The City of Philadelphia 2018 Investor Conference General - - PowerPoint PPT Presentation

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The City of Philadelphia 2018 Investor Conference General Obligation and Other Tax Backed Credits

July 18-19, 2018

Disclaimer

This Presentation is provided as of July 18, 2018 in connection with the City of Philadelphia (the “City”) Investor Conference. If you are viewing this presentation after July 18, 2018 there may have been events that occurred subsequent to such date that could have a material adverse effect on the information, financial or otherwise, that is presented herein. The City has not undertaken any obligation to update this Presentation beyond the aforementioned date thereof. Financial data, including revenues, expenditures, demographic statistics, debt service and other information provided herein are not warranted as to completeness or accuracy and are e e ues, e pe d tu es, de

• g ap c stat st cs, debt se

ce a d ot e

• at o

p o ded e e a e

• t

a a ted as to co p ete ess o accu acy a d a e subject to change without notice. This Presentation is provided for your information and convenience only. If and to the extent the City issues bonds after the date of this Presentation, any investment decisions regarding such bonds should only be made after a careful review of the complete Preliminary Official Statement prepared in connection therewith. You agree not to duplicate, copy, download, screen capture, electronically store or record this Presentation, nor to produce, publish or distribute this Investor Presentation in any form whatsoever. This Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including any planned issuance of bonds by the City, or to adopt any investment strategy as it relates to any planned issuance of bonds by the City or any outstanding debt of the

• City. Any offer or solicitation with respect to future bonds will be made solely by means of the Preliminary Official Statement, which shall describe the actual terms of

such bonds. In no event shall the City be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction relating to bonds issued by, or on behalf of, the City. The City makes no representations as to the legal, tax, credit or accounting treatment of any transactions relating to bonds issued by, or on behalf of, the City, or any other effects such transactions may have on you and your affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of any bonds. To the extent any underwriter or financial advisor has participated in the preparation of this Presentation, they shall not be liable for any misinformation or misstatements contained herein, unless the information is explicitly sourced to such entity. Furthermore, no underwriter or financial advisor that has participated in the preparation of this Presentation has d t k bli ti t d t thi P t ti b d th f ti d d t th f h ill th t k t t if th l t undertaken any obligation to update this Presentation beyond the aforementioned date thereof nor have, or will, they take any steps to verify the completeness or accuracy of the information contained herein. Past performance is not indicative of future results, which will vary. This Presentation contains information on proposed budgets and financial plans as well as estimated financial results for current fiscal year. Information that is shown as “Estimated” or “Proposed” is subject to change in its entirety and subsequent proposals

• r final versions may deviate materially from the proposed information contained herein. There is no assurance that estimated financial results will be realized and

actual financial results may differ, perhaps materially, from the estimates contained herein. By providing such information in this Presentation, the City has not ndertaken an obligation to pdate s ch information or to pdate an changes in the e ents circ mstances or conditions on hich s ch information is based 2 undertaken any obligation to update such information or to update any changes in the events, circumstances or conditions on which such information is based.

Presentation Speakers

 Rob Dubow – Director of Finance  Anna Adams – Budget Director  Rasheia Johnson – City Treasurer  Anne Bovaird Nevins

Chief Strategy and Communications Officer

 Anne Bovaird Nevins – Chief Strategy and Communications Officer

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Agenda

 Credit Highlights  Economic Data  Financial Update  Update on Current Matters  Update on Current Matters  Debt Overview  Q&A

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Credit Highlights

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Philadelphia Continues to be “A City On The Move”

 The nation’s sixth largest city based on population with 1.58 million residents in 2018*  Philadelphia’s population grew by 52 436 residents from 2010 to 2017 3 43% and has continually  Philadelphia s population grew by 52,436 residents from 2010 to 2017, 3.43%, and has continually

increased since 2000

 From 2006 to 2012, the percentage of the population aged 20 – 34 years old grew from 20% to 26%  Unemployment Rates nearing 2006 and 2007 levels at 5.2% in April 2018  The City is the center of the nation’s seventh largest metropolitan statistical area (11-county area

encompassing the City, Camden, NJ, and Wilmington, DE) which represents approximately 6.07 million residents

2018 1972

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* Estimated Source: Bureau of Labor Statistics, 2018.

