Transcript Capital Budget Update

Capital Budget Update
Presented to the Board of
County Commissioners
October 14, 2008
Interest Rate Environment
We continue to see some improvements in the interest rate
environment.
Since the spike in mid-September, rates continue to fall.
Date
Rate
9/11
1.89%
9/18
5.82%
9/25
7.34%
10/2
5.33%
10/9
4.50%
Remarketing of Bonds
Remarketing
Bank
Amount
Tendered
Liquidity
Bank
Terms of Standby
Purchase Agreement
Wachovia
$160.3
million
DEPFA
Interest rate:
1st 90 days: prime
After 90 days rate goes to prime + 1%
Redemption Provision:
After 90 days, accelerated redemption of O/S principal in six
fiscal years. Paid annually.
Wachovia
$5.8 million
Helaba
Interest rate:
1st 30 days = prime
31 days to 180 days = prime + 1%
181+ = prime +2%
Redemption Provision:
After 90 days, accelerated redemption of O/S principal in five
years. Paid quarterly.
Citigroup
$4.6 million
Bank of
America
Interest rate:
LIBOR plus 90bps – must maintain AAA rating – or rate
increases to prime.
Redemption Provision:
Payment of O/S principal due upon expiration of agreement.
Financial Exposure

Debt service would increase significantly due to the
accelerated redemption provision

On DEPFA bank bonds, principal payments would
increase from $9.9 to approximately $27.7 million

Options:
Replace Liquidity Provider & Remarketing Agent
Convert bonds from weekly reset to one-year bond
Convert variable rate to fixed rate bonds
Update on Bond Sale
Met with most departments
 No new contracts requiring
capital dollars should be
executed.
 Immediate cash needs
being identified

Projected Sale Amount
Original
January 2009
Sale
Authorized
and Unissued
BONDS
Pending Approval November 2008
Park & Recreation Facilities ($250,000,000)
Estimated
Sale
Amount
$
250,000,000
$
$
436,000,000
30,000,000
30,640,000
496,640,000
$
32,500,000
15,000,000
15,000,000
Approved in November 2, 2004 Referendum
Park and Recreation Facilities ($69,000,000)
36,000,000
15,000,000
7,500,000
Approved in November 5, 2002 Referendum
School Facilities ($224,000,000)
14,000,000
14,000,000
14,000,000
Approved in November 6, 2007 Referendum
School Facilities ($516,000,000)
Community College Facilities ($30,000,000)
Land ($35,640,000)
Approved in November 8, 2005 Referendum
Community College Facilities ($46,500,000)
Total Bonds
$
829,140,000
-
$
$
$
174,000,000
10,000,000
10,000,000
194,000,000
238,000,000
-
$
$
$
95,000,000
7,500,000
102,500,000
139,000,000
CERTIFICATES OF PARTICIPATION
School Facilities ($123,165,000, $31,600,000 & $58M)
87,765,000
87,765,000
75,000,000
Community College
Belk Addition ($15,000,000)
New Parking Deck ($21,000,000)
3,500,000
16,000,000
3,500,000
5,000,000
3,500,000
-
County Facilities
Freedom Mall - IST Phase 2 & RES ($14,785,000)
Freedom Mall - Phase 3 Hal Marshal ($76,935,000)
IST Data Center ($14,015,000)
9,785,000
76,935,000
14,015,000
9,785,000
5,400,000
2,800,000
Court Facilities
Community Corrections ($16,989,000)
16,989,000
3,400,000
355,000,000
5,229,000
650,000
-
-
12,000,000
7,000,000
-
Law Enforcement Facilities
Jail Construction ($355,000,000)
Sherrif's Office Expansion Phases 1&2
School Administrative Facilities ($12,000,000)
Library Facilities
-
3,000,000
Total COPs
$
12,325,000
609,543,000
$
12,325,000
137,625,000
$
81,500,000
TOTAL BONDS AND COPS
$
1,438,683,000
$
375,625,000
$
220,500,000
Possible Deferred Projects
Projects impacted by reduced sale amount:
Freedom Mall – Phase 3 (Hal Marshal Relocation)
IST Data Center
Taylor Renovation – CPCC
Center for Automotive Technology – CPCC
Parking Deck – CPCC
Bahakel Broadcast Center – CPCC
Van Every Replacement – CPCC
Harper Campus 3
Land acquisition activities
Construction activity on 20 school projects
Ed Center Replacement
Second Ward Park – Phase 1
Brooklyn Village Infrastructure
Up fit of various Park & Recreation facility projects
Time Line

Continue to monitor the situation

12/2/08: Seek Board approval for
COPs

1/6/09: Seek Board approval for Bonds
Questions