Capital Facilities Planning
June 29, 2017
JON GORES
MANAGING DIRECTOR
(206) 389-4043
[email protected]
1
Discussion Topics
 Election Results
 Capital Facilities Financing
 Tax Rate Projections
2
Washington State Election Results-School
Districts Only
2015
2016
2017*
M&O Levies
46 Passed and 2 Failed
M&O Levies
132 Passed and 3 Failed
M&O Levies
41 Passed and 1 Failed
Capital Project Levies
16 Passed and 2 Failed
Capital Project Levies
29 Passed and 3 Failed
Capital Project Levies
11 Passed and 1 Failed
Transportation Levies
2 Passed and 1 Failed
Transportation Levies
3 Passed and 0 Failed
Transportation Levies
0 Passed and 0 Failed
Bond Authorizations
23 Passed and 22 Failed
Bond Authorizations
26 Passed and 21 Failed
Bond Authorizations
20 Passed and 11 Failed
* Includes the February 14, 2017 and April 25, 2017 elections only.
Source: Washington Secretary of State: Election and Voting website and individual County Auditor websites
3
Voting Patterns-Bond Issues Passed per Year
(Years 1993 through April 2017-Schools Only)
Source: State of Washington, Office of Superintendent of Public Instruction
Voting Patterns-Bond Issues Passed by
Month Statewide
(Years 1992 through April 2017-Schools Only)
Source: State of Washington, Office of Superintendent of Public Instruction
4
5
Voting Patterns-Bond Issues Passed by
Purpose Statewide
(Years 1992 through April 2017)
Source: State of Washington, Office of Superintendent of Public Instruction
2017-2018 Special Election and
Resolution Filing Dates
6
7
Capital Financing Options
Types of School District Bonds
–
Voted – Unlimited Tax General Obligation Bonds (UTGO)
–
Non-voted – Limited General Obligation Bonds (LGO)
Voter approved bonds are (UTGO)
–
Repaid with property taxes
–
Approved with a 60% yes vote, 40% validation
–
5% Debt Capacity = $31,973,616 – $3,335,000 (Outstanding Debt) = $28,638,616
Non-voted bonds are (LGO)
–
Repaid with existing revenue
–
Can’t be used for “new” construction
–
3/8 of 1% Debt Capacity = $2,398,021 – $0* = $2,398,021
* As of September 1, 2016
8
Capital Financing Options
Capital Projects Levy (no debt limit)
–
Simple majority
–
Two to six year collection
–
No interest cost
Bonds are the primary method used by Washington School Districts to finance the
“local share” of capital projects because
–
Cash is generated upfront
–
Payments can be spread over time
–
Districts have some control over taxpayer impacts
9
District’s Current Debt
The District has one outstanding Unlimited Tax General Obligation Bond
(UTGO) issues:
–
UTGOR Bonds, 2012
All of the District’s voter approved UTGOR Bonds will be repaid on or before
December 1, 2019
10
Historical Bond Tax Rates
Over the past 18 years the
District’s bond tax rate has
ranged from $2.66 in 2000
to a 2017 bond tax rate of
$1.52.
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Historical Bond AV
$244,450,389
255,314,186
286,058,158
303,510,969
313,746,887
328,014,998
349,871,942
368,191,168
376,680,379
391,703,426
402,044,713
462,763,615
473,500,098
472,863,350
481,901,900
624,938,562
599,659,302
639,472,316
Bond Levy
Rate/$1000
$2.66
$2.04
$1.89
$1.78
$1.50
$1.59
$2.46
$2.22
$2.17
$2.30
$2.24
$1.99
$2.11
$2.11
$2.10
$1.62
$1.50
$1.52
11
Sample Bond Proposition
PROPOSITION 1
SCHOOL DISTRICT NO. 123
BONDS FOR CONSTRUCTION OF SCHOOL FACILITIES
The Board of Directors of XYZ School District No. 123, adopted Resolution No. 456,
concerning a proposition to finance construction of school facilities. This proposition
would authorize the District to construct a new elementary school (Grades K-3) to
replace XYZ Elementary School on the existing site and construct additional
classrooms to replace portable classrooms at XYZ Middle School; issue no more than
$19,544,500 of general obligation bonds maturing within 20 years; and levy annual
excess property taxes to repay the bonds, all as provided in Resolution No. 456.
