Financing Program Overview September 29, 2016 GO Bonds: Outstanding - PowerPoint PPT Presentation

Financing Program Overview September 29, 2016

GO Bonds: Outstanding Debt Summary Bond Measures Authorization % Tax Rate Limit Date Measure Amount Approval (per $100k AV) Measure H Measure H Measure P June 2006 Measure H $37,000,000 57.3% $60 Election of 2006 Election of 2006 Election of 2008 November 2008 Measure P $47,000,000* 62.4% $55 GO Bonds GO Bonds GO Bonds (CIBs and CABs) Total $84,000,000 Series 2009 Series 2006 Series 2008 * Measure P has $12,566,223 in remaining authorization. $34,433,777 $18,000,000 $19,000,000 8/25/2009 9/14/2006 9/18/2008 Outstanding Debt Amount Original Par Final Call Date / Series Issue Date Outstanding Amount Maturity Refunded (as of 8/1/16) Measure H Election of 2006 (Measure H) Series 2006 9/14/2006 $18,000,000 8/1/2031 - Refunded in 2014 2014 GO Series 2008 9/18/2008 $19,000,000 8/1/2033 - Refunded in 2014 Refunding Bonds Total Outstanding $0 $33,490,000 11/13/2014 Election of 2008 (Measure P) Series 2009 (CIBs) 8/25/2009 $30,550,000 8/1/2034 28,420,000 8/1/2019 Series 2009 (CABs) 8/25/2009 $3,883,777 8/1/2036 3,883,777 Non-callable Total Outstanding $32,303,777 Measure H, Election of 2006 Bonds Measure P, Election of 2008 Bonds Refunding Bonds 2014 Refunding 11/13/2014 $33,490,000 8/1/2033 $32,105,000 8/1/2024 Total Amount Outstanding $64,408,777 1

Assessed Value and Bonding Capacity � The District’s total assessed value is approximately $3.86 billion in fiscal year 2016-17, which represents growth of 3.78% from the prior year (up from $3.72 billion). $4.5 30% Compounded Annual Growth Rate $4.0 25% 1 – Year 3.78% $3.5 20% 5 – Year 2.16% $3.0 15% Total AV ($billions) 10 – Year 0.81% $2.5 10% 15 – Year 4.47% $3.99 $3.97 $3.86 $2.0 5% $3.72 $3.72 $3.57 $3.56 $3.53 $3.47 $3.43 $3.39 $2.91 $1.5 0% Total Assessed Valuation 2016-17: $3,856,499,091 $2.43 $2.22 $2.10 $2.00 $1.92 $1.86 $1.81 $1.0 -5% Bonding Capacity @ 2.5% 96,412,477 $0.5 -10% Outstanding Bonded Indebtedness (64,408,777) Remaining Capacity $32,003,700 $0.0 -15% * Total AV comprised of Yuba County portion (99%) and Butte County portion (1%). 2

Refunding Overview � Similar to refinancing a home mortgage. � Paying off existing debt by borrowing money in a lower interest rate environment leads to savings, which are passed on to taxpayers. Refunding bonds may only be issued if taxpayers will save money. � Unlike a home mortgage, the term of the debt may not be extended. � Two types of Refundings: � Current Refunding – A refunding transaction where the bonds being refunded will mature or be redeemed within 90 days or less after the issuance of the refunding bonds. � Advance Refunding – A refunding transaction where the bonds being refunded will not mature or be redeemed within 90 days or less after the issuance of the refunding bonds. � Only One Advance Refunding – a new bond issue can only be advanced refunded once under tax law. 3

