ansonia debt analysis
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8/18/2019 Ansonia Debt Analysis
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City of
Ansonia,
Connecticut
Existing
&
Proposed Debt Analysis
April 7,
2016
Barry Bernabe
Managing
Director
PrroENrx
ADVISORS,
LLC
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Long-term
lnterest
Rates
Ten
Year
U.S.
Treasury Yield
-
January
1,1970
to
April
2016
17o/"
160/o
1$Vo
14o/"
13o/o
12o/o
11o/o
1Oo/o
9o/o
8o/o
7o/o
60/o
5o/o
4o/o
3o/o
2o/o
1olo
17o/o
160/o
15o/o
14o/o
13o/o
12o/o
11o/o
1Oo/o
9o/o
8o/o
7olo
60/o
5o/o
4o/o
3o/o
2o/o
1olo
FF+
BFTE
EqBEqEEq
qEEE
EqqHE?E*
q
5
8t58gi
0$5
$PI fi95 $t5
$E
5
g
E
E
si
i
Prronxrx
,"\D\IIS0R\Lt"C
dMWtu
%*t*M
\
High:
September
1981
t
16.0%
Low:
July 2012, 1.5OYo
l-,
\-
I
\
it
I \-
r1 \
t
U
\-
.I
-l
\-
A f' /Y'LA
\-
\
,
/v
"\n/
U
^l
\-
Ul
-,rrl"
'\.
lkry\ tu \-
v
u
\/\n. \-
ts
-Y-\.
r^ltl,/w \.
11
'
vlr,r1
n
r
v[
/\*
--***M,,
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Standard &
Poor's Rating
Scale
H
ighest
AAA
Greenwich, Westport,
West
Hartford
BBB- None
PuonNrx
ADVISORS,IJ,C
n
Shelton, Southington,
Suffield
Derby,
Seymour,
Watertown
Ansonia,
Bolton,
Portland
Bridgeport,
Waterbury
Hartford, Hamdefl,
West
Have
East Haven, New
Haven
None
None
:
-
+
A,A+
AA
aA-
A+
A
&
BBB
BBB
Lowest
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Existinq
Short-Term
Bond
Anticipation
Notes
(BANs)
Project
Amount
Authorized
Lot A
Tax-
Exempt
to
Mature 5123116
Lot
B Taxable
to
Mature
5t23t16
Demolition of the
Rircrside
Housing
Complex
$5,200,000 $2,975,000
2013-14 CIP
-
Various
Capital
lmprorcments 5,120,000 3,750,000
Total
$3,750,000
$2,975,000
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Existinq
Debt
Seruice Pavments
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
N2013-14
CIP
aRiverside
P&l
rExisting
NET Debt Service
INN
N
#+d
t#t-H
l]JrJ]+
ffi
I
I
FiscalYear
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Existing
&
Proposed Debt
Spreadsheet
Line
Descriiption
Tvpe FY 2015-16 FY 2OL6-LI FY 2OL7-L8 FY 2018-19 FY 20L9-20 FY 2020-2L
7 2004 Bond Principal
School
1,610,000
1,080,000 1,075,000
2
2011 Bond Principal
School
1,190,000
1.200.000
1,180,000 1,165,000
3
2004 Bond lnterest
School L37,225 72,675 24,1,88
4
2011 Bond lnterest School L24.200 88.350
52,650 77,475
5
Chase
Ambulance
&
Dump Truck
Lease
ARMS/PW 85,356
85,356 85,356
6 Plow Truck Lease PW
77,913
7L.913
7
Fire Truck
and Sweeper Fire/PW 1.44,400 L3L,47A t3L,470 L37,470
73L,470 78,865
8 Riverside BAN Principal
Citv/Housins
1s0.000
18s,000 325,000
300,000 300,000 300,000
9 Riverside
BAN
lnterest
City/Housing
50,000 50,000 50,000 50,000 s0,000 s0,000
10 2OL3-L4
CIP
Princioal
City 200,000 200,000 200,000 200,000
200,000
LI
2OL3-L4
CIP
lnterest
Citv 50,000 150,000 125,000
LL7,OOO
110,500 108,000
L2
Future 2OL6-L7
CIP
Debt
Service City
25,000 540,000 1,0s5,000 1,110,000
L3
Total Gross Debt 3.613.094
3,314,764 3,273,664 2,520,945 1-,846,970 1,846,865
L4
Less
State
Reimbursements
(1,,762,1.s81
(1,464,s74\
(1,399,132) (672,952
15 Net Debt
Service 1.850.936 1,850,190 1.,874,532
L,847,993 L,846,970 L,8,46,965
Amount
budgeted
for
Debt
Service
FY 2075-76
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Existing
& Proposed
Debt
Service
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
o
N
o
N
FiscalYear
EFuture
Debt
Capacity
N2013-14
CIP
e
Riverside P&l
r Existing
NET Debt
Service
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Summary Points
o
Though
the
Fed has started
to
raise short-term interest rates,
they
remain
at
close to
historic
Iow
levels
(about
0.50%) and so do long-term rates.
.
The City
has rating
of
AA-
which
will
allow
for strong
investor demand.
.
The
City has an opportunity for a
possible
upgrade to AA
o
The
City's existing debt service amortizes
very
aggressively.
.
Structured appropriately
-
the City can
issue over
$4
million
per year
with no impact on
the
debt service
budget.
o
The
City currently budgets about
$1.8
million
per
year
for
debt service.
The
City
would
need
to
keep debt service budgeted
at
the
$1.8
million.
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