Kalama School District Bond and Levy Planning. November 13, 2017

Transcription

1 Kalama School District Bond and Levy Planning November 13, 2017

2 Key Inputs - Bonds Bond election date: Spring 2018 Bond authorization: $63,405,000 Assessed value growth: 2018: 3.90% 2019: 4.00% 2020 and later: 3.00% Maximum bond term: 25 years Bonds are sold in multiple series to meet construction cash flow Interest rates 2018 Issue: Current rates +.75% 2019 Issue: Current rates +1.25% Bond payments are structured to provide a level projected tax rate 1

3 Key Inputs Operating Levy Election date: Spring 2018 Levy authorization: 2019 Up to $2,150, Up to $2,450,000 Collection amount limited to $1.50 / $1,000 Assessed value growth: 2018: 3.90% 2019: 4.00% 2020 and later: 3.00% 2

4 Summary of Analysis Bond Authorization Election Date Spring 2018 Bond Authorization Amount $ 63,405,000 Bond Sale Amounts 6/1/2018 $ 40,000,000 12/1/ ,405,000 $ 63,405,000 Maximum Bond Term 25 Years Projected 2018 Total Tax Rate $ 2.19 Projected 2019 Total Tax Rate $ 3.78 Projected Change in Total Tax Rate $ 1.59 Example Home Value $200,000 Projected Cost Per Year $ Projected Cost Per Month $

5 Projected Tax Rates Kalama School District Projected BondTax Rates Includes $63,405,000 Bond Authorization, Spring Actual Projected 6.00 Tax Rates ($/$1,000 Assessed Value) $2.19 $ Operating Levy Capital Levy New Bonds 4

6 Comparable Tax Rates $10.00 $8.00 $6.00 $4.00 $2.00 $ Tax Rates General Fund Debt Service Capital Project School District 2016 Property Tax Rates by Fund Rank Total General Fund Debt Service Capital Project State Average/Total: Vancouver 89 $ 4.84 $ 3.04 $ 1.53 $ 0.27 Hockinson La Center Green Mountain Washougal Evergreen Camas Battle Ground Ridgefield Longview Toutle Lake Castle Rock Kalama Woodland Kelso Source: OSPI 5

7 Levy Amount and Rate Detail Assessed Value Tax Rates Bond Levy Amounts Total Other Levy Rates Assessed Growth Total Capital Operating District Total Capital Operating Total Year Value Rate Bonds Levy Levy Levy Year Bonds Levy Levy Tax Rates 2009 $962, % $ 350 $ - $ 1,345 $ 1, $ 0.36 $ - $ 1.41 $ , % 350-1,592 1, , % 330-1,672 2, , % 260-1,756 2, , % ,844 2, , % ,937 2, ,016, % ,034 2, ,167, % ,106 2, ,222, % ,180 2, ,269, % ,257 2, ,320, % 3,010-2,150 5, ,360, % 3,105-2,450 5, ,400, % 3,197-2,524 5, ,442, % 3,290-2,599 5, Actual Authorized Levy Lid Projected Proposed 6

8 Tax Rate Detail Projected Tax Rates Other Levies Total Calendar AV Growth New Total Capital Operating Tax Year Rate Bonds Bonds Levy Levy Rate % % % % % % % Bond Sales % Sale Date Amount % /1/2018 $40,000, % /1/ ,405, % Total $63,405, % % Tax Change % Home Value $200, % Change in Total Tax Rate $ % Change in Total Tax $ % % % % % % % % % % % % % % %

9 Taxpayer Impact Kalama School District TAXPAYER COST ANALYSIS Local Bond Funding: $ 63,405,000 Projected Increase in Tax Rate (per $1,000 assessed value): 1.59 Monthly Net Tax Increase from Bonds After Allowing for Gross Property Monthly Income Tax Deduction Property Tax Increase Gross Federal Income Tax Bracket Value for Bonds Increase 25% 28% 33% 39.6% $125,000 $ $16.56 $12.42 $11.93 $11.10 $ , , , , , NOTE: Qualified lower-income senior homeowners may apply for a senior exemption. Please contact the County Assessor for more details. 8

10 Debt Capacity Under Washington law, school districts have a legal debt capacity limit equal to 5.00% of district s assessed value of all real and personal property within the District. Debt capacity is increased by: Increases in the District s assessed value Payments on outstanding bonds Debt capacity declines from: Declining assessed value Additional borrowing Calculation Factors Change in Assessed Value 4.67% 3.90% (1) Bond Assessed Value $1,222,041,160 $1,269,669,370 Statutory Capacity Rate 5.000% 5.000% Total Statutory Capacity $61,102,058 $63,483,469 Less: Outstanding Voted Debt - - Less: Outstanding Non-Voted Debt - - Plus: Debt Service Fund Balance - - Remaining Capacity $61,102,058 $63,483,469 (1) Preliminary 9

11 Projected Future Debt Capacity Assuming an average future growth rate in the District s assessed value at the historical 10 year average of 4.50% Outstanding Debt Assessed Change in Debt Capacity Available Capacity Date Valuation A.V. (5% of A.V.) Bonds Bonds Amount Percent 1/1/2017 $ 1,222, % $ 61,102 $ - $ $ 61, % 1/1/2018 1,269, % 63,483 36, , % 1/1/2019 1,326, % 66,340 36,835 25, , % 1/1/2020 1,386, % 69,326 36,585 25, , % 1/1/2021 1,448, % 72,445 36,305 25, , % 1/1/2022 1,514, % 75,705 36,070 25, , % 1/1/2023 1,582, % 79,112 35,765 25, , % 1/1/2024 1,653, % 82,672 35,385 25, , % 1/1/2025 1,727, % 86,392 34,925 25, , % 1/1/2026 1,805, % 90,280 34,380 24, , % 1/1/2027 1,886, % 94,342 33,745 24, , % 10

12 Next Steps Finalize project list and scope Refine project costs Evaluate construction cash flow Determine bond sale dates and amounts Refine project funding options and taxpayer costs Work with Bond Counsel to draft Election Resolution Community outreach File the Election Resolutions with the County by December 15, 2017 for a February 2018 election 11

13 Contact Information Mark Prussing Executive Director, Financial Advisory Services Educational Service District NE 65th Avenue, Vancouver, WA Direct Line (360)