Pinellas County, Florida

Transcription

1 Pinellas County, Florida Bonded Debt Report for the fiscal year ended September 30, 2014 Prepared by Clerk of the Circuit Court and Comptroller, Pinellas County, Florida

2 Message from Your Clerk To the Citizens of Pinellas County: The Citizens have frequently shown an interest in the amount of bonded debt of Pinellas County. With this in mind, it is my pleasure to provide you with the Pinellas County Bonded Debt Report. The purpose of this report is to present information related to the bonded debt of the County in a clear and concise manner so that you may understand the extent, nature and purpose of the debt. This report provides a detailed look at the County s debt at September 30, 2014, a ten year history showing the change in debt over time and a comparison of Pinellas County s bonded debt with four other large Florida counties. Every year, the Clerk s office issues a Comprehensive Annual Financial Report (CAFR), which is prepared in accordance with generally accepted accounting principles. The CAFR is subject to an annual audit by independent auditors who issue an opinion that the report presents fairly the financial condition of the County for the fiscal year. The information presented in the Bonded Debt Report is consistent with the disclosures in the CAFR. The Government Finance Officers Association (GFOA), an independent organization of government finance officials, evaluates CAFRs from local governments throughout the United States and Canada. The CAFRs issued by Pinellas County from 1981 to 2013 have received the Certificate of Achievement for Excellence in Financial Reporting from GFOA for thirtythree consecutive years. This Certificate is awarded only for those CAFRs that achieve the highest standards in governmental accounting and financial reporting. The CAFR is available for inspection at org/aspinclude2/2014cafr.pdf. We have submitted our application for review to GFOA for 2014 as well. The Clerk s office also issues a Citizens Guide to County Finances (Citizens Guide), a condensed analysis of the County s financial position and operating results for the year. The Citizens Guide has received an Award for Outstanding Achievement in Popular Annual Financial Reporting from GFOA for the past eight years. The Citizens Guide can be found at org/aspinclude2/2014pafrcitizensguide.pdf. We have also submitted our application for Ken Burke, CPA Clerk & Comptroller Pinellas County We hope this report is helpful in enhancing your understanding of the County s bonded debt. If you need additional information or have questions about the report, please do not hesitate to contact the Clerk s office for assistance at or clerkinfo@pinellascounty.org. Sincerely, Ken Burke, CPA Clerk of the Circuit Court and Comptroller 2

3 Introduction Table Of Contents Outstanding Bond Issues... 4 Types of Debt and Debt Ratings... 5 Self Supporting Revenue Debt...68 Bonded Debt Last Ten Fiscal Years... 9 Schedules of Revenue Bond Coverage Comparison of Outstanding Bonded Debt and Debt Ratios with Other Florida Counties...16 Pinellas County complies with the Americans with Disabilities Act. To obtain accessible formats of this document, please contact the Finance Division at (727)

4 Outstanding Bond Issues Issue Date Description Original Issue Amount Amount Outstanding September 30, 2014 Current Maturities 1 January 2003 Sewer Revenue Bonds, 86,580,000 5,215,000 Series 2003 November 2006 Sewer Revenue Refunding Bonds, 25,205,000 18,845,000 1,390,000 Series 2006 July 2008 Sewer Revenue Bonds, 42,005,000 40,295, ,000 Series 2008A July 2008 Sewer Revenue Refunding Bonds, 32,700,000 32,360,000 80,000 Series 2008B1 July 2011 Sewer Revenue Refunding Bonds, 20,870,000 13,780,000 3,350,000 Series 2011 June 2012 Sewer Revenue Refunding Bonds, 59,510,000 59,500,000 2,340,000 Series ,870, ,995,000 7,545,000 1 Current maturities represent the amount of debt required to be paid during the next fiscal year. 4

