Hays Consolidated Independent School District

Transcription

1 Hays Consolidated Independent School District Preliminary Bond Election Planning Meeting October 13, 2016 R. Dustin Traylor Mark Tarpley Director Vice President, LLC, LLC 303 Pearl Parkw ay 200 Crescent Court Suite 220 Tel: (210) Suite 1500 Tel: (214) San Antonio, TX Fax: (210) Dallas, TX Fax: (214)

2 Discussion Points 1. Overview of Existing Debt 2. Proposed Capital Plan 1

3 Overview of Existing Debt SECTION 1

4 Overview of Existing Debt Outstanding Debt Profile Issue Issued Par Amount Hays CISD Debt Profile Outstanding Par Coupon Range of Amount Callable Bonds (1) The 2038 maturity is currently callable as of February 15, The remaining maturities are callable on August 15, First Call Date Final Maturity Structure Use of Proceeds U/L Tax Sch Bldg & Ref Bds Ser 2004 $ 47,165,000 $ 270, % 09/08/ /15/2026 Fixed Rate Ref;School Building U/L Tax Sch Bldg Bds Ser ,300,000 8,950, % % 09/08/ /15/2032 Fixed Rate School Building U/L Tax Sch Bldg Bds Ser ,700,000 22,580, % % 02/15/2011 (1) 08/15/2038 Fixed Rate School Building U/L Tax Ref Bds Ser ,230,000 8,230,000 N/A N/A 08/15/2022 Fixed Rate Refunding U/L Tax Ref Bds Ser ,310,000 8,310, % % 08/15/ /15/2026 Fixed Rate Refunding U/L Tax Ref Bds Ser 2012A (Taxable) 91,070,000 84,480, % % 08/15/ /15/2026 Fixed Rate Refunding U/L Tax Ref Bds Ser ,475,000 52,855, % % 08/15/ /15/2030 Fixed Rate Refunding U/L Tax Sch Bldg Bds Ser ,655,000 46,875, % 02/15/ /15/2039 Fixed Rate School Bldg & Buses U/L Tax Ref Bds Ser ,505,000 8,505, % 08/15/ /15/2032 Fixed Rate Refunding U/L Tax Ref Bds Ser ,465,000 55,465, % % 08/15/ /15/2037 Fixed Rate Refunding Total $ 457,875,000 $ 296,520,000 Outstanding Unlimited Tax Debt by Principal & Interest Outstanding Unlimited Tax Debt by Series 30,000 25,000 Principal Interest 30,000 25,000 Ser 2004 Ser 2007 Ser 2008 Ser 2011 Ser 2012 Ser 2012A Debt Service ($000s) 20,000 15,000 10,000 Debt Service ($000s) 20,000 15,000 10,000 Ser 2013 Ser 2014 Ser 2015 Ser ,000 5,

5 Overview of Existing Debt Permanent School Fund Guarantee The State Board of Education ( SBOE ) modified the PSF rules, including qualification rules, effective July 1, To qualify for the PSF guarantee on a new money transaction, a district must be below the 90th percentile in Debt per ADA for the current fiscal year or Total Debt per ADA (unless an exemption is granted by TEA). PSF Guarantee Capacity for Public School Districts (1) As of the Month Ending August 31, 2016 Current Description Guarantee Limit Max Allowable For Guarantee Under State Law $96,967,154,703 Less: 5% Capacity Reserve 4,904,111,788 Guarantee Capacity at Month End 92,063,042,915 Less: Net Amount Currently Guaranteed 68,292,278,445 Less: Capacity Reserved for Charter Schools 1,059,327,014 (2) Amount Available For Guarantee 22,711,437,456 Less: New Issues In Process 1,786,484,076 Less: New Issues Approved 835,620,000 Net Amount Available For Guarantee $20,089,333,380 (1) The PSF Summary is based on the capacity limit of 3.25 times the low er of cost or market value of the fund w hich became effective February 1, (2) At its January 2014 meeting the SBOE approved rules governing participation of Charter Districts in the Program. Chapter stipulates that Charter District guarantee capacity shall be based on a ratio of charter students to total public school students, as annually determined by the Commissioner of Education (currently 4.68%), applied against the available capacity of the Bond Guarantee Program. The available capacity is defined in Chapter and as maximum allow able for guarantee less total amount of outstanding guaranteed bonds, and less the SBOEestablished reserve. Currently the PSF has capacity for new bonds issued by the District to qualify for the Program, allowing the District s bonds to sell as AAA rated. 4

