Presentation to
City CouncilSouth San Francisco Public Facilities Financing Authority(Multiple Capital Projects at Orange Memorial Park)Lease Revenue Bonds, Series 2022AMAY 11, 2022 Jason Wong, Acting Director of FinanceJake Gilchrist, Director of Capital ProjectsGreg Mediati, Director of Parks and Recreation Series 2022A - Lease Revenue Bonds
Issued through JPA (City of South San Francisco Public Facilities Financing Authority) Real Property pledged for Series 2020A, Series 2021A and Series 2022A financings:
2 ‒ Orange Memorial Park ‒ Fire Station #61‒ Miller Street Garage ‒ Fire Station #64‒ City Hall ‒ Public Works Corporation Yard‒ Westborough Park ‒ City Senior Center (Magnolia Center)‒ Police Station Proposed Capital Projects (Series 2022A Bonds)
Orange Memorial Park Ballfield
– Projected Cost = $14 million
o $12.3 million (Bond)o $1.7 million (Caltrans Grant)
– Project Completion Summer 2023
Orange Memorial Aquatic Center
– Projected Cost = $49 million
o $49 million (Bond)
– Project Completion Early 2025
3 OMP Colma Creek Bridge Replacement
– Projected Cost = $3 million
o $1.5 million (Bond)o $1.5 million (Park Fees FY 22-23) – Project Completion 2024
OMP Playground Replacement
– Projected Cost = $6 million
o $2.2 million (Bond)o $3.8 million (Park Fees FY 22-24) – Project Completion Late 2025
Sports Field Project
Synthetic Turf Baseball, Softball and Soccer Fields Concession Building Construction Contract Awarded February 2022
Construction Starting May 2022
4 Orange Memorial Park Aquatic Center
Construct a new 28,500SF facility Two pools: lap and warm water Rentable multi-use/party room Swimmer's lounge Design Finalized Summer 2022 5 Main Playground Replacement
Originally installed early 2012 Surfacing and equipment replacement
Replace with inclusive elements
for all-abilities
6 Colma Creek Bridge Project
Replace existing pedestrian
bridges at Colma Creek
Provide accessible path of travel
connecting north and south portions of Orange Park
7 Sales Tax Receipts
Fiscal Year Percentage Percentage
Ending Sales & Use Change Measure W Change
2005 8,571,8812006 9,065,854 5.76%2007 9,289,996 2.47%2008 8,925,698 -3.92%2009 8,481,356 -4.98%2010 7,592,202 -10.48%2011 8,227,590 8.37%2012 8,984,931 9.20%2013 9,862,420 9.77%2014 10,014,588 1.54%2015 10,816,848 8.01%2016 12,621,334 16.68% 1,493,4252017 15,240,824 20.75% 8,886,444 495.0%2018 17,178,155 12.71% 11,162,238 25.6%2019 19,198,621 11.76% 12,644,947 13.3%2020 19,440,896 1.26% 11,704,090 -7.4%2021 18,996,923 -2.28% 13,379,292 14.3% Annual Growth Rate 5.10% 10.77%
Citywide sales tax average annual growth rate of
5.10% since 2005 including three consecutive years of decline during the Great Recession (2008 – 2010) Measure W average annual growth rate of
10.8% since 2017
Increase in FY 2020-21 due to:
— Strong business to business sales in
bioscience industry
— Consumption patterns of local residents
and businesses during pandemic (shift from brick and mortar to online purchases) 8 $-
$2,500,000 $5,000,000 $7,500,000
$10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 $25,000,000 $27,500,000 $30,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 FY19 Measure W Receipts = $12.6 millionFY20 Measure W Receipts = $11.7 millionFY21 Measure W Receipts = $13.4 million Civic Campus Cash
Expenditures
SERIES 2020A – Police Station Debt Service
