Long-Term Debt Workshop. July 21, 2015

Transcription

1 Long-Term Debt Workshop July 21, 2015 Henry W. Stern, CTP City Treasurer Debbie Moreno Finance Director

2 Bond Issue Process Pre-Production Identify Project Determine Costs Source of Repayment Size of Debt Issue Financing Costs Production Official Statement/ Indenture Pricing of Bonds Interest Rate/ Serial Bonds Settlement Date of Funding Post-Production Accounts for Funds Investment of Funds with Trustee Arbitrage Calculations Reporting & Audits Finance Public Utilities Community & Economic Development City Treasurer Finance 2

3 Citywide Long-Term Obligations 3

4 General Fund Lease Obligations (amounts in millions) Description Date Issued Maturity Date Interest Rate Issuance Amount Amount Outstanding 7/01/ Anaheim Lease Revenue Bonds 02/01/97 03/01/37 4.5% to 6.0% $510.4 $ Anaheim Lease Revenue Bonds Accretion 02/01/97 03/01/37 N/A N/A Anaheim Refunding Lease Revenue Bonds 06/13/07 03/01/ % to 5.5% Anaheim Lease Revenue Refunding Bonds 12/10/08 08/01/19 3.0% to 5.0% Anaheim Lease Revenue Bonds 11/14/14 05/01/46 0.4% to 5.0% TOTAL LEASE OBLIGATIONS $1,030.8 $

5 Term Bonds v. Serial Bonds 2014 Convention Center Expansion Project Maturity Date (May 1) Principal Mandatory Redemption for May 1, 2039 on May 1 Principal Mandatory Redemption for May 1, 2046 on May 1 Principal 2015 $ 1,200, $ 9,200, $ 11,740, ,570, ,660, ,330, ,775, ,145, ,945, ,060, ,650, ,595, ,400, ,185, ,275, ,930,000 $ 50,840, ,985, ,125, ,735, ,380,000 $ 95,605, ,650, ,930, ,225, ,540, ,865, ,210, ,570, ,945, ,345, ,760, ,840, ,605,000 $ 258,925,000 5

6 Repayment Levels To be paid from accumulated reserves estimated to be $59 M on September 1, Other Resort 6

7 Lease Payment Measurement Revenues (LPMR) an amount equal to: 3% of the 15% TOT (i.e. 20% of total TOT) for all hotel properties in the City, excluding Disney properties 100% of the incremental TOT revenues from all Disney properties over the1995 base, adjusted each year by the CPI change, with a minimum 2% increase 100% of incremental Sales Tax revenues from all Disney properties over the 1995 base, adjusted each year by the CPI change, with a minimum 2% increase 100% of incremental Property Tax revenues from all Disney properties over the 1995 base, adjusted each year by 2% City is not required to pay any additional sums should the LPMR fall short of amount required to pay debt service 7

8 LPMR Compared to Debt Service $60.0 (in millions) $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 * Projected ** Budgeted LPMR Total Debt Service 8

9 LPMR Reserve Balance LPMR Reserves Balance with Trustee $ 80.0 Estimated July & August LPMR 7.5 Total Estimated Balance with Trustee for September 1 Debt Service (amounts in millions) $ 87.5 September 1, 2015 Debt Service (28.3) Remaining Reserve Balance with Trustee $ Number of Months of Debt Service with Trustee

10 5-Year LPMR Projections 2007 PKF Study City 5-Year Plan (amounts in millions) Fiscal Year Projected LPMR Debt Service Projected LPMR in Excess of Debt Service % Over Debt Service Projected LPMR per 5-Year Plan City Projection Over PKF Projection Total Projected LPMR in Excess of Debt Service % Over Debt Service 2015/16 $ 45.4 $ 35.4 $ % $ 53.7 $ 8.3 $ % 2016/ % % 2017/ % % 2018/ % % 2019/ % % 10

11 Other Long-Term Obligations (amounts in millions) Pensions Actuarial Valuation Date Accrued Liability Market Value of Assets Unfunded Liability Funded Ratio June 30, 2013 $ 2,039.5 $ 1,479.5 $ % June 30, , , % June 30, , , % 11

12 Other Long-Term Obligations Pensions (amounts in millions) Fiscal Year Net City Contribution Net General Fund Contribution % of General Fund Budget 2015/16 $ 48.0 $ % 2016/ % 2017/ % 2018/ % 2019/ % 12

13 Other Long-Term Obligations (amounts in millions) Other Post-Employment Benefits (OPEB) Actuarial Valuation Date Accrued Liability Actuarial Value of Assets Unfunded Liability Funded Ratio July 1, 2013 $ $ 74.0 $ % July 1, % July 1, % 13

14 Other Long-Term Obligations (amounts in millions) Other Post-Employment Benefits (OPEB) Fiscal Year Net City Contribution Net General Fund Contribution % of General Fund Budget 2015/16 $ 13.7 $ 8.1 3% 2016/ % 2017/ % 2018/ % 2019/ % 14

15 Closing General Fund Lease Obligations No balloon payments Level repayment schedule Healthy LPMR Reserve balance Pensions Funded status at 72.5% and improving Other Post-Employment Benefits Closed plan Unfunded liability will diminish over time as number of eligible members decrease Citywide Long Term Obligations Information published in Budget Book 15