5 Types of Debt and Debt Ratings Local government debt is typically divided into the following categories: General obligation bonds pledge the full faith and credit of the County, with general taxing power as the method of repayment. The County had no general obligation bonds outstanding at fiscal year end. Nonself supporting revenue bonds pledge a specific revenue source as a method of repayment of the outstanding bonds. This type of bond is a special obligation of the County and does not constitute a general obligation of the County. The County had no nonself supporting revenue bonds outstanding at fiscal year end. Self supporting revenue bonds are funded by user revenues generated from operations. In Pinellas County, revenues of the Sewer System have been pledged as a method of repayment of outstanding bonds. There are no other outstanding bonds for the enterprise funds. The County s outstanding bonds at September 30, 2014 were: Self supporting revenue bonds 169,995,000 Debt Ratings Most bond issues are assigned a rating by a rating agency, such as Moody s Investment Services, Inc., Standard & Poor s Ratings Services and Fitch Investors Services. The rating is an important factor for determining an issue s marketability and the interest rate the County will pay. Ratings are relied upon by investors in making investment decisions and by underwriters in determining whether to underwrite a particular issue. In order for a bond issue to be rated, the government must contract with a rating agency and pay a fee. The government provides the rating agency with operational and financial information. The agency assesses the risk and rates the bond issue based upon a detailed analysis of this information. Although somewhat different in their letter usage, bonds are rated in descending alphabetical order from A to C as shown in the following table: Rating Moody s S & P Fitch Highest quality Aaa AAA AAA High quality Aa AA AA Upper medium quality A A A Medium grade Baa BBB BBB Somewhat speculative Ba BB BB Low grade, speculative B B B Low grade, default possible Caa CCC CC Low grade, partial recovery possible Ca CC CC Default, recovery unlikely C C C The interest rates listed in each bond issue represent the current fixed rates for the outstanding maturities. Bond rating codes may be appended by Moody s (1, 2, or 3), Standard and Poor s ( + or ) and Fitch ( + or ) to denote relative status in a major rating category. 5

6 Self Supporting Revenue Debt 86,580,000 Sewer Revenue Bonds, Series 2003 Amount outstanding at September 30, 2014: 5,215,000 Fiscal year 2015 debt service: Principal: Interest: 260,750 Issue date: January 1, 2003 Final maturity date: October 1, 2032 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rates: 5.00% Ratings: Moody saa2/aa2; Standard & Poor saa/ AA Purpose: The 86,580,000 Sewer Revenue Bonds, Series 2003 were issued for the purpose of providing funds, together with other available funds of the County, to finance certain capital improvements to the County s Sewer System, to fund the reserve fund requirement for the Series 2003 Bonds through the purchase of a debt service reserve fund surety bond, and to pay related costs and expenses in connection with the issuance of the Series 2003 Bonds. 25,205,000 Sewer Revenue Refunding Bonds, Series 2006 Amount outstanding at September 30, 2014: 18,845,000 Fiscal year 2015 debt service: Principal: 1,390,000 Interest: 757,519 Issue date: November 22, 2006 Final maturity date: October 1, 2024 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rates: 3.75%5.00% Ratings: Moody saa2/aa2; Standard & Poor saa/ AA; FitchAA/AA Purpose: The 25,205,000 Sewer Revenue Refunding Bonds, Series 2006 were issued for the purpose of providing funds, together with other available funds of the County, to refund a portion of the County s outstanding Sewer Revenue and Revenue Refunding Bonds, Series 1998, and to pay related costs and expenses in connection with the issuance of the Series 2006 Bonds. Pledge: The payment of principal and interest on the Bonds is payable from and secured solely by a lien upon and a pledge of the net revenues derived from the operation of the County s Sewer System together with certain other moneys held under the Series 2003 Bond resolution on parity with the County s outstanding Sewer Revenue and Revenue Refunding Bonds. The scheduled payment of principal and interest on the Series 2003 Bonds, when due, are guaranteed under an insurance policy issued by Assured Guaranty Municipal Corp. Pledge: The payment of principal and interest on the Bonds is secured solely by a lien upon and a pledge of the net revenues derived from the operation of the County s Sewer System together with certain other moneys held under the Series 2006 Bond resolution on parity with the County s outstanding Sewer Revenue and Revenue Refunding Bonds. The scheduled payment of principal and interest on the Series 2006 Bonds, when due, are guaranteed by an insurance policy issued by Assured Guaranty Municipal Corp. 6