Should this proposition be:
Approved………. ____
Rejected………… ____
12
Tax Rate Planning
Assumptions for Tax Rate Planning:
 Interest Rates
 Bond Rating
 Assessed Value
 Bond Structure
13
Tax Rate Planning
Interest Rates
 Lower interest rates result in lower tax rates for bonds.
 Interest rates are determined when bonds are actually sold.
 Assumption: Future Bond Sales Current rates plus 1.50% (150 basis points).
14
Tax Rate Planning
Bond Rating


A higher bond rating results in lower interest rates.
Assumption:
AA+ (with State Guarantee)
A+ District Rating (Pending)
A Guide to Bond Ratings
Standard & Poor’s Global Ratings – Founded 1860
Highest Quality
AAA
AA+, AA, AAA+, A, ABBB+, BBB, BBB-
Lowest Quality
NR (Nonrated)
15
Tax Rate Planning
Bond Rating (Continued)


Bond raters consider the local economy, District finances, and other factors
Assumption:
AA+ (with State Guarantee)
A+ District Rating (Pending)
Governmental
Factors
Debt
Factors
Financial
Performance
Economy
Economy
Debt Factors
The Rating
16
Tax Rate Planning
Assessed Value
Year
Historical Bond AV
New Construction
Bond Levy Rate/$1000
2000
244,450,389
$2.66
N/A
2001
255,314,186
$2.04
4.4%
2002
286,058,158
$1.89
12.0%
2003
303,510,969
$1.78
6.1%
2004
313,746,887
$1.50
3.4%
2005
328,014,998
$1.59
4.5%
2006
349,871,942
$2.46
6.7%
2007
368,191,168
$2.22
5.2%
2008
376,680,379
$2.17
2.3%
2009
391,703,426
$2.30
4.0%
2010
402,044,713
$2.24
2.6%
2011
2012
462,763,615
473,500,098
4,477,415
5,223,700
$1.99
$2.11
15.1%
2.3%
2013
472,863,350
2,532,349
$2.11
-0.1%
2014
481,901,900
4,149,390
$2.10
1.9%
2015
624,938,562
9,249,531
$1.62
29.7%
2016
599,659,302
4,922,035
$1.50
-4.0%
2017
639,472,316
8,098,887
$1.52
6.6%
5 year Compound Annual Growth Rate (2012-2017):
10 year Compound Annual Growth Rate (2007-2017):
% change
6.2%
5.7%
17
Tax Rate Planning
Assessed Value (Continued)
Historical Assessed Value and Levy Rates for Bonds
$4.50
$4.00
Bond Assessed Value
600,000,000
$3.50
500,000,000
$3.00
400,000,000
$2.50
300,000,000
$2.00
$1.50
200,000,000
$1.00
100,000,000
$0.50
0
$0.00
Historical Bond AV
Bond Levy Rate/$1000
Bond Levy Rate (per $1,000 AV)
700,000,000
18
Tax Rate Planning
Assessed Value (continued)
 Projected Assessed Value Growth
̶ Final 2017: 6.64% growth
̶ Projected 2018-2039: 1.00% annual growth
 An individual’s taxes will be based on the assessed value for their property
 Higher assessed values will lower the District’s tax rates (but not the overall
payment )
 New construction vs. increase in value of existing property
19
Increases in Property Values Will Not
Increase School District Tax Collections
 Changes in property values don’t change the amount of taxes authorized
 Local school taxes can only be increased by a vote of the people
 Changing property values will change tax rates, but not tax collections
Year
Home Value
Tax Rate
Tax Bill
2016
$100,000
$5.00/$1,000
$500
#1: 20% increase
2017
$120,000
$4.17/$1,000
$500
#2: 10% increase
2017
$110,000
$4.17/$1,000
$459
#3: 30% increase
2017
$130,000
$4.17/$1,000
$542
XYZ School District Home Value
Assume a 20% increase in Assessed
Value for XYZ School District
20
Tax Rate Planning
Bond Structure
 State law gives Districts great flexibility in determining bond structures
 Options
̶
Level Debt
̶
Level Tax Rate
̶
Stepped Level Tax Rate
21
Level Debt

Results in level annual payments for the life of the bonds.
