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Home My WebLink About2024-04-10 Commissioner Minutes Franklin County 2024 Financing Discussion April 10, 2024 Prepared by: John Frey Director & Garrett Moore Senior Analyst PFM Financial Advisors LLC 100 Market Street Harrisburg, PA 17101 717.231.6265 www.pfm.com MUNICIPAL MARKET UPDATE April 4, 2024 HISTORICAL BVAL CURVE ILLUSTRATION - SINCE JANUARY 1, 1993 \[1\] 8.00 7.00 6.00 RangeAverageCurrent 5.00 4.00 Yield (%) 3.00 2.00 1.00 0.00 1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year 10 Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 Year21 Year22 Year23 Year24 Year25 Year26 Year27 Year28 Year29 Year30 Year Maturity Year SPOT ANALYSIS - 10 YEAR BVAL - SINCE JANUARY 1, 1993 \[1\] 6.50 Since 1/1/1993 AmountDate 6.00 Min 0.543 8/10/2020 5.50 Max 6.150 11/17/1994 5.00 Average 3.262 ƓΉğ 4.50 t 2.610 ЍΉЍΉЋЉЋЍ Curren 4.00 3.50 3.00 Yield (%) 2.50 Since 1/1/1993Rate% Greater% Less Current2.61063.65%36.35% 2.00 Current + 50bps3.11053.51%46.49% 1.50 Current + 100bps3.61044.81%55.19% 1.00 0.50 19931994199519961997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024 SPOT ANALYSIS - 10 YEAR BVAL - SINCE JANUARY 1, 2023 4.000 3.750 3.500 3.250 3.000 2.750 2.500 Yield (%) 2.250 Since 1/1/2023 AmountDate 2.000 Min 2.059 4/12/2023 1.750 Max 3.634 10/30/2023 1.500 Average 2.610 ƓΉğ 1.250 Current 2.610 ЍΉЍΉЋЉЋЍ 1.000 Jul-23 Jan-23Jan-24 Jun-23 Oct-23 Feb-23Apr-23Sep-23Feb-24 Dec-23 Aug-23 Nov-23 Mar-23Mar-24 May-23 \[1\] Datapoints prior to January 4, 2010 are provided by MMD, datapoints after January 4, 2010 are provided by BVAL. 2 PFM Financial Advisors LLC | 4/5/2024 Franklin County Discussion on Capital Project Financing April 10, 2024 1.Capital Project Financings (2018 to present) a.2018 Bonds i.Deposit to project fund:$55.0 million ii. Settlement Date:5/30/2018 iii.Primary projects funded:Judicial Center Complex and Admin. Building b.2021 Bonds i.Deposit to project fund:$7.07 million ii. Settlement Date:12/1/2021 iii.Primary projects funded:Finalize the Judicial Center and the Historic Courthouse c.2023 Bonds i.Deposit to project fund:$9.78 million ii. Settlement Date:9/12/2023 iii.Primary projects funded:Residual cost of the Historic Courthouse renovation and continuing renovation of the Courthouse Annex 2.Upcoming Project Financing Requirements a.Project fund is currently in a negative cash position b.Estimated additional funds needed for capital projects of approximately $10 million i.Governments issuing $10 million or less in a calendar year can designate the bonds as ÐBank QualifiedÑ which allows for lower interest rates and a shorter call date 3 PFM Financial Advisors LLC COUNTY OF FRANKLIN SUMMARY OF OUTSTANDING INDEBTEDNESS DEBT SERVICE REQUIREMENTS 123456789 LGUDA Debt*Other Financings Fiscal G.O. BondsG.O. NoteG.O. BondsG.O. Bonds Sub-Total Motorolla Total Year Series ofSeries ofSeries ofSeries of LGUDA LIDA LoanCapital Lease Debt Ended 20182020 \[1\]20212023 Debt Service*20052021 Service 12/31/20242,124,6383,898,565206,300459,217 6,688,720 65,945493,064 7,247,729 12/31/20255,084,525206,150414,550 5,705,225 65,945493,064 6,264,234 12/31/20265,080,925241,000403,800 5,725,725 49,440493,064 6,268,229 12/31/20275,082,725259,800433,550 5,776,075 493,064 6,269,139 12/31/20285,084,525508,000436,800 6,029,3256,029,325 