January 10, 2017 FACILITIES INPUT GROUP MONTHLY MEETING TOPICS (REVISED) • May 3, 2016 Welcome Meeting, Overview of Process • June 14, 2016 Working Norms of the Committee • August 9, 2016 Gilbert Presentation (PLE) District Facility Tour • September 13, 2016 Gilbert Presentation (AGI) District Facility Tour • October 11, 2016 Gilbert Presentation (FSE) District Facility Tour • November 9-10, 2016 Gilbert Presentation (AGHS) District Facility Tour • January 10, 2017 PFM/RBC Presentation • February 2017 – Tentative Tour Date 2/18 West Chester – Henderson (Renovation) West Chester – Rustin (New) • March 2017 – Tentative Tour Dates 3/4 & 3/18 Upper Dublin (New) Great Valley (Renovation) • April 11, 2017 Work Session / TCHS Tour • May 9, 2017 Work Session • June 6, 2017 Work Session • August 8, 2017 Work Session • September 12, 2017 Presentation of FIG to BSD
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FACILITIES INPUT GROUP MONTHLY MEETING TOPICS … · 2017-01-10 · FACILITIES INPUT GROUP MONTHLY MEETING TOPICS (REVISED) • May 3, 2016 Welcome Meeting, Overview of Process •
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January 10, 2017
FACILITIES INPUT GROUP MONTHLY MEETING TOPICS
(REVISED)
• May 3, 2016 Welcome Meeting, Overview of Process
• June 14, 2016 Working Norms of the Committee
• August 9, 2016 Gilbert Presentation (PLE) District Facility Tour
• September 13, 2016 Gilbert Presentation (AGI) District Facility Tour
• October 11, 2016 Gilbert Presentation (FSE) District Facility Tour
• November 9-10, 2016 Gilbert Presentation (AGHS) District Facility Tour
• January 10, 2017 PFM/RBC Presentation
• February 2017 – Tentative Tour Date 2/18 West Chester – Henderson (Renovation) West Chester – Rustin (New)
• March 2017 – Tentative Tour Dates 3/4 & 3/18 Upper Dublin (New) Great Valley (Renovation)
TOTAL 29,672,125 86,881,517 1,975,894 114,577,748 0.040
(1) Annual Net Debt Service for Series of 2012, 2012A, 2014, and 2015 Bonds.
(2) Proposed Series of 2018, $52,300,000 dated May 1, 2018. Average Coupon 4.50% (current rates + 50bps). Local Effort 100%.
(3) FY2016-17 collect mill is worth $1,845,000 and it remains constant (per the administration November 2016)
(4) Budget surplus totaling $3.9 million in FY '15-16, '16-17 and '17-18 will be transferred to capital reserve to use for phasing in mills for the projects.
RBC Capital Markets / Public Financial Management 7 7 | Avon Grove School District
Option C – Additional $25,000,000 – TOTAL FUNDING = $77,300,000 Avon Grove School District Option C
Millage Requirement Study - Proposed Series of 2018, $52,300,000 and Proposed Series of 2019, $25,000,000 Additional $25MM
Series 2018 Series 2019 Less:
Total Net $52,300,000 $25,000,000 Interest Total Value of Total Total Budget
Outstanding Par Amount Par Amount Earnings/ Net 1 Mill Mills New Mills in Dollars Surplus
Date D/S (1) Debt Service (2) Debt Service (3) SD Reserves Debt (4) Required Mills Place Appropriated (Deficit) (5)
TOTAL 29,672,125 86,881,517 39,020,687 2,626,336 152,947,993 1.080
(1) Annual Net Debt Service for Series of 2012, 2012A, 2014, and 2015 Bonds.
(2) Proposed Series of 2018, $52,300,000 dated May 1, 2018. Average Coupon 4.50% (current rates + 50bps). Local Effort 100%.
(3) Proposed Series of 2019, $25,000,000 dated May 1, 2019. Average Coupon 4.47% (current rates + 50bps). Local Effort 100%.
(4) FY2016-17 collect mill is worth $1,845,000 and it remains constant (per the administration November 2016)
(5) Budget surplus (about $3.9MM) will be transferred to capital reserve to use for phasing in mills for the projects.
RBC Capital Markets / Public Financial Management 8 8 | Avon Grove School District
Option D – Additional $50,000,000 – TOTAL FUNDING = $102,300,000 Avon Grove School District Option D
Millage Requirement Study - Proposed Series of 2018, $52,300,000, Proposed Series of 2019, $25,000,000 and Proposed Series of 2020, $25,000,000 Additional $50MM
Series 2018 Series 2019 Series 2020 Less:
Total Net $52,300,000 $25,000,000 $25,000,000 Interest Total Value of Total Total Budget
Outstanding Par Amount Par Amount Par Amount Earnings/ Net 1 Mill Mills New Mills in Dollars Surplus
Date D/S (1) Debt Service (2) Debt Service (3) Debt Service (4) SD Reserves Debt (5) Required Mills Place Appropriated (Deficit) (6)
TOTAL 29,672,125 86,881,517 39,020,687 45,422,236 2,591,544 198,405,021 1.880
(1) Annual Net Debt Service for Series of 2012, 2012A, 2014, and 2015 Bonds.