$0.55
1,600,000
Debt Service
1,200,000
$0.45
1,000,000
800,000
$0.40
600,000
$0.35
400,000
$0.30
200,000
-
$0.25
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
New Debt
Tax Rate
Tax Rate
$0.50
1,400,000
22
Level Tax Rate
Attempts to result in a level annual tax rate over the life for the bonds*
$0.55
1,600,000
$0.50
Debt Service
1,400,000
1,200,000
$0.45
1,000,000
800,000
$0.40
600,000
$0.35
400,000
$0.30
200,000
-
$0.25
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
New Debt
* Based on assessed value projections.
Tax Rate
Tax Rate

23
Stepped Level Tax Rate

Allows for the issuance of future bonds
1,400,000
$1.00
$0.90
$0.80
1,000,000
$0.70
800,000
$0.60
$0.50
600,000
$0.40
400,000
$0.30
$0.20
200,000
$0.10
-
$0.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
New Debt
Tax Rate
Tax Rate
Debt Service
1,200,000
24
Bond Tax Rate Summary
Interest Rates: Current rates plus 150 basis points
Bond Rating: AA+ State Guarantee
District Rating: A+ (Pending)
Assessed Value Growth: Final 2017: 6.64% growth;
Projected 2018-2039: 1.00% annual growth
Scenario
#7
#8
#9
#10
$28,600,000
$32,600,000
$28,600,000
$28,600,000
June 1, 2018
$14,300,000
$16,300,000
$14,300,000
$14,300,000*
December 1, 2019
$14,300,000
$16,300,000
$14,300,000
$14,300,000
Actual 2017
$1.52
$1.52
$1.52
$1.52
Projected 2018
1.82
1.82
1.82
1.82
2019
3.17
3.60
2.87
2.66
2020
3.17
3.61
2.87
2.65
2025
3.17
3.60
2.87
2.66
2030
3.17
3.60
2.87
2.66
2035
3.17
3.60
2.87
2.66
2039
2039
2044
2049
$18,102,000
$20,565,000
$25,343,000
$33,197,000
20 Years
20 Years
25 Years
30 Years
$1.65
$2.08
$1.35
$1.14
Authorization Amount
Bond Sale Dates
and Amounts
Bond Tax Rates
Final Maturity
Interest Cost
Term
2019 Bond Tax Rate increase over
2017 Bond Tax Rate
* Actual proceeds for CPF: $13,765,000
25
Wahluke School District No. 73
Scenario 7: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds
Issue 1
Issue 2
Total
Bonds Issued:
6/1/18
12/1/19
Issue Size: $14.300M $14.300M $28.600M
Interest Rate Cushion:
150bp
150bp
Term (years):
19.5
20.0
Rating Assumption: A+ S&P Rating
Assessed Value Summary ($000's)
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Bond AV
Growth
Bond AV
Rate
244,450
N/A
255,314
4.44%
286,058
12.04%
303,511
6.10%
313,747
3.37%
328,015
4.55%
349,872
6.66%
368,191
5.24%
376,680
2.31%
391,703
3.99%
402,045
2.64%
462,764
15.10%
473,500
2.32%
472,863
-0.13%
481,902
1.91%
624,939
29.68%
599,659
-4.05%
639,472
6.64%
645,867
1.00%
652,326
1.00%
658,849
1.00%
665,437
1.00%
672,092
1.00%
678,813
1.00%
685,601
1.00%
692,457
1.00%
699,381
1.00%
706,375
1.00%
713,439
1.00%
720,573
1.00%
727,779
1.00%