Proactive Financial Management

 The City’s financial management has been rooted in adhering to best practices, responsible budgeting, efficient

• peration and a focus on maintaining positive fund balances

− Deep bench of financial managers; institutionalized financial controls that have incorporated disciplined budgeting and planning that meets the goals of independent fiscal oversight authority − For FY17, the City’s General Fund reported a combined ending fund balance of $189.2 million (on a budgetary basis), an increase of $40.9 million from FY16 ) − The City now has “A” category ratings for its General Obligation debt from all three major rating agencies: “A2” (negative outlook) Moody’s, “A” (stable outlook) S&P, “A-” (stable outlook) Fitch − The City estimates that the General Fund will end FY18 with a fund balance of $228.5 million (on a budgetary b i ) hi h i i t l 5 1% f th t t l b d t basis), which is approximately 5.1% of the total budget − As of July 1st, all Labor contracts have been negotiated and all contracts now include pension reform that allows the City to reach 80% funding by 2030

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Sources: City Records; Comprehensive Annual Financial Report for the fiscal year ended June 30, 2017; Quarterly City Manager’s Report for period ended March 31, 2018.

Economic Data

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Philadelphia’s Key Economic Growth

 Philadelphia has experienced population growth and stabilization of income over the past several years Population – City, MSA, Pennsylvania & Nation

2000 2010 2015 2017 % Change 2000 - 2017 % Change 2010-2017 Philadelphia 1,517,550 1,526,006 1,570,507 1,580,863 4.17% 3.59% p , , , , , , , , Philadelphia- Camden-Wilmington MSA 5,687,147 5,965,343 6,066,589 6,096,120 7.19% 2.19% Pennsylvania 12,281,054 12,702,379 12,791,124 12,805,537 4.27% 0.81% United States 281,421,906 308,745,538 321,039,839 325,719,178 15.74% 5.50%

Increases in population from 2000 to 2017; i f di

Median Household Income for Selected Geographical Areas, 2012-2016

Source: U.S. Census Bureau as of July 1, 2017, Census 2010, Census 2000.

Geographical Area 2012 2013 2014 2015 2016 % Change 2012 2016

increase of median household income at a faster pace then the state and the nation.

g p 2012-2016 Philadelphia 37,192 37,192 37,460 38,253 39,770 7.4% Philadelphia- Camden-Wilmington MSA 61,923 61,923 62,169 62,513 63,952 3.3% Pennsylvania 52,267 52,548 53,115 53,599 54,895 5.0%

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United States 53,046 53,046 53,482 53,889 55,322 4.3%

Source: U.S. Census Bureau, 2012-2016 American Community Survey 5-Year Estimates

The City Economy Continues to Benefit From Being the “Center of a Major Regional Economy”



The City is located at the center of this regional economy, which includes four highly-rated counties highly-rated counties



Within a day’s drive of 50% of the nation’s population, the City is in a key position to access regional and international markets



Employment continues to increase with six years of sustained job growth



The City’s economy has transitioned to a “knowledge economy” with employment in

THE PHI LADELPHI A REGI ON THE PHI LADELPHI A REGI ON



The City s economy has transitioned to a knowledge economy with employment in Leisure and Hospitality and Education and Health Services growing 29.88% and 17.90% respectively from 2008 to 2017.



From 2010 – 2017, Philadelphia has created 68,400 private sector jobs since losing nearly 12,000 private sector jobs at the peak of the recession in 2009. PHILADELPHIA NON-FARM PAYROLL EMPLOYMENT (AMOUNTS IN THOUSANDS)

Sector 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 % Change 2008-17 2008 17 Leisure and Hospitality 57.9 56.9 58.4 60.6 63.2 64.8 66.9 68.5 70.8 75.2 29.88% Education and Health Services 196.7 199.5 202.3 206.4 208.1 209.3 212.7 216.6 223.9 231.9 17.90% P i t S t T t l 554 2 542 3 544 9 551 1 557 2 561 7 571 3 581 9 597 7 613 3 10 56%

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Source: Bureau of Labor Statistics, 2017. Includes persons employed within the City, without regard to residency.

Private Sector Total 554.2 542.3 544.9 551.1 557.2 561.7 571.3 581.9 597.7 613.3 10.56% Government 109.2 110.4 112.2 109.0 105.3 103.5 102.2 101.6 101.9 102.5

• 6.14%

Total 663.3 652.7 657.1 660.1 662.5 665.2 673.5 683.5 699.6 715.8 7.82%

Diverse Economy with Industries Positioned for Growth

 The City’s economy is diverse and has benefited from growth areas such as health care industry, higher education,

tourism and leisure and other professional services such as legal and insurance industries

 Education and Health Services, Professional and Business Services, Financial Activities, and Leisure and Hospitality

sectors collectively represent 63% of total employment in the City.

