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Home My WebLink AboutIR 7167 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. (a. To the Mayor and Members of the City Council Januuary 27, 1987 Subject: PROPOSED 1987 JOINT BOND SALE It is recommended that a joint bond sale in the amount of $39,710,000 be approved by the City Council for March 10, 1987. The Financial Advisor recommends March 10, 1987 for the sale date as market conditions are expected to be favorable. The proposed bond sales are for the general purposes outlined below (please see the attachment for the list of specific projects): Streets and Related Improvements: $ ;-AFlfl~;f38EJ►- Park and Recreation Improvements: $ 0 0-0-� Public Safety: $ 660,000 Library Improvements: $ 620,000 Total Proposed General Obligation !fond Sale: 3'a25'9 00 Water System Improvements: $ -0- Sewer System Improvements: $17,000,000 Total Proposed Revenue Bond Sale: $17,000,000 Total Proposed Joint Bond Sale: ti@@""' 0011 79-j 4VI 400"0' Proceeds from these sales, when combined with funds already available, should finance our capital needs until Spring. 1986. All proposed sales are from the 1986-88 Bond program, except one project which is funded from the 1982-84 Bond program. That project is Crestline Road Storm Drain for $56,500. After the bonds are sold, staff will submit an M&C for appropriations that will equal the bond sale. After approval of the appropriations tM&C, depart- ments may encumber/expend monies to complete the projets included in the appropriations. The current status of General Obligation bonds is displayed in the table below. Authorized General obligation Bonds (000's Omitted) Date Mount Prev. Proposed After Sale Proposition Auth Auth Issued Sale Balance Sanitary Sewer 12-75 27,500 21.700 0 5.800 Street Improvements 5-82 77,285 68,722 S7 $ p(, Street Improvements 3-86 115,600 41,470 "3 3 5-9 177 Library Improvements 3-66 10.400 1,510 /620 7',870 Public Safety Improvesents 3-86 5,750 3,840 t 660 1,250 Park i Recreation Improve. 3-86 16,650 4,620 +713 �` 46 252.785 141,462 .231 Ave C► _ V ! ISSUED BY THE CITY MANAGER FORT w )RTH, TEXAS -- + +INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 7167-u.2 January 27, 1987 Qft l T�Q To the Mayor and Members of the City Council Subject: PROPOSED 1987 JOINT BOND SALE At the time the $160 million bond program was approved, City staff made pro- jections regarding, the size of the debt levy required in future years to finance the program. Although subsequent events have caused a substantial change in the assumptions underlying these debt levy calculations, the latest calculations show debt levy to be lower than previous estimates except in Fis- cal 1989-90. The attachments compare the current and previous calculations and outline the changes in assumptions underlying them. Please let me know if you have any questions. Doug s Barman City nager DH:bm Attachments 001h, ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS --- PROPOSED 1987 JOINT BOND SALE The proposed bond sales of $39,710,000, if approved, will finance the projects listed below. 3�9�0®00 Streets and Related Improvements $ `4,88-o"a.0 " Arterial Streets: U.S. Highway 80 $ 1,000,000 Bryant-Irvin Road 1 ,350,000 Sycamore School Road 3,500,000 McCart Avenue 2,500,000 Guiliford Road 2,000,000 Magnolia Avenue 600,000 Drainage: Miscellaneous Flood Control 450,000 Crestline Roa Storm Drain 56,500 C/t FSrweiO 9p ii et ,ZY29 000 Miscellaneous ROW and street improvements: Emergency Pavement Replacement 150,000 Assessment Paving 500,000 Park Dri es 162,500 or.. 7_A rErr s ore rio n.4 Rev.s i.,r.,r 15,4500-10 New Development: 3 ?= 0 0 0 Streets 6 Storm drains in New Additions -,-?------- Bond Sale Expense 21 ,000 Total - Streets and Related Improvements $ S 3 30uoo Park and Recreation Improvements - $ X999' Parks: New Community Parks $ 100,000 Gateway Park General Development 850,000 Developing Areas 550,000 General Park Development 200,000 Summerfields - North Park 60,000 Buck Samson Park 15,000 Trail Drivers Park 30,000 Ridgmar Park 40,000 George Markos Park 50,000 LeBlanc Park 30,000 Oakland Park 5,000 Sycamore Park 50,000 Trinity Park 85,000 OW Hallmark park 10,000 Hallmark Park 4,000 Westcreek Park 50,000 Candleridge Park 60,000 o PROPOSED 1997 JOINT BOND SALE Recreation Centers: Greenbriar Recreation Center 178,000 Haws Recreation center 60,000 Southwest Recreation Center 75,000 Athletic Fields 500,000 Golf Coarse Sycamore Golf Course 500,000 Botanic Garden Demonstration Garden 297,500 swimilrinT V002 Zoo Cat b Bear Area 1,530,000 J733,00-00 Total - Park and Recreation Improvements $ Public Safety Improvements S 660,000 Complete Rennovation of Police 6 Fire Training Academy 660,000 Library Improvements 620,000 East Regional Library - Architect Fees b Land Acqusition 620,000 .