1. Proposed Certificates of Obligation Issue
June 12, 2018

2. Total Tax Supported Projects and Funding per FY2018 CIP

3. Tax Supported Projects Current Funding Need

4. Total Revenue Supported Projects and Funding per FY2018 CIP

5. Revenue Supported Projects Current Funding Need
Staff recommends not selling Revenue Supported Debt at this time and use cash on hand from previous bond sales for CIP project WT ” Waterline from SH3 to SSH BPS.
The 36” Waterline is not ready for construction at this time; construction funds to be re-issued with another sale.

6. Purpose of the Proposed Bond Issue
To fund projects as defined in the FY Capital Improvements Plan as adopted in the budget ordinance on September 12, 2017 with revisions based on project schedules and available funding. Tax Supported $ million Cost of Issuance $ 0.16 million Total $ million

7. 9/30/18 Year End Debt, Less Than 9/30/17
Chart saved in Budget Office/Bond Sales/2018 CO/Committed funds – balance of bond funds
9/30/2012 $ 275,850,000
9/30/2013 $ 260,351,943
9/30/2014 $ 251,164,742
9/30/15 $ 248,435,000
9/30/16 $ 244,960,000 (updated after 2016A refunding) $13.7 million is self supporting
9/30/17 $229,740,000 (updated after 2016A refunding)
Used the chart in Budget/Bond/2018 CO/2018 Bond Issue
FY2019 Budget-Tax Supported Debt Projection Total outstanding debt by year

8. Tax Supported Projects in the 2018 Bond Issue
Ervin Connector $1.55 million
New Animal Shelter $6.85 million
Fire/EMS Station $3.14 million
$11.54 million
John may take off Genco Canal and add amount to Station 6

9. Ervin Connector
Project will construct Ervin from Calder Rd to the new Hobbs Road extension (approximately 1,850 feet)
FY construction of a 2-lane concrete roadway with curb and gutter and will extend to Calder ($4.51 million)
Estimated Total Project Cost =$5.8M
2018 Debt Issue Funding
= $1.55M

10. New Animal Shelter
Design of a new animal shelter to replace the current shelter building.
2018 Debt issue funds = $6.85 million
Estimated Total Project Cost (FY ) = $7.54 million

11. Fire/EMS Station 6
Estimated total project cost for a facility to support 24-hour operations and include living quarters for six (four fire fighters and two paramedics/EMTs), three bays and a pumper = $5.675 million

12. Types of Bonds General Obligation Bonds Voted by the taxpayers
Property tax pledge – best interest rate
Revenue Bonds
Pledge of water utility system revenue – higher interest rate and reserve fund required

13. Types of Bonds (continued)
Certificates of Obligation
Council authorization, after posting proper notice
Notice provides taxpayers the opportunity to petition for an election
Property tax pledge – interest cost
similar to a GO bond

14. Recommended Bond - Single Certificates of Obligation Issue
Provides the lowest issuance cost by combining the tax supported and revenue supported into one issue
Lowest interest rate
No reserve fund required
No separate, dedicated reserve fund required

15. Additional Public Information
Public Hearing – June 26
City Matters Article
City Manager’s Update
Facebook, Blackboard Connect
Website
LC News First
Separate Video

16. Timetable
June 26 Public Hearing City Council considers Notice of Intent to Issue Certificates of Obligation Aug 14 City Council Awards Certificates and Approves Issuance Sept 12 Funds are received