Table 20: Expenditures Rate Assumptions
FY 2020/21 Percent Variable Estimated
Expenditures Variable Revenues Rate
General Government
Mayor & Council $169,773 50% $84,887 $0.70
City Attorney $1,213,032 50% $606,516 $4.99
City Manager $6,472,790 50% $3,236,395 $26.63
Finance $9,730,595 70% $6,811,417 $56.05
Community Development $3,978,834 80% $3,183,067 $26.19
Recreation & Parks $8,728,872 80% $6,983,098 $57.47
Police $28,431,813 90% $25,588,632 $210.58
Fire $11,201,739 85% $9,521,478 $78.36
Public Works $2,913,642 80% $2,330,914 $19.18
Table 21: Measure U Expenditures Rate Assumptions
FY 2020/21 Percent Variable Estimated
Expenditures Variable Revenues Rate
Police
Fire
Recreation & Parks
Library
Community Development
City Manager
Finance
$8,626,919
$7,140,520
$1,774,476
$471,290
$314,509
$27,601
$108,719
90% $7,764,227
85% $6,069,442
80% $1,419,581
70% $329,903
80% $251,607
50% $13,801
70% $76,103
$63.90
$49.95
$11.68
$2.71
$2.07
$0.11
$0.63
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Appendix
Table A-1: Detailed General Fund Net New Revenues 2050 Buildout Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Property Tax
Property Transfer Tax
Property Tax in Lieu of VLF
Sales Tax
Transient Occupancy Tax
Business Licenses
Licenses, Permits & Fines
Revenue from Use of Money & Property
Revenues from Other Agencies
Charges for Current Services
Other Revenue'
Total General Fund Revenues
Measure U Revenues
Total General Fund Revenues with Measure U
$19,061,933
$361,029
$17,406,862
$10,627,186
$578,056
$612,648
$835,237
$1,353,051
$235,378
$2,143,170
$341,010
$53,555.559
$10,627,186
$64.182.745
$15,108,477
$315,404
$13,796,668
$9,199,043
$578,056
$612,378
$834,869
$1,352,455
$235,274
$2,142,225
$340,860
$44,515,708
$9,199,043
$53.714.751
$14,105,908
$293,449
$12,881,149
$8,030,122
$578,056
$600,313
$818,420
$1,325,809
$230,639
$2,100,020
$334,144
$41,298,029
$8,030,122
$49.328.151
'Includes the following sources: Prior Year & Damage Recover, Sales of Property, Sale of Maps, Plans & Others, Other Miscellaneous Revenue.
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Table A-2: Detailed General Fund Net New Expenditures 2050 Buildout Alternative A: Alternative B: Alternative C:
Annexation City Infill Hybrid
General Government
Mayor & Council
City Attorney
City Manager
Finance
Community Development
$28,520 $28,508 $27,946
$203,779 $203,689 $199,676
$1,087,374 $1,086,895 $1,065,481
$2,288,522 $2,287,513 $2,242,445
$1,069,457 $1,068,986 $1,047,925
Recreation & Parks $2,346,204 $2,345,169 $2,298,966
Police $8,597,351 $8,593,560 $8,424,254
Fire $3,199,057 $3,197,646 $3,134,648
Public Works $783,148 $782,803 $767,380
Total General Fund Expenditures $19,603,412 $19,594,769 $19,208,722 Net Annual Surplus/(Deficit) $33,952,148 $24,920,939 $22,089,307 Net Annual Surplus/(Deficit) as % of Total
Revenue 63.40% 55.98% 53.49%
Measure U Expenditures _
Police $2,608,650 $2,607,500 $2,556,128
Fire $2,039,231 $2,038,332 $1,998,173
Recreation & Parks $476,955 $476,745 $467,352
Library $110,842 $110,793 $108,610
Community Development $84,536 $84,499 $82,834
City Manager $4,637 $4,635 $4,543
Finance $25,569 $25,558 $25,055
Total Measure U Expenditures $5,350,420 $5,348,061 $5,242,696 Total General Fund Expenditures with Measure U $24,953,831 $24,942,830 $24,451,418 Net Annual Surplus/(Deficit) with Measure U $39,228,914 $28,771,922 $24,876,734 Net Annual Surplus/(Deficit) as % of Total
Revenue 61.12% 53.56% 50.43%
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Table A-3: Detailed General Fund Net New Revenues 5 -Year Increments 2025 2030
Alternative A: Alternative B: Alternative C: Alternative A: Alternative B: Alternative C:
Annexation Infill Hybrid Annexation Ina Hybrid
Property Tax
Property Transfer Tax
Property Tax in Lieu of VLF
Sales Tax
Transient Occupancy Tax
Business Licenses
Licenses, Permits & Fines
Revenue from Use of Money & Property
Revenues from Other Agencies
Charges for Current Services
Other Revenue
Total General Fund Revenues
Measure U Revenues
Total General Fund Revenues with Measure U
$2,295,188 $2,537,747 $2,189,616 $2,295,188 $2,537,747 $2,189,616 $48,581 $53,203 $47,066 $48,581 $53,203 $47,066
$2,095,906 $2,317,405 $1,999,501 $2,095,906 $2,317,405 $1,999,501 $878,873 $1,502,285 $998,591 $878,873 $1,502,285 $998,591 $0 $0 $0 $192,685 $192,685 $192,685
$92,001 $103,356 $94,569 $92,001 $103,356 $94,569
$125,427 $140,907 $128,928 $125,427 $140,907 $128,928
$203,186 $228,264 $208,858 $203,186 $228,264 $208,858
$35,346 $39,709 $36,333 $35,346 $39,709 $36,333
$321,838 $361,559 $330,822 $321,838 $361,559 $330,822
$51,209 $57,529 $52,639 $51,209 $57,529 $52,639
$6,147,555 $7,341,965 $6,086,923 $6,340.241 $7,534,650 $6,279.608 $878,873 $1,502,285 $998,591 $878,873 $1,502,285 $998,591 $7,026,428 $8,844,250 $7,085,513 $7,219.113 $9,036,935 $7,278.198 983 Osos Street, San Luis Obispo, CA 93401 1 (805) 595 1345 1 lisawiseconsulting.com 127
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Alternative A:
Annexation
2035
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
2040
Alternative B:
Infill
Alternative C:
Hybrid
Property Tax
Property Transfer Tax
Property Tax in Lieu of VLF
Sales Tax
Transient Occupancy Tax
Business Licenses
Licenses, Permits & Fines
Revenue from Use of Money & Property
Revenues from Other Agencies
Charges for Current Services
Other Revenue
Total General Fund Revenues
Measure U Revenues
