CENTRAL FLORIDA CHAPTER, FGFOA Best Practices in Debt Management: Update on Bank Placement and Bond Financing Options February 6, 2015 3: 00 pm – 4: 40 pm Winter Park, Florida Presented by: Jeffrey T. Larson, President Larson Consulting Services jlarson@larsonconsults. com 407 -496 -1597
Best Practices in Debt Management Presentation Outline INTRODUCTIONS FGFOA Chapter What is the Project? And Traditional Financing Options FINANCE PLAN – Key Considerations Section 1 2 3 MUNICIPAL BOND MARKET – Update on Credit Enhancement DEBT MANAGEMENT - Developing A Financing Plan – Bank vs. Bond Options A REVIEW OF RATING AGENCY CONSIDERATIONS 5 TYPICAL ISSUES AND RECOMMENDATIONS 6 QUESTIONS & ANSWERS APPENDIX • Speaker’s Bio • Debt Management Policy’s Typical Features 7 8 Pg 2 4
Section 1 DEBT MANAGEMENT What is the project? Pg 3
What is the Project? 1. 2. 3. 4. 5. 6. Initial Questions Amount: ___________________ Timing: ___________________ Priority, and Source of Request? ________________________________ What assets would be financed? _______________________ Corresponding term of debt? __________________________________ General Fund or Enterprise Fund Project? _______________________ Other Considerations: Fixed Rate Versus Floating Rate, Covenants, Prepayment Ability, O&M Needs, Others _____________________________________________ Pg 4
DEBT MANAGEMENT Traditional Financing Options Pg 5
Financing Options A. Pay-As-You-Go Options Advantages: No Interest Expense No Other Costs of Issuance ______________________ ___________ Disadvantages ? Timing ? Size of Project ? Project Feasibility ? Current Availability of Net Excess Revenues ______________________ ___________ Pg 6
Financing Options B. Lease Option Why Lease? Obsolescence ______________________ Examples of Leased Assets Telephones, Computer Equipment, Others ___________ Buy Option Why Buy? Examples: Valued, long term asset, control ______________________ Water and Sewer lines, County Building, City Hall, Proprietary Equipment, Public Safety; Design/ Build, Lease To Buy, 6320 Options ___________ Pg 7
Financing Options C. Short-Term Vs. Long-Term Market Options These variables change, but typical rules of thumb have been: 1. BAN’s, TAN’s GAN’s Purpose: Short-Term bridge financings, in anticipation of greater project definition, or long term “financing” solution or receipt of seasonal revenue source Term: 6 months to 3 years. Important Issue: Typically need long term “take-out” source also approved/arranged when bridge is structured. May result in two closings and higher cost of issuance. Need to review bond/loan covenants to avoid “additional bonds test” violations. Pg 8
Financing Options 2. Bank Financing Options Bank Credit Facilities to short term notes (including BAN’s) to medium term notes – traditionally available up to 10 years, sometimes longer. Some banks and bank leasing “affiliates” have gone out 20 years. Bank’s lending capacity/appetite subject to change. Dynamic, changing environment, no longer a “vanilla” or easy process. Advantages: Reduce legal/financing costs and fees; “easier process, ” privately placed. “Bank qualified” status, or “Public Use” are keys to understand. Short form RFP process helpful. Disadvantages: Bank qualified vs. Non Bank Qualified. Shorter term, tax risk, repayment restrictions, “bank credit culture, ” rate reset mechanism, beware embedded “fixed rate” via swaps. Illiquid. Tax appetite and liquidity changes. Lenders may require varying degrees of a depository/investments and/or banking services relationship. “Bank Qualified” means: __________________________________________________________ “Public Use” means: ________________________________________________________ “Prepayment Penalty” means: ________________________________________________ Pg 9
