austin community college district debt status and financial options january 14, 2002
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Austin Community College District Debt Status and Financial Options January 14, 2002. Goals Provide cash flow relief and additional operational flexibility. Provide funding for property acquisition and development. Achieve Board Reserves policy target. - PowerPoint PPT PresentationTRANSCRIPT
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Austin Community College District
Debt Status and Financial Options
January 14, 2002
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Goals
• Provide cash flow relief and additional operational flexibility.
• Provide funding for property acquisition and development.
• Achieve Board Reserves policy target.
• Not to impede the flow of funds available for operations and maintenance.
• Fund incremental debt with incremental revenue.
• Preserve District’s credit quality.
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• Opportunity to Refund Certain Series 1992:
Maturities 2003 610,000 5.6%2004 900,000 5.7%2005 1,510,000 5.8%2006 1,330,000 5.9%
• Provides cash flow relief in light of potential valuation fluctuation.
• Enhances cash flows until such time as tax rate limitation may be addressed.
• Refunding will achieve Board Reserves policy target by FY 2006.
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Existing Debt Status
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2001 Pledged Revenue Analysis
$8 of $11 Building Use Fee$4,111,961
Tuition Pledge 963,795
Investment Income 1,523,527
Total $6,599,283
Less: Debt Service 4,622,401
Excess Pledged Revenue1 $1,976,882
1These revenues available for use in operation and maintenance, and are currently being used as such.
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Flow of Funds
Pledged Revenues
RevenueFund
Debt ServiceFund
PayDebt
Any LawfulPurpose*
Excess
$8 of $11 $3
* Currently being used for O&M
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Existing Debt ServiceYear Outstanding Excess
Ending Projected Debt Pledged8/31 Revenues Service Revenue2002 6,599,283 4,622,401 1,976,8822003 6,665,276 4,615,076 2,050,2002004 6,731,929 4,619,651 2,112,2772005 6,799,248 4,229,170 2,570,0782006 6,867,240 4,215,719 2,651,5222007 6,867,240 4,274,609 2,592,6322008 6,867,240 4,298,934 2,568,3072009 6,867,240 4,319,993 2,547,2482010 6,867,240 4,294,009 2,573,2322011 6,867,240 4,314,836 2,552,4042012 6,867,240 4,249,990 2,617,2502013 6,867,240 4,264,038 2,603,2022014 6,867,240 4,258,383 2,608,8582015 6,867,240 4,263,550 2,603,6902016 6,867,240 3,296,825 3,570,4152017 6,867,240 3,327,931 3,539,3092018 6,867,240 3,326,406 3,540,8342019 6,867,240 3,322,922 3,544,3182020 6,867,240 3,327,213 3,540,0282021 6,867,240 3,323,963 3,543,278
$136,671,581 $80,765,618
(1) Includes projected growth of 1.00% through 2006.