 While government employment continues to decline, the private sector has created 68,400 jobs from 2010 – 2017

since losing nearly 12 000 private sector jobs at the peak of the recession in 2009 since losing nearly 12,000 private sector jobs at the peak of the recession in 2009.

 The City has the second largest concentration of undergraduate and graduate students on the East Coast, with

approximately 100 degree granting institutions of higher education serve over 434,000 students. There are more than 30 hospitals, five medical schools, two dental schools, and two pharmacy schools within the City of Philadelphia.

5.8% 3.9% 2.7% 1.5% 1.6%

Education & Health Services Government Trade Transportation & Utilities

Key Industries

33.2% 13.2% 10.7%

Trade, Transportation, & Utilities Professional & Business Services Leisure & Hospitality Financial Activities Other Services Manufacturing 11

Source: Bureau of Labor Statistics (BLS) 2018. Average employment estimates through April 2018.

14.3% 12.9%

Manufacturing Information Construction & Mining

Universities Strengthen the City’s Knowledge Economy

 Philadelphia’s universities continue to attract top-quality students who, upon graduation, are increasingly choosing to

remain in Philadelphia to pursue their careers – Many of the City’s universities are located in close proximity to these jobs and Philadelphia’s dense and vibrant walkable neighborhoods. 66% of residents 25 and older living within Center City have a Bachelor’s Degree or more

1 University of Pennsylvania 2 Temple University - City Center

Legend

3 Drexel University 4 University of the Arts 5 Moore College of Art & Design 6 Art Institute of Philadelphia 7 Curtis Institute of Music 8 Peirce College 9 Thomas Jefferson University 10 Pennsylvania Academy of the Fine Arts 11 Philadelphia Community College

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New Construction Reflects Positive and Upward Growth

 The over $3 billion in construction activity underway throughout the City is reflective of the confidence and commitment

• f these businesses in the prospects for future growth

– Philadelphia is experiencing a revival of construction, with over 43 major projects under construction concurrently, representing over $3.0 billion in investment – Higher education and health care institutions are currently the most active builders, while 13 residential projects are also under construction

Selected Construction Projects

Commercial

18 Convention Center Parking Facility 23 Glaxo Smith Kline 24 Iroko 27 P V d (R id i l / Mi d U ) 9 2400 South St. 10 2116 Chestnut St. 11 2021 Chestnut St. YWCA Annex 12 2040 Market St. 13 The Granary

Residential

27 Paseo Verde (Residential / Mixed Use) 28 Bottom Dollar Supermarket 29 Baker Square Shop Rite 1 CHOP Ambulatory

Healthcare

14 1900 Arch St. 15 1605 Sansom St. 16 Robert Morris Building 19 Goldtex

University / Higher Ed

y 2 UPenn Perelman Center Expansion 3 CHOP Karabots Primary Care Center 4 Wistar Institute (Research) 21 Pennsylvania Medicine at Washington Square 25 Building 489 Medical Office 30 Spectrum Community Health Center 5 UPenn Hill House (Residential) 6 Drexel Dorm (University) 7 UPenn Nanotechnology Building (Research) 8 Drexel Business School 26 Temple University - Morgan Hall (Residential)

y / g

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Source: City of Philadelphia Department of Commerce

20 Hilton Home2Suites 22 Hotel Monaco

Hotels / Hospitality

17 New Family Court

Public Building

Financial Update

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FY18 Estimate Year-End Highlights FY19 Budget Highlights

 Estimated 2018 year end revenues are over

$69 million over the budget amount, mostly due to higher projected tax receipts, particularly for Real Estate Transfer tax, Wage

FY 2019 continues to include

incremental reductions in the Wage Tax, although at a slower pace to allow for increased support of the School particularly for Real Estate Transfer tax, Wage and Earnings taxes, and Sales tax

 Projected increases in the Real Estate

Transfer tax reflect the increased activity in h i l d l i l for increased support of the School District

Taxes are projected conservatively. Budget continues to include budgeted

housing sales, and some large commercial

• transactions. Changes in the regulations by

the City may have also positively impacted receipts labor ($16.4 million) and federal funding ($54.6 million) reserves

The largest increase in expenditures

are from increased contribution to the

Increased labor expenditures from the settled

DC 47 contract will be absorbed by budgeted labor reserves

City is contemplating increasing pension

are from increased contribution to the School District of $76 million

City is contemplating increasing pension

contribution with additional fund balance

Fund Balance estimate of $228 million is $153

million higher than the budgeted amount of $75 illi

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million

General Fund Summary of Operations – FY 2018 (Estimate)

