HomeMy WebLinkAbout13.A.2. Capital Financing DiscussionTO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Capital Financing Discussion
DATE: January 12, 2011
Introduction
This is follow up from the October 19 meeting on overlay financing and the Capital Improvement
Fund (CIF) and future tax levies.
I Background
For reference, attachment #1 is the listing of bonds (excluding SPUC) that the city is liable for,
showing the amount issued, the amount outstanding as of 2/1/2011 and the original scheduled
tax levy for each issue. The table starts as of 2005. It includes the bonds for Northridge Court
and River City Centre for which the city is liable if revenues are not sufficient to make the bond
payments.
Attachment #2 is trend data for significant items as background for this discussion.
The chart below shows the total debt payments by year and by source of money to make the
payments. The utility source shown is the storm water utility. In 2005, an amount shown below
the zero line represents the large prepayment of special assessments which increased fund
balance in the debt service funds versus drawing down fund balance
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
(1,000,000)
(2,000,000)
CITY OF SHAKOPEE
Memorandum
Debt payment Sources
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
• Utility
■ IS Fund
• FO Balance
IN Assess
■ Levy
/ 3. A.. .2_ .
The chart below is the actual and projected tax levy for existing bonds. The blue line represents
the proposed tax levy for street improvement bonds. The red line is the tax levy for fire station
#1. The tan line is the one year levy for fire station #2. As shown, the dip for 2010/11 and
2011/12 is due to using cash on hand in the debt service funds and reducing the tax levy. This
helped reduce the need to make General Fund cuts in those years in order to maintain the same
tax levy. The decrease in 2016/17 reflects existing bonds being paid off.
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Actual /Projected Capital Levies
ma o � �\ � 4,\ c P \ ° oy \ y o � ,'\ y � oy L , �oy ~ 1:.\ �' \ ' 1 � � °\ ~^
ti ti -1 ti ti ti ti ti
Fire Station #2
■ Fire Station #1
• Existing bonds
Next, is the same chart with adding the proposed levies for reconstruction bonds and the
proposed levy for the CIF for street overlays.
2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Actual /Projected Capital Levies
r Recon /Imp
Fire Station #2
■ CIF /Overlay
r Fire Station #1
✓ Existing bonds
Projected tax levy based on CIP and not bonding for overlays
The shaded area is tax levy for projects proposed to be ordered starting with 2011 overlay,
2011 reconstruction and the CR 101 projects.
2010/11 2011/12 2012/13 2013/14 2014/15
Existing debt 137,440 382,764 871,442 883,770 700,998
Fire St. #1 120,000 248,528 246,356 253,706 249,926
Fire Station 2011 400,000 0 0 0 0
Recons 0 151,000 151,000 291,000 442,000
Overlay -CIF 0 100,000 150,000 200,000 250,000
Valleyview /17 signal 35,000 35,000
Sub Total 657,440 882,292 1,418,798 1,663,476 1,677,924
Increase 224,852 536,506 244,648 14,448
% of total 2010 levy 1.5 3.6 1.6 0
Operating levy 14,179,998 ? ??
