HomeMy WebLinkAboutConcept of Financing Huntington Central Sports Complex, Sout -- R.*M,G;1 .5 _
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Council/Agency Meeting Held: M- 10— D1
Deferred/Continued to:
A proved ❑ Condition Ily A roved ❑ Denie ) ity C 's Signature
Council Meeting Date: February 20, 2001 Department ID Number: CS01-008
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
SUBMITTED BY: RAY SILVER, City Administrator ot"
PREPARED BY: CLAY MARTIN, Acting Director, Administrative Services
RON HAGAN, Director, Community Services/
SUBJECT: APPROVE CONCEPTUAL FINANCING FOR COMMUNITY
SERVICES PROJECTS
Fstaternent of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments)
Statement of Issue: There is a need for Council direction regarding the financing concept
for the Huntington Central Park Sports Complex, South Beach Phase II Improvements, and
the acquisition of the Pacifica Tower for a senior multi-purpose center.
Funding Source: Revenue Bond Financing
Recommended Action: Motion to: Approve the concept of financing Community Services
projects including the Huntington Central Park Sports Complex, South Beach Phase II
Improvements, and the Pacifica Tower Senior Multi-Purpose Center with revenue bonds as
outlined herein if Council ultimately decides to move ahead with any or all of the projects.
Alternative Action(s):
(1) Do not approve the use of revenue bonds for financing Community Services capital
projects, and give staff direction on alternative financing methods.
(2) Approve projects separately choosing one of the following:
(a) South Beach Phase II only.
(b) South Beach Phase II and Sports Complex.
s
(c) Sports Complex only.
(d) South Beach Phase 11 and Pacifica Tower Senior Center Project.
(e) Pacifica Tower Senior Center Project only.
(f) Pacifica Tower and Sports Complex.
RUEST FOR COUNCIL ACTIR
MEETING DATE: February 20, 2001 DEPARTMENT ID NUMBER: CS01-008
Analysis: City Council and staff have been working over the past several years on three
major Community Services Department capital projects. These projects include the
Huntington Central Park Sports Complex, the South Beach Phase II Improvements, and the
development of a new senior citizens multi-purpose center. Because of the success of the
Pier Plaza leases, increase in parking revenues, corporate partnership agreements, and user
fees, the city is currently generating sufficient revenue to pay for additional revenue bonds to
fund these capital projects. The city has previously funded South Beach Phase
Improvements, the beach maintenance facility, and the design and entitlement process for
the Huntington Central Park Sports Complex with revenue bonds that were issued in July
2000 (See Attachment 1). At that time, it was Council's intention to fund additional projects
with revenue bonds such as the second phase South Beach Improvements, the construction
of the sports complex, and possibly the development of a new senior citizen multi-purpose
center.
Staff has been meeting with the city's financial consultants and bond counsel regarding
various scenarios to issue revenue bonds for these projects. There are numerous tax laws
relating to tax exempt revenue bond financing with regard to allowable uses, arbitrage
earnings, rebate exemptions, etc. In working with the consultants, staff has prepared a
recommended financing scenario for accomplishing the above named projects.
FINANCING SCENARIO. The financing of the three projects will be done using revenue
bonds. Revenue bonds are bonds whose debt service payments are to be financed by
revenue generated from the users of the service. The projected annual revenue is described
in the Revenue Bond Issue Summary.
The strategy proposed is to issue two sub-series: Series A will be for Pacifica Tower and the
Sports Complex, and Series B will be for the South Beach Improvements Phase 11 project,
instead of two separate bonds. The advantage of using the sub-series financing
methodology is that the city could save as much as $800,000. This savings is comprised of
$300,000 in issuance fees and $500,000 in arbitrage. Each time the city issues revenue
bonds, the city incurs issuance fees, roughly $300,000 for each issue. By using the sub-
series financing methodology, the city only incurs issuance fees once. The city will also be
allowed to keep the arbitrage profits earned, estimated to be $500,000.
