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HomeMy WebLinkAboutPACKET Town Board Study Session 2013-01-09* Revised NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. STUDY SESSION TOWN BOARD Wednesday,January 9, 2013 5:00 p.m. Rooms 202/203 170 MacGregor Ave. AGENDA 5:00 p.m.Municipal Funding Options. Future Study Session Agenda Items . 6:30 p.m.Meeting Adjourn BLX Group LLC777 S. Figueroa St., #3200Los Angeles, CA  90017ph:  213‐612‐2200  fax:  213‐612‐2499www.blxgroup.comBLX Group LLC1400 16thStreet, Suite 400Denver, CO  80202ph:  303 699‐4464Capital Financing UpdateBLX Group LLCJune 25, 2012January 9, 2013p Financing Options Capital Projects• Cash (Pay-As-You-Go)• Debt Financing OptionsEnterprise Revenue Bonds General Obligation BondsGeneral Obligation BondsSales Tax Revenue Bonds• Lease Financing2 Debt Financing OptionsGENERAL OBLIGATION BONDS• Requires voter approval for debt plus new property taxes• Secured by the right to levy an unlimited property tax levy (or sometimes a limited tax)•Technically subject to statutory debt limits•Technically subject to statutory debt limits• Readily marketable• No Debt Service Reserve requirement • Credit quality determined by size and breadth of tax base3 GENERAL OBLIGATION BONDS (continued)• Credit analysis involves ratio analysis * Debt / Assessed Value Ratio* Debt / Market Value Ratio* Debt Per Capita Statistics* Total and Overlapping Debt and Mill Levy4 SALES TAX REVENUE BONDS• Requires voter approval for debt (plus new sales tax, if needed)• Secured by the pledge of sales tax collections (and sometimes use taxes)taxes)• Frequently requires a Debt Service Reserve Fund•Readily marketable when existing rate structure demonstrates•Readily marketable when existing rate structure demonstrates adequate debt service coverage • Credit quality determined by depth and diversity of tax base• Credit analysis focuses on “coverage ratio” * Pledged Revenue / Debt Service = Coverage Ratio5 ENTERPRISE REVENUE BONDSSdbt/ /ltit t ti•Secured by water / sewer / electric system net operating revenues• No voter approval requiredRithEtit tt dh llt•Requires the Enterprise to set rates and charges annually to generate a minimum amount of net revenue or debt service coverage• Frequently requires a Debt Service Reserve Fund• Credit quality and debt capacity determined by “coverage” ratios• Readily marketable when existing rate structure demonstrates adequate debt service coverage* Pledged Revenue / Debt Service = Coverage Ratio6 Lease Financing OptionsAl i tbkdfi i•A lease is an asset-backed financing• If lease payments are subject to annual appropriation, the lease is not considered to be a debt, and does not require voter approval• Secured by the leased assets or “collateral”• Readily marketable if credit is secure•Frequently requires a Debt Service Reserve Fund•Frequently requires a Debt Service Reserve Fund• Credit quality determined by the nature of the leased assets and the financial strength of the lesseeLease financings usually fall into one of two categories:• Direct Leases7• Certificates of Participation To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Town Clerk Date: January 2, 2013 RE: Future Town Board Study Session Items January 22, 2013 Policy Governance III- Staff Limitations – Part 1 Stall Barn/MPEC Bid and Pro Forma February 12, 2012 Policy Governance III – Staff Limitations – Part 2 Policy on Town Real Property Assets Role of Shuttle Committee and Transportation Committee February 26, 2013 Horse Carriages Downtown Revision to Stanley Historic District Agreement March 12, 2013 Policy Governance II – Board/Staff Linkage – Part 1 Town’s Role in Economic Development March 26, 2013 Policy Governance II – Board/Staff Linkage – Part 2 Other Items Not Currently Scheduled for Town Board Study Sessions • Support for Highland Festival • Board Training – Quasi-judicial • Capital Planning and Management • Strategic Initiatives – Review of Citizen Engagement – April/May • Logo Policy – Town Brand • Town Administrator Job Description Town Clerk’s Office Memo