Debt Service and Capital Planning Section 6

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1 Debt Service and Capital Planning Section 6

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3 In This Section Capital Improvement Plan (CIP)...See separate Capital Improvement Plan Debt Service Calculation of Total Net Indebtedness Constitutional Debt Limit and Debt Margin Debt Service Summary - All Funds Debt Service Summary Countywide Debt Service Debt Service Summary - Special Districts Indebtedness Authorized and Unissued Serial Bonds Serial Bonds by Department Capital Planning Proposed Projects - Six Year Summary of Estimated Expenses Proposed Projects- Source of Funds All Funds Debt Service Summary Proposed Projects- Summary of 2016 Estimated Expenses Proposed Capital Improvement Projects for

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5 Debt Service Several methods are available to finance capital improvement projects and other authorized activities. Onondaga County, like most governmental units, borrows money in order to acquire land and equipment, construct buildings, and make renovations and improvements. The cost of these capital projects are normally financed by the issuance of debt obligations which are then repaid over several years along with the interest incurred on the borrowings. An amount is included in the County s annual operating budget to make these payments, which is defined as debt service. This policy enables the cost of these capital assets to be borne by the present and future taxpayers receiving the benefit of the capital assets or improvements. The use of debt, usually through the issuance of bonds, to finance capital projects has several advantages. Primarily, it allows the County to obtain for current use a capital facility that would go beyond its capacity to finance on a pay-as-you-go basis. In addition, the flexibility associated with the repayment of bonds allows the County to smooth out its expenditure pattern over a period of several years. The structure of the principal payments cumulatively effects both interest payments and subsequently the County s operating budget. In general, the State Legislature has granted the power and defined the procedure for the County to borrow by the enactment of the Local Finance Law. Pursuant to the Local Finance Law, its Charter and the County Law, the County authorizes the issuance of bonds by the adoption of a bond resolution, which must be approved by at least two-thirds of the members of the County Legislature. Through the bond resolutions, the County Legislature delegates to the Chief Fiscal Officer the power to authorize and sell bond anticipation notes in anticipation of authorized bonds. Each bond resolution authorizes the construction, acquisition or installation of the object or purpose to be financed, the plan of financing, the amount of money being borrowed, and the Period of Probable Usefulness (PPU), which ties in with the maximum maturity of the bonds subject to legal restrictions. Within these bonding requirements, the County has considerable flexibility in its borrowing program and can issue two basic forms of debt instruments: Serial Bonds (Bonds) and Bond Anticipation Notes (BANs). BANs, due to their short term (12 months or less), are used to facilitate borrowing for projects that have a PPU of 5 years or less, or are relatively small in amount or otherwise inappropriate for long-term borrowing. In addition, BANs allow the County the option of conversion to Serial Bonds when interest rates are most beneficial for long-term debt. Statutory law in New York permits BANs to be renewed each year provided annual principal installments are made prior to the second renewal, if the principal is not paid off after the fourth renewal (5 years from the original date of borrowing), the BAN must be converted to a Serial Bond. There is an exception to the 4-time renewal limitation on BANs for Special District Borrowing for Water Environment Protection and Water. BANs may be renewed indefinitely for Special Districts as long as they do not violate the assigned PPU. The Local Finance Law contains provisions providing the County with power to issue certain other shortterm general obligation indebtedness, including revenue and tax anticipation notes and budget and capital notes. Onondaga County has not used any of these short-term borrowing options since Bond Advisors Bond counsel and our financial advisors play an important role in the bond issuing process. They can be influential in reducing borrowing costs by advising the issuing government on how best to structure the issue and when best to go to market. They assist us in the preparation of the County s Official Statement, Section 6 Page 1

6 insuring that it meets the legal requirements and includes the information to present the County s financial status and economic activities and comparisons. They assist us in the application for bond ratings, which provide investors with a symbol of credit quality that is easily recognized. Through careful fiscal planning and sound financial management, Onondaga County was upgraded 4 times during , including an increase to double A plus (AA+) rating in May 2000 by Standard and Poor s and in May 2002 by Fitch Ratings. In 2010, Onondaga County was upgraded to triple A (AAA) by Fitch Ratings. In 2015 Onondaga County received the following ratings: AAA by Fitch, AA+ by S&P and Aa2 by Moody s, with a stable outlook from all of the agencies. Market Factors Affecting Bonds The market for Bonds and Notes could be affected by a variety of factors, some of which are beyond the County s control. There can be no assurance that adverse events at the state level will not occur which might affect the market price of outstanding Bonds and Notes and the market for additional debt. If a significant default or other financial crisis should occur in the affairs of the federal or state government or of any of its agencies or political subdivisions, it could impair the acceptability of obligations issued and bond ratings of borrowers, such as Onondaga County. The traditional market for our debt has changed over the years, from primarily banks and individual investors, to the major brokerage houses and fund investors. The County looks to market conditions when scheduling its bond sale to optimize savings to the taxpayers. Debt Management Planning Onondaga County s debt management planning covers all debt issued by the County including debt wholly supported by special district fund revenues. The County s comprehensive approach to debt management includes: administrative review, emphasis on pay-as-you-go within defined limits, adherence to multiple policies established by the legislature, adherence to local finance law, and comprehensive use of bond counsel and financial advisors. Between , Onondaga County has undertaken many debt management initiatives. In 2000, the County defeased $10.7M of debt using its fund balance. The County Legislature had passed a resolution in November 1999, which established a fund balance target of 10% of General Fund revenues. Any excesses would be used to avoid or reduce debt and provide property tax relief. The defeasance had a benefit to taxpayers of $11.7M in In August 2001, the County participated in a pooled financing with 5 other New York counties to sell its rights to the tobacco revenues guaranteed under the Master Tobacco Agreement with the 4 major tobacco companies. This financing provided funds sufficient to defease approximately $95M of Onondaga County General Obligation debt, beneficially affecting the years for a total of $131.7M. Taking advantage of the lowest interest-rate environment in 40 years, the County refunded $18.5M of 10 year old bonds in 2003, saving $1.8M through In 2005, the County participated in a second pooled tobacco bond sale, which enabled the County to defease $19.9M, beneficially affecting the years for total debt service relief of $27.3M. In 2007, $8M in cash was used to fund capital projects, avoiding debt and maintaining the County s fund balance 10% target. In 2009 and again in 2012, the County issued $33.3M and $20.6M of refunding bonds, enabling savings of $3.3M and $1.2M, respectively. In 2014 the county issued $19.6M of refunding bonds saving over $1.1M and in 2015 $11.37M of refunding debt was issued saving $572,000. It is the County s goal to annually review its outstanding debt for refunding opportunities, which meet the 3% NPV savings target. In 2010, the County maximized its Section 6 Page 2