6 Overview of Existing Debt Hays CISD Rating History Current Ratings Rating History Standard & Poor's Fitch Highest Quality (Lowest default risk) AAA AAA AA+ AA+ High Grade / High Quality AA AA AA- AA- A+ A+ Upper Medium Grade A A A- A- BBB+ BBB+ Minimum Investment Grade BBB BBB BBB- BBB- BB+ BB+ BB BB Speculative Grade BB- BB- B+ B+ B B B- B- Highly Speculative Grade CCC (+,-), CC or C CCC (+,-), CC or C Imminent default or in default SD or D SD or D PSF Ratings Current Ratings Credit Rating Levels Date Rating Agency Action Rating Outlook 06/08/2016 Standard & Poor's Affirmed AA- Stable 06/03/2016 Fitch Upgrade AA Stable 11/25/2015 Standard & Poor's Outlook Revised AA- Positive 11/25/2015 Fitch Affirmed AA- Positive 07/31/2014 Fitch Affirmed AA- Stable 05/08/2013 Fitch Affirmed AA- Stable 11/07/2012 Fitch Affirmed AA- Stable 03/15/2012 Standard & Poor's Upgrade AA- Stable 03/15/2012 Fitch Affirmed AA- Stable 10/18/2011 Fitch Affirmed AA- Stable 02/18/2011 Fitch Affirmed AA- Stable 04/30/2010 Fitch Revision Rating AA- Stable 07/08/2008 Standard & Poor's Upgrade A+ Stable 07/08/2008 Fitch Upgrade A+ Stable 12/20/2007 Standard & Poor's New Rating A Stable 11/02/2007 Fitch Affirmed A Stable 03/27/2007 Fitch Affirmed A Stable 01/05/2007 Fitch Affirmed A Stable 06/22/2005 Fitch Affirmed A Stable 02/02/2005 Fitch Affirmed A Stable 12/01/2004 Fitch Upgrade A Stable 05/14/2003 Fitch New Rating A- Recent Rating Agency Comments: Very strong financial position with available reserves averaging about 30% of expenditures over last 4 years. Continued property tax base growth Stable and diverse economy, which benefits form participation in the Austin-San Marco Metropolitan Statistical Area. The District has demonstrated a strong commitment to supporting financial flexibility. Budgeting is conservative and management has been proactive in maintaining operational balance throughout economic cycles. 5

7 Current Market Overview Long-Term Market Municipal GO AAA MMD Yield Curve Changes 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Year 10/07/ /07/2016 Source: Bloomberg and Thomson Municipal Market Data 6

8 Proposed Capital Plan SECTION 2

9 Proposed Capital Plan Summary of Assumptions The following analysis will examine the District s ability to service future capital improvement programs through bond issues. The program assumes Bonds to be issued following a May 2017 election. The District s current I&S Tax rate is $ per $100 Valuation. The District s tax collection is 100.0%. Assumes current market rates of interest (all in TIC of approximately 3.25%). The District continues its early bond retirement program for the 2016/17 fiscal year. The District s Freeze Adjusted Taxable Value for 2016/17 is $5,578,026,709. The District collects approximately $2,050,000 of revenue from frozen properties for I&S purposes. The District s taxable assessed valuation grows by $700,000,000 in 2017/18 and remains constant thereafter. District would continue to receive EDA/IFA funding from TEA for existing bonds, however the actual amount of subsidy would reduced based upon wealth/ada. 8

10 Proposed Capital Plan Estimated Debt Service Capacity at $36.3MM Maximum Annual Debt Service 40,000 Existing Debt Service Estimated Capacity for Additional Bonds 35,000 30,000 Debt Service ($000s) 25,000 20,000 15,000 10,000 5,

11 Proposed Capital Plan Historical & Projected TAV Tax Year Fiscal Year End Freeze Adjusted TAV TAV Growth M&O Tax Rate I&S Tax Rate $2,883,487, % ,257,092, % ,411,481, % ,452,686, % ,563,019, % ,708,352, % ,910,777, % ,223,693, % ,765,260, % ,578,026, % ,278,026, % TBD TBD Historical Tax Rates Freeze Adjusted TAV 1.80 M&O Tax Rate I&S Tax Rate Tax Rates TAV ($Billions)

12 Proposed Capital Plan Estimated Maximum Bond Capacity (No I&S Tax Rate Increase) 350,000, ,000, ,000,000 Debt Service Capacity 200,000, ,000, ,000,000 $250,000,000 50,000,000 0 Bond Capacity With No I&S Tax Rate Increase 11