While entitlements for the South Beach Phase II Improvements have yet to be obtained, staff
is confident that those entitlements can be obtained to meet the tax law requirement of thirty-
six months. In a worst-case scenario, the city would have to rebate the arbitrage earnings if
it could not encumber the funds for South Beach Phase li Improvements in the thirty-six-
month period. Even if the arbitrage earnings have to be rebated, the savings would still be
around $300,000 in issuance costs. Attachment 2 is a financial analysis of this scenario
prepared by Evensen Dodge Inc.:
revenue bonds 2001 -2- 0211VOI 4:55 PM
RRUEST FOR COUNCIL ACTAN
MEETING DATE: February 20, 2001 DEPARTMENT ID NUMBER: CS01-008
Revenue Bond Issue_Summary
Estimated Total July 2001 Bond Issue:
HCP Sports Complex $18,000,000
South Beach Phase II 9,000,000
Pacifica Tower Senior Center 7,000,000
Total $34,000,000
Previous July 2000 Bond Issue (from Attachment 1):
Beach Maintenance Facility $3,100,000
South Beach Phase 1 $6,800,000
EIR / Plans / Entitlements HCP $1,100,000
Water Fund Repayment $4,000,000
South Beach Phase II Design $800,000
Energy Retrofit $2,000,000
Emerald Cove Refinancing $5,700,000
Total $23,500,000
Annual Debt Service on July 2000 Issue: $1,650,000*
Est. Annual Debt Service on July 2001 A&B Issue (@ current interest rates) $2,700,000
Total Annual Debt Service Both Issues $4,350,000
Annual Revenue to service debt:
Ruby's Lease $225,000
Duke's/Chimayo's Lease $450,000
Beach Parking Revenue $1,177,250
Emerald Cove Income $475,000
Sports Complex Income $1,194,640
Pacifica Tower Income $a38,760
Total Estimated Annual Revenue $4,360,650
*Originally,the city had anticipated revenue from energy savings to help pay this debt service, however
because of the energy crisis, this saving will not be realized and is, therefore, not included in the
revenue projection.
The income anticipated for the three capital projects is outlined below in separate proformas:
revenue bonds 2001 -2- 02/12/01 4:55 PM
R
4UEST FOR COUNCIL ACTIN
�
MEETING DATE: February 20, 2001 DEPARTMENT ID NUMBER: CS01-008
1. HUNTINGTON CENTRAL PARK SPORTS COMPLEX
Softball Leagues (600 adult teams x 30 games x $40 per game) $720,000
(100 senior teams x 30 games x $20 per game) $60,000
Softball Tournaments (10 per yr. x 64 teams x $275) $176,000
Youth Softball Tournaments (4 per yr. x 36 teams x $60) $8,640
Outside Tournament Use (8 per yr. x $2,500 per weekend) $20,000
Concession Leases (roller hockey, batting cages & food) $400,000
Wal-Mart Sales Tax Allocation $200,000
Naming Rights 1100.000
Total Estimated Sports Complex Revenue $1,684,640
Less Maintenance & Operations - 490 000
Total Revenue Available for Debt Service $1,194,640
Alternative revenue sources Council could consider for the sports complex:
Sponsor Signage/Banners 50,000 yr.
Paid Parking 400,000 yr.
