Capital Project Funding

1. Capital Project FundingCapital Project Funding
June 8, 2017June 8, 2017

2. OutlineOutline
 Capital BudgetCapital Budget
 Funding SourcesFunding Sources
 Capital NeedsCapital Needs
 Funding OptionsFunding Options

3. Capital BudgetCapital Budget
 Address GrowthAddress Growth
 Address New and Existing Infrastructure NeedsAddress New and Existing Infrastructure Needs
 FY 17 Budget $108,190,988FY 17 Budget $108,190,988

4. Capital BudgetCapital Budget
 General GovtGeneral Govt
– TransportationTransportation
– Parks and Rec.Parks and Rec.
– FacilitiesFacilities
– TechnologyTechnology
– OtherOther
 UtilitiesUtilities
– ElectricElectric
– WaterWater
– WastewaterWastewater
– DrainageDrainage

5. FUNDING SOURCESFUNDING SOURCES

6. Funding SourcesFunding Sources
 Long Term DebtLong Term Debt
– Primary source for funding capital projectsPrimary source for funding capital projects
– General Obligation Bonds/Certificates of ObligationGeneral Obligation Bonds/Certificates of Obligation
– Property TaxProperty Tax
– Utility RatesUtility Rates

7. Funding SourcesFunding Sources
 2017 Bond Sale Update2017 Bond Sale Update
 GO and RefundingGO and Refunding $29,800,000$29,800,000
– May EstMay Est June 1June 1
– 2.910%2.910% 2.545%2.545%
 Certificates of Obligation $57,725,000Certificates of Obligation $57,725,000
– May EstMay Est June 1June 1
– 3.114%3.114% 2.816%2.816%

8. Funding SourcesFunding Sources
 2017 Bond Sale Update2017 Bond Sale Update
 RefundingRefunding
– May 2017 9.44% Net Present Value Savings orMay 2017 9.44% Net Present Value Savings or
$1,383,590$1,383,590
– June 1 12.58% Net Present Value Savings orJune 1 12.58% Net Present Value Savings or
$1,843,846$1,843,846
– Additional savings of $460,256 over life of theAdditional savings of $460,256 over life of the
refundingrefunding

9. Funding SourcesFunding Sources
 Reserve FundsReserve Funds
– General FundGeneral Fund
– Utility FundsUtility Funds
– Hotel TaxHotel Tax
– Equipment ReplacementEquipment Replacement

10. Funding SourcesFunding Sources
 Other SourcesOther Sources
– Impact Fees – Transportation, Water and WastewaterImpact Fees – Transportation, Water and Wastewater
– Park Land/Sidewalk DedicationPark Land/Sidewalk Dedication
– GrantsGrants
– TIRZ/MMDTIRZ/MMD
– Proceeds from Sale of AssetsProceeds from Sale of Assets

11. Funding SourcesFunding Sources
 Other SourcesOther Sources
– Roadway AssessmentsRoadway Assessments
– Cost Sharing with other GovernmentsCost Sharing with other Governments
– LeasingLeasing
– DonationsDonations
– Public Private PartnershipsPublic Private Partnerships

12. CAPITAL NEEDSCAPITAL NEEDS

13. Impact Fee ProjectImpact Fee Project
Needs (10 years)Needs (10 years)
 RoadwaysRoadways $150 million$150 million
 WaterWater $49 million$49 million
 WastewaterWastewater $154 million$154 million

14. Capital Needs -Capital Needs -
FacilitiesFacilities
 Police StationPolice Station $28 million$28 million
 Renovate Existing PDRenovate Existing PD $4 million est$4 million est
 City HallCity Hall $26 million est$26 million est
 Fire Station #7Fire Station #7 $6 million est$6 million est
 Arts Council Bldg renovArts Council Bldg renov $1 million est$1 million est

15. 5 Year Funded and5 Year Funded and
Unfunded ProjectsUnfunded Projects
5 Year 5 Year
Funded Unfunded Est
Transportation $76,000,000 $64,000,000
Parks 9,000,000 24,000,000
Facilities 36,000,000 37,000,000
Technology 2,000,000 2,000,000
Electric 56,000,000 10,000,000
Water 40,000,000 39,000,000
Wastewater 90,000,000 29,000,000
Drainage 1,000,000 1,000,000*
Total $310,000,000 $206,000,000

16. FUNDING OPTIONSFUNDING OPTIONS

17. Transp/Parks/Transp/Parks/
Facilities/Tech $127 millionFacilities/Tech $127 million
 Long Term Debt – Tax RateLong Term Debt – Tax Rate
– Projected 5 year Debt Capacity $60,000,000 -Projected 5 year Debt Capacity $60,000,000 -
$70,000,000$70,000,000
– 1 cent = approx. $10,000,000 in debt capacity1 cent = approx. $10,000,000 in debt capacity
 Reserve FundsReserve Funds
– General Fund - Reserve RequirementsGeneral Fund - Reserve Requirements
– Hotel Tax FundsHotel Tax Funds
 Limited use – est. $13 million over 5 yearsLimited use – est. $13 million over 5 years
 ROI payback requiredROI payback required

18. Transp/Parks/Transp/Parks/
Facilities/Tech $127 millionFacilities/Tech $127 million
 Transportation Impact FeesTransportation Impact Fees
– Restricted by Zone est $1,000,000 per yearRestricted by Zone est $1,000,000 per year
 Parkland Dedication/Sidewalk DedicationParkland Dedication/Sidewalk Dedication
– Limited UseLimited Use

19. Transp/Parks/Transp/Parks/
Facilities/Tech $127 millionFacilities/Tech $127 million
 OtherOther
– GrantsGrants
– TIRZ/MMDTIRZ/MMD
– Proceeds from Sale of AssetsProceeds from Sale of Assets
– Roadway AssessmentsRoadway Assessments
– Public/Private PartnershipsPublic/Private Partnerships
– DonationsDonations
– LeasesLeases
– Cost Sharing with other entitiesCost Sharing with other entities

20. Utilities $79,000,000Utilities $79,000,000
 Long Term DebtLong Term Debt
– Utility RatesUtility Rates
– Future rate increases forecastFuture rate increases forecast
 Reserve FundsReserve Funds
– Utility FundsUtility Funds
 Impact Fees – est. $2-3 million per yearImpact Fees – est. $2-3 million per year

21. Utilities $79,000,000Utilities $79,000,000
 OtherOther
– GrantsGrants
– TIRZ/MMDTIRZ/MMD
– Proceeds from Sale of AssetsProceeds from Sale of Assets
– Roadway AssessmentsRoadway Assessments
– Public/Private PartnershipsPublic/Private Partnerships
– DonationsDonations
– LeasesLeases
– Cost Sharing with other entitiesCost Sharing with other entities

22. QuestionsQuestions