capital financing options
DESCRIPTION
Capital Financing Options. Jane A. Russo, Superintendent Michael P. Bishop, Associate Superintendent, Business Services Joe Dixon, Assistant Superintendent, Facilities & Governmental Affairs Kelvin Tsunezumi, Executive Director, Business Services. October 12, 2010. Measure G. - PowerPoint PPT PresentationTRANSCRIPT
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Capital Financing Options
Jane A. Russo, SuperintendentJane A. Russo, Superintendent
Michael P. Bishop, Associate Superintendent, Business ServicesMichael P. Bishop, Associate Superintendent, Business ServicesJoe Dixon, Assistant Superintendent, Facilities & Governmental AffairsJoe Dixon, Assistant Superintendent, Facilities & Governmental Affairs
Kelvin Tsunezumi, Executive Director, Business ServicesKelvin Tsunezumi, Executive Director, Business Services
October 12, 2010October 12, 2010
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Measure G
• Measure G (Summary of Events)– Measure G approved by voters (68.8% approval) in June 2008 – Total authorization: $200 million– Bonds issued to date: $154.1 million
• 2008: $100 million• 2009: $54.1 million (including $19.24 million in Qualified School Construction Bonds)
– Remaining authorization: $45.9 million
• Qualified School Construction Bonds (QSCBs)– A form of bond financing– Purpose: To stimulate the economy & attract new investors to the market– Interest expense subsidized in part by the Federal government
• Property tax payers benefit from the lower interest rate– Limited amount of QSCB authorization– Authorization expires at the end of 2010– SAUSD’s allocation of QSCBs for 2010: $17.5 million
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Completed Projects
Lowell
Martin
Kennedy
MadisonCarr
Completed in the last year:
• 8 new classroom buildings
• 156 classrooms
Greenville
Diamond
Santiago 3
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Saddleback High Solar & Energy Efficiency Project
Completed Projects
Lincoln Elementary
Modernization
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Santa Ana High Modernization
Projects Underway
New Brick
New Framing New Plumbing
Santa Ana High Spurgeon IntermediateHeninger Elementary
Projects Underway
Century HighSierra Intermediate
• 8 new classroom buildings currently under construction
• 134 classrooms
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• Mitchell Child Development Center Funded– Modernization – New Classroom and Multipurpose Room Buildings
• Garfield Elementary Funded– New 12 Classroom Building– New Joint Use Multipurpose Room Building
_______________________________________________________________________________________________________________________
• Davis Elementary– New 12 Classroom Building
• Edison Elementary– New 24 Classroom Building
• Saddleback High– Modernization
• Willard Intermediate– Modernization & New 12 Classroom Building
• Spurgeon Intermediate– Modernization
Projects To Come
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Pending State Funding
Program State Funding
School Facilities Program Reimbursements
(Modernization)$16,431,478
Emergency Repair Program $34,756,496
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Measure G (Cont’d)
• The Board & District’s Goal with respect to Measure G– Continue momentum on Measure G construction and complete projects
as soon as possible– Benefit from favorable construction bidding climate– Manage increases in property tax rates
• To meet above goals, district staff recommends:– Issuance of remaining $45.9 million in bond authorization as follows:
• QSCBs: $17.5 million• Standard Tax Exempt: $28.4 million
– Without this issuance, work on additional Measure G projects will come to a halt by the end of this fiscal year
– Use of QSCBs will save Santa Ana property tax payers approximately $7.1 million
– Property tax rates over the term will range from approximately $36.30 to $38.80 per $100,000 of property valuation
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Next Steps – Issuance of Measure G Bonds
Date Event or Activity
Nov. 9 Board adopts resolution requesting County to issue bonds & approving the form of legal documents and the Preliminary Official Statement
Week of Dec. 6
Sale of:
