Capital Facilities Planning September 22, 2016 J ON G ORES M ANAGING D IRECTOR (206) 389-4043 JGORES @ DADCO . COM
1 Tax Rate Planning Assumptions Interest Rates Bond Rating Assessed Value Bond Structure
2 Tax Rate Planning A. Interest Rates Lower interest rates result in lower tax rates for bonds. Interest rates are determined when bonds are actually sold. Assumption: Future Bond Sales Current rates plus 1.50 % (150 basis points).
3 Tax Rate Planning B. Bond Rating A higher bond rating results in lower interest rates. Assumption: Aa1 (with State Guarantee) A1 District Rating (Pending) A Guide to Bond Ratings Moody’s Investors Service – Founded 1860 Highest Quality Aaa Aa1, Aa2, Aa3 A1, A2, A3 Baa1, Baa2, Baa3 Lowest Quality NR (Nonrated)
4 Tax Rate Planning C. Assessed Value Growth rate due purely to Year Historical Bond AV New Construction % change NC 2000 579,027,136 N/A N/A 2001 651,444,356 12.5% N/A 2002 651,305,503 9,945,138 0.0% 1.5% 2003 665,611,005 15,782,166 2.2% 2.4% 2004 694,963,894 18,914,073 4.4% 2.8% 2005 733,462,367 16,844,170 5.5% 2.4% 2006 754,409,960 12,118,467 2.9% 1.7% 2007 827,397,472 16,859,920 9.7% 2.2% 2008 864,502,067 25,144,040 4.5% 3.0% 2009 913,997,719 26,548,975 5.7% 3.1% 2010 1,003,619,337 46,959,794 9.8% 5.1% 2011 1,035,210,155 20,330,859 3.1% 2.0% 2012 1,060,405,502 16,734,751 2.4% 1.6% 2013 1,183,051,891 13,970,343 11.6% 1.3% 2014 1,263,782,988 32,805,780 6.8% 2.8% 2015 1,303,155,564 25,819,374 3.1% 2.0% 2016 1,327,550,736 17,326,649 1.9% 1.3% 5 year Compound Annual Growth Rate (2011-2016): 5.10% 10 year Compound Annual Growth Rate (2006-2016): 5.81%
̶ ̶ ̶ 5 Tax Rate Planning C. Assessed Value (continued) Projected Assessed Value Growth Final 2015: 3.12% growth Final 2016: 1.87% growth Projected 2017-2043: 1.50% annual growth An individual’s taxes will be based on the assessed value for their property Higher assessed values will lower the District’s tax rates (but not the overall payment ) New construction vs. increase in value of existing property
̶ ̶ ̶ 6 Tax Rate Planning D. Bond Structure State law gives Districts great flexibility in determining bond structures Options: Level Debt Level Tax Rate Stepped Level Tax Rate
7 Bond Tax Rate Summary Interest Rates: Future bond sales current plus 150 basis points Bond Rating: Aa1 State Guarantee District Rating: A1(pending) Assessed Value Growth: Final 2015: 3.12% growth; Final 2016: 1.87% growth; Projected 2017-2043: 1.50% annual growth Scenario #33 #34 #35 #36 Authorization Amount $64,900,000 $64,900,000 $69,300,000 $69,300,000 Bond Sale Dates and Amounts June 1, 2017 $28,820,000 $29,370,000 $30,980,000 $31,350,000 December 1, 2018 $29,290,000 $30,000,000 $31,500,000 $32,030,000 December 1, 2019 - - - - Bond Tax Rates Projected 2018 $3.03 $2.71 $3.25 $2.90 2019 3.03 2.71 3.25 2.90 2020 3.03 2.71 3.25 2.90 2025 3.03 2.71 3.25 2.89 2030 3.03 2.71 3.25 2.90 Total Interest Cost $42,827,000 $57,208,000 $46,041,000 $61,061,000 Final Maturity 2038 2043 2038 2043 Term 20 years 25 years 20 years 25 years
8 Prosser School District No. 116 Scenario 33: February 2017 Election, $64.9 million, 20 yr Term, Modernization/Addition at the High School and the elementaries Calculation Factors Tax Rate Impact: Rating: A1 Moody's Rating - Bond Tax Rate in 2018 = $3.03 per $1,000 AV - Bond Tax Rate Increase Impact on $150,000 home = $454.5 Interest Rates: Current Rates plus 150 bps - School Tax Rate in 2018 = $6.13 per $1,000 AV Assessed Value Increases at: NOTES: Actual 2015 3.12% - DSF buildup 2018-2020 Actual 2016 1.87% 2017-2036 1.50% Issue 1 Issue 2 Total Bonds Issued: 6/1/17 12/1/18 Issue Size: $28.82M $29.29M $58.11M Deposit To Capital Proj Fund $32.45M $32.45M $64.90M Term (years): 19.5 20.0 Assessed Value Summary ($000's) Levy Amount Detail ($000's) Levy