Financing Options continued 3. Bond/Capital Markets Option: Advantages: Available up to 30+ years. If over $10 million and over 10 years, traditionally has been most attractive. Lower interest rates offset higher cost of issuance. Was traditionally a very broad market, with ready access, and multiple “credit enhancement options”. Bond Insured/credit enhanced options have changed drastically over last 3 years! Emergence of Build America Mutual (“BAM”), and return of National Public Finance Guarantee as AA rated bond insurer has been very welcome. Importance of Issuers proactively obtaining and maintaining minimum “A” category underlying credit ratings. Single issue and “pooled loan program” options also exist, but many changes here also due to liquidity and provider downgrades. Availability of State/Federal subsidized Loan programs. Disadvantages: Higher cost of issuance, more involved issuance process (i. e. bond and offering documents. ) Secondary, ongoing disclosure issues. Requires Finance Team. Since Summer 2008 “Market Freeze”, investor base has shrunk by 40 -50%, down to three current AA bond issuers. Bank AAA/ AA Letter of Credit capacity either non-existent or prohibitively expensive. Pg 10
Financing Options continued Typical “Finance Team” Members include: ● ● ● ● City/County/Authority/District Staff (“Team Captain”) Financial Advisor (now regulated by SEC & MSRB) Project Consultant Investment Banker/Underwriter(s) Bond Counsel Underwriter’s Counsel/Disclosure Counsel Rating Agencies Credit Enhancement Providers ( Bank LOC or Bond Insurer) Consulting Engineers/Feasibility & Rate Consultants PPP Partners Public Sector Partner Grant Providers Other Pg 11
Section 2 FINANCE PLAN Key Considerations Pg 12
Financing Plan A. General Fund Versus Enterprise Fund-General Questions § Available net revenues for debt service § Is this a cash flow contributing project or enterprise? § Existing versus new revenue sources? B. Details on Financing Plan? § Role of Credit Enhancement (Bond insurance, letter of credit, etc. ) § Rated versus non rated § Repayment Plan § Construction Schedule (Capitalized interest, investment program) § Historical and projected debt service coverage levels § “Reliability “of pledged revenues § “Sunset “on pledged revenues § Do we need a Referendum? (general obligation, sales tax, county surtax, etc. ) Pg 13
Financing Plan B. Details on Financing Plan? (continued) § § If enterprise, existing rate structure? (rate study/feasibility study, do we have “believable” and dependable projections, with a margin for error; sensitivity analysis) Increased Opportunities for Public/Private/Public Partnerships Examples: Public/Private: ____________ Public/Public: ____________ Contingencies Ø Project completion risk Ø “Lease up” or cash flow ramp up period Ø “Sleep at night” account, Restricted Surplus Fund Ø “Trust but verify” Tax issues - TEFRA 1986 1) Ability to borrow 2) Substantive project (no ghost $) 3) “Arbitrage” considerations; Spend-down estimates! 4) “Public Purpose” Pg 14
Section 3 MUNICIPAL BOND Market Update on Credit Enhancement Pg 15
Pg 16 11 8/ 7/ 08 8/ 7/ 05 02 8/ 7/ 96 99 8/ 7/ 93 8/ 7/ 90 8/ 7/ 87 8/ 7/ 84 8/ 7/ 81 8/ 7/ 78 8/ 7/ 75 8/ 7/ 72 69 8/ 7/ 66 63 8/ 7/ 60 8/ 7/ 57 8/ 7/ 54 8/ 7/ Municipal Bond Market History and Market Update 25 20 15 BBI 10 Fed Funds 5 0
Pg 17 /1 2 12 6/ /6 11 4/ 11 11 6/ 9/ 9 10 6/ 2/ 6/ 7/ 8 09 /0 /6 12 6/ 5/ /0 08 6/ /6 10 3/ 07 07 6/ 8/ 5 06 6/ 1/ 6/ 6/ /0 05 6/ /6 11 4/ 04 04 6/ 9/ 2 03 6/ 2/ 1 02 /0 6/ 7/ /0 6/ /6 12 5/ 01 6/ /6 10 3/ 00 00 6/ 8/ 6/ 1/ Municipal Bond Market History and Market Update 8 7 6 5 4 BBI Fed Funds 3 2 1 0
Historical Credit Spreads to AAA MMD At the start of the credit crisis in October 2008, spreads began to rise well above the AAA MMD, reflecting concerns with underlying credit quality. 198 bps 107 bps 24 bps
Municipal Markets: A Changed Landscape Credit Support at a Higher Cost • Letter and lines of credit conditions have changed • Tougher credit terms • Shorter duration • Fewer providers • Higher costs Federal Programs • New programs authorized under Stimulus Act of 2009 have come and gone • Direct subsidy (BABs, Recovery Zone) • Tax Credit (BABs, Energy, Education) • Tax subsidy (Recovery Zone Facility Bonds) • Bank Qualified Bonds ($30 million to $ 10 million) • AMT holiday Investor Municipal Credit Sensitivity • Credit analysis is much more important to the investor • Demise of bond insurers • Focus on fiscal health of state & local governments • Rating agencies Economic & Market Conditions • Fed posture • Domestic economy • Commodity prices • Middle East instability • Japanese economy • End of QE 3 • Growth of middle market buyers importance
