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Agenda 02-20-24; 8-a - Minutes
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Agenda 02-20-24; 8-a - Minutes
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2/15/2024 11:20:50 AM
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BOCC
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2/20/2024
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Business
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Agenda
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8-a
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Agenda for February 20, 2024 BOCC Meeting
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Path:
\Board of County Commissioners\BOCC Agendas\2020's\2024\Agenda - 02-20-2024 Business Meeting
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\Board of County Commissioners\Minutes - Approved\2020's\2024
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35 <br /> 1 BACKGROUND: The County engaged two facility consulting firms to evaluate the condition and <br /> 2 adequacy of both County and School facilities and to make prioritized recommendations on capital <br /> 3 improvements over a ten-year planning horizon. Both plans utilize the Facilities Conditions Index <br /> 4 which quantifies facility conditions and can be used to prioritize repairs and replacements. <br /> 5 <br /> 6 County Facility Plan <br /> 7 The County selected O'Brien Atkins Associates in March 2022 to review the state of County <br /> 8 facilities from both a facility condition and space planning context over a ten-year period. O'Brien <br /> 9 Atkins Associates presented a final draft to the Board of Commissioners on November 9, 2023. <br /> 10 That draft identified eight decision points to improve public safety, justice, social services, and <br /> 11 recreational facilities over the next ten years. The lowest cost alternative identified a total of$130 <br /> 12 million in renovation and construction needs. <br /> 13 <br /> 14 School Facility Plan <br /> 15 The County and School Districts selected Woolpert in March 2023 to review the state of the school <br /> 16 facilities from a facility condition, space planning, and educational adequacy context. Woolpert <br /> 17 last presented to the County Board on December 4, 2023 outlining four options to address the <br /> 18 next five to fifteen years of school facility needs. The total cost of those options ranges from $219 <br /> 19 million to $1.1 billion. Woolpert is recommending an option that would require $1 billion in capital <br /> 20 investment over the next 15 years. <br /> 21 <br /> 22 County staff has worked with the County's financial advisors to determine alternative plans of <br /> 23 finance that would be needed to fund the various options. This presentation details the debt <br /> 24 metrics that are used to evaluate the amount of debt the County carries, the revenue and <br /> 25 expenditure assumptions contained in the debt model, and the tax rate and debt policy <br /> 26 implications of the options presented by Woolpert. <br /> 27 <br /> 28 Debt Metrics <br /> 29 As credit rating agencies evaluate the County's financial condition, they examine three primary <br /> 30 metrics related to the amount of debt the County is obligated to pay. <br /> 31 <br /> 32 • Ten Year Payout Ratio <br /> 33 This metric measures the amount of principal to be paid in the next ten-year period to <br /> 34 prevent backloading debt payments. One rating agency adds a positive adjustment if the <br /> 35 ten-year payout ratio is 65% or greater. This means that 65% of outstanding principal <br /> 36 payments are paid within ten years. The County's current payout ratio is 67.1% and is <br /> 37 managed by structuring level principal payments over the entire term of the debt issue. <br /> 38 <br /> 39 • Debt to Assessed Value Ratio <br /> 40 This metric measures the amount of outstanding tax supported debt as a percentage of <br /> 41 the County's assessed value (tax base). This is one measure of the County's ability to <br /> 42 raise revenue to make debt service payments. As assessed values increase, the County's <br /> 43 ability to generate enough revenue to pay back existing debt also increases. The County's <br /> 44 current policy is that total outstanding debt will not exceed 3% of assessed value. The <br /> 45 County's current debt to assessed value ratio is 1.28%. Having a ratio under 3% also <br /> 46 results in a positive credit rating adjustment. All of the financing scenarios discussed <br /> 47 below maintain a debt to assessed value ratio of under 3%. <br /> 48 <br /> 49 Debt Service to General Fund Revenue Ratio <br /> 50 This metric compares the amount of debt service payments the County is obligated to pay <br /> 51 on an annual basis to total projected general fund revenues. This is a quantitative <br />
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