7 interest savings by issuing a mix of tax-exempt, Build America (35% interest subsidy) and Recovery Zone (45% interest subsidy) bonds. During the 2013 budget process, the Legislature passed a resolution committing $5M of fund balance to offset future debt service. The County has established the following policies to guide its management of debt (calculations based on 2016 Budget): 1. Debt service costs paid through the General Fund will not exceed 5.5% of total General Fund revenue. For 2016, debt service costs are 4.54% of revenues. 2. The County s total net direct indebtedness will not exceed $700 per capita or 1.5% of the full valuation of taxable property in the County. 3. Net general fund indebtedness is $594 per capita and 1.018% of the County s full valuation. (Population source is 2010 U. S. Census Bureau) 4. Rapid pay down of debt will continue as a goal of the County s debt management policies, with a target of 65% of outstanding principal scheduled for retirement within 10 years. This goal may be modified to reflect changes in the interest rate environment, which may argue for shorter or longer retirement terms. Currently, 71% of the County s outstanding general fund debt is scheduled to be retired within 10 years. In addition, the following capital planning and debt management strategies will continue: Where possible, capital expenditures will be funded through pay-as-you-go programs and alternative financing mechanisms, such as state loan programs and as federal pilot projects; Reviewing operating cost and revenue implications for all proposed capital projects as a part of the annual 60 year capital improvement planning process; Maintaining an inventory of capital assets and developing plans to reduce maintenance costs and extend the useful life of the County s infrastructure, including the development and implementation of preventive maintenance programs. Debt Management - Department of Water Environment Protection The County has taken advantage of zero-interest short-term notes and subsidized-interest loans with the NYS Environmental Facilities Corp., as well as Federal and State grants. This is especially true for the Onondaga Lake cleanup projects. Initiated in 1998, 20 projects have been completed, with an additional 3 major projects and various sewer separations underway. Debt Limits Local Finance Law prohibits the County from issuing debt in excess of the Debt Limit. The Debt Limit is 7% of the 5 year average full valuation of Taxable Real Property within the County. Total Net Indebtedness is calculated by adding the County s short and long-term debt and subtracting the legal exclusions. As of September 8, 2015 the County will have exhausted 15.18% of its Debt-Contracting Power, a minimal increase from the 15.5% in Despite the issuance of new debt the percentage of Debt-Contracting Power has increased marginally due to the use of tobacco bond revenues to defease Section 6 Page 3

8 $115M of General Fund debt (2001 & 2005). The following table is the calculation of Total Net Indebtedness: Calculation of Total Net Indebtedness (As of September 8, 2015) 5 Year Average Full Valuation of Taxable Real Property $26,091,294,438 Debt Limit (7% of 5 year average) $1,826,390,611 Outstanding Indebtedness: Bonds $ 651,317,086 Bond Anticipation Notes Outstanding Gross Indebtedness $ 651,317,086 Less Exclusions $ (374,105,313) Total Net Indebtedness $277,211,773 Net Debt-Contracting Margin $1,549,178,838 Percentage of Debt-Contracting Power Exhausted 15.18% (1) (1) The Debt Limit of the County is computed in accordance with the provisions of Article VIII of the State Constitution and Title 9 of Article 2 of the Local Finance Law Section 6 Page 4

9 Debt Limit and Debt Margin Onondaga County's use of its constitutional debt limit declined dramatically in 2001 when it defeased $95M of general fund debt, using proceeds from tobacco revenue bonds. A second tobacco bond sale in 2005 enabled an additional $20M in debt to be defeased. The percent is currently 15.18%, on par with the 15.5% in 2000 and down in comparison to an average of 17.8% for the years The debt margin is more than 5 times the total net indebtedness and provides ample flexibility to continue to meet the capital needs of the County Debt Limit and Debt Margin (as of September 8, 2015) Debt Limit $1,826,390,611 Total Net Indebtedness $277,211,773 Debt Margin $1,549,178,838 Percentage of Debt Limit Used 15.18% Note: The constitutional debt margin is the amount of additional debt, which a municipality may legally assume at a particular time and is calculated by subtracting the total net indebtedness from the debt limit. The debt limit is equal to 7% of the 5 year full value of taxable real property while the total net indebtedness equals total outstanding debt minus approved exclusions. 30% Percentage of Debt Limit Used 20% 10% Issued tobacco bonds to defease debt in % Section 6 Page 5

