TOWN COUNCIL REGULAR MEETING
TUESDAY, AUGUST 5, 2025
ITEM 11 B: AGREEMENT WITH KNN PUBLIC FINANCE, LLC
LEAD ADVISORS TO SERVE YOUNTVILLE
1 MELISSA SHICK
Managing Director
Engagement Manager
Lead Advisor
BOBBY CHEUNG
Managing Director
Quantitative & Co-Lead Advisor
Senior Advisor and Partner at KNN
24 years experience as Municipal Advisor
Advisor to Napa County, Napa Sanitation District, and numerous cities, counties, special districts and State
agencies
Prior experience serving as advisor to Yountville
Senior advisor and Partner at KNN
20 years of public finance experience, public agency
staff, investment banking, municipal advisor
Advisor to the firm’s California city clients in addition to county and special district clients
Experienced in all city financing types
2 KNN PUBLIC FINANCE
FIRM
OVERVIEW:
Registered Municipal Advisor with the SEC and MSRB since 2016 Independent and employee owned – no conflicts of interest Operated continuously since 1982, under prior ownership structures KNN
ADVISORS:
Staff of 18
Headquarters and Yountville Advisor Team located in Berkeley Multiple practice groups serving a diverse client base – counties, state agencies, conduit authorities, cities, special districts, school districts, community college districts, universities, and healthcare institutions
RELEVANT
EXPERIENCE:
Current MA contracts with over 30 California cities
Serve as advisor to Napa County in addition to other special districts and school districts throughout the County
QUANTITATIVE
RESOURCES:
Quantitative advisors that create and maintain cash flow models to assist with strategic and capital planning efforts
Market data subscription services to inform borrowing planning and debt issuance decisions
APPROACH TO SERVING YOUNTVILLE
ANALYSIS TO SUPPORT THE
PRIORITIZATION OF TOWN PROJECTS
4 STRATEGIC
PLANNING & ANALYSIS
1. COUNCIL PRIORITIES
2. IMPLEMENTATION
APPROACH FOR
PROGRAMS & PROJECTS
3. BORROWING
ALTERNATIVES AND
DEBT CAPACITY
FY 2024-25 AND FY 2025-26 TOWN COUNCIL GOALS
1. Development of the Yountville Commons Project
2. Mobility plan that improves bike/ped and other modes of transportation
3. Energy resiliency plan that protects the community from power loss
Some priorities best addressed through the allocation of ongoing or one-time revenues
Overall CIP, including water and wastewater needs, may be accelerated through the issuance of bonds
Develop operational and capital planning model to evaluate various scenarios that include ongoing revenues only and the combination of pay-go and debt
If bonds are issued to advance Town Council priorities, the Town would likely issue General Fund lease debt, though other forms of borrowings may be pursued
Special tax revenues (Measure S) revenues could provide an offset to debt service
ANALYZING CAPITAL NEEDS &
DEVELOPING A FUNDING APPROACH
5 STRATEGIC
PLANNING & ANALYSIS
Prioritize projects from CIP
Group in high, medium, low priority categories
Consider General Fund vs Enterprise Fund supported projects separately
1. IDENTIFY PROJECT NEEDS AND FUNDING RESOURCES
Model anticipated cash flows for priority projects over selected time – i.e., 5, 7, or 10 years Identify available funding – cash/reserves, loans, grants, sale of land/assets, etc. Project amount and timing of “unfunded” or bonding need
2. DEVELOP & ANALYZE FINANCIAL AND CASH FLOW MODEL
Determine borrowing security type – i.e., supported by general fund, supported by special taxes, supported by revenues
Prepare pro forma debt service numbers and evaluate debt affordability For lease financings, identify available assets and need for capitalized interest
3. FUNDING ALTERNATIVES AND DEBT CAPACITY
TYPES OF REVENUES AND
FINANCING ALTERNATIVES
6 STRATEGIC
PLANNING & ANALYSIS
REPAYMENT SOURCE TYPE OF FINANCING VOTERAPPROVED?
PAID FROM
GENERAL FUND
Lease Revenue Bonds
Certificates of Participation (COPs)
Tax and Revenue Anticipation Notes (TRANS)
No
PAID FROM TAXES General Obligation Bonds (GO Bonds)
Limited Tax Bonds (Sales Tax Revenue Bonds)
Special Tax Bonds
Special Assessment Bonds
Yes
PAID FROM
ENTERPRISE REVENUES
(I.E., WATER,
WASTEWATER)
Enterprise Revenue Bonds
Installment Purchase Revenue COPs
No
POISED TO ASSIST IN ANY AREA
CONCERNING MUNICIPAL FINANCE
7 “AD-HOC”/ONGOING
ADVISORY
Analyze revenue raising strategies
Assess project funding feasibility
Review and develop policies (debt,
reserve, pension funding, other)
Prepare white papers, memos,
presentations
Research & respond to Council requests
Develop financial models (cash flow, tax
rate, debt affordability, etc.)
Prepare debt issuance estimates and
funding scenarios
TYPES OF SERVICES TOPICS COVERED
Budgetary Pressures
Affordable & Workforce Housing
Infrastructure Needs; Water, Wastewater,
Stormwater
Enhanced Infrastructure Financing Districts
CFD Formation and Land Secured Policies
Solar & Energy Efficiency Projects
Credit Metrics & Rating Agency
Methodologies
ONGOING SUPPORT OF
DEBT MANAGEMENT BEST PRACTICES
8 DEBT MANAGEMENT
& REPORTING
DESIGNATED DEBT STAFF
Staff trainings & Bonds 101
Transparency with Finance Committee and Council on debt issues and topics
PORTFOLIO MANAGEMENT
Disclosure, tax, and covenant compliance
Monitoring for market and refunding opportunities
Evaluation of 3rd party proposals (underwriters, developers, etc.)
ONGOING REPORTING
Annual continuing disclosure reporting
Notice of event monitoring and filings
Voluntary disclosures
Annual Debt Transparency Reports
FACILITATE AND SUPPORT EVERY
STAGE OF THE FINANCING PROCESS
9 DEBT ISSUANCE
PLANNING &
EXECUTION
PLAN OF
FINANCE
Bond
Structuring
•Amount
•Security
• Repayment
• Term
• Other features
Method of Sale
• Competitive
• Negotiated
•Private
Placement
Financing
Schedule
FINANCING
TEAM
RFP (as
needed) for
Bond Counsel
Disclosure
Counsel
Trustee
RFP for
underwriter if
negotiated sale
RFP for
other service
providers
DOCUMENTATION
Legals
•Authorizing
Resolution
• Trust
Agreement or
Indenture
• Other
documents –
lease,
installment
sale
Disclosure
•Preliminary
Official
Statement
RATING
STRATEGY
Continue
relationship with
S&P
Credit
enhancement
dependent on
security
structure &
rating outcome
APPROVALS
Committee
Approval
Council
Approval
PRICING
Market and
Pre-Pricing
Analysis
Sell bonds
and set rates
Purchase
Agreement
Signed
CLOSING
Two-week
closing period
Closing
documents
executed
Final Official
Statement
AAA
A AA
BBB