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District Facilities/Debt Financed
• 1984 $ 4,800,000 Riverside Land/Renovations• 1986 $ 8,500,000 Northridge Land
Northridge Phase IRiverside Renovation
• 1990 $ 8,300,000 Cypress Creek ConstructionRefund 1984
• 1991 $ 4,500,000 Northridge Phase II• 1992 $ 7,265,000 Refund 1986-1991• 1995 $13,250,000 Eastview Campus
$ 1,000,000 Highland Business Center Renovation
• 2000 $20,900,000 New Construction$ 4,800,000 Service Center/Warehouse
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District Facilities/Cash Acquisition
• Rio Grande Campus 20-year lease amortized FY 92 $ 5,000,000
• Pinnacle Purchase FY 91 2,800,000Buildout FY 92-93 2,000,000
• District Administrative Office Purchase FY 93 4,800,000• Fiber Optics FY 94-95 2,000,000• ADA Compliance FY 95 500,000• Riverside Phase II FY 94-95 5,200,000• Renewal & Replacement Fund FY 96 1,361,000
Total $23,661,000
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Year Valuation Collected Tax Rate 1990 $17,442,740,000 $8,465,939 4.75 1991 16,904,226,000 8,265,113 5.00 1992 16,071,048,000 7,905,384 5.00 1993 18,179,643,154 8,169,677 4.75 1994 18,182,630,077 8,825,959 4.82 1995 21,232,385,444 9,924,548 4.66 1996 23,548,780,612 11,225,519 4.76 1997 26,053,880,052 12,530,510 4.82 1998 28,064,544,968 13,971,450 5.00 1999 31,243,561,533 15,255,032 5.00 2000 34,904,529,964 17,543,519 5.00
2001* 40,489,664,079 20,020,575 5.00
Tax Collections by Year 1990-2000Based on September Year-end Reports
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New Properties on Tax Roll by Year 1990-2001
Year Value 1990 $ 661,955,436 1991 451,349,353 1992 633,712,290 1993 514,108,231 1994 848,258,847 1995 1,182,297,835 1996 1,119,877,933 1997 1,213,756,781 1998 1,165,877,079 1999 1,571,507,362 2000 2,128,770,531 2001 2,273,226,422
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Event FY02 FY03 FY04 FY05 FY06
Fund Balance Brought Forward 12,077 15,755 17,148 19,047 21,280
Early Retirement bonus authorized from Fund Balance (1,074)
Option 2: - Refunding Bonds (Capital Appreciation Bonds) 252 844 1,092 1,632 1,369 - Added Debt Service on $5 million new bonds (275) (486) (484) (486) - $2.3M from Bond proceeds for South Austin Campus purchase; $2.0M for RVS retrofit; $0.7M for expanded parking at PIN - Revenue from additional $1 Building Fee 510 510 510 510
Option 3 - Net Proceeds from sale of Golf Course 4,500
Amount budgeted to sustain 15% Fund Balance 314 783 575 508
Ending Fund Balance 15,755 17,148 19,047 21,280 23,181
Current Year's Expenditures/Transfers 101,710 103,801$ 1 109,021$ 1 112,854$ 1 116,239$ 2
Fund Balance Percent 15.5% 16.5% 17.5% 18.9% 19.9%
Months Reserve 1.86 1.98 2.10 2.27 2.39
Notes: 1. Based on FY03 - FY05 Budget Revenue Projection, 11-01-01, less Fund Balance Growth 2. Based on projected 3% annual Budget growth
Plan to Achieve Reserves Target
(in thousands of dollars)
Summary of Recommended Options
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Financial Options Available
• Existing Debt Structure Options (Option 1)– Refund existing debt to provide cash flow relief
using Capital Appreciation Bonds (CABs). Option provides $5.2 million in cash flow relief over a five-year period. Represents actual present value cost to the District.
– Achieves Board Reserves policy target by FY 2006.
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Projected Debt Service(1) Refunding Bonds (2)
Year Outstanding Excess Refunded Projected Projected Projected
