DEBT SERVICE FUND OVERVIEW AND DETAIL

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Verity Robertson
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1 DEBT SERVICE FUND OVERVIEW AND DETAIL Debt financing is used to fund major capital expenditures that are part of the Capital Improvement Plan. In 2004, the restoration of the District s bonding authority to $1.04 million annually provided the District the ability to use long-term debt instruments and operating surpluses to finance large capital projects and repay outstanding debt rather than relying on funds that are needed to meet operating needs. The District prepares detailed analyses of existing obligations, current and projected reserves, and future liability levels before making a decision to issue new debt. The District s current and proposed debt portfolio for 2009 is illustrated in the chart below: Outstanding Debt Bond Issue Reason for Issuance Funding Source Total Principal and Interest Outstanding 1998 Alternate G.O. Bond 2002 G.O. Debt Certificates Amount of 2009 Principal Payment Amount of 2009 Interest Payment 4,725,000/ 196,275 (WCC) 152,637(WCC) 1,728,754 63,725 (Golf Course) 49,558 (Golf Course) Amount of 2009 Total Debt Payment Enterprise Services An addition to Courts Plus and for 220,000/ revenues/backed by 40,000 10,340 50,340 general park purposes 32,195 taxes (2) Expansion of Sugar Creek Golf Course and purchase/ redevelopment of Wagner Community Center Annual rollover G.O Bond and Golf Course Revenues 462,195 Redevelopment of East End Pool 2006 G.O. and Wilder Mansion/Library, Limited Tax Bond installation of two synthetic turf athletic fields Tax Levy and transfer from Early Bond Repayment Fund (75,715 annually for artificial turf fields) 6,215,0000/ 2,536,505 Proposed Debt for , , , G.O. Annual Rollover Bond Debt payment for 2002 Debt Certificates and fund capital improvements 500,000/ Tax Levy 500,000 20, ,000[1] 20,000 (1) Estimate (interest portion will be determined when the bond sale is negotiated) (2) These taxes are abated Budgeted Revenue to Pay 2009 Debt Payments The 2009 bond payments detailed in the last column above (titled Total Amount of 2009 Debt Payments ) are budgeted in the Debt Service Fund along with bank and finance charges of $1,600 and legal fees of $3,500. Revenues in the Debt Service Fund to cover these payments include: Taxes levied totaling $1,035,678 to pay the portion of the 2006 G.O. Limited Tax Bond for East End Pool and the 2009 G.O. Annual Rollover Bond; A transfer from Enterprise Services Fund to Recreation Fund to the Debt Service Fund for the 1998 Alternate G.O. Bonds of $50,340; A transfer from the Sugar Creek Golf Course Fund to the Debt Service Fund for the Sugar Creek portion of the 2002 G.O. Debt Certificates of $113,283; 2009 Elmhurst Park District Budget 187

2 $75,715 transfer from the Early Bond Repayment Fund to the Debt Service Fund for the additional debt service portion of the 2006 G.O. Limited Tax Bond that was used to fund synthetic turf fields; Annual rollover bond proceeds of $500,000 for the Wagner Community Center portion of the 2002 G.O. Debt Certificates of $348,912 (the remainder of the Annual rollover bond proceeds of $151,088 and $70,773 from tax revenue for a total of $221,861 is budgeted to be transferred to the Capital Improvement Fund for various capital projects); The Sugar Creek Fund includes a transfer of $125,863 to the Village of Villa Park to pay the golf course s portion of the debt issued by the Village to purchase and develop the driving range. Bond Rating In 2006, the District s operations were reviewed by representatives from Moody s Investor Service through an on-site visit of parks and facilities and an analysis of financial information prior to the issuance of the 2006 $7.5 million G.O Limited Tax Bonds. Moody s upgraded the District s bond rating from a Aa3 to Aa2 rating reinforcing the District s healthy financial position. Moody s report cites the District s well-managed finances and healthy reserves, strong management and program flexibility and Elmhurst s location and economy, as reasons for the rating upgrade. This rating enables debt financing for infrastructure or major capital to be acquired at a significant savings of interest. Debt Limit The legal debt limits for the District are 2.875% of equalized assessed valuation for total debt issued including referendum and non-referendum bonds and.575% of assessed valuation for non-referendum bonds only. Bonds are not included in the computation of statutory indebtedness unless the taxes levied to pay for such obligations are in fact extended. The District s long-term debt outlook is healthy as the District s current percent of legal debt limit is 18% of the total limit or $11,945,000 (total available limit of $53,104,169) and for non-referendum General Obligation debt, the percent of legal debt limit is 54% of the total limit or $6,965,000. Moody s Investor s Services Aa2 bond rating of the District also illustrates that the District is within a fiscally responsible level of debt. The chart below illustrates the legal debt margin calculations. Estimated Legal Debt Margin Calculations (as of September 30, 2008) Tax Year 2007 E.A.V. (collectable calendar year 2008) 2,262,579,808 Non-Referendum General Obligation Debt Limit (0.575% of EAV) 13,009,834 Statutory Debt Limit (2.875% of EAV) 65,049,169 Less: Bonded Debt Alternate Revenue Bonds, Series 1998 (due 12/30/08-13) (1) 255, GO Debt Certificates Series 2002 (due 11/1/08-22) 4,980,000-4,980,000 Annual Rollover 500, , ,000 GO Limited Tax Bonds, Series 2006 (due 12/15/08-25) 6,465,000 6,465,000 6,465,000 Total Outstanding Debt: 12,200,000 6,965,000 11,945,000 Total Available Legal Debt Margins: 6,044,834 53,104,169 54% 18% (1) Pursuant to Illinois State Statutes, alternate revenue bonds will not be applied to either the overall 2.875% of EAV Statutory Debt Limit or the Non-Referendum 0.575% of EAV Debt Limit, provided that no debt service levy for the Bonds has been extended Elmhurst Park District Budget 188