2. SOUTH BEACH PHASE II IMPROVEMENTS
$1 Dedication (south beach daily beach lot parking fee) $420,000
Sunset Vista Camping Revenue (70 spaces x $25 x 210 days x .70) 257,250
Pier Plaza Premium Parking ($2 rate increase x 250,000 autos) 500 000
Total New Revenue Available for Debt Service $1,177,250
3. PACIFICA SENIOR CITIZEN MULTI-PURPOSE CENTER
Rental of Six Floors of Office Space (42,000 sq.ft. @ $1.85) $932,000
Less 10% Vacancy Rate - 93 240
Total Available Revenue for Debt Service $838,760
The collateral for the entire $34 million revenue bond issue will be the city-owned
Meadowlark Golf Course. The facility currently generates over$500,000 yearly in revenue to
the city from lease fees, sales tax, and possessory interest. The current land value for the
course gives the city a collateral ratio of over two4o-one for the proposed bond financing,
thus allowing the city to obtain a Triple A bond rating. Following is the proposed timeline for
the financing of the 2001 issue:
TIMELINE
Week of 2/26 . Distribute second draft of bond documents and POS
• Distribute updated number runs
Week of 3/5 . All-hands call re revised bond documents and updated structuring options
Week of 3/12 . Distribute third draft of bond documents and POS
Distribute updated number runs
• Distribute credit package to Rating Agencies and Bond Insurers
revenue bonds 2001 �3- 02/12101 4:55 PM
AUEST FOR COUNCIL ACTI
MEETING DATE: February 20, 2001 DEPARTMENT ID NUMBER: CS01-008
Week of 3119 . Deliver draft of rating agency presentation book to city
• Conference call or meeting to discuss Rating Agency/Insurer presentations
Week of 3/26 . Rating Agencies/Insurers presentations and site visits
Final comments on bond documents and POS due by 5:00 PM
• Receive ratings and insurance bids
April 4th Submit bond documents and POS to City Clerk for 4/16/01 Council agenda
April 16tn . Council approves bond'documents, POS, resolutions, and authorizes
distribution of POS
Week of 4/30 . Conference call to discuss insurance strategy and updated number runs
Week of 5R . Print and mail POS
May 24" . Informal preliminary pricing and market update call
May 29th . Formal preliminary pricing and market update call
Retail order period begins
May 30th . Final pricing of the bonds
Week of 6/4 . Conference call re investment funds, closing procedures and wiring instructions
Week of 6/11 . Distribute final Official Statement and closing documents
June 191h . Pre-closing
June 201h . Closing
Week of 7/8 . Award construction contracts
Issuer: City of Huntington Beach ("City")
Financial Advisory Team: Evensen Dodge, Inc. and PMG ("FA")
Bond Counsel/Disclosure Counsel: Quint& Thimmig, LLP ("BC/DC")
Underwriter: Salomon Smith Barney (°UW")
Underwriter's Counsel: Stradling, Yocca, Carlson and Rauth ("UC'
Trustee: Bank of New York("T")
The size of the issue can be decreased if Council decides not to proceed with a project. The
entire issue can be refunded if Council decides not to proceed with all of the projects,
however the city would still incur the financial consultant's cost of approximately $90,000 and
the design and entitlements costs incurred to date on the projects.
revenue bonds 2001 -4- 02M2101 4:55 PM
�QRUEST FOR COUNCIL ACTIN
MEETING DATE: February 20, 2001 DEPARTMENT ID NUMBER: CS01-008
Environmental Status: NIA
Attachment(sj:
City Clerk's
Page Number No. Description
1 RCA of June 19. 2000 adopting resolutions for issuance of lease
revenue bonds to finance various projects
2 Financial Analysis
RCA Author: RH:cr
revenue bonds 2001 -5- 02/12101 4:55 PM
ATTACHMENT #1
IWITY OF HUNTINGTON BEA (51/
--A M�Yt�.. �I�Lb) Aa �MEETING DATE: June 19, 2000 DEPARTMENT ID NUMR: AS 0-02d ��
Council/Agency Meeting Held:
DO 33o_3fl
Deferred/Continued to:
proved ❑ onditiona Approved b De ' d ler 's S gnature
C until Meeting Date: June 'i9, 2000 Department ID Number: AS 00-0g8
C
CITY OF HUNTINGTON BEACH ce c�
REQUEST FOR CITY COUNCILIPUBLIC FINANCING AUTHORITY ACTION
SUBMITTED TO: Honorable Mayor And City Council/Financing Authority Members
ry ?::
SUBMITTED BY: Ray Silver, City Administrator/Executive DirectorAiY , c-s
PREPARED BY: John Reekstin, Director of Administrative Services
SUBJECT: Adopt Resolutions Authorizing the Issuance of Lease Revenue Bonds
to Finance Various Projects Cc.c. R S. No. 200o- 62`pFA. its. pro. iz)
Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Should the City Council and Huntington Beach Public Financing Authority adopt resolutions
authorizing the issuance of Lease Revenue Bonds to finance the South Beach Phase I,
Beach Maintenance Facility, Energy Retrofit, Water Fund Repayment, Adult Sports Complex
Environmental Mitigation, South Beach Phase 11 Design, and Emerald Cove refinancing
projects, along with professional services contracts with Quint and Thimmig LLP., and
Evensen Dodge for bond counsel and financial advisory services related to the subject
projects.
