7b supp 2
ITEM NO: 7b_Supp_2____ _ DATE OF MEETING October 22, 2013 2014-2018 Draft Plan of Finance October 22, 2013 Topics Background and Assumptions 2014-2018 Capital Funding Forecasted Debt Service Coverage Finance Activity for 2014 2 Draft Plan of Finance 2014-2018 Each year at the end of the budget process, staff provides a summary five-year Port-wide capital funding plan (The Draft Plan of Finance). The 2014-2018 Plan is based on: Division capital improvement plans (CIPs) discussed with the Commission on October 1, 2013 Division operating budgets discussed with the Commission on October 8, 2013 Airport is a self-funding operation Seaport operating income supports its CIP Real Estate is supported by the tax levy 2014 operating budgets are the basis of the 5-yr operating forecast 3 Debt Service Coverage The Plan is developed to adhere to the Port's financial management policies for prudent cash reserves and leverage Operating funds maintain a minimum of 9 months O&M: 6 months operating and maintenance (O&M) expenses in the general fund 10 months O&M expenses in the airport development fund Maximum 75% of tax levy used to pay General Obligation bonds debt service Net income provides Revenue bonds coverage: 1.50x debt service for Seaport debt 1.25x debt service for Airport debt Tax levy is sufficient to fund levy planned levy uses 4 Funding Sources The Draft Plan of Finance includes funding from: Net operating income (after payment of revenue bond debt service) Operating fund balances (above minimum requirement) Existing and future revenue bond proceeds Passenger Facility Charges Customer Facility Charges Grants Tax levy 5 Aviation Capital Funding 2014-2018 The Airport funding plan is based on the SLOA III airline agreement 2014-2018 Aviation Funding Sources ($million) Net income 155.6 Tax levy (1) 3.5 Grants 169.0 Passenger Facility Charge 135.7 Customer Facility Charge 4.3 Existing revenue bond proceeds 21.9 Future bond proceeds 1,041.1 TOTAL 1,531.3 Aviation CIP Committed 1,087.3 Business Plan Prospective 444.0 TOTAL 1,531.3 (1) Highline Schools noise insulation 6 Seaport Capital Funding 2014-2018 2014-2018 ($million) Seaport Funding Sources Net income 135.6 Operating funds 105.3 Grants 1.0 Tax levy (1) 1.6 Existing revenue bond proceeds 10.9 Future revenue bond proceeds 75.7 TOTAL 330.1 Seaport CIP Committed 82.7 Business Plan Prospective 182.1 Additional Available Capacity 65.2 TOTAL 330.1 (1) Argo Yard Roadway portion funding Port asset 7 Real Estate Capital Funding 2014-2018 2014-2018 ($million) Real Estate Funding Source Tax levy 52.2 Net Income and General Fund Balance (1) 0.7 ADF Fund Balance (1) 1.5 Existing revenue bond proceeds 0.7 TOTAL 55.1 Real Estate CIP Committed 34.0 Business Plan Prospective 21.1 TOTAL 55.1 (1) Includes funding from Seaport & Aviation division operating funds for allocated Pier 69 capital spending 8 Corporate Capital Funding 2014-2018 2014-2018 ($million) Corporate Funding Sources Airport Development Fund 36.2 Seaport General Fund 8.0 Real Estate General Fund 1.9 Tax levy (1) 0.4 TOTAL 46.4 Corporate CIP Committed 25.1 Business Plan Prospective 21.3 TOTAL 46.4 (1) Corporate capital spending allocated to the Real Estate division after the Real Estate general fund no longer meets minimum fund balance requirement. 9 Revenue Bond Debt Service Coverage 2014-2018 Port-Wide Forecast Revenue Bond Debt Service Coverage 6.0 4.89 5.02 4.98 Income Available/revenue debt service 5.0 4.06 4.0 3.09 3.0 1.39 1.49 1.42 1.39 1.38 2.0 1.0 0.0 2014 2015 2016 2017 2018 First Lien All Revenue Bond Debt 10 2014 Planned Finance Activity Airport bond issue to fund project spending $200 - $400 million Provides for 1-2 years of bond proceeds First new bond funding since 2010 Monitor existing debt for refunding opportunities 11 Appendix: Revenue Bond Coverage Calculation Calculation of coverage on all $ million 2014 revenue bonds Management tool Net Operating Income 223.5 Not a legal requirement Adjustments for non-pledged revenues and non-ops (3.4) Operating divisions meet their Pledged net revenues 220.1 management coverage targets Tax Levy available to off-set operating expenses 19.1 Available for debt service 239.3 Tax levy after G.O. debt service can legally be used to First Lien 77.3 pay operating expenses Intermediate Lien 129.9 regardless of how the levy is Subordinate Lien 18.3 actually used Total Revenue Bond Debt Service 225.5 PFCs and CFCs are used to PFC & CFC applied to pay debt service (53.5) pay revenue bond debt Net Revenue Bond Debt Service 172.0 service reducing the debt service paid from revenue Total Revenue Bond Coverage 1.39 12
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.