12/31/20295,086,125508,700664,800 6,259,6256,259,625 12/31/20305,082,325509,100669,000 6,260,4256,260,425 12/31/20315,083,125509,200667,600 6,259,9256,259,925 12/31/20325,083,125504,000675,800 6,262,9256,262,925 12/31/20335,082,125503,650678,200 6,263,9756,263,975 12/31/20345,084,925503,000675,000 6,262,9256,262,925 12/31/20355,086,125502,050671,400 6,259,5756,259,575 12/31/20365,085,525500,800677,400 6,263,7256,263,725 12/31/20375,082,925509,250672,600 6,264,7756,264,775 12/31/20385,081,850512,100667,400 6,261,3506,261,350 12/31/20392,729,5003,531,800 6,261,3006,261,300 12/31/20403,406,000 3,406,0003,406,000 Totals73,295,5133,898,5659,212,60015,804,917102,211,595181,3301,972,256104,365,181 Principal**:54,200,0003,884,0006,710,0009,970,00074,764,0001,418,07076,182,070 Call Date:11/1/2026Non-Callable11/1/202611/1/2028 New Money & Cur Ref 2013 & Letterkenny Ind'l Motorolla Lease Purpose:Cur Ref Portion New MoneyNew Money 2014Dev't Authority(911) of 2011 * Debt issued under PA's Local Government Unit Debt Act (LGUDA) and filed with PA's Dept. of Community and Economic Development (DCED) ** Outstanding as of March 12, 2024 \[1\] 2020 Note : JPMorgan Chase bank loan (matures 4/1/2024) 4 PFM Financial Advisors LLC 3/12/2024 COUNTY OF FRANKLIN Summary of 2024 Financing Plan 1 ESTIMATED* Series of 2024* June, 2024 Est. Settlement Estimated Bond Par Amount$9,995,000 BQ Status Tax-Exempt, Bank-Qualified 2345 FiscalExistingEst. AnnualEstimated Year Total DebtNew DebtNew Net EndingServiceService*Debt Service* 12/31/20247,247,729165,885 7,413,614 12/31/20256,264,234479,013 6,743,247 12/31/20266,268,229472,513 6,740,742 12/31/20276,269,139471,263 6,740,402 12/31/20286,029,325450,013 6,479,338 12/31/20296,259,625484,763 6,744,388 12/31/20306,260,425482,763 6,743,188 12/31/20316,259,925486,163 6,746,088 12/31/20326,262,925484,363 6,747,288 12/31/20336,263,975482,563 6,746,538 12/31/20346,262,925485,763 6,748,688 12/31/20356,259,575488,638 6,748,213 12/31/20366,263,725481,300 6,745,025 12/31/20376,264,775479,175 6,743,950 12/31/20386,261,350482,050 6,743,400 12/31/20396,261,300484,575 6,745,875 12/31/20403,406,0003,341,875 6,747,875 12/31/20416,745,475 6,745,475 12/31/2042 12/31/2043 12/31/2044 12/31/2045 TOTAL104,365,18117,448,148121,813,328 *Series of 2024: estimates only. Actual rates and payments to be determined at time of pricing. 5 PFM Financial Advisors, LLC 3/12/2024 County of Franklin Estimated Financing Timeline Series of 2024 Bonds for Capital Projects AprilMayJune SMTWTFSSMTWTFSSMTWTFS 12345612341 789101112135678910112345678 14151617181920121314151617189101112131415 212223242526271920212223242516171819202122 28293026272829303123242526272829 30 April 10 Board Meeting o Presentation on the issuance of Series of 2024 Bonds for the purpose of financing the CountyÓs capital projects o Proceed with preparation of financial and legal documents for the bond sale o Proceed with S&P credit rating process (current rating from S&P is ÐAAÑ) May 8 Board Meeting o Bond Sale via PFM competitive internet auction Locks-in final interest rates and final bond payment schedule o PFM to present final numbers at the CommissionerÓs meeting that evening Official vote by the Commissioners to issue the 2024 Bonds June 18 ± o Settlement of Series of 2024 Bonds Î proceeds become available for capital projects 6 PFM Financial Advisors LLC 7