Refunding Analysis � The Series 2009 Current Interest Bonds are callable beginning 8/1/2019, however, they can be advance refunded to take advantage of the current low interest rate environment. � The purpose of refunding the bonds would be to (1) achieve taxpayer savings, (2) manage tax rates, and (3) create capacity to access additional Measure P authorization. � Based on current market conditions, estimated taxpayer savings are $3,791,519 (present value savings of 11.28% of the refunded bonds). Debt Service Comparison $4,500,000 Series 2016 Refunding Bonds $4,000,000 Series Refunded Series 2009 (CIBs Only) $3,500,000 Call Date 8/1/2019 at par $3,000,000 Refunding Par Amount $24,755,000 $2,500,000 $2,000,000 Par Amount Refunded $26,220,000 $1,500,000 True Interest Cost 3.06% $1,000,000 Negative Arbitrage $1,109,828 $500,000 $0 Nominal Savings $3,791,519 Present Value Savings $2,956,477 (11.28%) Prior Debt Service Refunding Debt Service 4

Refunding Sensitivity Analysis Refunding Comparison Historical Bond Buyer 20 Bond GO Index 7.00 Series 2009 (Current Interest Bonds) 6.00 Refunding Type Advance Current 5.00 Issuance Date 11/10/2016 5/1/2019 4.00 Refunding Par Amount $24,755,000 $21,770,000 3.00 Par Amount Refunded $26,220,000 $26,220,000 2.00 Final Maturity 8/1/2034 8/1/2034 1.00 Negative Arbitrage $1,109,828 $123,503.82 0.00 8/29/1996 8/29/1997 8/29/1998 8/29/1999 8/29/2000 8/29/2001 8/29/2002 8/29/2003 8/29/2004 8/29/2005 8/29/2006 8/29/2007 8/29/2008 8/29/2009 8/29/2010 8/29/2011 8/29/2012 8/29/2013 8/29/2014 8/29/2015 8/29/2016 Nominal Savings $3,791,519 $7,419,769 Present Value Savings $2,956,476 (11.28%) $6,066,111 (23.14%) Bond Buyer 20 Bond GO Index – One Year Trend Sensitivity Analysis 4.50 Current Refunding Interest Rate 4.00 Total Net Present PV Savings as % of Change 3.50 Value Savings Refunded Bonds 3.00 Current Rates $6,066,111 23.14% 2.50 Break-even +0.25% $5,319,345 20.29% 2.00 point 1.50 +0.50% $4,603,937 17.56% 1.00 +0.75% $3,909,434 14.91% 0.50 +1.00% $3,234,252 12.34% 0.00 +1.25% $2,578,272 9.83% 5

Potential Timeline for Refunding Transaction Date Activity Thursday, September 29 Board Workshop Week of October 3 Meeting with Rating Agencies Week of October 10 Receive ratings Board approval of resolution, legal documents, and preliminary official Tuesday, October 11 statement Monday, October 17 Preliminary official statement posted and delivered to investors Week of October 17 Investor outreach Wednesday, October 25 Pricing Thursday, November 10 Closing 6

Measure P (Post-Refunding) � Measure P (2008 Election) has $12,566,223 in remaining authorization. � Following a refunding of the Series 2009 Current Interest Bonds, the District will have tax rate capacity to issue additional bonds from the Measure P authorization. � The amount of funding available from the next Measure P issuance will depend on (1) savings generated from the refunding of the Series 2009 bonds, (2) future assessed value growth, and (3) market conditions at the time of issuance. Measure P – Debt Service Overview $5,000,000 $4,500,000 $4,000,000 Total Debt Service $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Series 2009 2016 Estimated Refunding Savings Estimated Revenue 7

Certificates of Participation Outstanding Debt Amount Original Par Final Series Issue Date Outstanding Call Date / Refunded Amount Maturity (as of 8/1/16) Callable 8/1/16 @ par; 2006 COPs 8/31/2006 $22,145,000.00 8/1/2021 $2,490,000.00 partially refunded in 2012 2012 COPs 7/17/2012 18,376,098.50 6/1/2042 18,376,098.50 6/1/2022 @ accreted value Total Amount Outstanding $20,866,098.50 COPs Debt Service $3,000,000 $2,500,000 Total Debt Service $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY Ending 2006 COPs 2012 COPs 8

Looking Forward � Addressing and prioritizing facilities needs identified in the District’s Facilities Master Plan. � Determining the funding amount available from the next issuance from Measure P (if desired). � Identifying financing sources available for long-range facilities needs. � Planning for debt service payments for the 2012 COPs. 9