7 Self Supporting Revenue Debt 42,005,000 Sewer Revenue Bonds, Series 2008A 32,700,000 Sewer Revenue Refunding Bonds, Series 2008B1 Amount outstanding at September 30, 2014: 40,295,000 Fiscal year 2015 debt service: Principal: 385,000 Interest: 1,793,107 Issue date: July 9, 2008 Final maturity date: October 1, 2028 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rate: 4.41% Amount outstanding at September 30, 2014: 32,360,000 Fiscal year 2015 debt service: Principal: 80,000 Interest: 1,389,406 Issue date: July 9, 2008 Final maturity date: October 1, 2024 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rate: 4.24% Purpose: Pledge: The 42,005,000 Sewer Revenue Bonds, Series 2008A was issued for the purpose of providing funds, together with other available funds of the County, to finance the cost of certain capital projects of the Sewer System and to fund a debt service reserve. The payment of principal and interest on the Bonds is secured solely by a lien upon and pledge of the net revenues derived from the operation of the County s Sewer System, all monies on deposit in and investments held for the credit of certain funds and the earnings on such investments on parity with certain other outstanding bonds. Purpose: Pledge: The 32,700,000 Sewer Revenue Refunding Bonds, Series 2008B1 was issued for the purpose of providing funds, together with other available funds of the County, to refund a portion of the County s outstanding Sewer Revenue and Revenue Refunding Bonds, Series 1998 totaling 32,045,000 and to pay related costs of issuance of the bonds. The payment of principal and interest on the Bonds is secured solely by a lien upon and pledge of the net revenues derived from the operation of the County s Sewer System, all monies on deposit in and investments held for the credit of certain funds and the earnings on such investments on parity with certain other outstanding bonds. 7

8 Self Supporting Revenue Debt 20,870,000 Sewer Revenue Refunding Bonds, Series ,510,000 Sewer Revenue Refunding Bonds, Series 2012 Amount outstanding at September 30, 2014: 13,780,000 Fiscal year 2015 debt service: Principal: 3,350,000 Interest: 230,147 Issue date: July 21, 2011 Final maturity date: October 1, 2017 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rate: % Purpose: The 20,870,000 Sewer Revenue Refunding Bonds, Series 2011 was issued for the purpose of providing funds, together with other available funds of the County, to refund the remaining amount of Pinellas County s outstanding Sewer Revenue and Revenue Refunding Bonds, Series The proceeds will also be utilized to pay associated issuance costs in connection with this bond. Amount outstanding at September 30, 2014: 59,500,000 Fiscal year 2015 debt service: Principal: 2,340,000 Interest: 2,386,788 Issue date: June 27, 2012 Final maturity date: October 1, 2031 Payment due dates: Principal: October 1st Interest: April 1st and October 1st Interest rate: 2.00%5.00% Ratings: Moody sunderlying Aa2; Standard & Poor s AA; FitchAA Purpose: The 59,510,000 Sewer Revenue Refunding Bonds, Series 2012 was issued for the purpose of providing funds, together with other available funds of the County, to refund a portion of the County s outstanding Sewer Revenue Bonds, Series 2003, and pay costs and expenses in connection with the issuance of the Series 2012 Bonds. Pledge: The payment of principal and interest on the Bonds is secured solely by a lien upon and pledge of the net revenues derived from the operation of the County s Sewer System, all monies on deposit in and investments held for the credit of certain funds and the earnings on such investments on parity with certain other outstanding bonds. Pledge: The payment of principal and interest on the Bonds is secured solely by a lien upon and pledge of the net revenues derived from the operation of the County s Sewer System, all monies on deposit in and investments held for the credit of certain funds and the earnings on such investments on parity with certain other outstanding bonds. 8