Total General Fund Revenues with Measure U
$2,239,268
$47,309
$2,044,841
$864,393
$0
$89,444
$121,941
$197,539
$34,364
$312,893
$49,786
$6,001,777
$864,393
$6,866,170
$2,508,245
$52,249
$2,290,465
$1,548,618
$0
$101,417
$138,264
$223,982
$38,964
$354,777
$56,450
$7,313,431
$1,548,618
$8,862,049
$2,133,971
$45,800
$1,948,687
$984,621
$0
$92,102
$125,565
$203,410
$35,385
$322,192
$51,265
$5,942,999
$984,621
$6,927,620
$3,027,051
$57,971
$2,764,225
$1,637,517
$192,685
$99,568
$135,744
$219,899
$38,254
$348,310
$55,421
$8,576.646
$1,637,517
$10,214.163
$2,508,245
$52,249
$2,290,465
$1,548,618
$192,685
$101,417
$138,264
$223,982
$38,964
$354,777
$56,450
$7,506,116
$1,548,618
$9,054,734
$2,431,669
$49,829
$2,220,537
$1,508,235
$192,685
$102,794
$140,141
$227,023
$39,493
$359,594
$57,217
$7,329.217
$1,508,235
$8,837.452
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Alternative A:
Annexation
2045
Alternative B:
Infill
Alternative C:
Hybrid
Alternative A:
Annexation
2050
Alternative B:
Infill
Alternative C:
Hybrid
Property Tax
Property Transfer Tax
Property Tax in Lieu of VLF
Sales Tax
Transient Occupancy Tax
Business Licenses
Licenses, Permits & Fines
Revenue from Use of Money & Property
Revenues from Other Agencies
Charges for Current Services
Other Revenue
Total General Fund Revenues
Measure U Revenues
Total General Fund Revenues with Measure U
$4,602,619
$79,293
$4,202,992
$3,183,765
$0
$119,817
$163,350
$264,620
$46,033
$419,146
$66,692
$13,148.328
$3,183,765
$16,332,093
$2,508,245
$52,249
$2,290,465
$1,548,618
$0
$101,417
$138,264
$223,982
$38,964
$354,777
$56,450
$7,313,431
$1,548,618
$8,862,049
$2,580,518
$51,844
$2,356,462
$1,770,043
$0
$108,140
$147,429
$238,830
$41,547
$378,295
$60,192
$7,733,298
$1,770,043
$9,503,341
$4,602,619
$79,293
$4,202,992
$3,183,765
$192,685
$119,817
$163,350
$264,620
$46,033
$419,146
$66,692
$13,341.013
$3,183,765
$16,524,778
$2,508,245
$52,249
$2,290,465
$1,548,618
$192,685
$101,417
$138,264
$223,982
$38,964
$354,777
$56,450
$7,506,116
$1,548,618
$9,054,734
$2,580,518
$51,844
$2,356,462
$1,770,043
$192,685
$108,140
$147,429
$238,830
$41,547
$378,295
$60,192
$7,925.983
$1,770,043
$9,696,026
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Table A-4: Detailed General Fund Net New Expenditures 5 -Year Increments 2025 2030
Alternative A: Alternative B: Alternative C: Alternative A: Alternative B: Alternative C:
Annexation Infill Hybrid Annexation Infill Hybrid
General Government
Mayor & Council
City Attorney
City Manager
Finance
Community Development
Recreation & Parks
Police
Fire
Public Works
Total General Fund Expenditures
Net Annual Surplus/(Deficit)
Net Annual Surplus/(Deficit) as % of Total
Revenue
$4,283 $4,811 $4,402 $4,283 $4,811 $4,402
$30,601 $34,378 $31,456 $30,601 $34,378 $31,456
$163,290 $183,443 $167,848 $163,290 $183,443 $167,848
$343,665 $386,081 $353,259 $343,665 $386,081 $353,259
$160,599 $180,421 $165,083 $160,599 $180,421 $165,083
$352,327 $395,812 $362,163 $352,327 $395,812 $362,163
$1,291,056 $1,450,399 $1,327,096 $1,291,056 $1,450,399 $1,327,096 $480,399 $539,691 $493,810 $480,399 $539,691 $493,810
$117,605 $132,119 $120,888 $117,605 $132,119 $120,888
$2,943,825 $3,307,156 $3,026,004 $2,943.825 $3,307,156 $3,026.004 $3,203,730 $4,034,809 $3,060,919 $3,396,416 $4,227,494 $3,253,604 52% 55% 50% 54% 56% 52%
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Alternative A:
Annexation
2025
Alternative B:
Infill
Alternative C: Alternative A:
Hybrid Annexation
2030
Alternative B:
Infill
Alternative C:
Hybrid
Measure U Expenditures
Police
Fire
Recreation & Parks
Library
Community Development
City Manager
Finance
Total Measure U Fxpenditures
Total General Fund Expenditures with Measure U
Net Annual Surplus/(Deficit) with Measure U
Net Annual Surplus/(Deficit) as % of Total Revenue
$391,738
$306,229
$71,624
$16,645
$12,695
$696
$3,840
$803,467
$3,747,292
$3,279,136
47%
$440,087 $402,674
$344,024 $314,778
$80,464 $73,623
$18,699 $17,110
$14,261 $13,049
$782 $716
$4,314 $3,947
$902.63? $825.897
$4,209,788 $3,851,900
$4,634,462 $3,233,613
52%
46%
$391,738
$306,229
$71,624
$16,645
$12,695
$696
$3,840
$803,467
$3,747,292
$3,471,821
48%
$440,087 $402,674
$344,024 $314,778
$80,464 $73,623
$18,699 $17,110
$14,261 $13,049
$782 $716
$4,314 $3,947
$907.637 $825,897
$4,209,788 $3,851,900
$4,827,147 $3,426,298
53%
47%
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2035 2040
Alternative A: Alternative B: Alternative C: Alternative A: Alternative B: Alternative C:
Annexation Infill Hybrid Annexation Infill Hybrid
General Government
Mayor & Council
City Attorney
City Manager
Finance
Community Development
Recreation & Parks
Police
Fire
Public Works
Total General Fund Expenditures
Net Annual Surplus/(Deficit)
Net Annual Surplus/(Deficit) as % of Total
Revenue
$4,164
$29,751
$158,752
$334,113
$156,136
$342,535
$1,255,173
$467,047
$114,336
$2,862,006
$3,139,771
52%
$4,721
$33,733
$180,002
$378,838
$177,036
$388,386
$1,423,190
$529,566
$129,641
$3.245.114
$4,068,316
56%
$4,288
$30,635
$163,470
$344,043
$160,776
$352,715
$1,292,477
$480,928
$117,734
$2.947.066
$2,995,934
50%
$4,635
$33,118
$176,721
$371,933
$173,809
$381,308
$1,397,251
$519,914
$127,278
$3,185.96q
$4,721
$33,733
$180,002
$378,838
$177,036
$388,386
$1,423,190
$529,566
$129,641
$3,245,114
$5,390,677 $4,261,002
63%
57%
$4,785
$34,191
$182,446
$383,982
$179,440
$393,660
$1,442,515
$536,757
$131,401
$3,289,178
$4,040,039
55%