Funding Source:
�se
Revenue Bond proceeds.
City Council Action:
1. Adopt Resolution'ZO�*-Uapproving proceedings to finance and refinance the costs
of certain capital improvement of the City, approving issuance of lease revenue
bonds by the Huntington Beach Public Financing Authority for such purposes, and
approving related documents and official actions.
southbeachrca.DOT -2- 618100 11:22 AM
REQUEST FOR CIUNCILIPUBLIC FINANCIN&UTHORITY ACTION
MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: AS 00-028
2. Approve Professional Services contracts with Quint and Thimmig LLP., and
Evensen Dodge for Bond Counsel and Financial Advisory Services related to the
subject financing.
3. Approve the insurance deductible of $50,000 for the professional liability
insurance and waiver of the 30-day cancellation notice for Quint & Thimmig; as
recommended by the settlement committee.
Public Financing Authority Action:
Adopt Resolution No.13 authorizing the issuance and sale of lease revenue bonds in an
amount not to exceed $25 million to finance and refinance the costs of certain capital
improvements of the City of Huntington Beach, and approving related documents and official
actions.
Alternative Actions):
Do not approve the recommended actions and discontinue the financing process for the
subject projects.
Analysis:
The proposed multi-faceted financing consists of several components. South Beach Phase I
is the "critical path" project since construction will coincide with the Pacific Coast Grand
Resort project. The total cost of South Beach Phase 1 is $6.8 million, of which $5.3 million
will be offset by American Trader oil spill litigation proceeds, Pier Fund equity, and Bike.Trail
grant funds. The $3.1 million Beach Maintenance Facility cost will be partially paid
($750,000) by the developers of the Pacific Coast Grand Resort under the terms of the
project's Development Agreement. In late 1999, the City Council allocated $1.1 mllion from
the General Fund reserve to fund plans and specification costs for the Central Park Sports
Complex; this financing would replenish the General Fund reserve. In 1991, the Water Fund .
lent $2.5 million to the Pier Fund to rebuild the demolished Pier. With interest, the total
amount due the Water Fund is approximately $4 million, which will also be repaid via this
financing. Debt service for this portion of the issuance will be repaid with Pier restaurant
lease income. The City has also identified $2 million in remaining costs for energy retrofit
projects at various city facilities, which will be offset by utility cost savings resulting from
these energy efficiency projects. This financing will also fund South Beach Phase 11 design
costs ($800,000), which will also be repaid with Pier restaurant lease income. The total
amount of the subject financing is expected to range between $12 — 18 million, depending
upon market interest rates at the time of issuance, which will determine whether or not
proceeding with the Emerald Cove refinancing is financially prudent. While debt service costs
are offset by the revenue sources outlined above, the General Fund ultimately serves as
security for the Lease Revenue Bonds. Below is a chart outlining the costs associated with
each project, along with offsetting revenues:
southbeachrca.DOT -3- 61810011:22 AM
a
REQUEST FOR CI OUNCIUPUBLIC FINANCIOAUTHORITY ACTION
MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: AS 00-028
Beach Maintenance Facility $ 3,100,000
South Beach Phase 1 6,800,000
Central Park Sports Complex Design 1,100,000
Water Fund Repayment 4,OOD,000
South Beach Phase II Design 800,000
Energy Retrofit 2,000,000
Emerald Cove Refinancing 5,700,000
Total $ 23,500,000
Less American Trader Oil Spill Proceeds [$ 3,800,000)
Less Pier Fund Equity [ 1,200,000]
Less Bike Trail Grant [ 500,000]
Less Waterfront Contribution to BMF [ 750,0001
Net Amount Required from Financing $ 17,250,000
Total Financing with COI $ 18,950,000
Maximum Annual Debt Service $(1,650,000)
Annual Revenue: Ruby's Lease 150,000
Beach Parking Revenue �'} 500,000
Pier Fund 350,000
Energy Savings 200,000
Emerald Cove Income 450,000
Total Revenue Applied to Debt Service $ 1,650,000
Any loss of Beach Parking revenue due a reduction in State beach parking rates
will be absorbed in the General Fund budget.