Ending Projected Debt Pledged Debt Annual Total Excess Coverage
8/31 Revenues Service Revenue Principal Interest Debt Service Service Savings Debt Service Revenues Ratio
2002 6,599,283 4,622,401 1,976,882 0 0 0 251,510 251,510 4,370,891 2,228,392 1.51
2003 6,665,276 4,615,076 2,050,200 0 0 0 844,430 844,430 3,770,646 2,894,630 1.77
2004 6,731,929 4,619,651 2,112,277 0 0 0 1,091,700 1,091,700 3,527,951 3,203,977 1.91
2005 6,799,248 4,229,170 2,570,078 0 0 0 1,632,260 1,632,260 2,596,910 4,202,338 2.62
2006 6,867,240 4,215,719 2,651,522 0 0 0 1,369,235 1,369,235 2,846,484 4,020,757 2.41
2007 6,867,240 4,274,609 2,592,632 0 0 0 0 4,274,609 2,592,632 1.61
2008 6,867,240 4,298,934 2,568,307 0 0 0 0 4,298,934 2,568,307 1.60
2009 6,867,240 4,319,993 2,547,248 0 0 0 0 4,319,993 2,547,248 1.59
2010 6,867,240 4,294,009 2,573,232 0 0 0 0 4,294,009 2,573,232 1.60
2011 6,867,240 4,314,836 2,552,404 0 0 0 0 4,314,836 2,552,404 1.59
2012 6,867,240 4,249,990 2,617,250 0 0 0 0 4,249,990 2,617,250 1.62
2013 6,867,240 4,264,038 2,603,202 0 0 0 0 4,264,038 2,603,202 1.61
2014 6,867,240 4,258,383 2,608,858 0 0 0 0 4,258,383 2,608,858 1.61
2015 6,867,240 4,263,550 2,603,690 0 0 0 0 4,263,550 2,603,690 1.61
2016 6,867,240 3,296,825 3,570,415 450,983 514,017 965,000 (965,000) 4,261,825 2,605,415 1.61
2017 6,867,240 3,327,931 3,539,309 409,969 525,031 935,000 (935,000) 4,262,931 2,604,309 1.61
2018 6,867,240 3,326,406 3,540,834 385,332 549,668 935,000 (935,000) 4,261,406 2,605,834 1.612019 6,867,240 3,322,922 3,544,318 363,761 576,239 940,000 (940,000) 4,262,922 2,604,318 1.61
2020 6,867,240 3,327,213 3,540,028 340,630 594,370 935,000 (935,000) 4,262,213 2,605,028 1.61
2021 6,867,240 3,323,963 3,543,278 321,088 613,912 935,000 (935,000) 4,258,963 2,608,278 1.61
2022 6,867,240 6,867,240 1,375,767 2,884,233 4,260,000 (4,260,000) 4,260,000 2,607,240 1.61
2023 6,867,240 6,867,240 964,187 2,205,813 3,170,000 (3,170,000) 3,170,000 3,697,240 2.17
$150,406,062 $80,765,618 $4,611,718 $8,463,282 $13,075,000 $5,189,135 -$7,885,865 $88,651,483
(1) Includes projected growth of 1.00% through 2006.
(2) Achieves 15% by FY 2006
Option 1
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Event FY02 FY03 FY04 FY05 FY06
Fund Balance Brought Forward 12,077$ 11,255$ 12,413$ 14,288$ 16,495$
Early Retirement bonus authorized from Fund Balance (1,074)
Option 1 - Refunding Bonds (Capital Appreciation Bonds) 252 844 1,092 1,632 1,369
Budgeted Fund Balance increase for Growth 314 783 575 508
Ending Fund Balance 11,255$ 12,413$ 14,288$ 16,495$ 18,372$
Current Year's Expenditures/Transfers 101,710$ 103,801$ 1 109,021$ 1 112,854$ 1 116,239$ 2
Fund Balance Percent 11.1% 12.0% 13.1% 14.6% 15.8%
Months Reserve 1.33 1.44 1.57 1.75 1.90
Notes: 1. Based on FY03 - FY05 Budget Revenue Projection, 11-01-01, less Fund Balance Growth 2. Based on projected 3% annual Budget growth
(in thousands of dollars)
Projected ReservesOption 1
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Quantitative Analysis
• Option 2 – CAB refunding and $5.8 million with $1 fee increase.– Refund existing debt to provide cash flow relief
using Capital Appreciation Bonds (CABs). Provides $5.2 million in cash flow relief over five-year period.
– Provides $5.8 million in new bond money ($5.0 million net proceeds) for purchase of South Austin Campus property, facilities retrofit for Riverside, and purchase of property for additional parking spaces at PIN.
– Achieves Board Reserves policy target by FY 2006.