9 Bonded Debt Last Ten Fiscal Years Bonded Debt Last Ten Fiscal Years (dollars in thousands) NonSelf Supporting 22,600 44,035 64,385 93, ,570 Self Supporting Revenue Debt 169, , , , , , , , , ,425 Total Debt 169, , , , , , , , , ,995 9

10 Schedule of Revenue Bond Coverage 10 Pinellas County water System Revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues (a,c) 92,013 88,571 86,997 88,378 84,301 82,468 86,631 88,869 82,874 72,914 Expenses (b,c) 50,752 56,699 55,889 52,852 63,233 61,788 57,894 56,770 58,049 56,035 Net Revenue Available for Debt Service 41,261 31,872 31,108 35,526 21,068 20,680 28,737 32,099 24,825 16,879 Debt Service Requirements (d) Principal Interest Total Coverage (e) 3, , x (a) Includes transfer from the Rate Stabilization Fund. (b) Excludes depreciation, amortization, bad debt, bond interest expense and debt service portion of Tampa Bay Water charge. (c) Gross revenues include transfers from the Rate Stabilization Fund and expenses exclude the debt service portion of Tampa Bay Water Charge. (d) Interest paid on April 1st and September 30th and principal paid on September 30th of the fiscal year, with final maturity on October 1, (e) The County was contractually obligated to establish and maintain Water rates that will provide a coverage as computed above of Water System Revenue Bond Activity

11 Schedule of Revenue Bond Coverage 11 Pinellas County Sewer System Revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues 70,874 66,201 61,484 56,411 55,834 56,442 56,671 60,370 60,435 58,094 Expenses (a) 38,411 37,724 35,322 32,556 33,655 35,647 40,087 37,406 32,567 30,740 Net Revenue Available for Debt Service 32,463 28,477 26,162 23,856 22,179 20,795 16,584 22,964 27,868 27,354 Debt Service Requirements (b) Principal Interest Total Coverage (d) 7,545 6,909 14, x 7,295 7,158 14, ,050 7,890 14, ,336 8,737 15, ,160 9,076 15, ,890 9,819 15, c 5,280 7,784 13, ,025 8,099 13, ,795 8,474 13, ,625 8,649 13, (a) Excludes depreciation, amortization, bad debt, loss on abandonment of fixed assets and bond interest expense. (b) Interest paid on April 1st and September 30th and principal paid on September 30th of the fiscal year. (c) Restated to reclassify operating revenue to capital contributions. (d) The County is contractually obligated to establish and maintain Sewer rates that will provide a Coverage as computed above of Sewer System Revenue Bond Activity

12 Schedule of Revenue Bond Coverage 12 Pinellas County Solid Waste Resource Recovery Revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues 93,102 86,970 84,546 85,465 83,327 76,759 69,492 84,308 86,289 80,280 Expenses (a) 70,083 50,819 46,574 53,764 42,439 45,745 41,068 43,803 48,676 44,719 Net Revenue Available for Debt Service 23,019 36,151 37,972 31,701 40,888 31,014 28,424 40,505 37,613 35,561 Debt Service Requirements (b) Principal Interest Total Coverage (c) x 22,250 1,191 23, (a) Excludes depreciation, amortization, bad debt, gain on sale of assets and bond interest expense. (b) Interest paid on April 1st and September 30th and principal paid on September 30th of the fiscal year, with final maturity on October 1, (c) The County was contractually obligated to establish and maintain Solid Waste rates that will provide a Coverage as computed above of Solid Waste Resource Recovery Revenue Bond Activity

13 Schedule of Revenue Bond Coverage 13 Pinellas County Second Guaranteed Entitlement revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues Expenses Net Revenue Available for Debt Service Debt Service Requirements (b) Principal Interest Total Coverage (c) 1,060 1, ,083 1, x (a) The Second Guaranteed Entitlement Revenue Refunding Bonds were dated February 1, (b) Interest paid on February 1st and August 1st and principal paid on February 1st, with final maturity on February 1, Second Guaranteed Entitlement Revenue Bond Activity