SERIES 2021A – Library, Parks and Recreation Debt Service Measure W Cashflow (Revenue less Expenditure)
Measure W Projected
Revenues
9 Financing Plan
Projects
Series 2022 Lease
Revenue Bonds Caltrain Grant Impact Fees Total Cost
Ballfield $12,300,000 $1,700,000 $14,000,000 Aquatic Center 49,000,000 49,000,000Bridges 1,500,000 $1,500,000 3,000,000 Playground 2,200,000 3,800,000 6,000,000 $65,000,000 $1,700,000 $5,300,000 $72,000,000
10 $-
$2,500,000 $5,000,000 $7,500,000
$10,000,000 $12,500,000 $15,000,000 $17,500,000 $20,000,000 $22,500,000 $25,000,000 $27,500,000 $30,000,000 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045 FY19 Measure W Receipts = $12.6 millionFY20 Measure W Receipts = $11.7 millionFY21 Measure W Receipts = $13.4 million Civic Campus Cash
Expenditures PROPOSED SERIES 2022A Bonds – Estimated Debt Service SERIES 2020A – Police Station Debt Service
SERIES 2021A – Library, Parks and Recreation Debt Service Measure W Cashflow (Revenue less Expenditure)
Measure W Projected
Revenues
11 Projected Cashflow Detail
Date Estimated
Sales Tax
Receipts
(Measure W)1
Series 2020A:
Debt Service
(Police
Station)
Series 2021A:
Debt Service
(LPR, Street
Paving, Solar
Roofs)
PROPOSED
Series 2022A:
Debt Service
(Pool and
Sports Field)2
Capital
Projects
Director
Salary
Remaining
Measure W
Funds
Debt Service
Coverage
Ratio
6/30/22 $13,780,671 $2,765,450 $5,522,383 $360,500 $5,132,338 1.59x6/30/23 14,194,091 2,766,450 5,523,000 371,315 5,533,326 1.64x 6/30/24 14,619,914 2,764,950 5,521,800 382,454 5,950,710 1.69x 6/30/25 15,058,511 2,765,950 5,522,200 $4,797,706 393,928 1,578,727 1.12x6/30/26 15,510,266 2,764,200 5,524,000 5,056,400 405,745 1,759,921 1.13x 6/30/27 15,975,574 2,764,700 5,522,000 5,053,400 417,918 2,217,557 1.16x 6/30/28 16,454,842 2,762,200 5,526,200 5,055,650 430,455 2,680,336 1.20x 6/30/29 16,948,487 2,764,800 5,521,200 5,057,650 443,369 3,161,468 1.23x 6/30/30 17,456,941 2,765,200 5,519,200 5,054,150 456,670 3,658,721 1.27x 6/30/31 17,980,650 2,763,400 5,523,800 5,055,150 470,370 4,167,929 1.30x 1 Assumes 3.00% growth in sales tax receipts from FY 2022 – 2046 2 Assumes all-in true interest cost of 4.21%. 12 Series 2022A – Required Documents
2nd Amendment to Lease Agreement between City and Authority – Authority agrees to lease properties back to City in exchange for “rental payments” 2nd Supplemental Indenture between City, Authority and Trustee – Governs key terms of the 2020A / 2021A / 2022A Bonds – Repayment dates, redemption terms, interest rate, rights and remedies, etc. Bond Purchase Agreement between City, Authority and Underwriter (UBS) – Governs key terms of the 2022A Bonds
Disclosure Document: Official Statement
13 Key Milestones - 2022
May 11 – Council Approval of Legal Documents / POSMay 11 – JPA Approval of Legal Documents / POSCouncil / JPA Approval June 8 – Bond proceeds received by CityClosing
May 19 – POS circulated to InvestorsMay 25 – Pricing of BondsMarketing / Pricing of BondsMay 11 – Rating Agency Presentation to S&PMay 18 – Ratings ReleasedRatings Process 14 Good Faith Estimates
Principal (Par) Amount = $70.6 million
– Premium Bond Structure
True Interest Cost = 4.21% (includes 0.50% cushion) Cost of Issuance = $442,000 Average Annual Debt Service = $5.0 million (Net total debt service = $111.0 million) 15 QUESTIONS
16