10 Debt Service Summary - All Funds 2016 Countywide Tax Levy Van Duyn Water/Ad Valorem Tax WEP/Unit Charge Total General Oblig. Principal 23,640, ,000 1,176,982 5,349,252 30,531,730 General Oblig. Interest 12,491, ,000 1,436,395 3,645,392 17,681,357 NYS EFC* Principal ,707,148 11,707,148 NYS EFC* Interest ,422,596 8,422,596 Estimated EFC* Principal Estimated EFC* Interest , ,000 Fiscal Agent Fees 40, , ,303 Debt Service Totals 36,171, ,150 2,613,377 30,219,691 69,478,134 RBD/Subsidy/Other** 9,835, , ,400,572 16,709,146 Charges to Operating Fund 26,336, ,613,377 23,819,119 52,768,988 Note: WEP - Water Environment Protection (Consolidated Sanitary District and Drainage Districts) *EFC Environmental Facilities Corporation, a New York State agency financing environmental projects. EFC interest assumes a 50% interest subsidy. **Includes subsidies in addition to RBD. County-Wide Debt Service will be subsidized $2,920,742 due to the issuance of Qualified Energy Conservation Bonds, and usage of funding from Oneida Exclusivity. Section 6 Page 6

11 Debt Service Summary - Countywide Debt Service 2016 General Obligation Department/Fund Principal Interest Fiscal Agent Fees Debt Service Totals RBD/ Fed Subsidy Other Charge to Operating Fund Board of Elections 42,000 11, , ,940 Community College 1 2,285,618 1,420, ,706, ,158 3,046,914 OnCenter Complex 706, ,532 40,000 1,293,532 96,545 1,196,987 Information Technology 1,630, , ,092, ,276 1,416,212 Facilities 2 4,230,174 1,593, ,824,094 1,993,916 3,830,178 Correction 110,000 80, , ,490 Sheriff/Jail 190,000 26, , ,350 Children & Family Services 3 310, , , ,425 Parks & Recreation 2,050,466 3,590, ,640,590 3,612,684 1,997,906 Library 415, , , , ,010 Transportation 8,149,917 3,389, ,539,674 2,144,795 9,394,879 E ,551, , ,432, ,230 4,193,199 TOTALS 23,640,496 12,491,420 40,000 36,171,916 9,835,424 26,336,492 1 OCC debt service will be partially funded with college chargeback collections 2 A $87,440 interest subsidy from Qualified Energy Conservation Bonds will be used to reduce the debt service for Facilities Management 3 50% reimbursement from NYS DCFS totaling $239,870 will be in department budget 4 $2,785,321 in surcharge revenue is appropriated in the budget to offset debt service on Microwave and Interoperable Radios Section 6 Page 7

12 Debt Service Summary - Special Districts 2016 Van Duyn 1 Water District Consol. San Dist Meadow brook DD Bear Trap DD Bloody Brook DD Harbor Brook DD Total General Oblig. Principal 365,000 1,176,982 4,749, ,444 14,000 66, ,000 6,891,234 General Oblig. Interest 108,150 1,436,395 3,465, ,768 10,595 27,981 20,975 5,189,937 NYS EFC* Principal ,707, ,707,148 NYS EFC* Interest ,422, ,422,596 Estimated EFC* Principal Estimated EFC* Interest , ,000 Fiscal Agent Fees , ,303 Debt Service Totals 473,150 2,613,377 29,439, ,212 24,595 93, ,975 33,306,218 RBD/Fed 2 Subsidy/ Other 473, ,287,952 68, ,970 30,715 6,873,722 Charges to Operating Fund 0 2,613,377 23,151, ,277 24,595 81, ,260 26,432,496 1 Van Duyn debt will be paid with proceeds of Van Duyn's sale 2 Assumes interest subsidy, totaling $4,211,298 for existing EFC debt Section 6 Page 8

13 County Indebtedness Authorized and Unissued As of September 8, 2015 Department Authorized and Unissued Facilities 5,713,719 Parks & Recreation 1,265,000 Transportation 11,195,000 Sheriff 1,900,000 Community College 8,800,205 Metropolitan Water Board 16,371,287 Water Environment Protection 122,097,561 Total 167,342,848 Section 6 Page 9

14 Serial Bonds 2016 Debt Service Final Interest Amount 2016 Payments** Balance Title of Bond No. Maturity Rate Issued Principal Interest 12/31/2016** N.Y.S. E.F.C. Bonds 1998* % 6,030, ,000 13, ,572 N.Y.S. E.F.C. Bonds 2000* % 1,383,178 75,000 5, ,494 N.Y.S. E.F.C. Bonds 2001A* % 9,078, ,000 42,186 2,168,740 N.Y.S. E.F.C. Bonds 2001B* % 2,195, ,000 9, ,866 N.Y.S. E.F.C. Bonds 2002A* % 1,980, ,180 15, ,147 N.Y.S. E.F.C. Bonds 2002G* % 14,681, , ,311 7,902,871 N.Y.S. E.F.C. Bonds 2003A* % 1,128,465 60,000 1, ,748 N.Y.S. E.F.C. Bonds 2003F* % 4,657, ,000 14,452 1,861,761 N.Y.S. E.F.C. Bonds 2004D* % 9,579, ,000 35,356 4,358,032 N.Y.S. E.F.C. Bonds 2005A* % 17,469, , ,950 8,256,461 N.Y.S. E.F.C. Bonds 2005B* % 5,495, ,000 27,982 2,862,330 N.Y.S. E.F.C. Bonds 2006C* % 44,610,657 1,410, ,580 37,541,200 N.Y.S. E.F.C. Bonds 2007D* % 41,442,558 1,560, ,689 32,163,852 General Obligation Bonds 2007A % 25,600,000 1,350, ,250 1,383,752 N.Y.S. E.F.C. Bonds 2008A&B* % 1,645,373 75,000 24,232 1,212,759 General Obligation Bonds 2009A % 61,725,000 4,400,000 1,765,250 44,655,438 GO Refund Bonds % 33,345,000 3,965, ,031 13,286,141 N.Y.S. E.F.C. Bonds 2010C* % 2,972, ,000 38,882 2,426,410 General Obligation Bonds 2010A % 31,150,000 3,000, ,500 9,728,750 GO Bonds 2010B (BAB's) % 17,570, ,405 22,749,623 GO Bonds 2010B (RZ's) % 4,905, ,351 8,301,773 N.Y.S. E.F.C. Bonds 2011C* % 15,603, , ,725 14,230,484 General Obligation Bonds % 33,755,000 2,625,000 1,037,719 29,103,734 N.Y.S. E.F.C. Bonds 2012B* % 11,395, , ,777 11,613,135 General Obligation Bonds % 51,425,000 3,000,000 1,590,875 51,766,125 GO Refund Bonds % 20,615,000 2,375, ,513 12,030,181 N.Y.S. E.F.C. Bonds 2012E* % 4,100, ,000 43,047 3,854,894 General Obligation Bonds % 67,870,000 4,760,000 2,929,000 78,608,750 N.Y.S. E.F.C. Bonds 2014D* % 128,800,968 3,505,968 2,016, ,795,923 General Obligation Bonds % 34,800,000 2,600,000 1,442,438 40,791,719 GO Refund Bonds % 19,600, , ,650 23,171,950 General Obligation Bonds % 79,900, ,651, ,463,447 GO Refunds Bonds % 11,370,000 5, ,200 14,247,725 QECB % 2,517, ,730 94,675 2,944,443 TOTAL: 855,399,678 42,238,878 21,892, ,091,228 * E.F.C. reflects interest subsidies, totaling $4,211,298 ** Net of refunding and E.F.C. subsidies Section 6 Page 10