Annual debt service for this financing will vary over a 30-year period. The Energy Retrofit
portion will be amortized over 10 years, and the Emerald Cove refinancing, if implemented,
will extend to the current maturity date of 2022. The remaining projects will carry a 30-year
term. The interest rates will be fixed, with a blended rate of approximately 5.9 percent,
assuming no significant bond market fluctuation over the next 2-3 weeks. Assuming Council
approval of the recommended actions, the bonds will be priced on July 5, 2000, with a
closing in late July. The bid award for South Beach Phase I will occur in August.
These Lease Revenue Bonds will be secured by existing City assets, including Central Park,
the Equestrian Center, and the Fire Training Center. As the projects are completed, they
may replace these existing assets as collateral under the lease between the City and the
Financing Authority. The value of the pledged assets will be twice the value of the bond
issue to meet credit requirements.
The City has received an "A" rating from Standard and Poors for this issuance, which reflects
the sound and continually improving City financial outlook and moderate debt ratio. Bond
insurance may be purchased if lower debt service can be achieved.
Staff recommends Council approval of Quint and Thimmig LLP as bond counsel, along with
Evensen Dodge as financial advisor. Both firms have extensive experience in municipal debt
southbeachrca.DOT 4- 6I810811:22 AM
a r
Y REQUEST FOR CIrY&UNCILIPUBLIC FINANCINI@kUTHORITY ACTION
MEETING DATE: June 19, 2000 DEPARTMENT ID NUMBER: AS 00-028
issuances, and have a proven track record in multi-faceted financings. The Evensen Dodge
contract is for a not to exceed amount of $50,000, while the Quint and Thimmig contract
amount will be $54,500 for a debt issuance up to $15.4 million plus .25% of the amount
above $15.4 million, if applicable. Salomon Smith Barney has been chosen as underwriter
via a competitive selection process conducted in June of 1999.
Environmental Status:
Not applicable.
Attachment(s):
City Clerk's
' . . - Number No- Description
1. Resolution of the City Council. RCS. Noy 62
2. Contract Between the City of Huntington Beach and Quint and
Thimmig, LLP as Bond Counsel.
3. Contract Between the City of Huntington Beach and Evensen
Dodge as Financial Broker.
:
4. Resolution of the Public Financing Authority. 'W, No, (3
RCA Author.John Reekstin
southbeachrca.DOT -5- 818100 11:22 AM
a �
ATTAC H M E N T
#2
l:
City of Huntington Beach
Lease Revenue Bonds, Series 2001 A
Sports Complex/Hospital Tower
(Priced on May 15, 2001)
OPERATION OF PROJECT CONSTRUCTION FUND
Date Principal Rate Interest Receipts Disbursements Cash Balance
6/20/2001 - 5.2110755% - 0.02 - 0.02
7/01/2001 5,714,561,64 5.2110755% 35,438.35 5,749,999.99 5,750,000.00 0.01
10/01/2001 5,532,375.43 5.2110755% 217,624.58 5,750,000.01 5,750,000.00 0.02
1/01/2002 5,603,986.02 5.2110755% 146,013.97 5,749,999.99 5,750,000.00 0.01
4/01/2002 5,676,523.64 5.2110755% 73,476.45 5,749,999.99 5,750,000.00 -
Total 22,527,446.63 - 472,553.36 23,000,000.00 23,000,000.00 -
INVESTMENT PARAMETERS
Investment Model[PV,GIC,or Serurities]...................................................................................... GIC
Default investment yield target......................................................................................................... Bond Yield
CashDeposit.................................................................................................................................. 0.02
Cost of Investments Purchased with Bond Proceeds...................................................................... 22,527,446.63
Total Cost of Investments............... ........................................................................ $22,527,446.65