Credit Enhancement & Ratings *Does not include Kro II bond rating agency. Pg 20
Credit Enhancement & Ratings Bond Insurers ACA Financial Guaranty Corp. AMBAC Fall 2004 Rating A AAA/Aaa/AAA Update Ratings/Outlook NR / NR (Run. Off Only) Bankruptcy Filing – November 2010 (In Suspense) Assured Guaranty Corporation (AGC) Assured Guaranty Municipal (AGM) (ex FSA) N/A AA, Stable (S&P) / A 3, Negative (Moodys) Fitch (NA) Berkshire Hathaway Assurance Corp. N/A AA+ (Stable) / Aa 2 (Stable) / AA (Not Active) Build America Mutual (BAM) N/A AA, Stable (S&P) CIFG Assurance (Assured Guaranty) AAA BB (Dev) / Ba 3 (Dev) / NR FGIC AAA/Aaa/AAA NR / NR (In Suspense, Book to MBIA) FSA AAA/Aaa/AAA NA; Part of Assured Guaranty MBIA AAA/Aaa/AAA B (Neg) / Ba 3 (Negative) / NR National Public Finance Guar. Corp (f/k/a MBIA Insurance Corp. of Illinois) N/A AA-, Stable (S&P)/ A 3, Stable (Moody’s), NR Radian Asset Assurance Inc. N/A BB- (Dev) / Ba 1 (Dev) / NR Syncora Guarantee Inc. (f/k/a XL Capital/Security Capital) AAA/Aaa/AAA NR / NR (Regulator told to suspend claims payments) Source: Bond Buyer; Insurer Websites, Ratings are in order of S&P / Moody’s / Fitch. Subject to change. Larson Consulting Services, January 2015 21
Section 4 DEBT MANAGEMENT Developing A Financing or Refunding Plan Options Pg 22
Bond Issuance Process Steps to a Bond or Bank Issue (1) Post Sale Activities / Investments Bond or Bank Closing Bond Sale and Marketing Rating Agency/Credit Enhancement Preparation of Documents Selecting the Method of Sale Structuring the Debt Issue Selection of Debt Instrument Assessment of Capital Needs (1) Slight changes if a Bank Placement Pg 23
Fiscal Objectives Prior to Finance/Project Team being selected or engaged to proceed, Issuer Staff should develop understanding of: • Scope of Project • Timing of Need • Status of Internal Approvals • City/County Manager/Authority/District’s Objectives, Requirements, Sensitivities • Elected Officials’ Objectives, Concerns, Mandate Pg 24
Fiscal Objectives Following Finance Team Engagement, Finance Officers/City/County Manager, should: 1. Go over key objectives with Finance Project Team 2. Determine more specific financing parameters such as: • Pledged Revenues • Legal Challenges • Timing • Existing and Proposed Financial Covenants • Performance Parameters and Objectives Regarding Costs, Capital Costs, Ratings, Credit Enhancement 3. Finance Director’s Comments and Recommendations From Bond Issuance, Refunding and Bank Placement Recent Experiences Pg 25
Options (1) BANK PLACEMENTS • Prefer “essential service” credits • Some lenders only go out 7 to 10 years, fewer 15 to 20 years • BQ vs. Non BQ • Covenants & Considerations • Easier, Quicker • Tax Issues • Acceleration Issues BOND ISSUES • Longer Term • Best for “AA” rated issues • Improving options on Credit Enhancement • Call Provisions • More time, more complicated, more thorough • Select Good Team (1) Subject to change based on changing market conditions. Pg 26
Bank Placement Issues • • • Parity Issue or Junior Lien Documentation RFP Process, Banking Relationships Capital Adequacy Refunding Flexibility, “Make Whole” Clause Tax Risk DSRF Acceleration Issues Increased Security from Rating Agencies Pg 27
Bond Issues • If AA- or Better, Market Open • If A+ or Less, More Analysis on Credit Structure, Cost-Benefit Analysis on Bond Insurance • DSRF vs. DSR Surety • BAM in Florida is a welcome addition to Assured Guaranty, “Return” of MBIA/ National Public Finance Guarantee Pg 28
Update on Recent Bank Placement Financing(1) Short Term “Bank Qualified” Results (“AA/A” Credit) 5 Year Indicative Fixed Rates: 0. 92% to 1. 35% 10 Year Indicative Fixed Rates: 1. 99% to 3. 21% ( 50 b. p. ) 5 Year Taxable Rates: 1. 55% to 2. 65% (1) Estimates, subject to issuer, credit structure, market conditions. Pg 29
Update on Long Term Bank Placement Indicative Rates BQ 2. 72% to 3. 75% 20 Years: 3. 19% to 4. 10% 15 Years: 3. 02% to 4. 10% 20 Years: Non. BQ 15 Years: 3. 44% to 4. 35% (1) Estimates, subject to issuer, credit structure, market conditions. Pg 30
Recent Bond Market Rates (1) April 2014 January 2015 Year Tax Exempt Rate “A” Rating with Assured Tax Exempt Rate “AA-” Rating 1 0. 58% 5 1. 86% 1. 75% 10 3. 00% 2. 51% 20 3. 85% 3. 21% 30 4. 02% 3. 31% (1) Yields also impacted on premium versus discounted bonds. Pg 31