 Revenues estimated at $4.474 billion in

FY18, a 1.57% increase from FY18

Other Funds f th Cit

Real Net Profits, 30.007 Parking, 98.017 Amusement , 21.287 Smokeless Tobacco, 0.78 Beverage, 78.826 Other, 2.983

FY2018 General Fund Revenues: $4.474bn

Adopted Budget

• $1.5358 billion in wage tax revenue, a

$71.2 million increase from Budget estimates

• Real Estate tax collection increases due

Other Govts, $753M

• f the City,

[VALUE]

Wage & Earnings, 1535.84 Real Property, Business Income, 413.525 Sales, 204.452 Real Estate, 313.173

Real Estate tax collection increases due to increases in home value and collection rates  Expenditures estimated at $4.458 billion

in FY18

Local Non- Tax Revenues, $308M Total Taxes, $3,349M

650.538

 Adjusted operating surplus estimated to

be $39.302 million

 Fund balance available for

appropriation as of June 30, 2018 estimated at $228.545 million

FY2018 General Fund Expenditures: $4.458bn

Materials, Contributions, Indemnities, and Taxes, $197M Debt Service, $157M Payments to Other Funds, $36M Advances & Misc.

• Pmts. / Labor

Reserve $13M Adv & Misc. Pmts. / Federal Funding Reserve, $0M Total Employee Compensation Purchase of Services, $923M , Supplies and Equipment, $108M Reserve, $13M

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Compensation, $3,025M Source: City of Philadelphia, Adopted Five Year Financial Plan FY2019 - 2023

General Fund Summary of Operations – FY 2019 (Budget)

Other Funds

• f the City,

Net Profits, Parking, 100.673 Amusement , 22.213 Beverage, 78.038 Smokeless Tobacco, 0.783 Other, 2.944

FY2019 General Fund Revenues: $4.617bn

 Revenues budgeted at $4.617 billion in

FY19, a 3.2% increase from FY18

Other Govts, $806M [VALUE]

Wage & Earnings, 1,588.56 Real Business Income, 425.192 Sales, 217 Real Estate, 310 31.17

Estimates.

• $1.5885 billion in wage tax revenue, a

$52.7 million increase from FY18 Budget estimates.

• Business Income & Receipt taxes

Local Non- Tax Revenues, $292M Total Taxes, $3,446M Total Taxes, $3,071M

Property, 669.08

Business Income & Receipt taxes projected to be 2.8% higher than FY18 Budget estimates.  Expenditures budgeted at $4.725 billion

in FY19

FY2019 General Fund Expenditures: $4.725bn

Materials Contributions, Indemnities, and Taxes, $282M Debt Service, $169M Payments to Other Funds, $38M Advances & Misc.

• Pmts. / Labor

Reserve, $16M Adv & Misc. Pmts. / Federal Funding Reserve, $55M

 Adjusted operating deficit projected to

be $89.088 million

 Fund balance available for

appropriation as of June 30, 2019 estimated at $139.457 million

Employee Compensation, Purchase of Services, $952M Materials, Supplies and Equipment, $114M

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p $3,099M Source: City of Philadelphia, Adopted Five Year Financial Plan FY2019 - 2023

General Fund Balance

 A healthy fund balance gives the City financial flexibility, makes it better able to meet its cash flow needs, mitigate

current and future financial risks and ensure predictability of future services.

 The City’s fund balance has historically been well below levels recommended by government experts and the City's

target of 6% to 8% of General Fund expenditures.

 In FY 2017, the General Fund ended with a fund balance of $189.2 million, a $40.9 million increase from FY 2016. The

General Fund is estimated to end FY2018 with a fund balance of $228 5 million (assuming an additional $35 million General Fund is estimated to end FY2018 with a fund balance of $228.5 million (assuming an additional $35 million pension payment).

