The URL can be used to link to this page

Home My WebLink AboutFC_2019-04-19_MinutesCITY OF ATASCADERO FINANCE COMMITTEE MINUTES Tuesday, April 19, 2019 4:00 p.m. Atascadero City Hall — Conference Room 306 6500 Palma Avenue, Atascadero, California CALL TO ORDER: Chairperson Bourbeau called the meeting to order at 4:04 p.m. PRESENT: COMMITTEE MEMBERS: Charles Bourbeau, Chair Susan Funk, Vice Chair Gere Sibbach Jeri Rangel ABSENT: COMMITTEE MEMBERS: Rachelle Rickard ALSO PRESENT: Amanda Muther, Deputy City Clerk Cindy Chavez, Deputy Administrative Services Director A. CONSENT CALENDAR: 1. Finance Committee Draft Action Minutes — March 20. 2018 • Recommendation: Committee approve the Draft Action Minutes of the March 20, 2018 Finance Committee Meeting. [City Clerk] Motion: By Committee Member Rangel and seconded by Chairperson Bourbeau to approve the Consent Calendar. Motion passed 4:0 by a roll -call vote. Rickard absent. PUBLIC COMMENT: The following citizens spoke during Public Comment: None. Chairperson Bourbeau closed the PUBLIC COMMENT period. Atascadero Finance Committee April 19, 2019 Page 1 of 2 B. BUSINESS: 1. Review of the Budget Process Administrative Services Director Rangel provided a brief overview of the budget process which included a short walkthrough of the Budget Book for Fiscal Years 2017-2019 (a digital copy is available online at www.atascadero.org/budget) and answered questions from the Committee. Public Comment: None. 2. Review of Debt Service Funds Administrative Services Director Rangel presented the item, distributed fund analysis handouts (Exhibits A & B), and answered questions from the Committee. Public Comment: None. C. INDIVIDUAL DETERMINATIONS: None. /_191119111 V ki Chairperson Bourbeau adjourned the meeting at 4:48 p.m. MINUTES PREPARED BY: 121(mu"da Z� Amanda Muther ' Deputy City Clerk The following exhibits are available for review in the City Clerk's office: • Exhibit A — Fund Analysis — 2010 Bond Debt Service Fund • Exhibit B — Fund Analysis — 1992 Street Improvement Assessments Fund APPROVED: April 25, 2019 Atascadero Finance Committee April 19, 2019 Page 2 of 2 Finance Committee Minute Exhibit A Date: Ae \ 19 � -,o19 FUND ANALYSIS 2010 Bond Debt Service Fund FUND TYPE 461 Debt Service REVENUES Charges for Services Revenue from Use of Money Total Revenues EXPENSES Operations Debt Service Total Expenses Net Income OTHER CASH SOURCES / (USES) Decrease / (Increase) in Fiscal Agent Cash Principal (Loan To) / Repayment From Successor Agency BEGINNING AVAILABLE BALANCE ENDING AVAILABLE BALANCE 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 2020-2021 ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED $ 1,975 $ 1,975 $ 2,800 $ 2,025 $ 2,500 $ 2,600 738,272 757,365 735,810 735,810 726,540 717,290 740,247 759,340 738,610 737,835 729,040 719,890 (1,975) (1,975) (2,800) (2,025) (2,500) (2,600) (972,313) (974,825) (975,810) (975,810) (971,540) (972,290) (974,288) (976,800) (978,610) (977,835) (974,040) (974,890) (234,041) (217,460) (240,000) (240,000) (245,000) (255,000) 9,041 (17,540) (5,000) (5,000) (5,000) (5,000) 225,000 235,000 245,000 245,000 250,000 260,000 C-44 SUMMARY OF REVENUES 2010 Bond Debt Service Fund FUND 461 SECTION I ACCOUNT REVENUE 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 2020-2021 NUMBER DESCRIPTION ACTUAL ACTUAL BUDGETED PROJECTED ESTIMATED ESTIMATED 2010 BOND DEBT SERVICE FUND (461) Charges for Services 49582.2010 Reimbursement of Trustee Fees from Successor Agency Revenue from Use