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2035 2040
Alternative A: Alternative B: Altemative C: Altemative A: Alternative B: Alternative C:
Annexation InfiII Hybrid Annexation Infill Hybrid
Measure U Expenditures
Police
Fire
Recreation & Parks
Library
Community Development
City Manager
Finance
Total Measure U Fxpenditures
Total General Fund Expenditures with Measure U
Net Annual Surplus/(Deficit) with Measure U
Net Annual Surplus/(Deficit) as 96 of Total Revenue
$380,851 $431,831 $392,170 $423,961 $431,831 $437,695
$297,718 $337,571 $306,566 $331,418 $337,571 $342,154
$69,633 $78,954 $71,703 $77,515 $78,954 $80,026
$16,182 $18,349 $16,663 $18,014 $18,349 $18,598
$12,342 $13,994 $12,709 $13,739 $13,994 $14,184
$677 $768 $697 $754 $768 $778
$3,733 $4,233 $3,844 $4,156 $4,233 $4,290
$781.136 $885,699 $804.357 $869 556 $885.699 $897.7?6
$3,643,142 $4,130,813 $3,751,418 $4,055,525 $4,130,813 $4,186,904 $3,223,028 $4,731,236 $3,176,202 $6,158,638 $4,923,921 $4,650,548 47% 53% 46%
60% 54% 53%
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2045 2050
Alternative A: Alternative B: Alternative C: Alternative A: Alternative B: Alternative C:
Annexation Infill Hybrid Annexation Infill Hybrid
General Government
Mayor & Council
City Attorney
City Manager
Finance
Community Development
Recreation & Parks
Police
Fire
Public Works
Total General Fund Expenditures
Net Annual Surplus/(Deficit)
Net Annual Surplus/(Deficit) as % of Total
Revenue
$5,578
$39,854
$212,661
$447,573
$209,157
$458,854
$1,681,408
$625,648
$153,162
$3,833,894
$9,314,434 $4,068,316
71%
$4,721
$33,733
$180,002
$378,838
$177,036
$388,386
$1,423,190
$529,566
$129,641
$3.245.114
56%
$5,034
$35,969
$191,934
$403,951
$188,772
$414,133
$1,517,534
$564,671
$138,235
$3.460.235
$4,273,063
55%
$5,578
$39,854
$212,661
$447,573
$209,157
$458,854
$1,681,408
$625,648
$153,162
$3,833.894
$4,721
$33,733
$180,002
$378,838
$177,036
$388,386
$1,423,190
$529,566
$129,641
$3,745,114
$9,507,119 $4,261,002
71%
57%
$5,034
$35,969
$191,934
$403,951
$188,772
$414,133
$1,517,534
$564,671
$138,235
$3,460,235
$4,465,749
56%
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2045 2050
Alternative A: Alternative B: Altemative C: Altemative A: Alternative B: Alternative C:
Annexation Infill Hybrid Annexation Infill Hybrid
Measure U Expenditures
Police
Fire
Recreation & Parks
Library
Community Development
City Manager
Finance
Total Measure U Expenditures
Total General Fund Expenditures with Measure U
Net Annual Surplus/(Deficit) with Measure U
Net Annual Surplus/(Deficit) as 96 of Total Revenue
$510,181 $431,831 $460,458 $510,181 $431,831 $460,458
$398,818 $337,571 $359,948 $398,818 $337,571 $359,948
$93,279 $78,954 $84,188 $93,279 $78,954 $84,188
$21,678 $18,349 $19,565 $21,678 $18,349 $19,565
$16,533 $13,994 $14,922 $16,533 $13,994 $14,922
$907 $768 $818 $907 $768 $818
$5,001 $4,233 $4,513 $5,001 $4,233 $4,513
$1.046 396 $885,699 $944.413 $1,046,396 $885.699 $944.413 $4,880,290 $4,130,813 $4,404,647 $4,880,290 $4,130,813 $4,404,647 $11,451,803 $4,731,236 $5,098,693 $11,644,488 $4,923,921 $5,291,379 70% 53% 54%
70% 54% 55%
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Table A-5: Retail Rent Comparables
Year
Built
SF Annual Rent
Annual
Rent PSF
E Betteravia Rd, Ste 3B
560 S Blosser Rd, Ste X
560 S Blosser Rd, Ste Y
2247 S Depot St, Ste 103
1606 E Clark Ave, Ste 101
550 E Betteravia Rd, Ste D
1423 S Bradley Rd
335 E Betteravia Rd
230-238 E Betteravia Rd, Ste 230 C
230-238 E Betteravia Rd, Ste 230 M/R
223 E Betteravia Rd
4869 S Bradley Rd
402 E Main St
1609-1637 S Broadway, Ste 1617
2022 1,290 $59,598
2020 5,737 $120,477
2020 1,656 $49,680
2019 5,682 $143,186
2019 1,100 $39,600
2008 3,510 $84,240
2000 7,000 $210,000
1994 8,032 $195,660
1982 2,086 $50,040
1982 8,400 $201,600
1981 4,860 $131,220
1981 1,420 $24,708
1980 3,610 $86,640
1977 3,440 $61,920
$46.20
$21.00
$30.00
$25.20
$36.00
$24.00
$30.00
$24.36
$23.99
$24.00
$27.00
$17.40
$24.00
$18.00
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Table A-6: Office Rent Comparables
Year
Built
SF Annual Rent Annual
Rent PSF
1414 S Miller St, Ste L -P
2247 S Depot St, Ste 103
1430 E Main St, Ste 103
1430 E Main St, Ste 107
411-421 E Betteravia Rd, Ste 202/203
2236 S Broadway, Ste A
525 E Plaza Dr, Ste 306
525 E Plaza Dr, Ste 307
1300 E Cypress St
201 S Miller St, Ste 105
201 S Miller St, Ste 107
1105 E Foster Rd, Ste C
1105 E Foster Rd, Ste H
230-238 E Betteravia Rd, Ste 230 C
230-238 E Betteravia Rd, Ste 230 M/R
402 E Main St
821 E Chapel St, Ste 201
2019
2019
2018
2018
2005
2000
1994
1994
1990
1988
1988
1985
1985
1982
1982
1980
1950
3,825
5,682
1,096
467
2,740
2,214
3,422
1,450
15,360
1,760
1,550
1,035
814
2,086
8,400
3,610
1,922
$91,800 $24.00
$143,186 $25.20
$23,016 $21.00
$9,807 $21.00
$73,980 $27.00
$39,852 $18.00
$58,311 $17.04
$24,708 $17.04
$460,800 $30.00
$34,848 $19.80
$30,690 $19.80
$22,977 $22.20
$18,071 $22.20
$50,040 $23.99
$201,600 $24.00
$86,640 $24.00
$44,975 $23.40
Table A-7: Industrial Rent Comparables
Year
Built
SF Annual Rent Annual
Rent PSF
1158-1160 W Betteravia Rd, Ste 1158
2377 A St
2330 A St, Ste 2-B
3070 Skyway Dr, Ste 402
2049 Preisker Ln
1344 White Ct
2315 Meredith Ln
850-900 E Stowell Rd
2014 11,944 $136,162 $11.40
2008 1,500 $18,000 $12.00
2006 6,968 $10.20
2004 2,000 $42,000 $21.00
2001 1,534 $15,647 $10.20
1990 7,500 $99,000 $13.20
1987 3,130 $33,804 $10.80
1960 10,000 $120,000 $12.00
983 Osos Street, San Luis Obispo, CA 93401 1 (805) 595 1345 1 lisawiseconsulting.com 137