Total 14,837,438
Action Requested
Discuss and give staff direction
Gregg Voxland
Finance Director
Budgetll /memo 1 12 11 LT$
2/1/2011
Year
Of
Levy
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Issued
Outstanding
Scheduled
$ 5,390,000 $ 6,640,000 $ 2,275,000 $ 6,000,000 $ 3,180,000 $ 2,555,000 $
4,695,000 5,925,000 1,245,000
2006D /E /A 2003 2004B
River City Northridge Refunding
Centre Court Bonds
250,781 469,697
246,450 469,040
251 467,649
246,239 465,497
251,227 468,435
250,261 465,812
248,528 467,744
246,356 469,200
253,706 468,150
249,926 466,680
245,936 464,790
467,730
470,040
466,470
467,278
472,402
471,194
474,567
471,253
4,660,000 -
2004D 1995 1996A 1997B
Building Improve- Improve- Improve -
Bonds ment Bonds ment Bonds ment Bonds
61,569 62,726
61,701
20,000
1,805,000 $ 2,375,000 $ 2,560,000 $ 1,185,000
29,757
29,477
1998B
Improve-
ment Bonds
62,519
62,567
62,238
61,699
11,000
2000A 2002A
Improve- Improve-
ment Bonds ment Bonds
55,298
55,858
56,167
56,349
46,214
/A
95,892
98,570
95,790
98,255
95,120
97,095
$ 3,750,000 $ 2,215,000 $ 4,225,000 $ 2,570,000 $ 3,440,000 $ 1,370,000 $ 1,445,000 $ 2,170,000 $ 1,555,000 1,825,000 2,160,000 1,515,000 62,205,000
1,950,000 1,020,000 2,160,000 930,000 1,040,000 1,615,000 1,525,000 26,765,000
2002B 2003A 2004A 2004C 2006A 2007A 2007B 2008A 2010A 2011A 2013A 2014A
Improve- Improve- Improve- Improve- Improve- Improve- Improve- Improve- Improve- RECON RECON /IMP RECON
ment Bonds ment Bonds ment Bonds ment Bonds ment Bonds ment Bonds ment Bonds ment Bonds ment Bonds Bonds Bonds Bonds
147,185
146,075 344,616
144,965 345,275 8,742 75,183
143,855 346,840 10,173 93,945 159,323
142,088 342,736 11 ,603 37,304 152,179
139,994 343,672 7,784 95,204 149,414 137,440
142,822 344,187 35,000 87,853 151,900 136,507 151,000
139,881 344,283 8,878 91,213 148,952 138,235 151,000
141,855 343,959 8,125 94,362 150,741 144,728 151,000 175,000
- 343,215 10,145 92,052 147,084 108,492 151,000 175,000 190,000
345,140 6,915 94,991 153,402 108,067 151,000 175,000 190,000
- 92,471 148,800 107,145 151,000 175,000 190,000
149,448 105,940 151,000 175,000 190,000
- 114,951 151,000 175,000 190,000
6 9, 941 151,000 175,000 190,000
151,000 175,000 190,000
175,000 190,000
175,000 190,000
190,000
City of Shakopee, MN
Net Outstanding Outstanding Outstanding
Taxable General Act/Est Debt Debt Debt Debt
Fiscal Tax Tax & Rec Fund Total Operating Debt Outstanding Per % of General % Tax Levy %
Year Population Capacity Rate Expenditures Lev Lew Levy Debt Capita Expenditures Capacity Total Lew
2000 20,568 17,202,378 20.132 8,753,265 3,819,736 3,350,810 468,926 18,395,000 $ 1,586 210% 107% 12%
2005 31,000 30,211,233 31.115 14,139,608 9,703,206 9,067,169 636,037 24,635,000 795 174% 82% 10%
2006 32,800 34,470,585 30.974 15,978,683 10,951,917 10,018,910 933,007 25,020,000 763 157% 73% 10%
2007 33,460 39,164,767 31.939 19,028,944 12,745,449 11,700,135 1,045,314 24,725,000 739 130% 63% 9%
2008 33,660 43,851,703 31.925 18,592,701 14,222,007 13,120,995 1,101,012 23,615,000 702 127% 54% 9%
2009 34,691 45,195,077 32.630 18,206,722 14,983,677 13,731,999 1,251,678 20,955,000 604 115% 46% 7%
2010 34,691 38,952,163 33.710 19,791,420 14,918,665 13,819,194 1,099,471 18,710,000 539 95% 48% 4%
2011 35,100 37,733,317 34.683 20,175,640 14,837,438 14,179,998 657,440 17,970,000 512 89% 48% 6%
2012 898,260 15,837,500
2013 1,249,326 15,745,000
2014 1,662,174 14,811,500
2015 1,778,904 12,241,500
Percent change from 2000 to 2011
71% 119% 130% 288% 323% 40% -2% -68% -58% -55%
Percent change from 2005 to 2011
13% 25% 11% 43% 53% 56% 3% -27% -36% -49% -42%
Percent change from 2005 to 2009
50%