3 This chart illustrates the District s debt service requirements to maturity of all outstanding debt: DEBT SERVICE REQUIREMENTS TO MATURITY General 2006 GO 2002 G.O Alternate Fiscal Year Obligation Limited Tax Long Term Debt General Totals Bonds-Annual Bonds Certificates Obligation Bonds , , ,195 50,340 1,548, , ,095 48,460 1,022, , ,688 51,580 1,031, , ,328 49,465 1,023, , ,498 52,350 1,029, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,295 Principal & Interest 520,000 8,751,505 6,453, ,195 17,003,723 Interest Portion 20,000 2,536,505 1,728,754 32, Elmhurst Park District Budget 189

4 SUMMARY OF DEBT CERTIFICATES, GENERAL OBLIGATION AND ALTERNATE GENERAL OBLIGATION BONDS Beginning Balance Debt Issue Balance Payments 12/31/ GO Limited Tax Bonds 6,215, ,000 5,955,000 Total Issuance: $7,500,000 Installments: $240,000 - $795,000 Interest: 3.75%-4.10% 2002 G.O. Long Term Debt Certificates Total Issuance: $6,155,000 Installments: $220,000 - $440,000 Interest: 2.75% % 4,725, ,000 4,465, Alternate G.O. Bonds 220,000 40, ,000 Total Issuance: $1,500,000 Installments: $35,000 - $180,000 Interest: 4.20% % TOTALS 11,160, ,000 10,600, Elmhurst Park District Budget 190

5 Revenue - Debt Service Fund For Budget Year 2009 Account Number Proposed Account Title Actuals Budget Budget DuPage County Real Estate Property Tax 1,037,260 1,033,803 1,035, Operating Interfund Transfers 160, , , Bond Proceeds 500, , , Interest Income 33,091 3,000 3,000 Total Revenues 1,731,305 1,775,292 1,779, Elmhurst Park District Budget 191

6 Elmhurst Park District Transfers and Debt Service For Budget Year 2009 Account Number Proposed 2009 Proposed Account Title Actuals Budget Budget Appropriation Legal Fees 3,000 5,000 3,500 4, Finance/Bank Charges 1,515 3,000 1,600 1,920 Total Contractual Services 4,515 8,000 5,100 6, Operating Interfund Transfers 65, ,830 60,250 72, Operating Interfund Transfers 131, , , , Operating Interfund Transfers 399,089 1,616, , , Operating Interfund Transfers 1,430, ,715 75,715 90, Operating Interfund Transfers 152, , , , Operating Interfund Transfers 53, , , , LT Debt Certificates (P&I) 458, , , , Interest Expense ,961 2, GO Limited Tax Bonds 514, , , , Debt Service 67, , , , Annual G.O. Bonds (P&I) 512, , , , Alternate G.O. Bond (P&I) 48,630 46,985 50,340 60, Income from Joint Venture 70, Total Transfers & Debt Service 3,904,322 4,797,062 2,573,986 3,088,783 Total Expenses 3,908,837 4,805,062 2,579,086 3,094, Elmhurst Park District Budget 192

2018 PROPOSED CAPITAL AND DEBT PRESENTATION

2018 PROPOSED CAPITAL AND DEBT PRESENTATION Capital Improvement Plan Purpose Capital Planning Process Definition of a Capital Project Capital Project Evaluation Criteria Ranking and Prioritization of Proposed