HomeMy WebLinkAbout02/05/2018 02 Plaza and Bonding - Distributed at the MeetingDistributed at the
Meeting ,^44-48
Ammt•
Council Study Session —February 5, 2018
Plaza and Bonding
• Introduction
• Plaza bonding options
• Bond Counsel Q&A
JOE'S BORROWING OPTIONS
Credit Union
Credit Union
Local Bank
BANK
'
a
•
lip
Joe's monthly budget is $843 — for rent or a house payment.
-borrowing: Joe will own the home free in 30 years
22 -renting: Joe will own nothing and must continue to pay rent
30 Years 20 Years
Cost of house $200,000 $200,000
Interest cost $104,000 $ 66,000
Total of Payments $304,000 $266,000
CITY'S BORROWING OPTIONS
1. Public Bond $$$
2. Private Placement Bond $$
3. Interfund $
4. LOCAL Program (State of Washington) $
LIFE CYCLE OF CONSTRUCTION INVOICES
Day 1:
Day 30:
Days 31-90:
Day 91-120:
Contract is approved and work begins
Contractor submits first invoice to city for work done.
Monthly invoices will be submitted until work is
complete.
City pays invoices #1 and #2 from donation cash on
hand.
By invoice #3 or #4, cash on hand is tapped to minimum
reserve. Borrowed funds are needed to continue to pay
monthly invoices until construction is finished.
BORROWING TERMS
Determine amount to borrow: $9 million?
$12 million?
Payment Schedule: 5 years to match pledge contracts
Timing Assumptions: Annual payments due each June
Adequate reserve kept on hand to
assure cash is available for debt
payments when due
City of Yakima
Plaza Construction Funding
Scenario #1- LOCAL Financing (Tax Exempt)
Sources of Cash Uses of Cash
LOCAL Bond
Year Donations 2.15%
Construction Debt Principal Debt Interest Net City Cash Year End Cash
Costs Paid Paid
In/(Out) flow Carryover
2016 762,857
2017 637,837
2018 2,611,414
2019 1,828,162
2020 1,560,262
2021 1,390,820
2022 848,370
2023 -
2024
9,000,000
(9,000,000)
(2,439,721)
(48,375)
(1,724,246) (193,500)
(1,761,317) (156,429)
(1,799,186) (118,560)
(1,837,868) (79,878)
(1,877,382) (40,364)
762,857
637,837
2,563,039
(2,529,305)
(357,484)
(526,926)
(1,069,376)
(1,917,746)
762,857
1,400,694
3,963,732
1,434,427
1,076,942
550,016
Totals 9,639,721 9,000,000 (11,439,721) (9,000,000) (637,106) (2,437,106)
Total Sources and Uses of Funds
Sources of Funds
Private Donations
Net City Funds
Total Sources of Funds
Uses of Funds
Plaza Construction
Interest Costs
9,639,721 80%
2,437,106 20%
12,076,827
11,439,721
637,106
Total Uses of Funds
The data in this chart represent estimates based on current
12,076,827 conditions and expectations of uncertain future events
City of Yakima
Plaza Construction Funding
Scenario #2 - Private Bond (Tax Exempt)
Sources o* Cath
Year Donations
Pr ate Bond
Uses of Cash
Construct on Debt Principal Debt Interest
Costs Pad Pad
Net City Cash
In/(Out) flow
year End Cash
Carryover
2016
2017
2018
2019
2020
2021
2022
2023
2024
762,857
637,837
2,611,414
1,828,162
1,560262
1,390,820
848,370
9,000,000
(9,000,000)
(2,439,721)
(72,900)
(1,687,078) (291,600)
(1,741,739) (236,939)
(1,798,171) (180,506)
(1,856,432) (122,246)
(1,916,580) (62,097)
762,857
637,837
2,538,514
(2,590,237)
(418,416)
(587,858)
(1,130,308)
(1,978,678)
762,857
1,400,694
3,939,207
1,348,971
930,555
342,697
Totals 9,639,721
9,000,000
(11,439,721) (9,000,000) (966,288)
(2,766,288)
Tota, Sources and Uses of Funds
Sources of Funds
Private Donations
Net City Funds
9,639,721 78%
2,766,288 22%
Total Sources of Funds
Uses of Funds
Plaza Construction
Interest Costs
Total Uses of Funds
12,406,009
11,439, 721
966,288
12,406,009
The data in this chart represent estimates based on current
condrtionsand expectatonsof uncertain future events.
City of Yakima
Plaza Construction Funding
Scenario #3 - Private Bond (Taxable)
Sources of Ca+
Yea Donations
Pr tate Bond
4.1C';
Uses of Cash
Construct on Debt Principal Debt Interest
Costs Pad Pad
Net City Cash
InAOut) flow
Year End Cash
Carryover
2016 762, 857
2017 637,837
2018 2,611,414
2019 1,828,162
2020 1,560,262
2021 1,390,820
2022 848, 370
2023
2024 -
9,000,000
(9,000,000)
(2,439,721)
(1,658,327)
(1,726,318)
(1,797,097)
(1,870,778)
(1,947,480)
(92,250)
(369,000)
(301,009)
(230, 230)
(156,549)
(79,847)
762,857
637,837
2,519,164
(2,638,886)
(467 ,065)
(636,507)
(1,178,957)
(2,027,327)
762,857
1,400,694
3,919, 857
1,280,971
813,906
177,400
Totals 9,639,721
9,000,000
(11,439,721) (9,000,000) (1,228,883)
(3,028, 884)
-ota Sources and Uses of Funds
Sources of Funds
Pr ':ate Donations
Net City Funds
9,639,721 76%
3,028,884 249;
Total Sources of Funds
Uses of Funds
Plaza Construction
Interest Costs
Total Uses of Funds
12,668, 604
11,439, 721
1,228,883
12,668,604
The data in this chart represent estimates based on current
cond tons and expectat ons of uncertain future events.
QUESTIONS?