Financing Options continued Value of AA vs A Rating • Approximately 3 to 10 basis points per year • On a $20, 000 Bond, 30 year Typical Florida Municipal Financing – Average Annual Debt Service Savings Est: $55, 000 – Total Debt Service Savings: Est: $1, 650, 000 • Eliminate bond insurance premium (est. $500, 000) Pg 32
Section 4 BEST PRACTICES IN DEBT MANAGEMENT: A Review of Rating Agency Considerations Pg 33
Importance of Ratings A. What is a Rating and Why Does It Matter? B. Key Rating Considerations C. How to Prepare for a Rating Presentation or Annual Surveillance Review Pg 34
What Is a Rating? • Forward-looking independent assessment of credit quality • Letter representation of the likelihood of full and timely repayment over the life of a specific financial obligation • Based on issuer’s ability and willingness to pay on time • Ability to pay - quantitative • Willingness to pay – qualitative, historical actions and policies Pg 35
Why Do Ratings Matter? • A bridge between issuer and investors • Increased investor knowledge and acceptance • Higher underlying ratings = lower interest rates = lower annual debt service costs Pg 36
Four Keys to Credit Analysis • • Economy Debt and other long-term liabilities Financial performance Management and administration Pg 37
Economy • • Jobs, jobs Economic diversity Taxpayer mix Income and wealth Labor force characteristics Quality of life attraction Tax burden Pg 38
Debt and Other Long-Term Liabilities • • Evaluation of debt against economic resources Debt affordability guidelines Routine evaluation of capital and debt needs Debt structure – know your risk Pg 39
Pension and OPEB • • • Nature of the benefit Historical funding commitment (or lack thereof) Magnitude of the liability Assessing the burden on resources Management actions Pg 40
Financial Profile • Support of near- and long-term obligations • Focus on general fund and other discretionary sources • Consistency of results • Sound reserve levels Pg 41
Reserves and Liquidity • • • Establishment of a Rainy Day Fund One size does not fit all Parameters on use of available balance Automatic replenishment Balance sheet composition Pg 42
Management and Administration • • • Tenured management with relevant job experience Institutionalized and prudent policies Focus on budgeting practices Efficient decision making process Taxpayer, political, and labor environment Pg 43
Budgeting Practices • • • Long-term financial planning Reasonable assumptions Maximize structural solutions Develop “what if” scenarios and contingency plans Regular interim budget reviews Mid-year adjustments Pg 44
Fiscally Prudent or Popular? • • • Productive relationship with labor Employee benefits Evaluate delivery of municipal services Cooperation of elected officials Effective communication Disclosure practices Pg 45
The Rating Process • Offering and legal documentation • Data and management discussion • Rating committee, communication and • • dissemination through the financial newswires Appeal process, if necessary Surveillance Pg 46
Section 6 TYPICAL ISSUES AND RECOMMENDATIONS Pg 47
Post Bank / Bond Activities • Actual Versus Projected Results • Accounting Issues • Keep “Interested Parties” Informed Via City/County Website or Dissemination Agent i. e. , (DAC) Authority/District Web Page ü Investors ü Underwriter(s) ü Financial Advisor ü Rating Agencies ü Bond Insurers/Banks ü Elected Officials Pg 48
Bond Closing/Post Sale Activities Investments § Transactional Versus Managed § Investment Contracts § Arbitrage Considerations Investment Options § GICs, Flex Repos § Laddered Portfolio – Competitively Bid § LGIP, Money Market Fund, Prime Fund, or Equivalent § (Qualified Public Depositories – QPD’s) Pg 49
Recommendations 1. Plan well, look at your options, get organized and then run hard. 2. Hire a good core team at the beginning of the process. 3. Don’t be afraid to ask questions. 4. Create clear and measurable objectives, review. 5. Set up an achievable timetable, with appropriate input, and seek help from the core team members to help manage process (Good cop vs. Bad cop. ) 6. Keep elected officials comfortable with process – use “KISS” principle language. 7. Let results speak for themselves – don’t be afraid to summarize good news. Pg 50