735,057
1.00%
742,408
1.00%
749,832
1.00%
757,330
1.00%
764,903
1.00%
772,552
1.00%
780,278
1.00%
788,081
1.00%
795,961
1.00%
803,921
1.00%
Total Debt Service
Total Interest
Bond Yield
Run Date:
6.26.17
NOTES:
- Interfund loan 2018-19
- Debt Service Fund build up 2020-21
Levy Amount Detail ($000's)
Prior
Debt
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
1,102
1,176
1,214
-
2018
901
1,251
1,356
1,442
1,463
1,482
1,197
990
1,003
1,010
1,019
1,031
1,040
1,057
1,065
1,081
1,087
1,100
1,109
$21,684
$7,384
4.72%
2019
690
690
690
690
690
1,000
1,229
1,238
1,255
1,264
1,277
1,291
1,298
1,312
1,321
1,340
1,352
1,366
2,500
2,527
$25,019
$10,719
5.48%
Total New
Bonds
901
1,941
2,046
2,132
2,153
2,172
2,197
2,218
2,241
2,265
2,283
2,307
2,331
2,354
2,376
2,403
2,427
2,452
2,475
2,500
2,527
$46,702
$18,102
Levy Rate Detail
Debt
Service
Fund
Incr/
(Decr)
(127)
(50)
147
61
Total
Bond
Levy
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
975
1,176
2,065
2,088
2,108
2,132
2,153
2,172
2,197
2,218
2,241
2,265
2,283
2,307
2,331
2,354
2,376
2,403
2,427
2,452
2,475
2,500
2,527
-
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Prior
Debt
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
1.72
1.82
1.86
-
2018
1.38
1.90
2.04
2.15
2.16
2.16
1.73
1.42
1.42
1.42
1.41
1.42
1.41
1.42
1.42
1.43
1.42
1.42
1.42
-
2019
1.05
1.04
1.03
1.02
1.01
1.44
1.76
1.75
1.76
1.75
1.75
1.76
1.75
1.75
1.74
1.75
1.75
1.75
3.17
3.17
-
Total
New
Bonds
1.38
2.95
3.08
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
-
Debt
Service
Fund Incr/ Total
(Decr)
Bonds
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
(0.20)
1.52
1.82
(0.08)
3.17
0.22
3.17
0.09
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
3.17
-
26
Wahluke School District No. 73
TAX IMPACT ANALYSIS
Scenario 7: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds
Total Project Cost:
State Funding Assistance:
Bond Authorization Amount:
$
$
$ 28,600,000.00
Estimated 2018 Tax Rate Increase over
2017 Tax Rate (Bonds Only)
(per $1,000 assessed value):
$0.30
Assessed
Value of
Gross Property
Tax Increase
Monthly
Gross
Property
for Bonds
Increase
$100,000
200,000
250,000
300,000
350,000
500,000
$30.00
60.00
75.00
90.00
105.00
150.00
$2.50
5.00
6.25
7.50
8.75
12.50
NOTE:
Net Tax Increase from
Bonds After Allowing for
Income Tax Deduction
Federal Income Tax Bracket
25%
28%
33%
39.6%
$22.50
45.00
56.25
67.50
78.75
112.50
$21.60
43.20
54.00
64.80
75.60
108.00
$20.10
40.20
50.25
60.30
70.35
100.50
$18.12
36.24
45.30
54.36
63.42
90.60
Qualified homeowners may apply for a senior exemption. Please contact your County
Assessor for details.
