Avon Grove School District Capital Project Financing Review June - PowerPoint PPT Presentation

Avon Grove School District Capital Project Financing Review June 5, 2018 Allison Macchi Kenneth A. Phillips Vice President Managing Director RBC Capital Markets RBC Capital Markets 2101 Oregon Pike 2101 Oregon Pike Lancaster, PA 17601 Lancaster, PA 17601 Tel: (717) 519-6002 Tel: (717) 519-6001 allison.macchi@rbccm.com ken.phillips@rbccm.com John Frey Wes Hall Director Senior Analyst PFM Financial Advisors LLC PFM Financial Advisors LLC One Keystone Plaza, Suite 300 One Keystone Plaza, Suite 300 Harrisburg, PA 17101 Harrisburg, PA 17101 Tel: (717) 232-2723 Tel: (717) 232-2723 freyj@pfm.com hallw@pfm.com

Bond Buyer 20 General Obligation Bond Index 57 Year Historical Perspective Bond Buyer 20 GO Index since January 1961 % of Time in Each Range Since 1961 14.0% Yield Range Bond Buyer 20 GO Bond Index Less than 3.50% 10.12% Today's Rate at 3.95% 3.50% - 4.00% 10.25% 12.0% 4.01% - 4.50% 10.82% 4.51% - 5.00% 10.09% 10.0% 5.01% - 5.50% 14.06% 5.51% - 6.00% 9.79% 6.01% - 6.50% 7.58% 8.0% 6.51% - 7.00% 6.91% 7.01% - 7.50% 6.25% 6.0% 7.51% - 8.00% 3.67% Greater than 8.00% 10.45% Total 100.00% 4.0% 2.0% 0.0% Source: Bloomberg as of May 17, 2018 Weekly yields and indexes released by the Bond Buyer. Updated every Thursday at approximately 6:00pm EST. 20 Bond General Obligation Yield with 20 year maturity, rated Aa2 by Moody's Arithmetic Average of 20 bonds' yield to maturity. Today’s 3.95% level is lower than 80.56% of historical rates since January 1961 RBC Capital Markets / Public Financial Management 1 | Avon Grove School District

Principal and Gross Outstanding Debt Service Avon Grove School District Avon Grove School District Summary of Debt Outstanding - 2016-17 Summary of Debt Outstanding - 2016-17 Principal Total Principal and Interest G.O. G.O. G.O. G.O. G.O. G.O. Bonds Bonds G.O. Bonds Bonds Total Issued Bonds Bonds G.O. Bonds Bonds Total Issued Series of Series A of Series of Series of Debt Series of Series A of Series of Series of Debt Fiscal Yr. Ended 2012 2012 2014 2015 Service Current Long Term Fiscal Yr. Ended 2012 2012 2014 2015 Service Current Long Term 06/30/2017 195,000 565,000 1,395,000 625,000 2,780,000 2,780,000 06/30/2017 222,650 717,890 1,578,850 752,500 3,271,890 3,271,890 0 06/30/2018 205,000 570,000 1,420,000 645,000 2,840,000 2,840,000 06/30/2018 228,650 711,540 1,573,600 756,575 3,270,365 3,270,365 06/30/2019 210,000 580,000 1,460,000 665,000 2,915,000 2,915,000 06/30/2019 229,500 710,040 1,576,850 753,600 3,269,990 3,269,990 06/30/2020 205,000 595,000 1,500,000 700,000 3,000,000 3,000,000 06/30/2020 220,350 713,290 1,571,400 761,300 3,266,340 3,266,340 06/30/2021 215,000 605,000 1,545,000 730,000 3,095,000 3,095,000 06/30/2021 226,150 711,290 1,575,950 762,700 3,276,090 3,276,090 06/30/2022 225,000 620,000 775,000 750,000 2,370,000 2,370,000 06/30/2022 231,750 714,040 782,750 759,050 2,487,590 2,487,590 06/30/2023 225,000 635,000 860,000 860,000 06/30/2023 227,250 716,490 0 0 943,740 943,740 06/30/2024 645,000 645,000 645,000 06/30/2024 0 713,368 0 0 713,368 713,368 06/30/2025 655,000 655,000 655,000 06/30/2025 0 709,554 0 0 709,554 709,554 06/30/2026 670,000 670,000 670,000 06/30/2026 0 709,975 0 0 709,975 709,975 06/30/2027 690,000 690,000 690,000 06/30/2027 0 714,503 0 0 714,503 714,503 06/30/2028 705,000 705,000 705,000 06/30/2028 0 713,284 0 0 713,284 713,284 Princ @ 6/30/2016 1,480,000 7,535,000 8,095,000 4,115,000 21,225,000 2,780,000 18,445,000 Total P & I @ 6/30/20 1,586,300 8,555,263 8,659,400 4,545,725 23,346,688 3,271,890 20,074,798 Less 2016/17 Princ (195,000) (565,000) (1,395,000) (625,000) (2,780,000) 0 0 Less 2016/17 Paymen (222,650) (717,890) (1,578,850) (752,500) (3,271,890) 0 0 As of 6/30/2017 1,285,000 6,970,000 6,700,000 3,490,000 18,445,000 2,780,000 18,445,000 As of 6/30/2017 1,363,650 7,837,373 7,080,550 3,793,225 20,074,798 3,271,890 20,074,798 RBC Capital Markets / Public Financial Management 2 | Avon Grove School District