15 Serial Bonds 2016 Debt Service by Department Year Final Interest 2016 Serial Bond Payments No. Issued Maturity Rate Principal Interest Total Board of Elections General Obligation Bonds % 42,000 11,940 53,940 Total: Board of Elections 42,000 11,940 53,940 Community College General Obligation Bonds, Series A % 235,000 5, ,875 General Obligation Bonds, Series A % 210,000 15, ,750 General Obligation Bonds, Series A % 275, , ,275 General Obligation Bonds, Series A % 430,000 60, ,750 GO Bonds, Series B (Bab's) % 0 134, ,344 GO Bonds, Series B (Rz's) % 0 107, ,924 General Obligation Bonds % 378, , ,278 General Obligation Bonds % 60,000 41, ,720 General Obligation Refunding Bonds % 128,000 61, ,233 General Obligation Bonds % 465, , ,175 General Obligation Bonds % 103,840 48, ,386 General Obligation Refunding Bonds % 0 105, ,901 General Obligation Bonds % 0 2,680 2,680 General Obligation Refunding Bonds % , ,781 Total: Community College 2,285,618 1,420,454 3,706,072 Corrections General Obligation Bonds, Series A % 100,000 79, ,500 General Obligation Bonds % 10,000 1,150 11,150 Total: Corrections 110,000 80, ,650 OnCenter Complex General Obligation Bonds, Series A % 389, , ,245 General Obligation Bonds, Series A % 135,000 24, ,375 GO Bonds, Series B (Bab's) % 0 52,535 52,535 GO Bonds, Series B (Rz's) % 0 39,143 39,143 General Obligation Bonds % 50,000 32,869 82,869 General Obligation Bonds % 18,000 7,940 25,940 General Obligation Refunding Bonds % 64,000 22,175 86,175 General Obligation Bonds % 50,000 45,350 95,350 General Obligation Bonds % 0 29,901 29,901 Total: OnCenter Complex 706, ,532 1,253,532 Section 6 Page 11

16 Serial Bonds 2016 Debt Service by Department Year Final Interest 2016 Serial Bond Payments No. Issued Maturity Rate Principal Interest Total Information Technology General Obligation Bonds % 750, , ,500 General Obligation Bonds % 400, , ,900 General Obligation Bonds % 480, , ,950 General Obligation Bonds % 0 59,138 59,138 Total: Information Technology 1,630, ,488 2,092,488 Facilities General Obligation Bonds, Series A % 150,000 3, ,750 General Obligation Bonds, Series A % 120,000 9, ,000 General Obligation Bonds, Series A % 182,000 91, ,980 General Obligation Refunding Bonds % 2,224, ,586 2,811,586 General Obligation Bonds % 300, , ,950 General Obligation Refunding Bonds % 263,000 61, ,598 General Obligation Bonds % 260, , ,300 General Obligation Bonds % 355, , ,438 General Obligation Refunding Bonds % 0 71,905 71,905 General Obligation Bonds % 0 94,161 94,161 General Obligation Refunding Bonds % ,877 43,321 QECB % 251,730 94, ,405 Total: Facilities 4,230,174 1,593,920 5,824,094 Sheriff/Jail General Obligation Bonds % 160,000 22, ,100 General Obligation Refunding Bonds % 30,000 4,250 34,250 Total: Sheriff/Jail 190,000 26, ,350 Children and Family Services General Obligation Bonds, Series A % 260,000 6, ,500 General Obligation Bonds, Series A % 50,000 3,750 53,750 General Obligation Refunding Bonds % 0 116, ,812 General Obligation Refunding Bonds % ,178 22,363 Total: Children and Family Services 310, , ,425 Section 6 Page 12

