Major Maintenance Bond update Robert Meister, Chief Finance Officer - - PowerPoint PPT Presentation

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Oct 09, 2023 156 likes •291 views

Major Maintenance Bond update Robert Meister, Chief Finance Officer Josh Davis, Chief Operations Officer Presented to the School Board * August 11, 2020 Maintenance Opportunity We have an opportunity to work with the County to address Major and

SLIDE 1

Major Maintenance Bond update

Robert Meister, Chief Finance Officer Josh Davis, Chief Operations Officer Presented to the School Board * August 11, 2020

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Maintenance Opportunity

We have an opportunity to work with the County to address Major and Preventative Maintenance needs

Ability to secure cheaper funding due to low interest rates
We have a robust backlog of Major Maintenance projects that additional

funding can begin to address

Reinvesting existing debt service savings can better support Preventive

and Recurring Maintenance needs

This is a great first step toward achieving long-term sustainability of our

Maintenance programs

SLIDE 3

County Administration has identified potential savings

pportunities

Debt Service Savings

Actual Debt Service Programmed 2020A 2020B Total Potential 2020 VPSA 2020A GO Total Total Savings Refunding Saving Savings FY2021 $812,276 $3,935,356 $4,747,632 $6,285,875 $1,538,243 $249,009 $1,787,252 FY2022 $3,004,020 $4,992,500 $7,996,520 $9,574,349 $1,577,829 $445,966 $2,023,795 FY2023 $2,948,340 $4,843,000 $7,791,340 $9,339,539 $1,548,199 $294,771 $1,842,970

Low rates enable us to achieve savings from what was forecasted on

existing bonds

Ability to re-invest savings in either:

○ Operations (Preventative/Recurring Maintenance recommended) ○ Offset cost on new debt ○ Harvest savings

SLIDE 4

FY2021 PM budget is $2.9M with the following

priorities:

HVAC
Elevator
Fire Protection
Plumbing Backflow Prevention
Budgeted PM funding shortfall is $4.3M
Allocating Debt Service savings will help offset this

shortfall

Recurring repairs of HVAC and plumbing systems
Interiors (Painting), Electrical if possible

Preventive Maintenance Needs

HVAC Roofing Access Control Fire Structure Electrical Plumbing Vertical Envelope Elevators Interiors Site Trailers

SLIDE 5

Major Maintenance Priorities

Project Types

HVAC Access Control Roofing Structure / Vertical Envelope Electrical Fire Site Interiors Plumbing Elevators Contingency / Other

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Major Maintenance Budgeting

Prioritized Needs vs. ANNUAL Plans

5 yr. FCI FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 Annual Avg.

>10%

$9m $30m $6m $7m $19m

$14m 5%- 10%

$17m $28m $10m $7m $24m

$17m <5%

$10m $18m $17m $11m $19m

$15m Annual $36m $75m $32m $24m $62m $46m

$231m over 5 years

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FCI-Level1 projects are highest

priority because of scope and long-term benefits

Deferred projects will negatively

impact FCI measures and increase higher priority Needs

FCI-Level1

Estimated Capital Needs total $231m between 2021-25
All EUL projects accomplished in 5 years with $46m annual

budget

If smaller budgets are necessary, projects shifted to later

years

Once Annual Budget LEVELS are set, prioritization and

communication about individual projects will take place

(Level 1 only) (Levels 1+2) (Levels 1+2+3) Annual FLAT Budget examples

FCI-Level2 FCI-Level3

❷ ❶ ❸

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We have identified ~$25M for MM in FY2021

Description Funds Carry Forward from Prior Years (Estimated) $6,900,000 Base Operations Funding $9,219,100 Bond Sales (7/22) $2,300,000 Bond Sales (7/22) $7,200,000

Total for FY2021 $25,619,100

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Major Maintenance Priority Projects for FY2021

Project Type Projected Expenditure (% of Budget)*

HVAC 44% Roofing 11% Access Control 20% Structure / Vertical Envelope 3.5% Electrical 3% Fire 2% Site 3% Interiors 1.5% Contingency / Other 12% *More details provided in Attachment A.

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Placeholder - $75M next priorities for FY2022-23

Project Type Projected Expenditure (% of Budget)

HVAC 30% Roofing 15% Structure / Vertical Envelope 14% Site 6% Access Control 5% Electrical 5% Fire 5% Interiors 5% Plumbing 2% Equipment 2% Elevators 1% Contingency / Other 10%

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We will need to work with the County to take advantage

f the current rate environment to fund MM

Estimate Debt Servicing Costs Offering Size $40M $50M $60M $75M FY21 (interest only) $536,000 $670,000 $804,000 $1,005,000 FY22 $2,800,000 $3,500,000 $4,200,000 $5,250,000 FY23 $2,760,000 $3,450,000 $4,140,000 $5,175,000 * Assumes issued at 2% * Assumes Principal payments Commence FY22

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Maintenance Opportunity

We have an opportunity to work with the County to address Major and Preventative Maintenance needs

Ability to secure cheaper funding due to low interest rates
We have a robust backlog of Major Maintenance projects that additional

funding can begin to address

Reinvesting existing debt service savings can better support Preventive

and Recurring Maintenance needs

This is a great first step toward achieving long-term sustainability of our

Maintenance programs

SLIDE 12