Net Outstanding Debt Service Reimbursement Amounts - Revenue Net Debt G.O. G.O. G.O. G.O. G.O. G.O. Bonds Bonds G.O. Bonds Bonds Total Net Bonds Bonds G.O. Bonds Bonds Series of Series A of Series of Series of Debt Series of Series A of Series of Series of Fiscal Yr. Ended 2012 2012 2014 2015 Service Fiscal Yr. Ended 2012 2012 2014 2015 Total Reimb 06/30/2017 200,079 717,890 1,372,639 644,834 2,935,442 06/30/2017 22,571 0 206,211 107,666 336,448 06/30/2018 205,944 711,540 1,372,272 650,537 2,940,294 06/30/2018 22,706 0 201,328 106,038 330,071 06/30/2019 206,710 710,040 1,375,107 647,979 2,939,836 06/30/2019 22,790 0 201,743 105,621 330,154 06/30/2020 198,468 713,290 1,370,354 654,600 2,936,712 06/30/2020 21,882 0 201,046 106,700 329,628 06/30/2021 203,692 711,290 1,374,322 655,804 2,945,108 06/30/2021 22,458 0 201,628 106,896 330,982 06/30/2022 208,736 714,040 682,604 652,665 2,258,046 06/30/2022 23,014 0 100,146 106,385 229,544 06/30/2023 204,683 716,490 0 0 921,173 06/30/2023 22,567 0 0 0 22,567 06/30/2024 0 713,368 0 0 713,368 06/30/2025 0 709,554 0 0 709,554 Total 157,987 0 1,112,102 639,305 1,909,394 06/30/2026 0 709,975 0 0 709,975 06/30/2027 0 714,503 0 0 714,503 PE% 19.35% 0.00% 24.93% 27.31% 06/30/2028 0 713,284 0 0 713,284 PE% Status Perm Est. Perm Perm Total 1,428,313 8,555,263 7,547,298 3,906,420 21,437,293 AR% (2017-18) 51.32% 51.32% 51.32% 51.32% RBC Capital Markets / Public Financial Management 3 | Avon Grove School District

