HomeMy WebLinkAboutSS3 - Facilities Finance Planning Program - PowerPointAgenda Item No. SS3
July 23, 2013
Overview of Facilities Financial Planning (FFP) Program
I%i:"-IFORt'%
Council Study Session
July 23, 2013
Presentation Goals
• What is the Facilities Financial Planning
Program (FFPP)?
• What is the Facilities Financial Planning Tool
(FFPT)?
• What is the purpose of the Annual Review?
• What is the FFPP Process?
• Is the plan affordable and sustainable?
What is the UP Program?
• The Facilities Financial Planning Program
(FFPP) is a long -term financial plan to fund the
construction and or renovation of important
community serving facilities
• The Facilities Financial Planning Tool (FFPT) is
an excel based model used to analyze
expected cash flows and funding requirements
associated with the FFPP
Why is it important?
• "Shining City by the Bay"
— At age 107, reinvestment in our facilities keeps us
young.
• Plan provides a consistent, level funding plan
• Insures projects are properly prioritized
• Insures that future generations won't carry a
disproportionate fiscal burden for previously
completed projects.
Purpose of Annual Review
• Council Policy (F -28) Facilities Financial Planning
Program requires an annual review of the plan
Important to insure the goals of the plan are in
alignment with Council vision.
• Council (F -6) Debt Management Policy sets
certain financial parameters and it is good
governance to review them with Council.
• Allows further citizen input
www.newportbeachca.gov /policies
Regular Staff
review of
Assumptions
Regular
Finance
Committee
Review
Process
Council Review
Citizen Input
Facilities Financial Planning Program
Priority Projects
PRIORITY PROJECTS
Start
Est. Project Date
Cost (Fiscal Year)
Marina Park
30,000,000
2014
Sunset Ridge
11,000,000
2014
Fire Station 5 - CDM
4,225,000
2014
Lifeguard HQ Remodel
1,500,000
2014
City Hall Demo
100,000
2014
West Newport Comm Ctr
10,000,000
2015
Fire Station 2 - Lido
4,225,000
2015
Bonita Creek - Artificial Turf
2,000,000
2015
Big Canyon Aux. Yard
1,000,000
2015
Utilities /Corporate Yard Merge
-
2015
Fire Station 1 - Peninsula
4,225,000
2019
Police Station
64,375,000
2020
Total 132,650,000
�N
uM W ra
7
Past Sources of Funding
30 year Estimated FFP Funding
3.1%
24.5%
23.6%
FY 2011 -2040
48.8%
General Fund Contributions
Deve lope rContributions
Debt Proceeds
Investment Earnings
Future Sources of Funding
May not be needed
26.
30 year Estimated FFP Funding
FY 2014 -2043
2% 4.5%
65.4%
General Fund Contributions
Private Contributions
Debt Proceeds
Investment Earnings
Sources &Uses of Funding
Sources:
General Fund Contributions $ 314,497,186
Developer Contributions* 124,908,462
Debt Proceeds 20,000,000
Investment Earnings 21,802,918
Total Sources $ 481,208,566
U ses:
Project Expenditures $ 146,989,935
Debt Service 242.271.901
Savings for Future Projects 91,946,730
Total Uses $ 481,208,566
*Based on expected development agreements to date.
Key Metrics &Statistics
COUNCIL DEBT MIGIVIT POLICY
Key Metric
Min
Max
Debt Svc as % of Revenues
FFP Balance (000's)
N/A
> 8,8D
< 8%
N/A
GF Contribution to FFP (000's)
0
30 Year
Key Statistics
Min
Max
Avg
GF Contribution to FFP (000's)
4,676
14,006
10,161
Debt Service (000's)
1,326
8,846
8,298
GF Contributions to FFP as % Rev
2.88%
4.8%
4.3%
Debt Svc as % of Revenues
0.40%
4.9%
3.7%
FFP Balance (000's)
9,336
99,465
37,114
Project Balance (000's)
947
23,183
4,763
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Debt Service
Debt Service as % of GF Revenues
11 "1 V 6 1 W , W V 1 V 1 11 1. 1 V .1 W , W V 1 V 1 11 1. 1 V U 1 W , W V 1 V
r-I N N N N N N N N N N M M M M M M M M M M' d'
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
Debt Service- as % of Revenues
* Remaining Debt capacity is approximately $81 Million.
Facilities Financial Planning Reserve
Fund
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
rl c-I c-I c-I c-I c-I �-i i-I c-I N N N N N N N N N N M M M M M M M M M M V
N N 0 N N 0 0 N N 0 0 0 0 0 0 N 0 N 0 0 0 0 0 0 0 0 0 0 0 0 0
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
Conclusion
• The City is investing in its future while
maintaining a safe community
— Cities that don't invest in their facilities will see costs
rise, property values fall, and more.
The plan is aligned with Best Practices by Credit
Rating Agencies (CRA) - S &P, Moody's, Fitch
Affordable & Sustainable — City has maintained
"AAA" highest rating by these agencies
throughout recession
Questions &Comments
FOR%
15