27
Wahluke School District No. 73
Scenario 8: February 2018 Election $32.25 million (Max Debt Capacity - 12/1/19), Par Bonds, 20 yr Term
Issue 1
Issue 2
Total
Bonds Issued:
6/1/18
12/1/19
Issue Size: $16.300M $16.300M $32.600M
Interest Rate Cushion:
150bp
150bp
Term (years):
19.5
20.0
Rating Assumption: A+ S&P Rating
Assessed Value Summary ($000's)
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Bond AV
Growth
Bond AV
Rate
244,450
N/A
255,314
4.44%
286,058
12.04%
303,511
6.10%
313,747
3.37%
328,015
4.55%
349,872
6.66%
368,191
5.24%
376,680
2.31%
391,703
3.99%
402,045
2.64%
462,764
15.10%
473,500
2.32%
472,863
-0.13%
481,902
1.91%
624,939
29.68%
599,659
-4.05%
639,472
6.64%
645,867
1.00%
652,326
1.00%
658,849
1.00%
665,437
1.00%
672,092
1.00%
678,813
1.00%
685,601
1.00%
692,457
1.00%
699,381
1.00%
706,375
1.00%
713,439
1.00%
720,573
1.00%
727,779
1.00%
735,057
1.00%
742,408
1.00%
749,832
1.00%
757,330
1.00%
764,903
1.00%
772,552
1.00%
780,278
1.00%
788,081
1.00%
795,961
1.00%
803,921
1.00%
Total Debt Service
Total Interest
Bond Yield
Run Date:
6.26.17
NOTES:
- Interfund loan 2018-19
- Debt Service Fund build up 2020-21
Levy Amount Detail ($000's)
Prior
Debt
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
1,102
1,176
1,214
-
2018
1,081
1,477
1,543
1,636
1,658
1,682
1,297
1,124
1,135
1,148
1,159
1,172
1,182
1,199
1,207
1,228
1,238
1,255
1,262
$24,682
$8,382
4.72%
2019
786
786
786
786
786
1,196
1,396
1,412
1,421
1,437
1,450
1,466
1,478
1,492
1,501
1,519
1,529
1,551
2,839
2,869
$28,483
$12,183
5.48%
Total New
Bonds
1,081
2,263
2,329
2,421
2,444
2,468
2,493
2,520
2,547
2,569
2,596
2,622
2,647
2,677
2,699
2,729
2,757
2,784
2,813
2,839
2,869
$53,165
$20,565
Levy Rate Detail
Debt
Service
Fund
Incr/
Total
(Decr) Bond Levy
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
(127)
975
1,176
54
2,349
113
2,376
70
2,399
2,421
2,444
2,468
2,493
2,520
2,547
2,569
2,596
2,622
2,647
2,677
2,699
2,729
2,757
2,784
2,813
2,839
2,869
-
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Prior
Debt
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
1.72
1.82
1.86
-
2018
1.66
2.24
2.32
2.43
2.44
2.45
1.87
1.61
1.61
1.61
1.61
1.61
1.61
1.62
1.61
1.62
1.62
1.62
1.62
-
2019
1.19
1.18
1.17
1.16
1.15
1.73
2.00
2.00
1.99
1.99
1.99
1.99
1.99
1.99
1.98
1.99
1.98
1.99
3.60
3.60
-
Debt
Service
Total New Fund Incr/
Bonds
(Decr)
1.66
3.43
3.50
3.60
3.60
3.60
3.60
3.60
3.61
3.60
3.60
3.60
3.60
3.61
3.60
3.60
3.60
3.60
3.61
3.60
3.60
-
(0.20)
0.08
0.17
0.11
-
Total
Bonds
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
1.52
1.82
3.60
3.61
3.61
3.60
3.60
3.60
3.60
3.60
3.61
3.60
3.60
3.60
3.60
3.61
3.60
3.60
3.60
3.60
3.61
3.60
3.60
-
28
Wahluke School District No. 73
TAX IMPACT ANALYSIS