Table A-8: 2 -Bedroom Multifamily Rent Comparables
Year Building Number of
Built
type Units
SF
Total Monthly
Rent Price PSF
703 E Meehan St Unit 7303
703 E Meehan St Unit 1114
1735 Biscayne St Unit 0-159
1735 Biscayne St Unit N-153
2460 Rubel Way Unit 2429J
2460 Rubel Way Unit 2517J
740 S Western Ave Unit 3-049
740 S Western Ave Unit 1-001
2020
2020
2011
2011
2004
2004
1979
1979
Apartment
Apartment
Apartment
Apartment
Apartment
Apartment
Apartment
Apartment
318
318
128
128
208
208
460
460
870
947
1,257
1,257
1,109
1,084
788
788
$2,763 $3.18
$2,803 $2.96
$3,038 $2.42
$3,073 $2.44
$3,289 $2.97
$3,322 $3.06
$2,804 $3.56
$2,797 $3.55
Table A-9: 2 -Bedroom Multifamily Sales Price Comparables Year
Built
Building
Type
SF Sale Price
Price
PSF
Date Sold
5684 Kai Ct
5677 Kai Ct
5612 Aidan Way
5622 Kai Ct
4344 Foxenwood Cir
4316 Foxenwood Cir
610 Sunrise Dr Unit 10L
610 Sunrise Dr Unit 4G
610 Sunrise Dr Unit 9D
610 Sunrise Dr Unit 4J
310 E McCoy Ln Unit 5D
310 E Mccoy Ln Unit 2C
310 E McCoy Ln Unit 5H
310 E McCoy Ln Unit 10K
310 E McCoy Ln Unit 5J
310 E McCoy Ln Unit 7G
310 E McCoy Ln Unit 2L
310 E Mccoy Ln Unit 2k
2019
2019
2018
2018
2008
2007
2005
2005
2005
2005
2003
2003
2003
2003
2003
2003
2003
2003
Townhouse
Townhouse
Townhouse
Condo/Co-op
Townhouse
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
Condo/Co-op
1,884
1,884
1,841
1,749
2,137
2,137
1,129
1,129
1,129
1,129
1,130
1,130
1,130
1,130
1,130
1,130
1,130
1,130
$605,000
$538,000
$589,000
$545,000
$545,000
$705,000
$330,000
$322,500
$295,000
$295,000
$347,000
$375,000
$359,000
$332,000
$289,900
$305,000
$277,500
$245,095
$321
$286
$320
$312
$255
$330
$292
$286
$261
$261
$307
$332
$318
$294
$257
$270
$246
$217
July -1-2022
February -26-2021
June -24-2022
March -12-2021
February -26-2021
April -13-2022
August -18-2021
August -13-2021
February -18-2021
November -17-2020
August -9-2022
May -13-2022
April -8-2022
September -14-2021
March -10-2021
December -30-2020
July -17-2020
December -19-2019
983 Osos Street, San Luis Obispo, CA 93401 1 (805) 595 1345 1 lisawiseconsulting.com 1 38
Table A-10: 3 -Bedroom Single -Family Home Sales Price Comparables Year
Built
SF Sale Price Price PSF Date Sold
1517 Copperberry Way
1618 Tuscan Way
1612 Tuscan Way
5606 Kai Ct
5891 Leaf Springs PI
1876 Sterling PI
1013 Shultz Ln
1932 Blue Sage Ln
1053 Shultz Ln
1320 Shelton Way
1021 Shultz Ln
1870 Sterling PI
1107 Suncrest PI
1505 S Irving Ln
1502 S Lennox
1348 W Milford Way
1336 W Milford Way
1826 Sterling PI
1971 S Miller St
301 Dressler Ave
1974 Blue Sage Ln
1541 S Syracuse Ln
1959 Celebration Ave
325 Dressler
2441 Parkland
787 Mahogany St
810 Union Ave
1167 Hastings Ct
785 Sage Crest Dr
2022
2021
2021
2020
2020
2019
2018
2018
2018
2018
2018
2018
2018
2017
2017
2017
2017
2017
2017
2017
2017
2017
2016
2016
2015
2014
2012
2012
2011
2004
2949
2949
2055
2150
1585
1801
1585
2362
1499
2362
1446
1585
1401
1300
1763
1499
1705
1588
1739
1585
1506
1732
2132
1505
1562
1466
1879
2081
$999,999
$999,000
$1,024,000
$620,000
$989,000
$588,000
$680,000
$535,000
$850,000
$572,500
$815,000
$545,000
$586,000
$545,000
$551,000
$600,000
$625,000
$569,000
$550,000
$768,000
$549,000
$530,000
$530,000
$790,000
$52,000
$759,000
$584,000
$850,000
$849,000
$499
$339
$347
$302
$460
$371
$378
$338
$360
$382
$345
$377
$370
$389
$424
$340
$417
$334
$346
$442
$346
$352
$306
$371
$35
$486
$398
$452
$408
April -25-2022
June -16-2022
June -10-2022
September -14-2022
April -26-2022
April -27-2022
November -10-2022
October -14-2022
August -9-2022
July -8-2022
June -6-2022
May -13-2022
April -20-2022
November -1-2022
September -13-2022
August -18-2022
August -15-2022
July -29-2022
July -20-2022
June -30-2022
June -30-2022
June -14-2022
October -4-2022
June -10-2022
August -12-2022
September -21-2022
November -3-2022
May -20-2022
August -12-2022
983 Osos Street, San Luis Obispo, CA 93401 1 (805) 595 1345 1 lisawiseconsulting.com 139
Year
Built
SF Sale Price Price PSF Date Sold
1345 Veneto Dr
735 Damask Ct
1738 Bilbao Dr
205 Navarra Way
1595 Jensen Ranch Rd
1571 Jensen Ranch Rd
2612 Long Ter
2737 Taran Ct
2214 Cordoban Ln
927 Sloan
1031 Anabelle St
1608 Paraiso Dr
610 Sunrise Dr Unit 8D
2990 Wildhaven Cir #2
2011
2008
2007
2007
2006
2006
2005
2005
2005
2005
2005
2005
2005
2005
1206
1242
2144
2394
1682
1871
2120
2328
1874
1868
2268
1845
1128
3200
$500,000
$555,000
$530,000
$715,000
$684,000
$795,000
$739,000
$745,000
$550,000
$630,500
$670,000
$650,000
$407,000
$1,600,000
$415
$447
$247
$299
$407
$425
$349
$320
$293
$338
$295
$352
$361
$500
June -24-2022
July -22-2022
September -29-2022
August -12-2022
September -2-2022
July -6-2022
October -26-2022
August -11-2022
July -22-2022
July -19-2022
June -30-2022
June -24-2022
June -10-2022
April -22-2022
983 Osos Street, San Luis Obispo, CA 93401 1 (805) 595 1345 1 lisawiseconsulting.com 140
RIN CO_ \
CORPORATION
November 17, 2023
Mayor Alice Patino
City Council Members
City Hall
110 Cook Street
Santa Maria Ca , 93454
Re: Request to be considered for Annexation; APN 128-071-006 Dear Members of the City Council;
I represent the owners of the 136 -acre parcel located at the southeast corner of Stowell Road and Highway 101 (APN 128-071-006). There are numerous family members from Switzerland who are the owners of this property, all of whom I either have full power of attorney for the individuals, or am the manager of the LLC's that have an ownership interest.