17 Serial Bonds 2016 Debt Service by Department Year Final Interest 2016 Serial Bond Payments No. Issued Maturity Rate Principal Interest Total Parks & Recreation General Obligation Bonds, Series A % 125,000 9, ,375 General Obligation Bonds, Series A % 60,000 31,100 91,100 General Obligation Refunding Bonds % 550,000 13, ,750 General Obligation Bonds, Series A % 355,000 57, ,875 GO Bonds, Series B (Bab's) % 0 93,669 93,669 GO Bonds, Series B (Rz's) % 0 41,445 41,445 General Obligation Bonds % 320, , ,169 General Obligation Bonds % 215, , ,500 General Obligation Bonds % 275, , ,875 General Obligation Bonds % 120,000 74, ,050 General Obligation Bonds % 0 2,833,302 2,833,302 General Obligation Bonds Refunding % Total: Parks & Recreation 2,020,466 3,590,124 5,610,590 Library General Obligation Bonds % 25,000 5,700 30,700 General Obligation Bonds % 240,000 53, ,250 General Obligation Bonds % 150, , ,250 General Obligation Bonds % 0 149, ,471 Total: Library 415, , ,671 Transportation (County Road Fund) General Obligation Bonds, Series A % 612,000 15, ,300 General Obligation Bonds, Series A % 90,000 6,750 96,750 General Obligation Bonds, Series A % 310, , ,800 General Obligation Refunding Bonds % 700,000 37, ,500 General Obligation Bonds, Series A % 1,340, ,250 1,593,250 GO Bonds, Series B (Bab's) % 0 409, ,430 GO Bonds, Series B (Rz's) % 0 16,706 16,706 General Obligation Bonds % 950, ,864 1,364,864 General Obligation Bonds % 858, ,075 1,263,075 General Obligation Refunding Bonds % 1,673, ,186 1,929,186 General Obligation Bonds % 545, , ,925 General Obligation Bonds % 1,071, ,765 1,558,349 General Obligation Refunding Bonds % 0 109, ,643 General Obligation Bonds % 0 408, ,901 General Obligation Refunding Bonds % ,662 17,995 Total: Transportation 8,149,917 3,389,757 11,539,674 Section 6 Page 13

18 Serial Bonds 2016 Debt Service by Department Year Final Interest 2016 Serial Bond Payments No. Issued Maturity Rate Principal Interest Total E General Obligation Bonds, Series A % 275,000 6, ,875 General Obligation Bonds, Series A % 80,000 6,000 86,000 General Obligation Bonds, Series A % 2,700, ,500 3,396,500 General Obligation Bonds, Series A % 200,000 31, ,000 GO Bonds, Series B (Bab's) % 0 17,325 17,325 General Obligation Bonds % 160,000 10, ,400 General Obligation Bonds % 135,840 29, ,886 General Obligation Refunding Bonds % 0 51,846 51,846 General Obligation Bonds % 0 20,935 20,935 General Obligation Refunding Bonds % ,366 11,662 TOTAL: E ,551, ,293 4,432,429 Van Duyn General Obligation Bonds, Series A % 275,000 51, ,875 GO Bonds, Series B (Bab's) % 0 14,025 14,025 General Obligation Bonds % 90,000 42, ,250 Total: Van Duyn 365, , ,150 Consolidated Sanitary District N.Y.S. E.F.C Series B Bonds % 350,000 13, ,567 N.Y.S. E.F.C Series A Bonds % 75,000 5,906 80,906 N.Y.S. E.F.C Series A Bonds % 495,000 42, ,186 N.Y.S. E.F.C Series B Bonds % 115,000 9, ,325 N.Y.S. E.F.C Series A Bonds % 101,180 15, ,477 N.Y.S. E.F.C Series G Bonds % 600, , ,311 N.Y.S. E.F.C Series A Bonds % 60,000 1,644 61,644 N.Y.S. E.F.C Series F Bonds % 245,000 14, ,452 N.Y.S. E.F.C Series D Bonds % 495,000 35, ,356 N.Y.S. E.F.C Series A Bonds % 900, ,950 1,026,950 N.Y.S. E.F.C Series B Bonds % 280,000 27,982 30,7982 N.Y.S. E.F.C Series C Bonds % 1,410, ,580 2,065,580 General Obligation Bonds, Series A % 318,000 7, ,950 N.Y.S. E.F.C Series D Bonds % 1,560, ,205,689 General Obligation Bonds, Series A % 555,000 41, ,625 N.Y.S. E.F.C Series A&B Bonds % 75,000 24,232 99,232 General Obligation Bonds, Series A % 380, , ,300 N.Y.S. E.F.C Series C Bonds % 130,000 38, ,882 General Obligation Bonds, Series A % 265,000 48, ,375 GO Bonds, Series B (BAB's) % 0 107, ,078 GO Bonds, Series B (RZ's) % ,134 Section 6 Page 14

19 Serial Bonds 2016 Debt Service by Department Year Final Interest 2016 Serial Bond Payments No. Issued Maturity Rate Principal Interest Total N.Y.S. E.F.C Series C Bonds % 675, , ,725 General Obligation Bonds % 110,000 77, ,400 N.Y.S. E.F.C Series B Bonds % 460, , ,777 General Obligation Bonds % 466, , ,550 General Obligation Refunding Bonds % 153,000 54, ,274 N.Y.S. E.F.C Series E Bonds % 175,000 43, ,047 General Obligation Bonds % 1,665, ,525 2,515,525 N.Y.S. E.F.C Series B Bonds % 3,505,968 2, ,522,357 General Obligation Bonds % 605, , ,533 General Obligation Refunding Bonds % 230, , ,546 General Obligation Bonds % 0 724, ,072 General Obligation Refunding Bonds % 2, , ,521 Total: Consol. Sanitary District 16,456,956 7,676,371 24,133,327 Drainage Districts General Obligation Bonds, Series A % 120,000 9, ,000 General Obligation Bonds, Series A % 4,000 2,550 6,550 General Obligation Refunding Bonds % 367,000 69, ,495 General Obligation Bonds % 14,000 10,595 24,595 General Obligation Refunding Bonds % 94,000 37, ,046 General Obligation Refunding Bonds % ,633 52,077 Total: Drainage Districts 599, , ,763 Water District General Obligation Bonds, Series A % 25, ,625 General Obligation Bonds % 269, , ,995 General Obligation Bonds % 610, ,150 1,241,150 General Obligation Bonds % 178, , ,547 General Obligation Refunding Bonds % 94,400 67, ,997 General Obligation Bonds % 0 329, ,064 Total: Water District 1,176,982 1,436,395 2,613,377 Total: All Funds 42,238,878 21,892,655 64,131,533 * Interest on EFC reflects a 50% interest subsidy Section 6 Page 15