(1) Measure G QSCBs
(2) Measure G Tax Exempt Bonds
(3) Measure C Series 2002 refinancing
Week of Dec. 27
Closing and bond proceeds deposited in County Treasury for district use
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Backup Slides
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District Issuance Scenarios
Scenario #1 Scenario #2 Scenario #3
Bond Issuance ($s in millions)
QSCBs
Tax Exempt
Capital Appreciation
Total
$17.5
---
---
$17.5
$17.5
$28.4
---
$45.9
$ 9.3
$33.0
$ 3.6
$45.9
Projected Tax Rate (per $100,000 valuation) $33.10 $36.30 / $38.80
$37.00
13Note: Scenario II is the recommended option
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ProjectACTUAL
1st
Quarter
ACTUAL2nd
Quarter
20103rd
Quarter
20104th
Quarter
2010 Totals
Beg. Bal $94,759,073 $87,461,316 $76,691,496 $105,163,768 $94,759,073
Revenue $0 $0 $58,208,033 $800,000 $59,008,033
COS $1,801,218 $1,736,421 $2,993,787 $2,993,787 $9,525,213COS Sav. $21,480 $757 $182,587 $182,587 $387,411
ORG Const. $585,364 $1,950,637 $14,250,000 $80,461,666 $97,247,667
MOD (Soft) $311,717 $77,600 $88,889 $88,889 $567,095
MOD (New) $215,080 $466,782 $78,105 $78,105 $838,060
MOD Const. $352,159 $241,737 $3,221,625 $3,221,624 $7,037,144
ERP Const. $347,356 $1,322,310 $5,197,222 $5,371,806 $12,238,694
CTE Valley $280,820 $107,722 $871,307 $0 $1,259,849Priority Proj. $2,963,923 $0 $0 $10,552,325 $13,516,248Solar $0 $4,506,989 $2,418,084 $0 $6,925,073
Admin. Exp. $328,591 $358,866 $324,204 $324,204 $1,335,865
IRP $90,050 $0 $109,950 $0 $200,000YearlyTotals $7,297,757 $10,769,820 $29,735,761 $103,274,930 $151,078,318
Ending Balance
$87,461,316 $76,691.496 $105,163,768 $2,688,838 $ 2,688,788
Cash Flow (2010)
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Project 2011
1st
Quarter
20112nd
Quarter
20113rd
Quarter
20114th
Quarter
2011Totals
Beg. Bal $2,688,788 $(15,785,407) $(36,960,018) $(56,603,558) $2,688,788
Revenue $0 $0 $0 $0 $0
COS $0 $0 $0 $0 $0
COS Sav. $182,587 $2,346,207, $2,346,207 $2,346,207 $7,221,207
ORG Const. $0 $0 $0 $0 $0
MOD (Soft) $88,889 $88,889 $88,889 $88,889 $355,555
MOD (New) $78,093 $72,648 $72,648 $72,648 $296,038
MOD Const. $3,000,000 $4,000,000 $3,718,392 $1,799,077 $12,517,469
ERP Const. $4,248,097 $3,790,338 $2,540,875 $2,040,000 $12,619,311
CTE Valley $0 $0 $0 $0 $0
Priority Proj. $10,552,325 $10,552,325 $10,552,325 $10,552,325 $42,209,300
Solar $0 $0 $0 $0 $0
Admin. Exp. $324,204 $324,204 $324,204 $324,204 $1,296,816
IRP $0 $0 $0 $0 $0
YearlyTotals
$18,474,195 $21,174,611 $19,643,540 $17,223,349 $76,515,695
Ending Balance
$(15,785,407) $(36,960,018) $(56,603,558) $(73,826,907) $(73,826,907)
Cash Flow (2011)
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Project 2012
1st
Quarter
2012 2nd
Quarter
20123rd
Quarter
20124th
Quarter
2012Totals
Beg. Bal $(73,826,907) $(87,521,945) $(90,353,737) $(93,169,809) $(93,626,850)
Revenue $0 $0 $0 $0
COS $0 $0 $0 $0 $0
COS Sav. $2,346,207 $2,346,207 $2,346,207 $0 $7,038,620
ORG Const. $0 $0 $0 $0 $0
MOD (Soft) $88,889 $88,889 $88,889 $88,889 $355,555
MOD (New) $72,648 $72,493 $56,773 $43,948 $245,862
MOD Const. $0 $0 $0 $0 $0
ERP Const. $310,766 $0 $0 $0 $310,766
CTE Valley $0 $0 $0 $0 $0
Priority Proj $10,552,325 $0 $0 $0 $10,552,325
Solar $0 $0 $0 $0 $0
Admin. Exp. $324,204 $324,204 $324,204 $324,204 $1,296,816
IRP $0 $0 $0 $0 $0
Yearly Totals $13,695,068 $2,831,792 $2,816,072 $457,041 $19,799,943
Ending Balance $(87,521,945) $(90,353,737) $(93,169,809) $(93,626,850) $ (93,626,850)
Cash Flow (2012)
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Project 2013
1st
Quarter
2013 2nd
Quarter
20133rd
Quarter
20134th
Quarter
2013Totals
Beg. Bal $(93,626,850) $(94,062,471) $(94,475,564) $(94,888,656) $(93,626,850)
Revenue $0 $0 $0 $0 $0
COS $0 $0 $0 $0 $0
COS Sav. $0 $0 $0 $0 $0
ORG Const. $0 $0 $0 $0 $0
MOD (Soft) $88,889 $88,889 $88,889 $88,889 $355,555
MOD (New) $22,528 $0 $0 $0 $22,528
MOD Const. $0 $0 $0 $0 $0
ERP Const. $0 $0 $0 $0 $0
CTE Valley $0 $0 $0 $0 $0
Priority Proj $0 $0 $0 $0 $0
Solar $0 $0 $0 $0 $0
Admin. Exp. $324,204 $324,204 $324,204 $324,204 $1,296,816
IRP $0 $0 $0 $0 $0
Yearly Totals $435,621 $413,093 $413,093 $413,093 $1,674,899
Ending Balance $(94,062,471) $(94,475,564) $(94,888,656) $(95,301,749) $(95,301,749)
Cash Flow (2013)