The family instructed me to take the property out of the Land Conservation Contract under the Williamson Act, and as a result this property went into non - renewal in 2017. The family is interested in having the property considered for annexation to the City of Santa Maria. Their feeling is that this land is appropriate for consideration of future development of commercial, retail, institutional or industrial uses. Please consider this request as you consider the General Plan Update.
Feel free to contact me with any questions or additional information that I could provide. Thank you for your consideration.
Sincerely,
Larry Lahr, President
185 South Broadway, Suite 102 • 0rcutt, CA • 93455
Mail: P.O. Box 1949, Buellton, CA 93427
Phone: (805) 937-2492
[email protected] • www.rinconcorp.com
SANTA MARIA VALLEY
ekTiaet
27 November 2023
Alice Patino, Mayor
Maribel Aguilera-Hernandez, Mayor Pro Tem
Mike Cordero, Council Member
Carlos Escobedo, Council Member
Gloria Soto, Council Member
Mayor and Council Members:
The Santa Maria City Council will soon make a decision that will have enormous consequences for the future of our community.
In 2021, the City started a General Plan update process, creating the master plan for city growth over the next 25-30 years. The Plan starts by acknowledging the city will grow by 30,000 residents during that time, meaning the community must identify where and how to build an additional 10,000-12,000 housing units. We also need to decide where the amenities of a great community are built —schools, parks/sports field, fire stations, community centers, and all the rest. Just as importantly, the plan needs to create space for an additional 10,000 high wage jobs to support the families who will live here.
Thirty-four years ago, the City started the last general plan process. At that time the population was 64,000.
The study looked at a wide range of growth options, including infill and expansion. That General Plan was approved in 1993 and forecast adding 2,000 -plus acres to the city. The Plan has worked, accommodating our current population of 110,000.
Based on that Plan, the City limits expanded to accommodate new neighborhoods including Westgate, Pacific Crest, Harvest Glen, Heritage, Preisker Ranch, and many others.
The city also encouraged and approved infill projects. New commercial projects were built along north Broadway such as the Vallarta and Food Max shopping centers and several new hotels. Infill residential projects included Hancock Terrace, Oak Creek, Mission Creek, Meridian, and many other apartment projects.
Community -serving amenities were added, including eight elementary schools and one high school, parks and trails, a new library, fire stations, a new police headquarters, and new community centers. The major commercial centers along Highway 101 featuring Walmart, Lowes, Costco, and Home Depot were built.
Highway 101 was expanded to three lanes in each direction and most of the interchanges were expanded.
For two years now, the City has conducted extensive public outreach and incorporated feedback from a wide range of stakeholders to envision a future Santa Maria. City staff are now presenting the City Council with three growth scenarios. Those options included a "no new land" plan (infill only), a traditional growth model similar in scope to the plan now being completed, and a hybrid option that prioritizes infill while allowing for necessary room to grow.
A vocal minority, supported by organizations who oppose any growth, have been pushing for the infill only option. They claim all new housing needs for the next 30 years can be provided by "Stacking and Packing" Chamber of Commerce I Visitor Bureau I Economic Development Commission 614 S. Broadway, Santa Maria, CA 93454 I (805) 925-2403 1 ,aria.com
residential units in six- to seven -story apartments, along with many more ADU's on single family lots. What they don't tell people is what their plan won't bring to the city ... no new schools, no new parks or sports facilities, no new community centers, no expansion of the hospital, and no new land for businesses that will create the jobs we will need. The quality of life in Santa Maria will be vastly different if 30,000-40,000 additional people are forced to live within the existing city boundary.
Other options acknowledge that the city we want and deserve will require some growth in the city's boundaries.
They allow for — and encourage — additional infill, resulting in a full spectrum of housing choices for the next generation of Santa Marians. These options acknowledge current and new residents want quality schools, an expanded hospital, shopping near their homes, space for parks and recreation, and places they can work without commuting out of town.
Proponents of a no new land policy say the community doesn't need new land today. Probably true. But a General Plan isn't about today ... it's about the next 30 years. It's about making sure that the next generation gets to live in a great, well planned community.
We encourage the City Council to select a planning model for their staff to study that explores several future scenarios and, ultimately, to select the approach that gives Santa Maria the best chance of being the premiere city on the Central Coast to live, work, and play!
Sincerely,
Glenn Morr
President/CEO
Co -Signers:
Paul Cook, President/CEO
CoastHills Credit Union
Board Chair, Santa Maria Valley
Chamber
Sue Anderson, President/CEO
Marian Regional Medical Center
Kevin Walthers, PhD,
Superintendent/President
Allan Hancock College
Antonio Garcia, Superintendent
Santa Maria Joint Union High School
District
Darren McDuffie, EdD,
Superintendent
Santa Maria -Bonita School District
O.T. Wendel, PhD, Sr. VP
A.T. Still University
cc: Alex Posado, Interim City Manager
Chuen Wu, Community Development Director
Dana Edy, Planning Division Manager
Teresa Paredes, Owner
Maya Restaurant
Chair, SMVC Hispanic Business Group
Jason Buchanan, Adviser
HUB International
Chair, SMVC Business/Government
Roundtable
Cherag Patel, General Manager
Hampton Inn & Suites
Chair, SMV Tourism Marketing District
Heine Heuer. Association of me c<ot.v coast
November 24, 2023
Mayor Alice Patino
Santa Maria City Council
110 E. Cook Street
Santa Maria, CA 93454
Dear Mayor Patino, Santa Maria City Council:
Please accept these comments on behalf of the HBA of the Central Coast regarding the Santa Maria General Plan Update:
We need more land for housing. There is not enough infill land to build your assigned RHNA units. The city is already crowded with excessive traffic West of the 101. Annexing East of the 101 will balance the city, lessen traffic, and thereby lower greenhouse gas emissions.
