HomeMy WebLinkAbout100207 CIP and DEBTCapital Improvement Program
& Debt
“First Look”
October 2, 2007
1
Disclaimer
•Extremely early in the process
•Major trend changes possible
•All numbers subject to change (and they will)
•Preliminary assumptions to get started
2
Today’s Agenda
•Discuss assumptions
•Discuss possible impacts
•Conclusion: How comfortable are we
with assumptions & direction?
3
Funded Capital Projects
251 projects with a
cost of $1.8 billion
Unfunded or Partially Funded
Capital Projects
205 projects with a
cost of $3 billion
4
School Facilities
Economic
Development
Projects
$
Transportation
City Facilities
Facilities
5
CIP by Project Type
$80.0
$70.0
$60.0
In Millions of Dollars
$50.0
$40.0
$30.0
$20.0
$10.0
$-
FY 2008FY 2009FY 2010FY 2011FY 2012
SchoolsTransportationCityEconomic Development
6
CIP by Type of Financing
$90.0
$80.0
$70.0
Millions of Dollars
$60.0
$50.0
$40.0
$30.0
$20.0
$10.0
$-
FY 2008FY 2009FY 2010FY 2011FY 2012
Pay-as-You GoBondsStateFund Balance
7
Debt Service
Capital
Budget
Debt Service IndicatorsStandardFY 08FY 09FY 10FY 11FY12
$2,400
Debt Per Capita$2,282$2,280$2,366$2,357$2,285
6.5%
Debt per Capita as a % of 5.7%5.7%5.4%5.4%5.2%
income per capita
3.5%
Debt as a % of assessed 2.2%2.1%2.2%2.0%1.9%
value
10.0%
Debt Service as a % of 7.2%7.6%7.4%7.2%6.9%
General Government
Expenditures
Debt per capita is most restricted and only allows $76 million of additional
debt issuance over the next six years
8
Debt Per Capita Compared to
Actual and CPI Adjusted Limits
$3,000
$2,800
$2,600
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
FY 03FY 04FY 05FY 06FY 07FY 08FY 09FY 10FY 11FY 12FY 13
Per Capita LimitCPI Adjusted LimitDebt per capita
9
Capital Improvement Program
Major Assumptions –“First Look”
•Financing Assumptions:
–No change to debt capacity = $76 million over next six years
–State Transportation Funding will not be impacted by State Budget reductions
–General Fund will be able to provide an additional $10 million in pay-as-you-
go funding
–Continue to re-examine SandbridgeTIF and use Surplus funding elsewhere
–Maximize use of all other funding before using debt
Blue Ribbon Committee
recommendations due in
•Expenditure Assumptions:
November
–Projects currently in the program have priority
–Continue the strategy of consolidating funding in priority projects
–Transportation projects appear to have the most unmet need
–Focus on getting projects constructed rather than starting new
–Replace and maintain existing infrastructure first
–Add new projects where a funding source is available to cover budget costs
–Only fund economic development projects when there is a clear return-on-
investment
10
So What Does this Mean?
•There is $76 million in debt capacity to
address city and school facilities,
transportation needs, and economic
development
•There is an additional $10 million in pay-as-
if
you-go financing the operating budget can
provide it given revenue issues
•Far more need than current resources
11
12
13
Long-Term Debt Report
Summary of Outstanding Debt
at June 30, 2007
(in millions)
AmountSource
General Obligation Bonds
a. Schools $ 281Full Faith & Credit
b. General Government 288Full Faith & Credit
Public Facility Revenue Bonds 369 Annual Appropriation
(via VBDA)
Leases and Other Debt 15Annual Appropriation
Agricultural Reserve Program 25Full Faith & Credit/Strips
Revenue Bonds
a. Water & Sewer 132Revenues of Enterprise Fund
b. Stormwater 11Revenues of Enterprise Fund
Total Debt $ 1,121
Less: Revenue/Supported $ 168
Net Tax Supported Debt $ 953
14
Note: Authorized and Unissued = $233 million
Growth of Debt Program
Millions
1,200
$1,121
$1,012
$963
1,000
$935
$762
800
$711
$689
$652
600
400
200
0
20002001200220032004200520062007
15
City/SchoolPFRBEnterprise DebtARP
Debt Per Capita
• Original guideline of $1,300 Per Capita approved in 1992
• Revised in 1998 to $1,500 Per Capita
• Revised in 2005 to $2,400 Per Capita
$2,500
$2,366
$2,197
$1,937
$2,000
$ Per Capita
$1,500
$1,312
$1,222
$1,000
$859
$624
$500
$0
16
1985 1990 1995 2000 2006 2007 2009
(Estimate from CIP)