Scenario 8: February 2018 Election $32.25 million (Max Debt Capacity - 12/1/19), Par Bonds, 20 yr Term
Total Project Cost:
State Funding Assistance:
Bond Authorization Amount:
$
$
$ 32,600,000.00
Estimated 2018 Tax Rate Increase over
2017 Tax Rate (Bonds Only)
(per $1,000 assessed value):
$0.30
Assessed
Value of
Gross Property
Tax Increase
Monthly
Gross
Property
for Bonds
Increase
$100,000
200,000
250,000
300,000
350,000
500,000
$30.00
60.00
75.00
90.00
105.00
150.00
$2.50
5.00
6.25
7.50
8.75
12.50
NOTE:
Net Tax Increase from
Bonds After Allowing for
Income Tax Deduction
Federal Income Tax Bracket
25%
28%
33%
39.6%
$22.50
45.00
56.25
67.50
78.75
112.50
$21.60
43.20
54.00
64.80
75.60
108.00
$20.10
40.20
50.25
60.30
70.35
100.50
$18.12
36.24
45.30
54.36
63.42
90.60
Qualified homeowners may apply for a senior exemption. Please contact your County
Assessor for details.
29
Wahluke School District No. 73
Scenario 9: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds, 25 yr Term
Issue 1
Issue 2
Total
Bonds Issued:
6/1/18
12/1/19
Issue Size: $14.300M $14.300M $28.600M
Interest Rate Cushion:
150bp
150bp
Term (years):
24.5
25.0
Rating Assumption: A+ S&P Rating
Assessed Value Summary ($000's)
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
Bond AV
Growth
Bond AV
Rate
244,450
N/A
255,314
4.44%
286,058
12.04%
303,511
6.10%
313,747
3.37%
328,015
4.55%
349,872
6.66%
368,191
5.24%
376,680
2.31%
391,703
3.99%
402,045
2.64%
462,764
15.10%
473,500
2.32%
472,863
-0.13%
481,902
1.91%
624,939
29.68%
599,659
-4.05%
639,472
6.64%
645,867
1.00%
652,326
1.00%
658,849
1.00%
665,437
1.00%
672,092
1.00%
678,813
1.00%
685,601
1.00%
692,457
1.00%
699,381
1.00%
706,375
1.00%
713,439
1.00%
720,573
1.00%
727,779
1.00%
735,057
1.00%
742,408
1.00%
749,832
1.00%
757,330
1.00%
764,903
1.00%
772,552
1.00%
780,278
1.00%
788,081
1.00%
795,961
1.00%
803,921
1.00%
811,960
1.00%
820,080
1.00%
828,281
1.00%
836,563
1.00%
844,929
1.00%
Total Debt Service
Total Interest
Bond Yield
Run Date:
6.26.17
NOTES:
- Interfund loan 2018-19
- Debt Service Fund build up 2020-21
Levy Amount Detail ($000's)
Prior
Debt
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
1,102
1,176
1,214
-
2018
989
739
1,112
1,188
1,205
1,225
1,248
1,264
1,287
906
919
926
930
944
954
968
974
987
1,003
1,010
1,020
1,035
1,047
1,055
$24,935
$10,635
5.07%
2019
742
742
742
742
742
742
742
742
1,142
1,150
1,162
1,182
1,190
1,201
1,204
1,221
1,233
1,239
1,251
1,266
1,272
1,284
1,298
2,378
2,400
$29,008
$14,708
5.48%
Total New
Bonds
989
1,481
1,854
1,930
1,947
1,967
1,990
2,006
2,029
2,048
2,070
2,088
2,113
2,134
2,155
2,172
2,194
2,220
2,241
2,261
2,286
2,307
2,331
2,353
2,378
2,400
$53,943
$25,343
Levy Rate Detail
Debt
Service