Target Cost of Investments at bond yield........................................................................................ $22,527,446.66
Actual positive or(negative)arbifra.;e.............................................................................................. 0.01
Yield to Receipt............................. ................................................................................................. 5.2110756%
Yield for Arbitrage Purposes........... ........................................................................ 6.2110755%
Evensen Dodge Inc File=2001 Issue(New).SF-2001 Issue-Option III-Sports Cmplx/Hospital Tower
Independent Financial Consultants 1/29/2001 6:41 PM
City of Huntington Beach
Lease Revenue Bonds, Series 2001 B
South Beach Improvements
(Priced on May 31, 2001)
OPERATION OF PROJECT CONSTRUCTION FUND
Date Principal Rate Interest Receipts Disbursements Cash Balance
6/20/2001 - 5.2110755% - - -
7101/2001 (13,002.45) 5,2110755% 13,002.45 - - -
10/01/2001 (107,154.91) 5.2110755% 107,154.91 - -
1/01/2002 (108,541.92) 5.2110755% 108,541.92 - - -
4/01/2002 (109,M-87) 5.2110755% 109,946.87 - - -
7/01/2002 (111.370.02) 5.2110755% 111,370.02 - - -
10/01/2002 (112,811.58) 5.2110755% 11Z811.58 - - -
1/01/2003 4,385,728.20 5.2110755% 114,271.80 4,500,000.00 4,500,000.00 -
410112043 4,442,496.69 5.2110755% 57.503.31 4,500,000.00 4,500,000.00 -
Total 8,265,397.14 - 734,602.86 9,000,000.00 9,000,000.00 -
INVESTMENT PARAMETERS
Investment Made][PV,GIC,or Securities].......................... ......................................................... GIC
Default investment yield target... ................................................................................................... Bond Yield
Cost of Investments Purchased with Bond Proceeds................................................................... 8,265,397.14
Total Cost of Investments.............................................................................................................. $8,265,397.14
Target Cast of Investments at bond yield...................................................................................... $8,265.397.14
Actual positive or(negative)arbitrage........................................................................................... 0.00
Yield to Receipt........................................................................................................... ...... 5.2110755%
Yield for Arbitrage Purposes..........................................-.—......................................................... 5.2110755%
Evensen Dodge Inc File=2001 Issue(New).SF-2001 Issue-Option lllSouth Beach Imprvmnts
Independent Financial Consultants 1/29/2001 6:41 PM
i
City of Huntington Beach
$34,005,000 Lease Revenue Bonds, Series 2001
Combined Issue - Separate Series
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I D5R Net New Dls
9/01/2001 - - 329,345,82 329,345.82 (22,870.42) 306,475.40
9/01/2002 565,000.00 3.500% 1,669,922,50 2,234,922,50 (116,872.04) 2,118,050.46
9/01/2003 590,000,00 3.550% 1,650,147,50 2,240,147,50 (116,872.04) 2,123,275.46
9/01/2004 610,000.00 3.650% 1,629,202.50 2,239,202.50 (116,872.04) 2,122,330.46
9/0112005 630,000.00 3.700% 1,606,937.50 2,236,937.50 (116,872.04) 2,120.065.46
9/01/2006 655,000.00 3.800% 1,583,627,50 2,238,627.50 (116,872.04) 2,121,755.46
9/01/2007 675,000.00 3.900% 1,558,737.50 2,233,737.50 (116,872,04) 2,116,555,46
9/01/2008 705,000.00 4.000% 1,532,412.50 2,237,412.50 (116,872,04) 2,120,540.45
9/01/2009 730,000.00 4.100% 1,504,212.50 2,234,212.50 (116,872.04) 2,117,340.46
9/01/2010 765.000.00 4.200% 1,474,282.50 2,239,282.50 (116,872.04) 2,122,410.46
9/01/2011 795,000.00 4.300% 1,442,152.50 2,237,152.50 (116,872.04) 2,120,280.46
9/01/2012 830,000.00 4.400% 1,407.967.50 2,237,967.50 (116,872.04) 2,121,095.46
9/01/2013 865,000.00 4.500% 1,371.447.50 2,236,447,50 (116,872,04) 2,119,575.46
