pay-as-you-go cash. 31 32 Page 13— Capital Improvement Program (Years 1-5) — He said the funds usage is 33 addressed at the top of the chart in lines 5-7 and totals $129 million. He said the rest of the 34 table outlines where the dollars come from. 35 He said the green bar shows $94 million in debt to be issued to satisfy a portion of the 36 County capital needs. He said there is an expectation that some of this will be paid with cash. 37 38 Page 14—Existing and Proposed Tax Supported Debt— He noted this is a 20 year term 39 with a 5% interest rate, and he said these are debt issuance assumptions. 40 41 Pages 15-16 - Key Debt Ratios— He said the County will maintain stated policies. He 42 said the take-away is that the capital program is doable over the next 5 years with the listed 43 assumptions. 44 45 Page 17 - Debt Affordability Analysis— He said this looks at how the County pays for 46 their debt. He said column b is the debt that is on the books today; column c is the projected 47 new debt service for the capital program; and column d is pay as you go capital. 48 He said column f would become the new debt schedule if the County were to implement 49 the entire capital plan. 50 He said the affordability depends on the equivalent of a 2.81 cent incremental tax effect, 51 as shown in column o.