Fund
Incr/
(Decr)
(127)
(330)
409
56
Total
Bond
Levy
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
975
1,176
1,873
1,890
1,909
1,930
1,947
1,967
1,990
2,006
2,029
2,048
2,070
2,088
2,113
2,134
2,155
2,172
2,194
2,220
2,241
2,261
2,286
2,307
2,331
2,353
2,378
2,400
-
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
Prior Debt
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
1.72
1.82
1.86
-
2018
1.52
1.12
1.67
1.77
1.78
1.79
1.80
1.81
1.82
1.27
1.28
1.27
1.27
1.27
1.27
1.28
1.27
1.28
1.28
1.28
1.28
1.29
1.29
1.29
-
2019
1.13
1.11
1.10
1.09
1.08
1.07
1.06
1.05
1.60
1.60
1.60
1.61
1.60
1.60
1.59
1.60
1.60
1.59
1.59
1.59
1.58
1.58
1.58
2.87
2.87
-
Total
New
Bonds
1.52
2.25
2.79
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
-
Debt
Service
Fund Incr/
(Decr)
Total Bonds
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
(0.20)
1.52
1.82
(0.51)
2.87
0.62
2.87
0.08
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
2.87
-
30
Wahluke School District No. 73
TAX IMPACT ANALYSIS
Scenario 9: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds, 25 yr Term
Total Project Cost:
State Funding Assistance:
Bond Authorization Amount:
$
$
$ 28,600,000.00
Estimated 2018 Tax Rate Increase over
2017 Tax Rate (Bonds Only)
(per $1,000 assessed value):
$0.30
Assessed
Value of
Gross Property
Tax Increase
Monthly
Gross
Property
for Bonds
Increase
$100,000
200,000
250,000
300,000
350,000
500,000
$30.00
60.00
75.00
90.00
105.00
150.00
$2.50
5.00
6.25
7.50
8.75
12.50
NOTE:
Net Tax Increase from
Bonds After Allowing for
Income Tax Deduction
Federal Income Tax Bracket
25%
28%
33%
39.6%
$22.50
45.00
56.25
67.50
78.75
112.50
$21.60
43.20
54.00
64.80
75.60
108.00
$20.10
40.20
50.25
60.30
70.35
100.50
$18.12
36.24
45.30
54.36
63.42
90.60
Qualified homeowners may apply for a senior exemption. Please contact your County
Assessor for details.
31
Wahluke School District No. 73
Scenario 10: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds, 30 yr Term
Issue 1
Issue 2
Total
Bonds Issued:
6/1/18
12/1/19
Issue Size: $14.300M $14.300M $28.600M
Interest Rate Cushion:
150bp
150bp
Term (years):
29.5
30.0
Rating Assumption: A+ S&P Rating
Assessed Value Summary ($000's)
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
Bond AV
Growth
Bond AV
Rate
244,450
N/A
255,314
4.44%
286,058
12.04%
303,511
6.10%
313,747
3.37%
328,015
4.55%
349,872
6.66%
368,191
5.24%
376,680
2.31%
391,703
3.99%
402,045
2.64%
462,764
15.10%
473,500
2.32%
472,863
-0.13%
481,902
1.91%
624,939
29.68%
599,659
-4.05%
639,472
6.64%
645,867
1.00%
652,326
1.00%
658,849
1.00%
665,437
1.00%
672,092
1.00%
678,813
1.00%
685,601
1.00%
692,457
1.00%
699,381
1.00%
706,375
1.00%
713,439
1.00%
720,573
1.00%
727,779