(2) Proposed Series of 2018, $52,300,000 dated May 1, 2018. Average Coupon 4.50% (current rates + 50bps). Local Effort 100%.
(3) Proposed Series of 2019, $25,000,000 dated May 1, 2019. Average Coupon 4.47% (current rates + 50bps). Local Effort 100%.
(4) Proposed Series of 2020, $25,000,000 dated May 1, 2020. Average Coupon 4.74% (current rates + 50bps). Local Effort 100%.
(5) FY2016-17 collect mill is worth $1,845,000 and it remains constant (per the administration November 2016)
(6) Budget surplus (about $3.9MM) will be transferred to capital reserve to use for phasing in mills for the projects.
RBC Capital Markets / Public Financial Management 9 9 | Avon Grove School District
Aggregate Scenario – TOTAL FUNDING = $144,245,000 Avon Grove School District AGGREGATE
Millage Requirement Study - Proposed Series of 2017, Proposed Series of 2018, $52,300,000, Proposed Series of 2019, $25,000,000 and Proposed Series of 2020, $25,000,000
Series 2017 Series 2018 Series 2019 Series 2020 Less: Grand-
Total Net $41,945,000 $52,300,000 $25,000,000 $25,000,000 Interest Total Value of Total fathered Total Budget
Outstanding Par Amount Par Amount Par Amount Par Amount Earnings/SD Net 1 Mill Mills New New Mills in Dollars Surplus
Date D/S (1) Debt Service (2) Debt Service (3) Debt Service (4) Debt Service (5) Reserves (8) Debt (6) Required Mills Mills Place (7) Appropriated (Deficit) (8)
TOTAL 29,672,125 51,864,145 86,881,517 39,020,687 45,422,236 2,277,856 250,582,853 2.571 1.880
(1) Annual Net Debt Service for Series of 2012, 2012A, 2014, and 2015 Bonds.
(2) Proposed Series of 2017, $41,945,000 dated May 1, 2017. Average Coupon 3.59% (current rates + 50bps). Local Effort 100%.
(3) Proposed Series of 2018, $52,300,000 dated May 1, 2018. Average Coupon 4.50% (current rates + 50bps). Local Effort 100%.
(4) Proposed Series of 2019, $25,000,000 dated May 1, 2019. Average Coupon 4.47% (current rates + 50bps). Local Effort 100%.
(5) Proposed Series of 2020, $25,000,000 dated May 1, 2020. Average Coupon 4.74% (current rates + 50bps). Local Effort 100%.
(6) FY2016-17 collect mill is worth $1,845,000 and it remains constant (per the administration November 2016)
(7) New mills for Grandfathered debt would be rescinded at final maturity in FY 2028-29
(8) Budget surplus (about $4.1MM) will be transferred to capital reserve to use for phasing in mills for the projects.
RBC Capital Markets / Public Financial Management 10 10 | Avon Grove School District
Aggregate Scenario – TOTAL FUNDING = $144,245,000, Assumes 90% LE Avon Grove School District AGGREGATE, w/ Reimb.
Millage Requirement Study - Proposed Series of 2017, Proposed Series of 2018, $52,300,000, Proposed Series of 2019, $25,000,000 and Proposed Series of 2020, $25,000,000
Series 2017 Series 2018 Series 2019 Series 2020 Less: Grand-
Total Net $41,945,000 $52,300,000 $25,000,000 $25,000,000 Interest Total Value of Total fathered Total Budget
Outstanding Par Amount Par Amount Par Amount Par Amount Earnings/SD Net 1 Mill Mills New New Mills in Dollars Surplus
Date D/S (1) Debt Service (2) Debt Service (3) Debt Service (4) Debt Service (5) Reserves (8) Debt (6) Required Mills Mills Place (7) Appropriated (Deficit) (8)
TOTAL 29,672,125 46,677,730 78,193,365 35,118,618 41,308,904 1,819,410 229,151,332 2.314 1.490
(1) Annual Net Debt Service for Series of 2012, 2012A, 2014, and 2015 Bonds.
(2) Proposed Series of 2017, $41,945,000 dated May 1, 2017. Average Coupon 3.59% (current rates + 50bps). Local Effort 90%.
(3) Proposed Series of 2018, $52,300,000 dated May 1, 2018. Average Coupon 4.50% (current rates + 50bps). Local Effort 90%.