20 Capital Planning The Capital Process The Capital Improvement Plan (CIP) serves as a mechanism for defining and prioritizing capital projects that are necessary to maintain the high standard of living that County residents have come to expect. Throughout the CIP, 3 spending priorities emerge: environmental protection, economic development, and operational efficiency. Capital planning involves the County Executive, members of the County Legislature, heads of various County departments, and a citizen advisory board in a process that determines capital needs, alternatives, and priorities. The development of the Capital Improvement Plan takes place over several months, beginning in February of each year, and includes 5 major phases: 1. In February, department heads begin preparation of project proposals in accordance with executive guidelines. 2. In April, proposals are submitted to the Division of Management and Budget (DMB). The proposals are analyzed by DMB in conjunction with the Syracuse-Onondaga County Planning Agency and the Department of Finance. The Law Department is consulted as needed. 3. By September, a tentative CIP has been approved by the County Executive. It is presented to the Capital Program Committee (a committee made up of legislators and representatives from the executive branch of County government) and the County Planning Board (a citizen advisory group). 4. In September, the Tentative Capital Improvement Plan is presented with the County's Annual Operating Budget to the Ways & Means Committee of the County Legislature and then to the full Legislature in October for approval. 5. From October to February, research on capital planning and management is conducted, and the prior year's process is critiqued. Revisions to forms and instructions are completed. Coordination and interaction among units of government occurs throughout the process, both formally and informally. The heads of County departments are consulted to discuss questions and recommendations regarding particular projects. Some of the major criteria for evaluating proposals are: 1. Consistency with the stated goals of the County Executive 2. Degree of the overall need for the project 3. Fiscal impact, including the County's capacity to borrow 4. Non-County funding sources 5. Community participation and support The final product of this process is a 6-year plan to improve those facilities or components of County infrastructure considered necessary to provide or maintain an adequate level of public service. Section 6 Page 16

21 Approval by the County Legislature is not a commitment to fund every project in the plan, but rather it is an indication of support for the plan as a whole. Projects, which require borrowing, must be presented to the Legislature individually in order to secure authorization to borrow funds. The 2010 Development Guide In 1991, the Onondaga County Legislature adopted the 2010 Development Guide to outline County policy with respect to infrastructure, land development, the environment and fiscal capacity. The Development Guide profiles Onondaga County in terms of natural resources and land use, population, and our local economy. While the Development Guide serves many purposes, clearly the most important is its role in influencing land development within Onondaga County. The 2010 Development Guide provides the planning framework within which capital-spending decisions will be made. Project Criteria As a matter of policy, capital requests are not considered for the Capital Improvement Plan if: 1) the total cost of the project is less than $250,000; 2) the probable useful life (PPU) is less than 5 years; 3) the request involves the procurement of light or heavy vehicles. These must be funded through the operating budget and are excluded from the Capital Improvement Plan. A Brief Summary In addition to projects, which have been authorized by the County Legislature, the Capital Improvement Plan (CIP) includes 49 County Wide projects, 11 projects in the Sewer Fund, and 1 project in the Water Fund. All 61 projects recommended for inclusion in the 6-year plan estimate total spending at $476,538,000. Total funds for the recommended County-wide project, for 6 years, are $261,295,000 of which $45,200,000 will be pay-as-you-go and $137,714,000 will be debt. The rest is State and Federal Aid. The Special Funds projects are expected to cost $215,243,000, of which $32,370,000 will be pay-as-you-go and $182,873,000 will be debt. Impact on the Operating Budget Capital projects can affect the operating budget in several ways. First, when funds are borrowed, annual principal and interest payments to retire the debt must be made. The County s budget to pay scheduled debt payments is presented in the Annual Budget as 30 Debt Service (Debt Service Fund). Additionally, scheduled debt service payments are summarized by department and fund, as well as specified by individual borrowing, in the Debt Service Fund section. As an alternative to assuming debt, some capital projects are funded on a pay-as-you-go basis through departmental operating budgets. Most engineering studies are funded in this manner. Finally, operating costs associated with a project, such as utilities and maintenance, may cause a change in departmental budgets. The impact of these anticipated changes is calculated during the operating budget process as well as in the review, analysis and decision-making process for each capital project. A very brief summary of those projects anticipated to require funding in 2016 is included in this section. Additionally included are: 1. Estimated 6 year costs for the proposed projects in the CIP Section 6 Page 17

22 2. The proposed source of funding for those projects 3. Summary of the estimated debt service for: currently scheduled debt debt which has been authorized but not yet issued estimated debt service if all of the proposed projects were to be authorized by the County Legislature It is important to note that the summary of estimated debt service schedule shows a maximum possible debt obligation through the payoff period Capital Priorities Section 6 Page 18