14 Schedule of Revenue Bond Coverage Pinellas County Capital Improvement Revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues 62,100 58,187 55,070 52,026 52,803 58,947 64,422 68,567 70,397 67,863 Expenses (a) Net Revenue Available for Debt Service 62,100 58,187 55,070 52,026 52,803 58,947 64,422 68,567 70,397 67,863 Debt Service Requirements (a, b) Principal Interest Total Coverage (c) x 22,600 21,435 20,350 19,520 18,730 17, ,627 2,753 3,708 4,516 5,290 23,122 23,062 23,103 23,228 23,246 23, (a) The Series 2000 Capital Improvement Revenue Bonds were issued in October 2000 and the Series 2002 Capital Improvement Revenue Bonds were issued in July 2002, both with a final maturity of January 1, (b) Interest paid on January 1st and July 1st and principal paid on January 1st Capital Improvement Revenue Bond Activity 14

15 Schedule of Revenue Bond Coverage Pinellas County Transportation Improvement Revenue Bonds Last Ten Years (dollars in thousands) Fiscal Year Gross Revenues 12,940 12,951 12,497 12,469 12,750 12,819 12,840 17,251 17,837 17,753 Expenses (a) Net Revenue Available for Debt Service 12,940 12,951 12,497 12,469 12,750 12,819 12,840 17,251 17,837 17,753 Debt Service Requirements (a, b) Principal Interest Total Coverage (c) 6,610 6,345 6, ,858 6,831 6,806 x (a) The Transportation Improvement Revenue Bonds were dated September 1, 1993, with final maturity of August 1, (b) Interest paid on February 1st and August 1st and principal paid on February 1st Transportation Improvement Revenue Bond Activity 15

16 Comparison of Outstanding Bonded Debt & Debt Ratios Comparison of Outstanding Bonded Debt and Debt Ratios with Other Florida Counties as of September 30, 2014 (most current data available) Population a Per Capita Personal Income b Taxable Assessed Property Value (000 s) General Bonded Debt General Bonded Debt per Capita General Bonded Debt as % of Personal Income, per Capita General Bonded Debt as % of Taxable Assessed Value Pinellas County 933,258 45,368 56,092, % 0.00% Hillsborough County 1,301,887 40,358 68,365,000 65,900, % 0.10% Orange County 1,227,995 37,760 84,092, % 0.00% Palm Beach County 1,360,238 58, ,934, ,630, % 0.10% Duval County c 890,066 42,223 43,146, % 0.00% NonSelf Supporting Revenue Debt NonSelf Supporting Revenue Debt per Capita NonSelf Supporting Revenue Debt as % of Personal Income, per Capita NonSelf Supporting Revenue Debt as % of Taxable Assessed Value 0.00% 0.00% 418,220, % 0.61% 303,966, % 0.36% 736,162, % 0.44% 2,214,958,000 2, % 5.13% Self Supporting Debt Self Supporting. Debt per Capita Self Supporting Debt as % of Personal Income, per Capita Self Supporting Debt as % of Taxable Assessed Value 169,995, % 0.30% 321,145, % 0.47% 772,770, % 0.92% 278,960, % 0.17% 272,123, % 0.63% (a) Most recent population information obtained from the Office of Economic & Demographic Research website (April 1, 2014). (b) Most recent Personal Income provided by the Bureau of Economic Analysis of the U.S. Department of Commerce is 2013, which was applied to 2014 population estimates. (c) Duval County is a consolidated city/county political entity where all municipalities (except Jacksonville Beach, Atlantic Beach, Neptune Beach and the Town of Baldwin), authorities and public agencies (except Duval County School Board) were consolidated. Debt per Capita 16

17 Photos on the front cover courtesy of Visit St. Petersburg/ Clearwater This Bonded Debt report was prepared by the Finance Division, the Clerk s Print Shop, the Clerk s Communications Coordinator and the Board of County Commissioners Communications Department.