|
Robert V. Henderson
<br />
<br />Managing Director,
<br />Phone: (210) 805-1118
<br />Facsimile: (210) 805-1119
<br />
<br />robert.henderson@rbccm.com
<br />
<br />
<br />C ITY OF L A P ORTE, T EXAS
<br />
<br />P RELIMINARY P LAN OF F INANCE
<br />D ATED: N OVEMBER 21, 2016
<br />I NTRODUCTION:
<br />-term capital planning, the City has anticipated significant improvements to its
<br />combined utility system. The City Manager, the Director of Finance
<br />advisors,
<br />improvements with minimal financial impact to the citizens of La Porte. Given the focus on maintaining
<br />competitive utility rates in the area, this examination has primarily focused on the debt capacity of the General
<br />Fund within the historical 10.5 cent Interest and Sinking Fund tax rate. The purpose of this report is to provide
<br />the results of that analysis and to provide a formal recommendation as to a Plan of Finance to fund the needed
<br />improvements
<br />F INANCIAL B ACKGROUND:
<br />Including the recently issued General Obligation Refunding Bonds Series 2016, the City of La Porte currently
<br />has ten ad valorem property tax secured debt obligations outstanding as follows:
<br /> Original Currently Final
<br />Issue: Amount: Outstanding: Maturity:
<br />Certificates of Obligation, Series 2005 $1,800,000 $ 90,000 3/15/2017
<br />General Obligation Bonds, Series 2005 7,675,000 400,000 3/15/2017
<br />Certificates of Obligation, Series 2006 5,765,000 315,000 3/15/2017
<br />General Obligation Bonds, Series 2006 1,200,000 140,000 3/15/2018
<br />Certificates of Obligation, Series 2010 6,265,000 4,535,000 3/15/2026
<br />General Obligation Ref. Bonds, Series 2010 4,295,000 1,705,000 3/15/2020
<br />General Obligation Ref. Bonds, Series 2012 9,435,000 9,125,000 3/15/2025
<br />General Obligation Ref. Bonds, Series 2014 9,300,000 8,310,000 3/15/2025
<br />Certificates of Obligation, Series 2015 7,770,000 7,395,000 3/15/2030
<br />General Obligation Ref. Bonds, Series 2016 3,165,000 3,135,000 3/15/2029
<br />D EBT C APACITY IN THE G ENERAL F UND:
<br />The City continues to enjoy growth in it taxable assessed valuation (TAV). However, for the purposes of this
<br />analysis, the TAV is assumed to be the recent figure of $2.65 billion. We also assume a conservative 98.5%
<br />collection ratio. With the savings derived from the January 2016 refunding and the rapidity of existing debt
<br />repayment, the debt capacity within l Interest and Sinking Fund tax rate of
<br />10.5 cents is calculated to be approximately $10,000,000 assuming a 20-year final maturity. Meaning, this debt
<br />can be issued with no tax rate increase.
<br />303 Pearl Parkway, Suite 220 (210) 805-1118 RBC Capital Markets
<br />San Antonio, TX 78215 Member NYSE/SIPC
<br />
<br />
|