Section 7: Questions? Pg 51
Section 8 APPENDIX • Speaker Bio • Summary of Typical GFOA Model Debt Management Policy Pg 52
Jeffrey T. Larson President, Larson Consulting Services Tel: 407. 496. 1597 jlarson@larsonconsults. com Based in Orlando, and as President of Larson Consulting Services (“LCS”), an independent SEC and MSRB registered financial advisory firm, Jeff has successfully closed a wide range of municipal project finance and corporate financings totaling over $6 billion. Florida projects have ranged from negotiating and structuring transportation/road improvement programs, higher education project financings, multiple utility acquisitions, extensive water and wastewater capital expansions, investments support services, economic development and redevelopment initiatives, utility enterprise restructurings, refinancing and restructuring, downtown redevelopment, CRA TIF financings, debt and lease purchase private placements, multiple public/private partnership project finance issues, multiple phased Charter School financing, and a $240 Million University / Developer PPP Project financing. In May of 2011, Jeff and FMAS was asked by the AAAm rated FL SAFE Local Government Investment Pool (“LGIP”), to serve as its Administrator and Executive Director. He has served many Florida governments since 1992 as an Investment Banker, Financial Consultant, Administrator, or Financial Advisor. Prior to establishing LCS and FMAS, Jeff managed D. A. Davidson’s Southeast Regional Investment Banking Office. Prior to joining D. A. Davidson, Mr. Larson was the S. E. Regional Director Investment Banking and Consulting Services with Kirkpatrick Pettis, the investment banking arm of Mutual of Omaha, the Managing Director for Stifel Nicolaus/Hanifen Imhoff, and a Vice President, Investment Banking for Sun. Trust Capital Markets in Orlando, Florida. Recruited by these firms, he specialized since 1992 in Florida with the structuring and marketing of a variety of public finance and capital markets products. Prior to that, he spent ten years with C & S/Sovran in Atlanta and Barclays Bank PLC in Atlanta and San Francisco as a corporate finance, large corporate/Fortune 500, and Middle Market Banker. Mr. Larson received his MBA degree on an academic scholarship from Emory University, Atlanta, Georgia, in 1982. As part of his MBA graduate work, Mr. Larson worked, studied and taught in Germany and Austria and was a Fulbright Scholar at the Johannes Kepler University in Linz, Austria. He received an A. B. in Business Administration with honors in 1980 from Franklin & Marshall College, Lancaster, PA. Mr. Larson is an Independent Consultant and Registered Representative with PMA Securities, The Distibutor for the AAA LGIP, FL SAFE. His professional licenses with the State of Florida, FINRA (previously the National Association of Securities Dealers (NASD)), and MSRB include a Series 7 General Securities, Series 63, Series 53 Municipal Principal, and Series 24 FINRA General Securities Principal licenses. Jeff is a frequent speaker at industry conferences including the annual FGFOA, FCCMA, Florida Bond Buyer, FICPA, Florida Redevelopment Association (FRA), Florida Bar Association, Florida League of Cities, Ernst & Young Professional Development Conference, FGFOA Webinars, FINRA, Regional FGFOA Chapter meetings, FGFOA Career Seminars, Smith’s National Investor Conference, Annual FGFOA Institute (School of Governmental Finance) and Special District conferences on topics ranging from “the Bond Issuance Process”, “Best Practices in Debt Management”, “Best Practices in Investment Management”, “Planning and Capital Financing”, to “Public-Private Partnership Financings. ” Jeff has also served as a member of the FGFOA Annual Conference Program Committee for over 15 years. 51