300,000

General Fund Balance

256,902 202,135 151,531 148,315 189,243 228,545

150,000 200,000 250,000 , 50,000 100,000

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Source: FY2017 CAFR p. 5

2013 2014 2015 2016 2017 2018*

Source: City of Philadelphia, FY2019 – FY2023 Five Year Financial Plan * Estimate

Adopted FY19-FY23 Five Year Plan

I ti i Phil d l hi ’ Child I i S f t Tackling the Opioid Crisis and



Increased annual contribution to School District from $104M in FY18 to $181M in FY19



Continuing investments in pre-K and Community Schools with the PBT: Investing in Philadelphia’s Children



Additional funding to the Police and Fire departments (nearly $100M and $54M, respectively)

• ver five years



Additional investment in the Improving Safety



$1M in annual funds to support the “Hub of Hope,” which provides daytime respite and needed services to individuals on the street Tackling the Opioid Crisis and Homelessness Community Schools with the PBT: − Supporting 2,000 three- and four- year-olds enrolled in Pre-K, with a goal of 5,500 in FY23 − Reaching 20 Community Schools by FY23



Additional investment in the Streets Department to improve traffic safety



Increased building demolition spending for the Department of Licenses and Inspections



Increased funds to support foster street



Increased targeted support to address the negative impact caused by the opioid epidemic in affected neighborhoods



Increased funds for housing for homeless addicts Fiscal Challenges



Increased funds to support foster care providers and to expand Family Empowerment Services through the Department of Human Services Reducing Poverty and Promoting homeless addicts Improving the Delivery of City



$103M held in reserve for future labor contracts and awards



Increased funding for the City’s Pension Fund



Additional funds held in a reserve Fiscal Challenges



Increased wages for seasonal employees within Philadelphia Parks and Recreation to reach a living wage



Continued funding for the Fair g y g Growth With Equity



Investing in information technology upgrades to major systems



Allocating funds to the Streets Department to resurface and pave p g y y Services



Additional funds held in a reserve for potential federal and state cuts to essential programs



Continued funding for the Fair Chance Hiring Program



Increasing the homestead exemption from $30,000 of assessed value to $40,000



$2.5M investment over five years in f l ti p p 131 miles annually by the end of the Capital Program and to replace aging trash compactors



$7.6M to the District Attorney’s Office over five years, to support staffing and technology system

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Source: Five-Year Financial and Strategic Plan for Fiscal Years 2019-2023

foreclosure prevention programs



$3.8M in increased funds to the Philadelphia Land Bank reforms and other initiatives

Update on Current Matters

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Pensions

Working with its union partners and City Council, the Kenney Administration has a multi-part plan to get the pension system to 80% funded.

 The plan includes reforms which have been negotiated with all City unions. Those reforms include having current

employees make increased contributions that rise as employee salaries increase. New employees would enter into a hybrid plan that includes a combination of a defined benefit plan and a 401K-type plan.

 Sales tax revenue enabled by the state legislature would be used to make payments above the state required

• amount. Over the life of the five year plan, that sales tax would generate $297 million for the pension fund.
• amount. Over the life of the five year plan, that sales tax would generate $297 million for the pension fund.

 The pension board has changed its investment strategy in a way that increases returns and decreases fees by about

$13 million annually.

 This combination of reforms, increased revenues and better investment returns is projected to get the system to the

80% funded level within 13 years of implementation. y p

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Labor Agreements

 In FY 2018, the City negotiated a three-year agreement with DC47. The contract negotiated with

DC47 included significant pension reforms to improve the health of the fund.

 As of January 28, 2018, the City had 29,008 employees. More than 80% (23,863 employees) were

represented by one of the City’s municipal unions.

 All contracts have been successfully negotiated. The five year plan includes labor spending reserves

which will mitigate future increases.

Employee Group Count Contract Term Fraternal Order of Police (FOP Lodge 5) 6,607 7/1/2018-6/30/2020 Deputy Sheriffs and Register of Wills (Lodge 5) 376 7/1/2017-6/30/2020 International Association of Fire Fighters (IAFF Local 22) 2,406 7/1/2017-6/30/2020 AFSCME District Council 33 8,118 7/1/2017-6/30/2020 Correctional Officers (Local 159 - District Council 33) 2,176 7/1/2017-6/30/2020 AFSCME District Council 47 3,691 7/1/2018-6/30/2021 Local 810 (District Council 47 Court Employees)* 489 7/1/2018-6/30/2021 Local 810 (District Council 47 Court Employees) 489 7/1/2018 6/30/2021 Non-Represented 1,137

• Exempt

4,008

• Total Employees

29,008

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Source: City of Philadelphia, Five Year Financial and Strategic Plan for Fiscal Years 2019-2023.

Philadelphia Beverage Tax ade p a e e age a

 Revenue from the Philadelphia Beverage Tax goes to the General Fund. The City collected approximately $39.5

million in revenues in FY17 (the first six month period for which the tax was effective), and is projected to generate $78.8 million in FY18. The funding will support costs related to three key initiatives: expanded pre-K, community schools, and investments in the City’s park, recreation and library facilities through the initiative Rebuilding Community Infrastructure (Rebuild) Community Infrastructure (Rebuild).