As the community continues to grow, the need to add community amenities that benefit existing and new residents increases with it. Many of those amenities (expanded recreation facilities, schools, open space, libraries, health care facilities, youth and senior centers, etc.) require space to build and operate.
Beyond housing, and amenities, the general plan needs to identify space where new head -of -household jobs can be located. Few to no parcels exist within current city limits that can accommodate significant new businesses, jobs, and housing. Once jobs are created, we will need more housing of all types, including Market Rate, affordable by design, and Workforce Housing. Creating head -of -household jobs locally reduces the need for residents to travel to work, reducing VMT, congestion, and pollution impacts.
We ask that you change zoning in advance in the specific areas that you want to encourage growth.
Grover Beach did something similar along West Grand Ave — extending height limits, greater density, etc. This will expedite permit processes and keep costs down, thus keeping housing more affordable.
While annexation would convert some ag land, the conversion represents 2-3% of the total land available for Ag in the Santa Maria Valley while providing much needed housing, schools, and jobsites.
Whatever option you choose, please keep in mind the hybrid map anticipates adding roughly 1,000 acres to the city over the next 30 years - not all at once. You will not have 40,000 new people in your city tomorrow or need 10 schools tomorrow. It will happen gradually and thoughtfully planned over the next 30 years.
We support the annexation and hybrid options that accommodate the same amount of population and job growth over the next 30 years as we have seen in the last 30 years — with significantly less new land.
Thank you.
Lindy Hatcher
Lindy Hatcher,
Executive Director
Home Builders Association of the Central Coast
[email protected] / 406-750-7682
FOR THE COUNCIL MEETING OF DECEMBER 5, 2023
COUNCIL AGENDA REPORT
TO:
FROM:
BY:
SUBJECT:
City Council
Interim City Manager Alex Posada
Interim Director of Finance Xenia Bradford
Receive a Presentation Regarding Financing Options for Capital Improvement Projects
Description:
The City Council will receive a presentation regarding financing mechanisms and options for capital improvement projects and provide general direction on whether staff should pursue financing options for capital improvement needs and return at a future date with details of what financing options are recommended for the Council to consider and provide for specific direction.
Environmental Notice: Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATIONS:
1) Receive a presentation regarding financing mechanisms and options for capital improvement projects; and 2) Provide general direction on whether staff should pursue financing options for capital improvement needs and return to Council for specific direction.
BACKGROUND:
With the exception of water and wastewater infrastructure, the City historically paid for capital improvements on a pay-as-you-go basis. Currently, the City does not have any outstanding debt supported by discretionary General Fund revenues or assessed tax increments. On August 15, 2023 the City Council received a presentation on financing options, specifically financing the partially funded Fire Station 1 upgrade. The City Council requested that staff return with more information on available financing mechanisms.
DISCUSSION:
Staff have partnered with KNN Public Financing consultant to prepare a presentation for the City Council. Attachment A outlines the presentation materials which will be discussed in further detail at the City Council meeting. The presentation will provide general information on financing mechanisms available to the City as well as look at two specific
Fire Services capital improvement projects as an example of projects that could be considered for financing.
The first project is the Fire Station 1 upgrade. The project is estimated to cost approximately $10 million and is currently partially funded at $5 million. The project is currently in the design phase and is scheduled to be advertised for construction bids in the summer of 2024. This project was specifically discussed during the August 15th City Council meeting. The presentation includes a lease revenue bond financing option to fully or partially finance the project to bridge the funding gap. Lease revenue bond financing does not require voter approval.
The second project is the Fire Station 2 project, which anticipates moving the station to a new location. This project is presented as an example of a project that may be considered for financing through the Fiscal Years 2024-26 Financial Plan Development. The need for the Fire Station 2 relocation is caused by the Blosser Ranch development. The Blosser Ranch development is a fully approved 1,492 -unit development. Through the project approval process, the City has negotiated the transfer of land at the project site for the Fire Station 2 project. The current Fire Station 2 location provides inadequate access to the Blosser Ranch development. While the land agreement lowers the overall cost of the project, the construction of the Fire Station at the new site is not currently funded. The construction cost is roughly estimated at $11 million. In order to parallel the anticipated construction of the Blosser Ranch development, the Fire Station 2 project would need to be funded in the Fiscal Year 2024-26 Financial Plan and begin construction in the next two to three years.
While financing capital improvement projects increases the overall cost of the project over time, financing options are widely used by local governments and provide a valuable option to timely fund a wider range of capital improvement needs than the pay-as-you-go option. Delaying addressing capital improvement needs can also result in higher future construction costs, liability issues, and decreased service levels.
As part of the Fiscal Years 2024-26 Financial Plan development, staff will evaluate and prioritize capital improvement projects and will develop funding recommendations utilizing existing funding sources, grants, and if directed by the City Council, financing options.
The City maintains a City Council adopted debt policy, which will be followed if the City Council directs staff to pursue financing options.
Alternative(s)
The City Council could direct staff not to pursue further consideration of financing options and instead plan on funding capital improvement projects with available funds and, when feasible, grants. This methodology could result in delays of critical capital improvement projects or reductions in operations.
The City Council could also direct staff to look at alternative revenue -generating options to provide additional revenue to support the City programs and capital improvements.
Additional revenue could be generated by increases in taxes, raising fees, and various 2 infrastructure improvement districts formation. The revenue increases could also be used as a revenue stream to finance capital improvements. Staff can develop further analysis with the Fiscal Years 2024-26 Financial Plan development.
If the City Council directs staff not to pursue financing options, the Fire Station 1 project would require funding of $5 million from existing sources or the project will need to be paused. Staff have worked with the City's grant consultant and there are currently no grants that the City could pursue to fund this need. The $5 million could be diverted by delaying other previously approved capital improvement projects or from reserves.
Utilizing reserves for this purpose would significantly decrease the available unrestricted fund balance. If the City Council directs staff to pursue this option, staff will return with specific funding recommendations at a future date.
Fiscal Considerations
Staff seeks general City Council direction and there are no immediate fiscal impacts.
Impact to the Community
The City's Capital Improvement Program is essential to maintaining and providing for the community infrastructure.