Rate Detail Debt Service Debt Bond AV Fund Total Service Growth Total New Incr/ Bond Prior Total New Fund Incr/ Total Year Bond AV Rate Prior Debt 2017 2018 Bonds (Decr) Levy Debt 2017 2018 Bonds (Decr) Bonds Year 2000 579,027 N/A 1,171 1,171 2.12 2.12 2000 2001 651,444 12.51% 1,329 1,329 2.04 2.04 2001 2002 651,306 -0.02% 1,350 1,350 2.07 2.07 2002 2003 665,611 2.20% 1,383 1,383 2.08 2.08 2003 2004 694,964 4.41% 1,409 1,409 2.03 2.03 2004 2005 733,462 5.54% 1,320 1,320 1.80 1.80 2005 2006 754,410 2.86% 1,347 1,347 1.79 1.79 2006 2007 827,397 9.67% 1,297 1,297 1.57 1.57 2007 2008 864,502 4.48% 1,266 1,266 1.46 1.46 2008 2009 913,998 5.73% 1,450 1,450 1.59 1.59 2009 2010 1,003,619 9.81% 1,467 1,467 1.46 1.46 2010 2011 1,035,210 3.15% 1,414 - 1,414 1.37 1.37 2011 2012 1,060,406 2.43% - - - - - 2012 2013 1,183,052 11.57% - - - - - 2013 2014 1,263,783 6.82% - - - - - - - - - - - - 2014 2015 1,303,156 3.12% - - - - - - - - - - - - 2015 2016 1,327,551 1.87% - - - - - - - - - - - 2016 2017 1,347,464 1.50% - - - - - - - - - - - 2017 2018 1,367,676 1.50% - 3,942 - 3,942 197 4,139 - 2.88 - 2.88 0.14 3.03 2018 2019 1,388,191 1.50% - 1,983 2,096 4,079 122 4,201 - 1.43 1.51 2.94 0.09 3.03 2019 2020 1,409,014 1.50% - 2,056 2,168 4,223 42 4,265 - 1.46 1.54 3.00 0.03 3.03 2020 2021 1,430,149 1.50% - 2,109 2,220 4,329 4,329 - 1.47 1.55 3.03 - 3.03 2021 2022 1,451,601 1.50% - 2,143 2,250 4,393 4,393 - 1.48 1.55 3.03 - 3.03 2022 2023 1,473,375 1.50% - 2,172 2,286 4,458 4,458 - 1.47 1.55 3.03 - 3.03 2023 2024 1,495,476 1.50% - 2,207 2,321 4,528 4,528 - 1.48 1.55 3.03 - 3.03 2024 2025 1,517,908 1.50% - 3,218 1,377 4,595 4,595 - 2.12 0.91 3.03 - 3.03 2025 2026 1,540,677 1.50% - 3,286 1,377 4,662 4,662 - 2.13 0.89 3.03 - 3.03 2026 2027 1,563,787 1.50% - 3,353 1,377 4,730 4,730 - 2.14 0.88 3.02 - 3.02 2027 2028 1,587,244 1.50% - 3,036 1,767 4,803 4,803 - 1.91 1.11 3.03 - 3.03 2028 2029 1,611,052 1.50% - 2,159 2,715 4,875 4,875 - 1.34 1.69 3.03 - 3.03 2029 2030 1,635,218 1.50% - 2,199 2,751 4,950 4,950 - 1.34 1.68 3.03 - 3.03 2030 2031 1,659,747 1.50% - 2,233 2,790 5,023 5,023 - 1.35 1.68 3.03 - 3.03 2031 2032 1,684,643 1.50% - 2,270 2,832 5,102 5,102 - 1.35 1.68 3.03 - 3.03 2032 2033 1,709,912 1.50% - 2,305 2,873 5,178 5,178 - 1.35 1.68 3.03 - 3.03 2033 2034 1,735,561 1.50% - 2,344 2,911 5,254 5,254 - 1.35 1.68 3.03 - 3.03 2034 2035 1,761,594 1.50% - 2,384 2,946 5,330 5,330 - 1.35 1.67 3.03 - 3.03 2035 2036 1,788,018 1.50% - 2,427 2,988 5,415 5,415 - 1.36 1.67 3.03 - 3.03 2036 2037 1,814,839 1.50% - - 5,492 5,492 5,492 - - 3.03 3.03 - 3.03 2037 2038 1,842,061 1.50% - - 5,576 5,576 5,576 - - 3.03 3.03 - 3.03 2038 2039 1,869,692 1.50% - - - - - - - - - - - 2039 Total Debt Service $47,826 $53,111 $100,937 Total Interest $19,006 $23,821 $42,827 Bond Yield 3.72% 4.03% Run Date: 9.2.16
9 Prosser School District No. 116 TAX IMPACT ANALYSIS Scenario 33: February 2017 Election, $64.9 million, 20 yr Term, Modernization/Addition at the High School and the elementaries Total Project Cost: State Funding Assistance: Bond Authorization Amount: $64,900,000.00 Estimated 2018 Tax Rate (Bonds Only) (per $1,000 assessed value): 3.03 Net Tax Increase from Bonds After Allowing for Assessed Gross Property Monthly Income Tax Deduction Value of Tax Increase Gross Federal Income Tax Bracket Property for Bonds Increase 25% 28% 33% 39.6% $100,000 $303.00 $25.25 $227.25 $218.16 $203.01 $183.01 200,000 606.00 50.50 454.50 436.32 406.02 366.02 250,000 757.50 63.13 568.13 545.40 507.53 457.53 300,000 909.00 75.75 681.75 654.48 609.03 549.04 350,000 1,060.50 88.38 795.38 763.56 710.54 640.54 500,000 1,515.00 126.25 1,136.25 1,090.80 1,015.05 915.06 NOTE: Qualified homeowners may apply for a senior exemption. Please contact your County Assessor for details.
Recommend
More recommend
