Aliso Viejo Ranch Presentation
Transcript of Aliso Viejo Ranch Presentation
-
8/13/2019 Aliso Viejo Ranch Presentation
1/14
00084119
Aliso Viejo Ranch Presentation
February 5, 2014
0142
-
8/13/2019 Aliso Viejo Ranch Presentation
2/14
Site Plan for Aliso Viejo Ranch Project
20143
-
8/13/2019 Aliso Viejo Ranch Presentation
3/14
Overview of Aliso Viejo Ranch Project
3
City is currently evaluating a potential development
of a 7.7acre site located at 100 Park Avenue
Preliminary conceptual plans include a recreation
facility, a full gymnasium and supporting amenities
3 scenarios were identified in August 2013, only two
of those scenarios are currently being considered
for development of the Aliso Viejo Ranch and eachscenario will be discussed along with estimated
costs
0144
-
8/13/2019 Aliso Viejo Ranch Presentation
4/14
Overview of Build-Out Scenarios
Scenario 1- Complete the entire project at the estimated
cost of $19.2 million to include a Community Building,Full Gymnasium and a Multipurpose room as detailed inthe specifications of the project design
Scenario 2- Complete the project at the estimated cost of$19.8 million in two phases for cash flow purposes:
Phase I - Complete the Community Building and theGymnasium at an estimated cost of $14.4 million asdetailed in the specifications of the project design
Phase II - Complete the Multipurpose room at anestimated cost of $5.4 million as detailed in thespecifications of the project design
40145
-
8/13/2019 Aliso Viejo Ranch Presentation
5/14
Discussion of Credit Rating Agencies Guidelines
5
Debt Policy Guidelines for Strong Government Credits
Description Standard and Poors Fitch Ratings
Debt Level
-
8/13/2019 Aliso Viejo Ranch Presentation
6/14
Optimal Debt Issuance Under
Standard & Poors Categories
6
(1)Projected FY 2013-14 General Fund Expenditures of $13,925,159 (excluding LTD) provided by the City.(2) Assumes Aliso Viejo population of 49,477 as of 1/1/2013 provided by the California Department of Finance.(3) Assumes Aliso Viejo FY 2013-14 AV of $7,860,254,707as reported by the OC Assessor.
Description 30 Year Term
8% of FY 13-14
GF Expenditures(1)
$1,114,013
Par Amount $17,545,000
Project Fund $17,364,034
Average AnnualDebt Service $1,101,890
Debt Per Capita(2) $354.61
Debt to Market
Value(3)
0.22%
10-year Debt
Amortization Rate23%
0147
-
8/13/2019 Aliso Viejo Ranch Presentation
7/14
Optimal Debt Issuance Under
Fitch Ratings Categories
7
(1)Projected FY 2013-14 General Fund Expenditures of $13,925,159 (excluding LTD) provided by the City.(2) Assumes Aliso Viejo population of 49,477 as of 1/1/2013 provided by the California Department of Finance.(3) Assumes Aliso Viejo FY 2013-14 AV of $7,860,254,707as reported by the OC Assessor.
Description 30 Year Term
6% of FY 13-14
GF Expenditures(1)
$835,510
Par Amount $13,150,000
Project Fund $12,977,084
Average AnnualDebt Service $825,747
Debt Per Capita(2) $265.78
Debt to Market
Value(3)
0.17%
10-year Debt
Amortization Rate23%
0148
-
8/13/2019 Aliso Viejo Ranch Presentation
8/14
What Can The City Afford?
8
Aliso Viejo Ranch Improvements
Description
Scenario 1
(Community Building, full
Gymnasium and a Multipurpose
room)
Scenario 2
(Community Building, full
Gymnasium and a Multi-purpose
Room: Two-Phase Approach)
Project Cost $19.2 M$14.4M Phase I
and $5.4M Phase II
City Equity Contribution $10.5 M $10.5M
Financed Amount $8.7 M $3.9M (Phase I)
Annual Debt Service $565,000 $260,000
Projected Fund Balance in FY
2017-18Lower than recommended level Higher than recommended level
Based on current interest rates for a comparable type of credit with a term of 30 years and a level debt service profile.
Assumes the City has paid off the outstanding 2006 COPs and maintains minimum recommended level of cash flow/operation and asset
replacement reserves.
0149
-
8/13/2019 Aliso Viejo Ranch Presentation
9/14
Options available to fund the Project
Option 1 Issuance of debt to finance the whole Project of
$19.2 million (Not Recommended) Does not meet the Debt Affordability criteria
Exceeds the amount of debt that can be supported by the General Fund
Option 2 Use existing City Reserves and CommunityEnhancement Funds to pay for the whole Project of $19.2million (Not Recommended)
Will result in the depletion of the Citys reserves
Will expose the City to financial and economic uncertainty
Option 3 - Use a combination of City Reserves, Community
Enhancement Funds and debt to pay for the whole Projectof $19.8 million in two phases (Recommended) A combination of affordable amount of debt and a prudent use of
reserves
90150
-
8/13/2019 Aliso Viejo Ranch Presentation
10/14
Basic Assumptions Used in the Analysis
1) Boys & Girls Club contracts for operations and provides
janitorial, furniture, and operational costs
2) City maintains the facility and grounds but does not provide
City staffing
3) Assumes no rental income from Community Building
4) Basic operations continue at the Family Resource Center with
annual costs of $250,000
5) Asset Replacement Reserves are included at 50% of annualdepreciation per recommended accounting standards and the
Council Policy adopted by the City
100151
-
8/13/2019 Aliso Viejo Ranch Presentation
11/14
Basic Assumptions Used in the Analysis (Contd)
6) Assumes use of 90% of $3.4 million of Community
Enhancement Funds
7) Forecast includes $50,000 of General Fund monies in matching
funds for potential receipt of grants monies
8) Forecast does not assume any funding for wish list projects on
the Citys Strategic Initiative list
9) Forecast includes funding for the Cattery in the amount of
$199,100 from Community Enhancement Funds
10) Forecast does not include impacts of the recent negotiations
by Orange County Sheriffs Department (OCSD)
110152
-
8/13/2019 Aliso Viejo Ranch Presentation
12/14
Estimated Fiscal Impact over next five years
12
Scenario 1
(1) Reflects cash flow required for daily operations as majority of the revenues are received by the City in December, January, May and June.
0153
-
8/13/2019 Aliso Viejo Ranch Presentation
13/14
Estimated Fiscal Impact over next five years
13
Scenario 2
(1) Reflects cash flow required for daily operations as majority of the revenues are received by the City in December, January, May and June.
0154
-
8/13/2019 Aliso Viejo Ranch Presentation
14/14
Questions
140155