 Full implementation of the programs cannot happen, however, until resolution of litigation brought to try to block the

• tax. On September 14, 2016 a lawsuit challenging the Philadelphia Beverage tax was filed. This complaint was

dismissed in its entirety on December 16, 2016. Following the decision, the plaintiffs appealed the ruling to the Commonwealth Court of Pennsylvania. On June 14, 2017, the Commonwealth Court of Pennsylvania upheld the decision of the Co rt of Common Pleas The plaintiffs petitioned the Penns l ania S preme Co rt to re ie the decision of the Court of Common Pleas. The plaintiffs petitioned the Pennsylvania Supreme Court to review the decision, and on May 14, 2018, the Supreme Court heard oral arguments.



The FY19 budget assumes the litigation will not be resolved in time to expand the number of pre-K seats and Community Schools beyond current levels. When the litigation is resolved in the City’s favor, the Administration will:

• Pre-K: expand the number of pre-k seats each year, funding 3,000 seats starting in FY20 and increasing to 5,500

seats by FY23;

• Community Schools: expand the number of Community Schools each year, increasing to 20 Community Schools

by FY23;

• Rebuild: initiate the first of three borrowings in late FY19, likely of reduced amounts that will be determined when

the litigation resolves the litigation resolves.



A portion of the revenue generated by the PBT was reserved while the litigation is ongoing, and in FY20, assuming the lawsuit is resolved in the City’s favor, those reserved funds will be made available to support professional development, technical assistance and classroom supports for pre-K providers and Community Schools services

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City’s Capital Budget

 The Capital Program for FY19-24 supports

strategic commitments to new facilities as f Total FY19 Adopted Capital Budget well as the ongoing modernization of existing capital assets

 FY19 Capital Budget

− $174 million in new, City-supported General Obligation (CN) borrowing

City Self Sustaining, $1,231.5 , 41 1% Private, $189.3 , 6.3% Federal, $446.1 , 14.9%

Total FY19 Adopted Capital Budget General Obligation (CN) borrowing − $444.2 million of prior year tax-supported City loans to leverage $2,548.9 billion from federal, state, private, City self- sustaining enterprise, operating, and revolving fund source

41.1% Oth State, $402.0 , 13.4%

revolving fund source.

 Over six years, the FY19-24 Capital

Program envisions the commitment of approximately $1 billion in CN borrowing as part of an adopted $10.246 billion in total capital investment

City Other, $74.4 , 2.5% New Loans, $174.0 , 5.8% Carryforward Loans, $444.2 , 14.8% Other Government, $31.6 , 1.1%

capital investment

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Debt Overview Debt Overview

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Outstanding General Fund Debt Service

General Obligation Debt Service As of June 30, 2018 City Service Agreement Debt As of June 30, 2018 ,

120 000 000 140,000,000 160,000,000 180,000,000

,

250,000,000 300,000,000 350,000,000 60,000,000 80,000,000 100,000,000 120,000,000 100,000,000 150,000,000 200,000,000 20,000,000 40,000,000 50,000,000

Summary Statistics

Maximum Annual Debt Service $158,938,363.75 Average Annual Debt Service $97,770,740.17 Percentage of Debt Amortized in 5 Years 32.31% Percentage of Debt Amortized in 10 Years 62.75%

Summary Statistics

Maximum Annual Debt Service $292,463,802.22 Average Annual Debt Service $90,655,875.97 Percentage of Debt Amortized in 5 Years 33.86% Percentage of Debt Amortized in 10 Years 74 72%

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Percentage of Debt Amortized in 10 Years 62.75% Percentage of Debt Amortized in 10 Years 74.72%

Future Financings

Timing Description Estimated Size

Fiscal 2019 2018 Philadelphia Redevelopment Authority - City Service Agreement Revenue Bonds (Affordable Home Loan Program) Taxable $40 million 2018 Tax and Revenue Anticipation Notes, 2018 - 2019 $100 million TBD* Philadelphia Authority for Industrial Development - City Service Agreement, Rebuild Program TBD Fiscal 2020 2019 General Obligation Bonds, New Money $385 million 2019 Tax and Revenue Anticipation Notes, 2019 - 2020 $100 million

* Timing dependent upon Supreme Court ruling

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Q&A

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Visit the City’s Investor Website at www.phila.gov/investor

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Visit the City s Investor Website at www.phila.gov/investor