Minutes 09-10-2015 - Laserfiche WebLink

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9 1 —General Fund Revenues - Natural Growth: 2017: 1.50%, 2018 & Beyond: 2.00% plus 2 revenue derived from projected tax 3 increases associated with capital 4 5 Ted Cole said all of the debt being modeled is 20 years and level principle. He said 6 some growth in some of these key ratios is being assumed. 7 Ted Cole said referred to the bottom of page 9 where four cases have been analyzed: 8 9 Cases Analyzed: 10 —Existing Debt Only 11 —Case 1: Existing Debt and $103 million of CIP Debt (FY 2016-2021) (Total: 12 $103,845,296) 13 —Case 2: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $125 Million GO 14 Referendum (Total: $228,845,296) 15 —Case 3: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $130 Million GO 16 Referendum (Total: $233,845,296) 17 —Case 4: Existing Debt, $103 million of CIP Debt (FY 2016-2021), and $135 Million GO 18 Referendum (Total: $238,845,296) 19 20 Ted Cole referred to page 10, which is incorporated here by reference, that reviews the 21 timing and case summary. He said case one looks at the CIP. He said this is debt-only projects 22 (not pay as you go projects) and shows how much debt is expected. He said the General Fund 23 and School Projects in the CIP total $103,845,296. 24 Ted Cole said case two looks at the CIP as well as an additional $125 million bond 25 referendum. He said case three looks at the CIP as well as an additional $130 million bond 26 referendum. He said case four looks at the CIP as well as additional $135 million bond 27 referendum. 28 Ted Cole said with a successful referendum the County has seven years to issue bonds. 29 Ted Cole referred to page eleven, which is incorporated here by reference, that gives a 30 summary of the results for existing debt only, as well as the four case studies previously 31 mentioned. 32 Ted Cole said the bottom of page eleven identifies how many equivalent pennies on the 33 tax rate would be necessary to dedicate towards debt service beyond what is already in the 34 budget. He said it shows these amounts if done in increments, as well as if the increases were 35 done all at one time. He said a penny generates about$1.6 million. 36 Ted Cole said many assumptions have been made in modeling up this debt. He said the 37 debt policy is good but if the budget goes above the 15 percent policy for a couple of years this 38 is still a doable plan. 39 Chair McKee asked if exceeding the debt briefly affects the County's bond rating. 40 Ted Cole said going over the 15 percent is part of an overall plan is understood by the 41 rating agencies, and gives them some level of comfort. 42 Chair McKee asked if these numbers assume that revenues remain constant. 43 Ted Cole said in these projections revenues are being grown up by a small percentage 44 and it has been identified that the County will need to come up with new revenue to pay new 45 debt. He said that is figured in the analysis. 46 Commissioner Price referred to page 7, lines 33-34, and asked if taxes would need to be 47 raised. 48 Ted Cole said yes. He said as the County brings on new debt it must be determined 49 how much more revenue must be brought on to pay for this debt. He said there are other 50 options besides a tax increase such as securing other revenue sources or cutting expenditures. 51 He said case one refers to the current debt, not including a potential referendum.