23 CIP Proposed Projects Six Year Summary of Estimated Expenses ($ in 000 s) Countywide Status Project Total General Fund County Clerk (Records Dept) new Replacement of Legacy County Clerk Document Management System Subtotal $ 600 Emergency Communications new Auxiliary Power Systems Replacement 478 Computer Aided Dispatch (CAD) System Hardware Refresh 920 E911 Center Facility Rehabilitation 100 E911 Main Center HVAC System Replacement 2,379 Next Generation 911 (NG-911) Telephone System Replacement/refresh 3,181 new Oblique Aerial Digital Imagery Refresh 299 new Public Safety Radio Tower Replacement 494 Replacement of Mobile Data Communications Network (MDCN) Infrastructure 6,617 Trunked Land Mobile Radio Network Analog Back-up System 1, Subtotal $ 15,820 Facilities Management Carnegie Library Rehabilitation 3,957 new Center for Forensic Sciences Building Rehab./Renovations 390 Civic Center Office and Masonry Improvements 1,430 Civic Center Re-roof 1,330 Community Plaza Garage 1,155 Courthouse - HVAC Renovations 10,400 Downtown Campus Priority Capital Improvements 7,500 OnCenter Rehabilitations 2,000 Remodeling TA Intake 2, Subtotal $ 30,665 Information Technology Enterprise Resource Planning (ERP) Subtotal $ 775 Office Of Environment Ash Tree Management 7, Subtotal $ 7,235 Parks & Recreation Dept. new Beach Development at Onondaga Lake Park 300 Highland Forest Parking Improvements 805 Lights on the Lake Storage Facility 330 new Long Branch Park Improvements 2,300 Park Buildings 1,045 Park Improvements/Willow Bay 2,720 Park Roads, Parking Areas, and Trail Paving 4,450 new Park Roofs (NEW) 830 new Salt Museum Rehabilitation 600 new Veteran's Cemetery Expansion Subtotal $ 13,860 Section 6 Page 19

24 Countywide Status Project Total General Fund Sheriff Custody Behavioral Health Unit at the Justice Center 10, Subtotal $ 10,000 Sheriff Police/Civil Special Operations Facility Renovation 8, Subtotal $ 8,329 General Fund Total $ 87,284 Community College Onondaga Community College Allyn Hall Upgrades and Improvements 2,780 new Critical roof maintenance 3,254 Elevator Replacement and Upgrades/ Protection of the Campus and Phone Servers 646 Infrastructure - Campus Wide 10,488 Site Improvements 2,718 Student Center Renovation and Redesign 3, Community College Total $ 23,836 County Road Transportation Bituminous Surface Treatment 8,094 Bridges 18,738 Capital Highway Construction 28,708 Caughdenoy Road / NYS Route 31 Road Improvements 4,120 Cold Mix Bituminous Paving 22,527 Guide Rail 3,070 Rehabilitation of North Area and Camillus Highway Maintenance Facilities 16,942 Repaving Program (Hot Mix Bituminous) 40,706 Testing, Drainage and Facilities Repair 5,300 Traffic Systems Management 1, County Road Total $ 150,175 Countywide Total $ 261,295 Section 6 Page 20

25 CIP Proposed Projects Six Year Summary of Estimated Expenses ($ in 000 s) Special Funds Status Project Total Sewer Water Environment Protection Baldwinsville Seneca Knolls WWTP Rehabilitation Project 20,250 Brewerton WWTP Improvements 7,400 Burnet Ave. Demolition (Bear Trap Ley Creek Drainage District) 500 Energy Efficiency Improvements/Performance Contracting/Power Purchase Agreement 20,000 Metro WWTP Phosphorus Treatment System Optimization 13,398 new Northwestern Area Wastewater Conveyance Improvements (NEW) 3,775 Oneida Lake PS 8,120 Suburban I/I Reduction - Green and Innovative Improvements 12,000 Wastewater Transportation System Improvements 70,823 Westside Pumping Station Service Area 13,400 White Pine (formerly Clay) Industrial Park (force main) 5, Drain & San Total $ 175,631 Water Metropolitan Water Board Water Treatment Plant Comprehensive Improvements 39, Water Total $ 39,612 Special Funds Total $ 215,243 Grand Total $ 476,538 Section 6 Page 21

26 Funding Sources of Proposed Projects Countywide yr Total General Fund Pay as You Go 400 1,000 1,000 1,000 1,000 4,400 Borrowing to be Authorized 12,679 31,831 18,094 8,834 9,184 1,912 82,534 State Aid Sub Totals $13,079 $33,181 $19,094 $9,834 $10,184 $1,912 $87,284 County Road Pay as You Go 2,500 6,120 8,320 8,320 8,370 8,370 42,000 Borrowing to be Authorized 18,968 13,494 2,400 2,400 2,400 2,400 42,062 Federal Aid 11,280 16,200 27,480 State Aid 7,695 8,378 5,640 5,640 5,640 5,640 38,633 Sub Totals $40,443 $44,192 $16,360 $16,360 $16,410 $16,410 $150,175 Community College Borrowing to be Authorized 1, ,072 6,169 11,918 State Aid 1, ,072 6,169 11,918 Sub Totals $3,950 $1,404 $6,144 $12,338 $23,836 Countywide TOTALS $53,522 $81,323 $36,858 $32,338 $38,932 $18,322 $261,295 Special Funds yr Total Water Borrowing to be Authorized 3,170 13,214 13,621 9,607 39,612 Sub Totals 3,170 13,214 13,631 9,607 39,612 Sewer Pay as You Go 6,345 5,067 5,460 4,207 6,506 4,785 32,370 Authorized Borrowing 1,316 2, ,288 Borrowing to be Authorized 7,200 35,904 50,928 22,683 12,108 9, ,973 Sub Totals $14,861 $43,952 $56,979 $27,290 $18,614 $13,935 $175,631 Special Funds TOTALS $18,031 $57,166 $70,600 $36,897 $18,614 $13,935 $215,243 GRAND TOTAL $71,553 $138,489 $107,458 $69,235 $57,546 $32,257 $476,538 Section 6 Page 22