(4) Proposed Series of 2019, $25,000,000 dated May 1, 2019. Average Coupon 4.47% (current rates + 50bps). Local Effort 90%.
(5) Proposed Series of 2020, $25,000,000 dated May 1, 2020. Average Coupon 4.74% (current rates + 50bps). Local Effort 90%.
(6) FY2016-17 collect mill is worth $1,845,000 and it remains constant (per the administration November 2016)
(7) New mills for Grandfathered debt would be rescinded at final maturity in FY 2028-29
(8) Budget surplus (about $4.1MM) will be transferred to capital reserve to use for phasing in mills for the projects.
Appendix
Act 1 Millage Estimates and
2015 S&P Rating Report
RBC Capital Markets / Public Financial Management 12 12 | Avon Grove School District
Millage Analysis
AVON GROVE SCHOOL DISTRICT
5-YEAR SUMMARY OF POTENTIAL ACT 1 MILLAGE IMPACT
FOR ILLUSTRATION PURPOSES ONLY
1 2 3 4 5
Allowable
Real Estate
Millage
Increase
6/30/2017 29.040
Value of 1 Mill 6/30/2018 Actual Index 3.30% 0.958 29.998 1,768,100
6/30/2019 Assumed 3.00% 0.900 30.898 1,660,407
6/30/2020 Assumed 3.00% 0.927 31.825 1,710,219
6/30/2021 Assumed 3.00% 0.955 32.780 1,761,526
6/30/2022 Assumed 3.00% 0.983 33.763 1,814,372
Notes
-Per the District Administration, assumes 1 Mill = $1,845,000
-Does not include any applicable PDE exceptions
-Historical Adjusted Act 1 index below:
2016-17 3.200%
2015-16 2.400%
2014-15 2.800%
2013-14 2.300%
2012-13 2.200%
2011-12 1.800%
2010-11 3.800%
2009-10 5.400%
For AGSD
Fiscal
Year
Ending
Real Estate
Millage
Rate
Allowable
Real
Estate $
Increase
Assumed
Act 1
Index
HISTORICAL ADJUSTED ACT 1
INDEX
RBC Capital Markets / Public Financial Management 13 13 | Avon Grove School District
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Avon Grove School District MEETING MINUTES 375 South Jennersville Road West Grove, PA 19390
Facilities Input Group (FIG) Date Start End Next Meeting Next Time Prepared by 01/10/2017 7:12PM
8:45 PM
FEB 2017 TBD TBD M. O’Hara
Attended by:
Robert Ruddy Aundrea Young Dr. Marchese Brian Gaerity Uwe Buescher Neil Huber Dan Carsley Charles Beatty Nicole Morley John Auerbach Ed Farina Patrick Walker Carolyn Hammerschmidt Andrea Danucalov Jeff Billig Bonnie Wolff Dennis Gerber
Public: Members of the public in attendance: 12
Summary of the Meeting
Opening Review of Previous Meeting and Current Meeting Agenda
Mr. Carsley welcomed everyone to the 8th FIG meeting, and recapped the November 9 & 10, 2016 AGHS Tour meetings. He introduced the following representatives from RBC/PFM:
Ken Phillips, Managing Director, RBC Capital Markets John Frey, Director, PFM Financial Advisors
Capital Project Financing Review
Mr. Carsley discussed the District’s current debt as it stands today. Mr. Phillips and Mr. Frey followed with a presentation on Capital Project Financing. Several factors impact a school district’s borrowing capacity: - Current Interest Rates - Act I Index / Millage Impact - Credit Worthiness
Avon Grove School District has attained an “AA” long-term rating and stable outlook by Standard & Poor.
Debrief & Discussion - Goal is to begin funding a base for building projects, and the various ways to approach this goal - Presentation was to show some of the options available to AGSD to borrow and fund projects - If new buildings are constructed, what is impact on home values? - Next steps will be tours in February and March, followed by workings sessions to discuss building
conditions, educational models, and further review of financials.
Upcoming Meetings
The next meeting of the Facilities Input Group will entail tours in the West Chester School District, with a tentative date of Saturday, February 18, 2017. Details will be sent to the FIG Group once confirmed.
Schedule
August 9, 2016 PLE Tour Completed September 13, 2016 AGI Tour Completed October 11, 2016 FSEMS Tour Completed November 7,2016 HS Tour – Rescheduled to November 9 & 10, 2016 Completed January 10, 2017 Financials Completed February 18, 2017 West Chester SD Tours March 2017 Tour Dates TBD April 11, 2017 Work Session / TCHS Tour May 9, 2017 Work Session June 6, 2017 Work Session *new date due to AGHS graduation* August 8, 2017 Work Session September 12, 2017 Presentation of FIG recommendation to AG School Board of Directors