Minutes 05-09-2017 - Laserfiche WebLink

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9 • As part of the annual CIP process, the County identifies Capital Projects for potential debt funding. The CIP includes Installment Purchase Contracts / Limited Obligation Bonds as well as General Obligation Bonds approved during the November 2016 Referendum. • Future debt is assumed to be funded under the following assumptions: — Issuance Date: Fiscal Year indicated in the CIP (mid-year) — First Payment: Fiscal Year following issuance — Short-Term Borrowings: 5 Year Term at 2.25% - 3.00% — Medium-Term Borrowings: 15 Year Term at 3.25% — Long-Term Borrowings: 20 Year Term at 4.00% - 4.50% • Key Debt Ratio Growth Assumptions: — Assessed Value — Natural Growth: 2018 & Beyond: 1.70% — General Fund Revenues — Natural Growth: 2018 & Beyond: 2.00% plus revenue derived from projected tax increases identified in the capital funding plan (note: revenues include sales tax). 2017 CIP Alternative #1 — Future Debt Financings- graph- page 21 Summary of Results —2017 CIP Alternative #1- page 22 Debt Affordability Analysis 2017 CIP Alternative #1 Debt— No Tax Adjustment- page 23 • FY 2018 Value of a Penny: $1,781,692 • Assumed FY 2019 & Beyond Growth Rate: 1.70% • Note: Without a tax increase, the County is forecasted to have shortfalls from FY 2019 to 2027 totaling $74,426,098. Commissioner Jacobs said another bond, of comparable size, will be needed in the future, and asked if there is a timeline on this. Ted Cole said there are needs going forward, and the current CIP is being worked with. He said it is not demonstrated well on this page, but if the County moved forward with an upfront adjustment of 5.5 pennies, the County would have new dollars available for debt service in FY 2025. He said this particular CIP goes to FY 2022, and dollars are available beyond what is needed for this CIP beginning in FY 2025. He said the County could do a borrowing in 2024, and the new debt service would start in 2025. He said there is a little bit of a gap between 2022 and 2024, but that is likely the next CIP horizon, and there will be some debt affordability. He said this debt affordability has yet to be measured, but it is a continuation of this whole process. He said he could measure "x" million in 2024, 2025, 2026, etc. He said a GO bond authorization is good for a 7-year period, and it is fairly straightforward to get it extended to 10 years. He said this debt should be fully issued by FY 2022, which is on a somewhat aggressive schedule, and there may be a couple of years that they could stretch GO authorization out to 2024. Commissioner Jacobs said when the Board passed a bond in 2016, he doubted that the public realized that other comparable projects would not be able to be accomplished until 2029. He said he does not think projects were prioritized with this in mind. Commissioner McKee asked if the possibility of pushing out anything would depend on when the projects were built.