ATTACHMENTS
Attachment A — Financing Options Overview Presentation
3 City of Santa Maria
City Council Presentation
Debt Financing Overview
December 5, 2023
public finance
A Limited Liability Company
2054 University Avenue, Suite 300, Berkeley, CA 94704
phone 510-839-8200
ATTACHMENT A
Municipal Debt Overview
The Fundamental Legal Distinction:
What is Debt and What is Not
California Constitution
Debt Limit
Article 16, Section 18
(2/3 vote generally required)
mo)
General Obligation Bonds
True Indebtedness
Exceptions
To the Debt Limit
Exception 1
Current Fiscal Year
(e.g., TRANs)
rt
Exception 2
Contingent Obligations
(e.g., Lease)
L
Exception 3
Special Fund Obligations
(e.g., Revenue Bonds,
Installment Purchase COPs)
Exception 4
Obligation Imposed
by Law
(e.g., Judgment Bonds)
2 Types of Revenues and Financing Mechanisms
ij
REPAYMENT SOURCE TYPE OF FINANCING
VOTER -
APPROVED?
PAID FROM
GENERAL FUND
■ Lease Revenue Bonds/Certificates of
Participation (COPs)/Lease Purchase
Agreements
• Pension Obligation Bonds
• Tax and Revenue Anticipation Notes
(TRANS)
PAID FROM • Enterprise Revenue Bonds
ENTERPRISE • Installment Purchase COPs
REVENUES
(WATER,
WASTEWATER, ETC.)
No
PAID FROM SPECIAL • General Obligation Bonds (GO Bonds) TAXES • Limited Tax Bonds (Sales Tax Revenue
Bonds)
• Special Tax or Assessment Bonds
Yes
3 Overview of Lease Obligations
Key Features of Lease Obligations
• Contingent Obligation— do not require voter approval. • General fund credit — covenant to annually budget and appropriate lease payments. • Leased asset(s) — real property pledged for term of the financing. ■ Existing City asset or project to be financed by LRB proceeds. The latter may necessitate funding interest beyond expected project completion.
■ Key factors of asset pledge relevant to investors: essentiality, value and useful life. • Subject to Abatement — lease payments are subject to the use and occupancy of pledged asset(s) and can be "abated" if asset is damaged or unable to be occupied. ■ Requires maintaining casualty and rental interruption insurance Sample Lease Obligation Repayment
ij
$8
$6
$4
$2
SO
Fiscal Year
i
11 ti(S� 9 �$ `L�s ��� Lam,„
■ Principal ■ Interest
I
11 11
5 Types of Lease Obligations
• Lease Revenue Bonds (LRBs)
• Certificates of Participation (COPs)
• LRBs and COPs are typically used in a public offering • Lease -Purchase Agreement (LPA)
• LPA is typically used in a direct purchase
• A bank "loan" most likely would be in the form of an LPA • The leased asset may be:
• The project being financed; or
• Another asset with sufficient value and remaining useful life • known as an asset transfer
• Eliminates construction risk and the need for capitalized interest *1
6 Legal Structure of LRB or COP Financing
• LRBs or COPs are secured by lease payments paid by the lessee to the lessor • Lease payments pass from lessor to investors through a trustee • Investors paid a share in the lease revenues securing LRBs or COPs 7M)
Public Facilities
Financing Corp
•
Under the Lease
Agreement, City
leases the
improvements ...
PFFC Assigns Rights and
Responsibilities to
Trustee
(via Trust Agreement)
... and in return
makes lease
payments from the
General Fund
Proceeds of the LRBs or
COPs, used to complete
the improvements
Trustee
Trustee uses
Lease
Payments to
pay debt
service on the
issued LRBs
or COPs
Investors
7 Methods of Sale
Public Offering
• Underwriter purchases bonds from
City and sells to the public
■ Reaches a broader investor
market
• Competitive Sale
• Underwriter selected on sale date
based on lowest bid
• Best with high grade, known
credits and stable markets
• Negotiated Sale
• Underwriter selected prior to the
sale date
• Most commonly used for large
and/or complicated financings,
lower grade credits and/or less
stable market conditions
*1
Private Placement
• Direct purchase by bank
• Typically lower upfront costs but
higher interest rate(s)
• Simpler process, usually doesn't
require a credit rating or an official
statement
• More commonly used on smaller,
shorter -term financing
• May be able to lock -in rate sooner
• The economics vs. public offering
typically evaluated on the
expected all -in cost of fund on a
case -by -case basis and may vary
with market conditions.
• Bank selection is typically made
through a competitive proposal
process
8 City Debt Policy Excerpts
City Debt Policy Excerpts
• The City will plan for capital improvements and maintenance as part of its budgeting process, seeking to set funds aside in advance of need so that most capital projects can be financed on a "pay-as-you-go" basis. • Debt financing will be reserved for significant, unusual, or extraordinary capital expenditures that do not have sufficient funds set aside to complete or when cost benefit analysis shows debt financing is more advantageous to the City. • The City will evaluate new debt on a case -by -case basis, considering such factors as the City's overall fiscal health, the potential impact of increased debt service on then current service levels and other long-term considerations. In general, debt may be considered to finance such projects if it meets one or more of the following minimum criteria:
• It meets the City's goal of distributing the payments for the asset over its useful life so that benefits more closely match costs for both current and future residents; and
• The need for the project is compelling in terms of on -going cost savings or the need for public safety or services, and the size of the project makes funding out of existing resources or near -term revenues is impractical. 0 KNN
Put c linancc
City of Santa Maria 10
Debt Financing Pros and Cons
Pros
• Source for capital projects too large for
annual budget
• Shares the cost of major improvements
between current and future taxpayers
• May accelerate project delivery vs.
funding on a pay -as -you -go -basis,
hence may reduce some project cost
inflation.
Cons/Risk Factors
• Adds significant interest and financing
costs over time
• Is a fixed cost that competes with other
expenditures in the City's budget and
cannot be deferred in any given year.