910112014 905,000.00 4.600% 1,332,522.50 2,237,522.50 (116,872.04) 2,120,650.46
9/0112015 950,000.00 4.700% 1,290,892.50 2,240,892.50 (116,872.04) 2,124,020.46
910112016 990,000.00 4.800% 1,246.242.50 2,236,242.50 (116,872.04) 2,119,370.46
9/01/2017 1,040,000,00 4,900% 1,198,722.50 2,238,722.50 (116,872.04) 2,121,850.46
9/01/2018 1,095,000.00 5.000% 1,147,762.50 2,242,762.50 (116,872,04) 2.125,890.46
9/01/2019 1,140,000.00 5.100% 1,093,012,50 2,233,012.50 (116,872.04) 2,116,140.46
9/01/2020 1,205,000.00 5.200% 1,034,872.50 2,239,872.50 (116,872.04) 2,123,000.46
9/01/2021 1,265,000.00 5.250% 972,212.50 2,237,212.50 (116,872.04) 2,120,340.46
9/01/2022 1,330,000.00 5.300% 905,800.00 2,235,800.00 (116,872.04) 2,118,927.96
9/01/2023 1,400,000,00 5.300% 835,310.00 2,235,310.00 (116,872,04) 2,118,437.96
9101t2024 1,475,000.00 5.300% 761,110.00 2,236,110.00 (116,872.04) 2,119,237,96
9/01/2025 1,555,000.00 5.300% 682,935.00 2,237,935.00 (116,872.04) 2,121,062.96
9/0112026 1,640,000.00 5.300% 600,520.00 2,240,520.00 (116,872.04) 2,123,647.96
9/01/2027 1,725,000.00 5.350% 513,600.00 2,238,600.00 (116,872,04) 2,121,727,96
9/01/2028 1,820,000,00 5.350% 421,312.50 2,241,312.50 (116,872.04) 2,124,440.46
9/01M29 1,915,000.00 5.350% 323,942.50 2,238,942.50 (116,872.04) 2,122,070.46
9/01/2030 2,015,000.00 5.350% 221,490.00 2,236,490.00 (116,872.04) 2.119,617.96
9/01/2031 2,125,000.00 5.350% 113,687.50 2,238,687.50 (2,359,534.54) (120,947.04)
Total 34,005,000.00 - 33,456.343.32 67,461,343.32 (5,771,794.12) 61.689,549.20
Evensen Dodge Inc File=2001 Issue(New).SF-2001 Issue-Option III-Issue Summary
Independent Financial Consultants 1/29/2001 6.40 PM
i
Statement of Issue
Staff needs council direction regarding the
financing concept for various community •
service projects including the Huntington
Central Park Sports Complex, the South Beach
Phase II Improvements, and the proposed
Pacifica Tower Multi-Service Senior Center. Ogg
project.
It t
2/19/2001 1 t�
d
Few
• By combining projects into one revenue bond
issue the city can accomplish several projects
and use the total revenue generated by all the
projects to pay the debt service.
* A combined issue saves issuance costs and
allows the city to gain from the arbitrage interest
The alternative is to make each project stand
on its own and then make a decision on whether
to finance each project separately
!
* .
M1 ,
Y
{
Revenue Bond Issue Sum
Estimated total issue:
HCP Sports complex $159000,000
South Beach Phase 11 91,000,000
Pacifica Tower Senior Center 74000.000
Total $341000,000
Total from previous July 2000 issue $ 23,500,000
Annual Debt Service July 2000 issue $1 ,6509000
Est. Annual Debt Service July 2001 issue $297009000
Total Estimated Debt Service $4,350,000 i
Annual Estimated Revenue to Service Debt $493602000
2/19/2001 3
• All revenue from community service projects goes into the
General fund, the General fund then pays the debt service
• If made to stand on their own, the three projects' pro-forma
would look like this:
Sports Complex ($4939360)
South Beach Phase II $377,205
Pacifica Tower Senior Center $150tOOO
By combining the projects, saving issuance costs and
applying arbitrage interest earned, the total debt service
can be covered by projected revenue.
2f 19/2001 4
RECOMMENDATION
Approve the concept of combing all three projects into one
issue and direct staff to prepare the necessary
documents.
Alternative recommendation:
1 . Do not approve revenue bonds as the financing method for these
capital projects; or
2. Approve the projects separately by choosing one of the
following:
a. South Beach Phase 11 only
b. South Beach Phase 11 and Sports Complex
c. Sports complex only
d. South Beach Phase 11 and Pacifica Tower Project
e. Pacifica Tower Project only
f. Pacific Tower Project and Sports Complex
2/19/2001 5