� 31 azw Total Proposed General Obligation Bond Sales $ , Water System Improvements -0- Sewer System Improvements - Phase 2-B, VCWWTP Expansion $ 17,000,000 Total Proposed Revenue Bond Sales $ 17,000,000 Total Proposed Joint Bond sale $ 39,;;4T 80- o''' CURRENT PROJECTED DEBT SERVICE IMPACTS Net Current Net Required Fiscal Assessed Obligations Debt Service Tax Year Valuation Debt Service Rate 1985-86 12,270,104,176 35,465,780 35,465,780 0.2929 1986-87 14,710,053,304 39,645,745 39,645,745 0.2807 1987-88 15,261 ,258,288 43,293,382 45,513,457 0.3107 1988-89 16,894,648,935 42,764,293 48,466,401 0.2988 1989-90 17,558,916,907 44,534,051 53,898,718 0.3197 1990-91 19,782,626,957 45,793,334 55,119,001 0.2902 PREVIOUS PROJECTED DEBT SERVICE IMPACTS Net Current Net Required Fiscal Assessed Obligations Debt Service Tax Year Valuation Debt Service ($160m Assump) Rate 1985-86 12,270,104,176 35,465,780 35,465,780 0.2929 1986-87 13,733,590,052 31 ,594,247 39,606,244 0.2884 1987-88 13,975,065,003 30,400,365 44,359,288 0.3174 1988-89 15,607,030,597 29,435,500 49,341 ,349 0.3161 1989-90 16,164,127,297 28,782,533 48,688,382 0.3012 i Information has previously been provided to Council regarding the effects on the debt levy of a variety of bond sale scenarios for the 1986-88 bond pro- gram. These debt levy projections depended on certain assumptions regarding: 1. The size of the taxable assessed valuation roll in future years. 2. The size and timing of the various sales of bonds. 3. The interest rate at which those bonds would sell. 4. The amount of interest from the Debt Service Fund which could be used to offset debt service requirements in any given year. Under the assumption of a 5160 million bond sale, the calculation of effect on the debt levy incorporated the following assumptions: 1 . Taxable assessed valuations are: 1985-86 $12,270, 104, 176 1986-87 13,733,590,052 1987-88 13,975,065,003 1988-89 15,607,030,597 1989-90 16, 164, 127,297 2. Bond sales would occur as follows: Spring of 1986 $71 ,853,333 Spring of 1987 53,333,333 r ., Spring of 1988 53,333,333 3. The interest at which the bonds would be sold in these years was 9.25% 4. Funds would be available from the Debt Service Fund in the following amounts to contribute to debt service requirements: 1985-86 $12,035,430 1986-87 10,046,536 1987-88 11 ,087,438 1988-89 11 ,901 ,065 1989-90 12,794,990 1990-91 13,766,513 Application of the above assumptions yielded debt levy calculations as follows for future years: 1985-86 $0.2929 1986-87 0.2884 1987-88 0.3174 1988-89 0.3161 1989-90 0.3012 std Since this information was provided to Council, several things have occurred which require adjustment of the previous assumptions: 1. New projections of taxable assessed valuations are available based on the 1985-86 tax roll. New projections of the roll are: 1986-87 $14,710,053,304 1987-88 15,261 ,258,288 1988-89 16,894,648,935 1989-90 17,558,916,907 2. Future bond sales are assumed to occur as follows: Spring of 1987 $23,000,000 Spring of 1988 41 ,260,000 Spring of 1989 41 ,260,000 3. The interest rate at which these bonds would be sold is assumed to be 6.25% 4. Due to reductions in interest rates, the amount of interest available from the Debt Service Fund in future years to offset our debt service require- ments is estimated to be as follows with these transfers also from the fund balance: Debt Service Fund Debt Service Interest Fund Balance 1987-88 $7,715,000 S 0 1988-89 5,625,000 2,000,000 1989-90 3,400,000 2,000,000 1990-91 1 ,750,000 2,000,000 Due to the change in the assumptions above, the most current calculation of debt levy is as follows: 1985-86 S0.2929 1986-87 0.2807 1987-88 0.3107 1988-89 0.2988 1989-90 0.3197 C�FlCipl RRCCRU � R�jpRY Cl�`I SSC FT• wCR��, Ail.