• Additional staff time in implementing
and administering the financing
OICNN
nut c linancc
City of Santa hfaria 11
Best Practices
• The City's Debt Policy, itself a recommended best practice, incorporates a number of best practices, such as:
• Do not use debt for operating expenses, other than to alleviate cash flow timing issues within a fiscal year. Use of debt may be considered in the event of an extraordinary event, such as a major judgment
• Long-term obligations should not exceed the useful lives of the projects being financed
• Annual debt service payments should be approximately level (individually or in aggregate)
• For predictability, the City will give preference to fixed rate debt. Variable rate debt may be considered to achieve certain goals, such as to provide greater call flexibility
• Evaluation of General Fund debt affordability should include annual debt service as a percent of General Fund appropriations and self-imposed limits on the amount of General Fund debt should also be considered 0 KNN
Put c linancc
City of Santa Maria 12
Fire Station Projects
Fire Station Projects
• Fire Station #1 Renovation
• Estimated cost = $10 million
• $5 million is currently budgeted
• Expected to advertise for construction bids in Summer 2024 • Fire Station #2 Replacement
• Estimated cost = $11 million
• No funds are currently budgeted
• Site is identified; to be transferred to City at no cost • Expected to be ready for construction in 2-3 years
0 KNN
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City of Santa Maria 14
Illustrative Financing Scenarios
• Fire Station #1
• Finance $5 million unfunded portion of project cost only • Finance full $10 million cost, thereby freeing up budget funds for other projects • Fire Station # 2
• Finance $11 million unfunded project cost
• Preliminary Assumptions
• Public offering of Lease Revenue Bonds
• 30 -year term; fixed rates
• Market conditions of 11/14/23 plus 1% cushion
• Medium to high grade credit rating; asset transfer
• Bonds issued June 2024 for FS #1 and June 2026 for FS #2 • Issuance costs = $175 — 225K; Underwriter discount = 0.7% *1
15 Illustrative Financing Scenarios, continued
F�J
Scenarios:
Net Proceeds:
All -In True Interest Cost (ATIC):
Sources
Par Amount:
Bond Premium:
Total Sources:
Uses:
Project Fund:
Issuance/Underwriting Costs:
Total Uses:
FYE 6/30
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
Total Debt Service:
$5,000,000 $10,000,000
5.88% 5.74%
FS #2
$11,000,000
5.75%
$4,850,000 $9,560,000 $10,520,000
360,679 711,342 782,617
5,210, 679 10,271,342 11,302,617
$5,000,000 $10,000,000 $11,000,000
210.679 " 271.342 ' 302.617
$5,210,679 $10,271,342 $11,302,617
$357,525 $706,438 -
358,925 709,238 -
360,025 706,438 $780,350
360,825 708,338 777,250
356,325 704,638 778,850
356,825 705,638 779,850
357,025 706,038 775,250
356,925 705,838 775,350
356,525 705,038 779,850
360,825 708,638 778,450
359,525 706,338 776,450
357,925 708,438 778,850
356,025 704,638 775,350
358,825 705,238 776,250
361,025 704,938 776,250
357,625 708,738 775,350
358,925 706,338 778,550
359,625 708,038 775,550
359,725 708,538 776,650
359,225 707,838 776,550
358,125 705,938 775,250
360,938 706,875 777,750
357,813 706,250 778,750
359,063 704,063 777,188
359,375 705,313 779,063
358,750 704,688 779,063
357,188 707,188 777,188
359,688 707,500 778,438
360,938 705,625 777,500
355,938 706,563 779,375
- 778,750
775.625
$10,758,013 $21,195,350 $21,770,563
16 Questions
■ Questions?
RAJ
17 Appendix
Financing Process (Public Offering)
• Assemble Team
• Drafting and Review of Bond Documents
• Authorizing Resolution
• Legal Documents and Disclosure Documents
■ Preliminary Official Statement ("POS"), Site Lease, Lease Agreement, Trust Agreement, Bond Purchase Agreement or Notice Inviting Bids, Continuing Disclosure Certificate • City Council Approval of Resolution and Documents
• Credit Rating Agency Meetings
• Meeting to assign credit rating based on financial performance, management, debt, tax base, economy • Due Diligence
• Underwriter counsel interviews District on disclosure issues • Post Preliminary Official Statement (POS)
• Underwriter begins marketing the Bonds to potential investors • Date of Sale
• Bond priced sold through either competitive or negotiated sale • Final Official Statement
• Preliminary Official Statement updated to incorporate the results of the bond sale • Close Transaction
*1
19 Financing Process (Direct Purchase)
■ Assemble Team
■ Drafting and Review Bond Documents
Authorizing Resolution
Legal Documents
■ Site Lease, Lease Agreement, Assignment Agreement, bank doc?? ■ Distribute Formal Request for Proposal for Bank Financing ■ Select Financing Provider
■ Rate could be locked in shortly after selection, depending on circumstances and the provider ■ Due Diligence/Credit Review Call with Bank
■ Formal Credit Approval by the Bank
■ City Council Approval of Resolution and Documents
■ Close Transaction
z.
20 Financing Participants
■ City — City of Santa Maria
• Bond Counsel
■ Renders the legal opinion as to the validity and tax status of the bonds ■ Disclosure Counsel
■ Prepares the Official Statement and Continuing Disclosure Certificate. Also provides advice and guidance on disclosure obligations
• Municipal Advisor
■ City's fiduciary providing advice on issuance of municipal securities • Underwriter
• Sells bonds to investors in public offering
• Rating Agency
■ Provides a rating opinion on the relative credit quality of the bonds ■ Trustee
• Establish and hold funds and accounts, pay principal and interest • Title Insurer
• Insures real property title
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21 Credit Rating
Long-term Rating Levels
Credit rating impacts interest rates and investor interest • Independent assessment by each agency
• Smaller issues typically have a single rating
• Each financial obligation has specific rating methodology • General Obligation Bonds
• Certificates of Participation
• Rating have time horizons
• Short term — I year or less
• Long term
• High rating get better interest rates
• Ratings are annually reviewed
• Moody's and S&P changed methodology in recent years
impacting ratings
• S&P and Fitch rate the City's Water and Wastewater Bonds !�J
Investment
Grade
Rating Description
Moody's
S&P
Fitch
Highest credit quality; issuer has strong ability
to meet its obligations
a
AAA
AAA
Very high credit quality low risk of default
Aa1
Aa2
Aa3
AA+
AA
AA-
AA+
AA
AA -
High credit quality, but more vulnerable to
changes in the economy
Al
A2
A3
A+
A
A-
A+
A
A -
Adequate credit quality for now, but more likely
to be impaired if conditions worsen
Baal
Baa2
Baa3
BBB+
BBB
BBB-
BBB+
BBB
BBB -
Non -Investment
Grade
Below investment grade, but a good chance
the issuer can meet commitments
B1
B2
B3
B+
B
B-
B+
B
B -
Significant credit risk, but issuer is presently
able to meet obligations
Caal
Caa2
Caa3
CCC+
CCC+
CCC-
CCC
High default risk
Ca
CC
C
CC
C
Issuer failed to meet scheduled interest or
.rincipal payments
C
D
D
22 Illustrative Calendar for LRB Sale
Date
Activity Responsibility
Monday, July 10th
Draft Authorizing Resolution and legal documents: Lease, Site Lease, and Bond Purchase Agreement ("BPA") BPA, Escrow
Agreement, and Paying Agent Agreement, Preliminary Official Statement(s) (POS)
BC, DC
Thursday, July 13th
Conference call for LRB structure and debt service
C, BCDC, MA, UW
Monday, July 24th Comments due on documents
All
Tuesday, August 1St
Agenda deadline for August 15th Council meeting C, BDC
Wednesday, August 16th Rating call
MA, C
Tuesday, August 15th
City Council Meeting Approval of Resolution and LRB documents C, BDC, MA Thursday, August 24th Rating Call
Thursday, August 29/30th Receive Rating
C, MA, BCDC, UW
Friday, September 18th Due Diligence
10:00 AM POST POS
C, BCDC, UW, MA
Monday, September 25th Pre -pricing
Tuesday, September 26th Pricing
C, UW, MA
C, UW, MA
Tuesday, October 24th
Post Final Official Statement(s) BC/DC
Tuesday, October 18th Closing All
ri
23