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Austin Community College DistrictFacilities Improvement Plan
Projected Debt Service
(1) (2) Existing (3) Refunding Bonds
Year Total Outstanding Excess $5,765,000 Refunded Projected Projected ProjectedEnding Projected Incremental Projected Debt Pledged New Money Debt Annual Total Excess Coverage
8/31 Revenues Revenue Revenue Service Revenue Debt Service Principal Interest Debt Service Service Savings Debt Service Revenues Ratio
2002 6,599,283 6,599,283 4,622,401 1,976,882 0 0 0 251,510 251,510 4,370,891 2,228,392 1.512003 6,665,276 488,375 7,153,651 4,615,076 2,050,200 274,651 0 0 0 844,430 844,430 4,045,297 3,108,354 1.772004 6,731,929 488,375 7,220,304 4,619,651 2,112,277 486,308 0 0 0 1,091,700 1,091,700 4,014,259 3,206,045 1.802005 6,799,248 488,375 7,287,623 4,229,170 2,570,078 484,126 0 0 0 1,632,260 1,632,260 3,081,036 4,206,587 2.372006 6,867,240 488,375 7,355,615 4,215,719 2,651,522 485,940 0 0 0 1,369,235 1,369,235 3,332,423 4,023,192 2.212007 6,867,240 488,375 7,355,615 4,274,609 2,592,632 486,697 0 0 0 0 4,761,305 2,594,310 1.542008 6,867,240 488,375 7,355,615 4,298,934 2,568,307 486,463 0 0 0 0 4,785,397 2,570,219 1.542009 6,867,240 488,375 7,355,615 4,319,993 2,547,248 485,406 0 0 0 0 4,805,398 2,550,217 1.532010 6,867,240 488,375 7,355,615 4,294,009 2,573,232 483,611 0 0 0 0 4,777,619 2,577,996 1.542011 6,867,240 488,375 7,355,615 4,314,836 2,552,404 485,981 0 0 0 0 4,800,817 2,554,799 1.532012 6,867,240 488,375 7,355,615 4,249,990 2,617,250 487,346 0 0 0 0 4,737,336 2,618,280 1.552013 6,867,240 488,375 7,355,615 4,264,038 2,603,202 487,658 0 0 0 0 4,751,697 2,603,919 1.552014 6,867,240 488,375 7,355,615 4,258,383 2,608,858 486,917 0 0 0 0 4,745,299 2,610,316 1.552015 6,867,240 488,375 7,355,615 4,263,550 2,603,690 485,105 0 0 0 0 4,748,655 2,606,960 1.552016 6,867,240 488,375 7,355,615 3,296,825 3,570,415 487,103 450,983 514,017 965,000 (965,000) 4,748,928 2,606,688 1.552017 6,867,240 488,375 7,355,615 3,327,931 3,539,309 487,806 409,969 525,031 935,000 (935,000) 4,750,737 2,604,879 1.552018 6,867,240 488,375 7,355,615 3,326,406 3,540,834 487,243 385,332 549,668 935,000 (935,000) 4,748,650 2,606,966 1.552019 6,867,240 488,375 7,355,615 3,322,922 3,544,318 485,433 363,761 576,239 940,000 (940,000) 4,748,354 2,607,261 1.552020 6,867,240 488,375 7,355,615 3,327,213 3,540,028 487,265 340,630 594,370 935,000 (935,000) 4,749,478 2,606,138 1.552021 6,867,240 488,375 7,355,615 3,323,963 3,543,278 487,659 321,088 613,912 935,000 (935,000) 4,746,621 2,608,994 1.552022 6,867,240 488,375 7,355,615 6,867,240 1,375,767 2,884,233 4,260,000 (4,260,000) 4,260,000 3,095,615 1.732023 6,867,240 488,375 7,355,615 6,867,240 964,187 2,205,813 3,170,000 (3,170,000) 3,170,000 4,185,615 2.32
$150,406,062 $10,255,875 $160,661,937 $80,765,618 $69,640,444 $9,028,713 $4,611,718 $8,463,282 $13,075,000 $5,189,135 -$7,885,865 $97,680,196
(1) Includes projected growth of 1.00% through 2006.
(2) $1 fee increase available in FY 2003.
(3) Includes Capitalized Interest through FY 2002.