13 Proposed Capital Plan Preliminary Tax Rate Impact Analysis - $250,000,000 Bond Election A B C D E F G H I J K L M N O Less: from TAV $250,000,000 Bond Proceeds at CM Rates (2) Less: Projected Less: Less Plus Net Frozen Est. Fiscal Series 2017 Gross Projected EDA Frozen Delinquent Early Net Taxable Tax Rate Year Outstanding Total Combined IFA Assistance Assistance Levy I&S Tax Cash Combined Assessed TAV Combined Ending Debt Service (1) Principal Interest Debt Service Debt Service (Existing) (3) (Existing EDA) (3) Revenues Collections Redemptions Debt Service Valuation % Debt Service 2017 $ 25,124,671 $ $ 100,000 $ 100,000 $ 25,224,671 $ 944,322 $ 3,388,181 $ 2,820,000 $ 250,000 $ (10,000,000) $ 27,822,168 $ 5,578,026, % $ ,579,006 3,600,000 9,090,000 12,690,000 36,269, ,074 2,117,779 2,055, ,000 31,247,353 6,278,026, % ,569,106 3,760,000 8,942,800 12,702,800 36,271, ,074 2,121,325 2,055, ,000 31,246,707 6,278,026, % ,524,581 2,955,000 8,793,725 11,748,725 36,273, ,074 2,121,325 2,055, ,000 31,248,107 6,278,026, % ,522,981 3,105,000 8,642,225 11,747,225 36,270, ,074 2,121,325 2,055, ,000 31,245,007 6,278,026, % ,513,581 3,225,000 8,532,350 11,757,350 36,270, ,074 2,121,325 2,055, ,000 31,245,732 6,278,026, % ,910, ,000 8,478,225 9,358,000 36,268, ,074 2,121,325 2,055, ,000 31,243,557 6,278,026, % ,637,321 1,205,000 8,426,225 9,631,225 36,268, ,074 2,121,325 2,055, ,000 31,243,347 6,278,026, % ,643,345 1,260,000 8,364,600 9,624,600 36,267, ,074 2,121,325 2,055, ,000 31,242,746 6,278,026, % ,732,475 2,260,000 8,276,600 10,538,000 36,270, ,074 2,121,325 2,055, ,000 31,245,276 6,278,026, % ,686,150 1,400,000 8,185,100 9,587,500 36,273, ,074 2,121,325 2,055, ,000 31,248,451 6,278,026, % ,533,225 1,625,000 8,109,475 9,734,475 36,267, ,074 2,121,325 2,055, ,000 31,242,501 6,278,026, % ,926,475 10,650,000 7,802,600 18,452,600 30,379, ,328 1,058,501 2,055, ,000 26,781,446 6,278,026, % ,921,650 11,195,000 7,256,475 18,451,475 30,373, ,328 1,057,979 2,055, ,000 26,776,019 6,278,026, % ,504,125 11,710,000 6,742,400 18,452,400 29,956, ,328 1,012,754 2,055, ,000 26,404,643 6,278,026, % ,229,625 12,160,000 6,295,400 18,455,400 28,685, , ,705 2,055, ,000 25,271,192 6,278,026, % ,031,275 12,620,000 5,830,200 18,450,200 29,481, ,999 1,023,941 2,055, ,000 25,920,735 6,278,026, % ,030,525 13,140,000 5,315,000 18,455,000 29,485, ,999 1,023,860 2,055, ,000 25,924,866 6,278,026, % ,034,525 13,670,000 4,778,800 18,448,800 29,483, ,999 1,024,293 2,055, ,000 25,922,233 6,278,026, % ,031,600 14,230,000 4,220,800 18,450,800 29,482, ,999 1,023,976 2,055, ,000 25,921,625 6,278,026, % ,031,300 14,805,000 3,640,100 18,445,100 29,476, ,999 1,023,944 2,055, ,000 25,915,657 6,278,026, % ,887,650 15,415,000 3,035,700 18,450,700 30,338, ,999 1,116,700 2,055, ,000 26,684,851 6,278,026, % ,515,750 16,040,000 2,406,600 18,446,600 21,962, , ,889 2,055, ,000 19,215,662 6,278,026, % ,700,000 1,751,800 18,451,800 18,451, , ,055, ,000 15,938,206 6,278,026, % ,375,000 1,070,300 18,445,300 18,445, , ,055, ,000 15,931,706 6,278,026, % ,070, ,400 18,431,400 18,431, ,000 18,181,400 6,278,026, % Total $421,121,697 $223,050,000 $154,448,900 $377,507,475 $798,629,172 $10,073,440 $37,585,339 $52,159,200 $6,500,000 $ (10,000,000) $702,311,192 (1) Net of bonds to be redeemed and defeased in Fiscal (2) All-in-TIC of 3.21% includes the fixed yield on the bonds + estimated issuance costs. Principal Amount below voted authorization is due to premium generated. This produces $250M M of proceeds. (3) Projected IFA/EDA Assistance is based on District preliminary estimates for 2017/18. Funding constant following 2017/18 for 50 Cent Test Purposes. 12

14 Proposed Capital Plan Bond Election Calendar May 2017 Election 2017 January February March April May S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S Last Day to Call Election Early Voting Period Uniform Election Dates Earliest Date to Canvas Returns 13