of Money 46110.0000 Investment Earnings 46282.2010 Interest Income- 2010 Reimbursement Agreement with Successor Agency $ 1,975 5,156 733,116 $ 1,975 $ 2,800 $ 17,746 5,000 739,619 730,810 2,025 5,000 730,810 $ 2,500 $ 2,600 5,000 5,000 721,540 712,290 Total 2010 Bond Debt Service Fund $ 740,247 $ 759,340 $ 738,610 $ 737,835 $ 729,040 $ 719,890 DEBT REDEMPTION SCHEDULES 2010 Bond Debt Service Fund FUND TYPE CODE 461 Debt Service 981 DESCRIPTION On September 1, 2010, the City issued $16,010,000 in Lease Revenue Bonds to be used for various redevelopment public improvement projects within the downtown area. These projects include Historic City Hall, the Centennial Bridge and Plaza Project, the Maiden Statue Placement, and Wayfinding Signage, to name just a few. The bonds were issued by the City, rather than by the Community Redevelopment Agency of Atascadero, in order to achieve the most favorable interest rate. As part of the bond issuance, the City entered into a lease revenue financing agreement with the Community Redevelopment Agency of Atascadero. This agreement provides for full reimbursement of debt service payments to the City by the Community Redevelopment Agency of Atascadero. In June 2011, the State Legislature dissolved redevelopment agencies throughout the State. As part of the legislation, successor agencies to the redevelopment agencies were formed. These successor agencies are intended to fulfill all commitments that were in place at the time of dissolution of the former redevelopment agencies. Although the Community Redevelopment Agency of Atascadero has been dissolved, these bonds remain an obligation of the Successor Agency to the Community Redevelopment Agency of Atascadero. Amounts equal to the principal and interest payments on the bonds are transferred in advance from the Successor Agency to the City in order to meet bond covenants and obligations. These bonds mature between fiscal years 2015 and 2041, at interest rates ranging from 3.00% to 5.00%. FISCAL YEAR ENDING DEBT SERVICE SCHEDULE JUNE 30, PRINCIPAL INTEREST TOTAL The terms are as follows: 2020 $ 250,000 $ 721,538 $ 971,538 Issue: 2010 Lease Revenue Bonds 2021 260,000 712,288 972,288 Type of Debt: Lease Revenue Bonds 2022 270,000 702,013 972,013 Dated: September 1, 2010 2023 275,000 689,738 964,738 Principal Issued: $16,010,000 2024 295,000 676,963 971,963 Interest Rates: 3.00% to 5.00% 2025 305,000 664,581 969,581 Maturity Dates: October 1, 2014 to October 1, 2040 2026 315,000 651,800 966,800 Obligated Funds: General Fund, to be reimbursed by Successor 2027 330,000 637,250 967,250 Agency Fund 2028 350,000 620,250 970,250 2029 365,000 602,375 967,375 2030 380,000 583,750 963,750 t-2 DEBT REDEMPTION SCHEDULES 2010 Bond Debt Service Fund FUND TYPE CODE 461 Debt Service 961 DEBT SERVICE SCHEDULE (continued) 1-3 FISCAL YEAR ENDING JUNE 30, PRINCIPAL 2031 $ 405,000 2032 420,000 2033 440,000 2034 465,000 2035 490,000 2036 1,365,000 2037 1,430, 000 2038 1,500,000 2039 1,575,000 2040 1,655,000 2041 1,740,000 INTEREST TOTAL $ 564,125 $ 969,125 543,500 963,500 522,000 962,000 499,375 964,375 475,500 965,500 429,125 1,794,125 359,250 1,789,250 286,000 1,786,000 209,125 1,784,125 128,375 1,783,375 43,500 1,783,500 $11,322,421 $ 26,202,421 DEBT REDEMPTION SCHEDULES 2010 Bond Debt Service Fund FUND TYPE CODE 461 Debt Service 961 ACTIVITY DETAIL OBJECT EXPENSE 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 2020-2021 NUMBER CLASSIFICATION ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED Payment to Bank of New York for trustee services Estimate $ 2,500 $ 2,600 OPERATIONS provided in accordance with original debt 6503055 Trustee Fees $ 1,975 $ 1,975 $ 2,800 $ 2,025 $ 2,500 $ 2,600 Total Operations 1,975 1,975 2,800 2,025 2,500 2,600 Agreement DEBT SERVICE 712,290 9106060 Principal 225,000 235,000 245,000 245,000 250,000 260,000 9106565 Interest 747,313 739,825 730,810 730,810 721,540 712,290 Total Debt Service 972,313 974,825 975,810 975,810 971,540 972,290 ACTIVITY TOTAL $ 974,288 $ 976,800 $ 978,610 $ 977,835 $ 974,040 $ 974,890 DETAIL BACKUP OBJECT EXPENSE 2019-2020 2020-2021 NUMBER CLASSIFICATION DESCRIPTION BASIS AMOUNT AMOUNT 6503055 Trustee Fees Payment to Bank of New York for trustee services Estimate $ 2,500 $ 2,600 provided in accordance with original debt agreement 9106060 Principal Scheduled repayment of principal Agreement 250,000 260,000 9106565 Interest Current year interest on debt Agreement 721,540 712,290 1-4 DEBT REDEMPTION SCHEDULES 1992 Street Improvement Assessment Fund FUND TYPE CODE 492 DESCRIPTION Debt Service This fund is used to account for fees assessed in the 1992 Street Improvement Assessment District and the related debt service payments. This Assessment District was formed in 1992 in order to construct street improvements in two non-contiguous sections of the City: the Las Encinas area and the 3F Meadows area. The City made the final payment on the debt service for bond issue in fiscal year 2008-2009. The last bond payment was made in September 2008; however funds remained in the District. These funds were used to complete a micropaving project within the District and final administrative close out of fund in fiscal year 2017-2018. DEBT SERVICE SCHEDULE The terms are as follows: Issue: Las Encinas & 3F Meadows Improvement Bonds (1992 Street Improvement Bonds) Type of Debt: 1915/1913 Act Assessment Bonds Dated: August 19, 1993 Principal Issued: $903,356 Interest Rates: 3.00% to 6.20% Maturity Dates: September 2, 1994 to September 2, 2008 Obligated Funds: Assessments levied within the Assessment District for this purpose I-5 Finance Committee Minute Exhibit B Date:—4(,k t� do(l FUND ANALYSIS �� 1992 Street Improvement Assessments Fund FUND 492 TYPE Debt Service REVENUES Revenue from Use of Money Total Revenues EXPENSES Capital Outlay Total Expenses Net Income BEGINNING AVAILABLE BALANCE ENDING AVAILABLE BALANCE 2016-2017 2017-2018 2018-2019 ACTUAL ACTUAL BUDGETED 2018-2019 2019-2020 2020-2021 ESTIMATED REQUESTED REQUESTED $ 216 $ 792 $ $ $ $ 216 792 (2,929) (173,355) (2,929) (173,355) (2,713) (172,563) 175,276 172,563 $ 172,563 $ - $ $ $ $ C-45 SUMMARY OF REVENUES 1992 Street Improvement Assessments Fund FUND SECTION 492 ACCOUNT REVENUE NUMBER DESCRIPTION 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 2020-2021 ACTUAL ACTUAL BUDGETED PROJECTED ESTIMATED ESTIMATED 1992 STREET IMPROVEMENT ASSESSMENTS FUND (492 Revenue from Use of Money 46110.0000 Investment Earnings $ 216 $ 792 $ $ $ $ Total 1992 Street Improvement Assessments Fund $ 216 $ 792 $ $ $ $ D-57 DEBT REDEMPTION SCHEDULES 1992 Street Improvement Assessment Fund FUND TYPE CODE 492 Debt Service 992 ACTIVITY DETAIL OBJECT EXPENSE NUMBER CLASSIFICATION CAPITAL OUTLAY 8301478 92 Street Improvement District Micropaving Project Total Capital Outlay ACTIVITY TOTAL 2016-2017 2017-2018 2018-2019 2018-2019 2019-2020 2020-2021 ACTUAL ACTUAL BUDGETED ESTIMATED REQUESTED REQUESTED $ 2,929 $ 173,355 $ $ $ $ 2,929 173,355 $ 2,929 $ 173,355 $ - $ $ 1.9