Option 2
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Event FY02 FY03 FY04 FY05 FY06
Fund Balance Brought Forward 12,077 11,255 12,648 14,547 16,780
Early Retirement bonus authorized from Fund Balance (1,074)
Option 2: - Refunding Bonds (Capital Appreciation Bonds) 252 844 1,092 1,632 1,369 - Added Debt Service on $5.0M in new bonds (275) (486) (484) (486) - Bond proceeds of $2.3M for South Austin Campus property; $2.0M for RVS retrofit; and $0.7M for expanded parking at PIN. Option 2 - Revenue from additional $1 Building Fee 510 510 510 510
Budgeted Fund Balance increase for Growth 314 783 575 508
Ending Fund Balance 11,255 12,648 14,547 16,780 18,681
Current Year's Expenditures/Transfers 101,710$ 103,801$ 1 109,021$ 1 112,854$ 1 116,239$ 2
Fund Balance Percent 11.1% 12.2% 13.3% 14.9% 16.1%
Months Reserve 1.33 1.46 1.60 1.79 1.93
Notes: 1. Based on FY03 - FY05 Budget Revenue Projection, 11-01-01, less Fund Balance Growth 2. Based on projected 3% annual Budget growth
Option 2
(in thousands of dollars)
Projected Fund Balances
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(1)Year Existing
Ending Net Excess Option Option8/31 Revenues 1 2
2002 1,976,882 2,228,392 2,228,3922003 2,050,200 2,894,630 3,108,3542004 2,112,277 3,203,977 3,206,0452005 2,570,078 4,202,338 4,206,5872006 2,651,522 4,020,757 4,023,1922007 2,592,632 2,592,632 2,594,3102008 2,568,307 2,568,307 2,570,2192009 2,547,248 2,547,248 2,550,2172010 2,573,232 2,573,232 2,577,9962011 2,552,404 2,552,404 2,554,7992012 2,617,250 2,617,250 2,618,2802013 2,603,202 2,603,202 2,603,9192014 2,608,858 2,608,858 2,610,3162015 2,603,690 2,603,690 2,606,9602016 3,570,415 2,605,415 2,606,6882017 3,539,309 2,604,309 2,604,8792018 3,540,834 2,605,834 2,606,9662019 3,544,318 2,604,318 2,607,2612020 3,540,028 2,605,028 2,606,1382021 3,543,278 2,608,278 2,608,9942022 0 2,607,240 3,095,6152023 0 3,697,240 4,185,615
$55,905,963 $61,754,579 $62,981,741
(1) Includes projected growth of 1.00% through 2006.
Facilities Improvement Plan
Projected Excess Revenues
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Financial Options Available
• Sale of Riverside Golf Course (Option 3)– Net Proceeds estimate - $4.5 million.
– Accelerated approach to achieve Board Reserves policy target by FY 2002 (or FY 2003 depending on date of sale).
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Event FY02 FY03 FY04 FY05 FY06
Fund Balance Brought Forward 12,077 15,503 15,817 16,600 17,175
Early Retirement bonus authorized from Fund Balance (1,074)
Option 5 - Net Proceeds from sale of Golf Course 4,500
Budgeted Fund Balance increase for Growth 314 783 575 508
Ending Fund Balance 15,503 15,817 16,600 17,175 17,683
Current Year's Expenditures/Transfers 101,710$ 103,801$ 1 109,021$ 1 112,854$ 1 116,239$ 2
Fund Balance Percent 15.2% 15.2% 15.2% 15.2% 15.2%
Months Reserve 1.82 1.82 1.82 1.82 1.82
Notes: 1. Based on FY03 - FY05 Budget Revenue Projection, 11-01-01, less Fund Balance Growth 2. Based on projected 3% annual Budget growth
(in thousands of dollars)
Projected ReservesOption 3
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The Bond Buyer GO Index
4.8
5.0
5.2
5.4
5.6
5.8
6.0
6.2
Since January 2000
Percentage (%)
Market rates as of October 25, 2001