27 All Funds Debt Service Summary (Payments in $000 s) Payments in ($000's) Principal & Interest Scheduled Debt 42,684 47,614 49,253 56,270 66,012 62,345 68,080 68,110 Estimated Debt Authorized & Unissued ,007 8,758 Proposed Future Debt ,520 10,102 Total 42,684 47,614 49,253 56,270 66,012 62,345 73,607 84, Principal & Interest Scheduled Debt 61,746 57,313 55,103 51,458 49,351 45,455 40,281 37,279 Estimated Debt Authorized & Unissued 9,643 9,807 9,807 7,333 7,333 7,333 7,333 7,333 Proposed Future Debt 18,966 25,123 28,733 30,374 30,020 28,789 27,614 26,242 Total 90,355 92,243 93,643 89,165 86,704 81,577 75,228 70, Principal & Interest Scheduled Debt 33,295 29,186 26,981 25,349 22,071 20,748 19,094 16,637 Estimated Debt Authorized & Unissued 7,333 7,333 7,333 7,333 7,333 6,414 6,414 6,414 Proposed Future Debt 25,106 23,595 21,865 19,961 18,555 17,570 16,040 14,704 Total 65,734 60,114 56,179 52,643 47,959 44,732 41,548 37, TOTAL Principal & Interest Scheduled Debt 14,670 12,365 9,389 8,824 8,659 8,523 8, ,667 Estimated Debt Authorized & Unissued 6,414 6,414 1, ,467 Proposed Future Debt 13,673 12,750 11,896 10,152 6,215 2,848 1, ,732 Total 34,757 31,529 23,030 19,276 14,874 11,371 9,674 1,451,866 Section 6 Page 23

28 CIP Proposed Projects Summary of 2016 Estimated Expenses Department/Project 2016 Cost Only ($ in 000's) E-911 E9-1-1 Center Facility Rehabilitation (2016) $100 E911 Main Center HVAC System Replacement ( ) $2,379 Replacement of Mobile Data Communications Network (MDCN) Infrastructure ( ) $95 Facilities Civic Center Office and Masonry Improvements ( ) $770 Civic Center Re-roof (2016) $1,330 Courthouse - HVAC Renovations ( ) $400 Downtown Campus Priority Capital Improvements ( ) $1,500 Oncenter Rehabilitation ( ) $500 Center for Forensic Sciences Building Rehab./Renovations (NEW) (2016) $390 Information Technology Enterprise Resource Planning (ERP) (2016) $775 Office of Environment Ash Tree Management ( ) $1,019 Parks Highland Forest Parking Improvements (2016) $805 Park Buildings ( ) $325 Park roads, parking areas, and trail paving ( ) $700 Beach Development at Onondaga Lake Park (2016) $300 Park Roofs ( ) $261 Long Branch Park Improvements ( ) $350 Salt Museum Rehabilitation (2016) $600 Veteran's Cemetery Expansion(2016) $480 DOT Bituminous Surface Treatment ( ) $1,768 Bridges ( ) $10,280 Capital Highway Construction ( ) $6,020 Cold Mix Bituminous Paving ( ) $3,593 Guide Rail ( ) $487 Repaving Program (Hot Mix Bituminous) ( ) $6,407 Replacement of North Area and Camillus Highway Mtce Facil. ( ) $12,168 Testing, Drainage and Facilities Repair ( ) $600 Section 6 Page 24

29 Traffic Systems Management ( ) $320 COUNTYWIDE FUNDS TOTAL $54,722 WEP Baldwinsville Seneca Knolls WWTP Rehabilitation Project ( ) $1,150 Energy Efficiency Improvements ( ) $2,000 Metro WWTP Phosphorus Treatment System Optimization ( ) $166 Northwestern Area Wastewater Conveyance Improvements (NEW) ( ) $650 Oneida Lake PS ( ) $3,200 Suburban Green Infrastructure Improvements ( ) $2,000 Wastewater Transportation System Improvements ( ) $5,645 WEP Total $14,811 MWB Water Treatment Plant Comprehensive Improvements ( ) $3,170 ALL FUNDS TOTAL $72,703 Section 6 Page 25

30 Proposed Capital Improvement Projects For 2016 The following is a listing with a very brief description of the capital projects that are anticipated to require funding in More detail can be found in the County s Capital Improvement Plan. EMERGENCY COMMUNICATIONS Project: E9-1-1 Center Facility Rehabilitation Level of Development: Preliminary Project Description: The E911 Center was built in 1991 and has not undergone any significant improvements since then, despite a growth in staff size and specialization, call taking and dispatch activity, and technology systems. This is the first phase of a project that involves engaging the services of an architectural firm to make recommendations and provide cost estimates for replacements/repairs, improvements, and adjustments required to accommodate advancements in technology. This study will also include the former Hillbrook/Fire Control/OCSO South Station building which is currently used for storage and is in failing condition. Project: E9-1-1 Main Center HVAC System Replacement Level of Development: Preliminary Project Description: This project will replace the complete E9-1-1 Center s water source heat pump (WSHP) HVAC system with a variable refrigerant flow (VRF) heat pump system. The current WSHP system was installed when the facility was built in 1991 and has reached the end of life. The proposed VRF heat pump system has the lowest life cycle cost for the options considered and will result in an estimated annual energy cost savings of $19,279. Project: Replacement of Mobile Data Communications Network (MDCN) Infrastructure Level of Development: Preliminary Project Description: This project will replace the 800 MHz mobile data communications infrastructure, including fixed base station equipment at radio tower sites and mobile data radio modems in public safety vehicles. The end of life for the current Mobile Data Communications Network (MCDN) is December of FACILITIES MANAGEMENT Project: Center for Forensic Sciences Building Rehab. /Renovations (NEW) Level of Development: Intermediate Project Description: This project will accomplish a number of improvements of various natures in the interior and exterior of the Center for Forensic Sciences Building. Various components of this building are in need of repair or renovations. Several repairs will provide a safer and more functional workspace. In addition, the staffing levels and technological processes have changed, requiring reconfiguration of the floor plan. Section 6 Page 26