Act 1 Index Avon Grove School District 5-Year Summary of Potential Act 1 Millage Impact at Index For Illustration Purposes Only 1 2 3 4 5 Allowable Real Real Estate Estate Allowable Fiscal Year Millage Millage Real Estate Ending Adjusted Act 1 Index Increase Rate $ Increase 06/30/2017 29.040 Actual 06/30/2018 Actual Index 3.30% 0.9583 29.770 1,772,892 Actual 06/30/2019 Assumed Index 3.10% 0.9229 30.693 1,707,310 06/30/2020 Assumed Index 3.30% 1.0129 31.706 1,873,800 06/30/2021 Assumed Index 3.50% 1.1097 32.815 2,052,946 06/30/2022 Assumed Index 3.70% 1.2142 34.030 2,246,217 06/30/2023 Assumed Index 3.90% 1.3272 35.357 2,455,236 Notes * Per the District Administration, assumes 1 Collected Mill = $ 1,850,000 * Does not include any applicable PDE exceptions * Historical Act 1 index for District below : Historical Act 1 Index for AGSD Fiscal Allowable Act 1 Year Index 2018-19 3.10% 2017-18 3.30% 2016-17 3.20% 2015-16 2.40% 2014-15 2.80% 2013-14 2.30% 2012-13 2.20% 2011-12 1.80% RBC Capital Markets / Public Financial Management 4 | Avon Grove School District

Effects of a Real Estate Tax Increase – Taxing to Index Percent Change 2.50% Percent Change 3.10% Percent Change 3.30% 2016-2017 2017-2018 2018-2019 2019-2020 Assessed Total Tax Assessed Total Tax Assessed Total Tax Assessed Total Tax Value Mill Paid Value Mill Paid Increase Value Mill Paid Increase Value Mill Paid Increase 50,000 29.04 $1,452.00 50,000 29.77 $1,488.50 $36.50 50,000 30.69 $1,534.64 $46.14 50,000 31.71 $1,585.29 $50.64 110,000 29.04 $3,194.40 110,000 29.77 $3,274.70 $80.30 110,000 30.69 $3,376.22 $101.52 110,000 31.71 $3,487.63 $111.42 Median 169,600 29.04 $4,925.18 169,600 29.77 $5,048.99 $123.81 169,600 30.69 $5,205.51 $156.52 169,600 31.71 $5,377.29 $171.78 225,000 29.04 $6,534.00 225,000 29.77 $6,698.25 $164.25 225,000 30.69 $6,905.90 $207.65 225,000 31.71 $7,133.79 $227.89 300,000 29.04 $8,712.00 300,000 29.77 $8,931.00 $219.00 300,000 30.69 $9,207.86 $276.86 300,000 31.71 $9,511.72 $303.86 Millage Change 0.73 0.92 1.01 Allowable Change 0.95 0.92 1.01 Difference 0.22 0.00 (0.00) Percent Change 3.50% Percent Change 3.70% Percent Change 3.90% 2020-2021 2021-2022 2021-2022 Assessed Total Tax Assessed Total Tax Assessed Total Tax Value Mill Paid Increase Value Mill Paid Increase Value Mill Paid Increase 50,000 32.82 $1,640.77 $55.49 50,000 34.03 $1,701.48 $60.71 50,000 35.36 $1,767.84 $66.36 110,000 32.82 $3,609.70 $122.07 110,000 34.03 $3,743.26 $133.56 110,000 35.36 $3,889.24 $145.99 Median 169,600 32.82 $5,565.50 $188.21 169,600 34.03 $5,771.42 $205.92 169,600 35.36 $5,996.51 $225.09 225,000 32.82 $7,383.47 $249.68 225,000 34.03 $7,656.66 $273.19 225,000 35.36 $7,955.27 $298.61 300,000 32.82 $9,844.63 $332.91 300,000 34.03 $10,208.88 $364.25 300,000 35.36 $10,607.03 $398.15 Millage Change 1.11 1.21 1.33 Allowable Change 1.11 1.21 1.33 Difference 0.00 (0.00) 0.00 RBC Capital Markets / Public Financial Management 5 | Avon Grove School District