Larson Consulting’s Team of Professionals provide financing solutions for many types of clients in Florida, the Southeast, and across the country. We specialize in a number of practices in which we have significant expertise. Our primary areas of focus include the following: • Infrastructure Financings • Special Districts and Land Development • Higher Education • Resort Communities • Housing Agencies • CRA & TIF Improvement Districts • Tribal Finance • Healthcare Finance • Charter Schools • Growth Management and Capital Planning • Developer Project Negotiations • Arbitrage Support • • • • Pg 54 Workforce Housing Project Financings Utility Financings Public Private Partnerships School Districts Project Consulting Services Lease-Purchase Financings Internet-Based Public Sales Alternative Energy Rural Water State Governments Utility Acquisition Analysis Refundings and Restructurings
Debt Management Policy Elements (1) Purpose of DM Policy / Debt Categorize Debt Limitations Type of Debt Structure Features Method of Sale Selection of Professionals Refundings Defeasance Compliance Capital Improvement Plan Investment of Debt Proceeds Disclosure/Investor Relations (1) Examples are available from comparable Florida governments, see Jeff Larson, or FGFOA website. Pg 55
Purpose of DM Policy / Debt • • • Policy Sets forth parameters for issuing and managing debt Recognizes long-term binding commitment to full and timely repayment of all debt Adherence helps maintain sound debt position Protects credit quality Enhances quality of decisions Evidence of community’s commitment to sound financial management and controlled borrowing practices Debt • Acquisition, maintenance, replacement or expansion of physical assets (including land) • Useful life of pledged asset of at least 5 years • Not used for projects solely because insufficient funds are budgeted – capital versus operations and maintenance or working capital (there are exceptions) Pg 56
Categorize Debt Self-Supporting • Payable exclusively from non-general fund revenues • Governmental debt – average annual debt service (“AADS”) coverage 1. 1 X – 1. 25 X • Proprietary fund or special assessment debt – AADS coverage 1. 1 X – 1. 50 X • Project Financing – 1. 50 X to 2. 00 X coverage • No interfund contributions from general fund to make up an operating shortfall Non Self-supporting • Doesn’t meet criteria above Pg 57
Limitations A. Legal • State Constitution • Local Charter, By-laws, Resolution or Ordinance or Covenant B. • • C. Public Policy Purposes of debt Types of Debt CIP (Accounting Standards) Policy goals • Economic Development • CIP Financing • TIF • Public/Private Partnerships • Growth versus existing clients Financial • Direct debt ratios i. e. , debt per capita, debt to taxable property value • Debt service coverage • Rated vs. Non-Rated • Term or source of borrowing Pg 58
Type of Debt A. Short-Term H. Taxable B. Long-Term I. BAN, TAN, GAN, RAN C. General Obligation J. Interfund Borrowing D. Revenue Debt K. State Revolving Loan Funds E. Variable Rate L. Pool Loans F. Leasing M. Special Assessments/MSTU/MSBU G. Conduit N. Lines / Letters of Credit Kiss principle for public presentations - use understandable comparables i. e. , Mortgage Pg 59
Structure Features A. Level Principle & Interest G. Derivatives B. Back Loading Principal H. Redemption Provisions or “Wrap-Around” (optional, mandatory, extraordinary) C. Call Provisions I. Capitalized Interest D. Maturity J. Interest Only E. Credit Enhancements K. Credit Ratings/Bond Insurer F. Financial Covenants Pg 60
Method of Sale A. Competitive B. Negotiated C. Private Placement Pg 61
Selection of Professionals A. Financial Advisor, as needed B. Bond Counsel, Disclosure Counsel C. Underwriter(s), Lender(s), Lessors(s) Pg 62
Refundings A. Current refunding B. Advance refunding C. “Synthetic”, Delayed D. Demonstrated Savings E. Extending Maturity F. Other Reasons to Refund • Restructure Utilities (Leesburg) • Update Covenants (Tamarac, Dunedin) • Free-Up Reserves (FAU) Pg 63
Defeasance A. Use of cash or other asset interest to satisfy scheduled payments of principle and interest B. Trustee C. Open Market Securities D. “Economic” and “legal” defeasance, Verification Agent Pg 64
Compliance A. Arbitrage • Yield restrictive earnings • Spend within 3 years B. Federal & State Law C. Reporting D. Covenant Compliance E. Grants Pg 65
Capital Improvement Plan 5, 10, 15, 20 – Year Plan • Each Department • Timing • Funding • Impact on future debt • Partnerships • Comprehensive Plan Requirements Pg 66
Скачать презентацию CENTRAL FLORIDA CHAPTER FGFOA Best Practices in Debt
5a002c2588a2616075bf24f08a3b6e4a.ppt