1.00%
735,057
1.00%
742,408
1.00%
749,832
1.00%
757,330
1.00%
764,903
1.00%
772,552
1.00%
780,278
1.00%
788,081
1.00%
795,961
1.00%
803,921
1.00%
811,960
1.00%
820,080
1.00%
828,281
1.00%
836,563
1.00%
844,929
1.00%
853,378
1.00%
861,912
1.00%
870,531
1.00%
879,237
1.00%
888,029
1.00%
Total Debt Service
Total Interest
Bond Yield
Run Date:
6.26.17
NOTES:
- CAPI through 6/1/19
- Debt Service Fund build up 2020-21
- Proceeds to capital projects fund reduced by CAPI: $535K
Levy Amount Detail ($000's)
Prior Debt
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
1,102
1,176
1,214
-
2018
1,059
881
931
999
1,019
1,037
1,054
1,075
1,093
1,110
1,129
1,126
851
867
871
884
890
904
916
921
939
948
960
970
977
992
1,001
1,013
1,020
$28,436
$14,136
5.36%
2019
785
785
785
785
785
785
785
785
785
785
810
1,104
1,104
1,119
1,126
1,143
1,146
1,158
1,173
1,175
1,186
1,198
1,208
1,225
1,230
1,241
1,253
1,266
2,311
2,337
$33,360
$19,060
5.48%
Total New
Bonds
1,059
1,666
1,716
1,783
1,804
1,822
1,839
1,860
1,878
1,894
1,914
1,936
1,955
1,971
1,990
2,010
2,032
2,050
2,074
2,094
2,114
2,134
2,158
2,178
2,202
2,221
2,242
2,266
2,287
2,311
2,337
$61,797
$33,197
Levy Rate Detail
Debt
Service
Fund
Incr/
(Decr)
(127)
(535)
83
51
Total
Bond
Levy
861
818
819
900
900
921
1,000
1,000
1,010
1,010
900
975
1,176
1,738
1,749
1,767
1,783
1,804
1,822
1,839
1,860
1,878
1,894
1,914
1,936
1,955
1,971
1,990
2,010
2,032
2,050
2,074
2,094
2,114
2,134
2,158
2,178
2,202
2,221
2,242
2,266
2,287
2,311
2,337
-
Year
Prior Debt
2000
2.66
2001
2.04
2002
1.89
2003
1.78
2004
1.50
2005
1.59
2006
2.46
2007
2.22
2008
2.17
2009
2.30
2010
2.24
2011
1.99
2012
2.11
2013
2.11
2014
2.10
2015
1.62
2016
1.50
2017
1.72
2018
1.82
2019
1.86
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
-
2018
1.62
1.34
1.40
1.49
1.50
1.51
1.52
1.54
1.55
1.56
1.57
1.55
1.16
1.17
1.16
1.17
1.16
1.17
1.17
1.17
1.18
1.18
1.18
1.18
1.18
1.19
1.18
1.19
1.18
-
2019
1.19
1.18
1.17
1.16
1.14
1.13
1.12
1.11
1.10
1.09
1.11
1.50
1.49
1.49
1.49
1.49
1.48
1.48
1.49
1.48
1.48
1.48
1.47
1.48
1.47
1.47
1.47
1.47
2.65
2.66
-
Total
New
Bonds
Debt
Service
Fund Incr/
(Decr)
1.62
2.53
2.58
2.65
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.65
2.65
2.66
2.65
2.66
2.66
2.66
2.65
2.66
2.66
2.66
2.65
2.65
2.65
2.65
2.65
2.66
-
(0.20)
(0.82)
0.13
0.08
-
Total
Bonds
2.66
2.04
1.89
1.78
1.50
1.59
2.46
2.22
2.17
2.30
2.24
1.99
2.11
2.11
2.10
1.62
1.50
1.52
1.82
2.66
2.65
2.66
2.65
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.66
2.65
2.65
2.66
2.65
2.66
2.66
2.66
2.65
2.66
2.66
2.66
2.65
2.65
2.65
2.65
2.65
2.66
-
32
Wahluke School District No. 73
TAX IMPACT ANALYSIS
Scenario 10: February 2018 Election $28.28 million (Max Debt Capacity - Current), Par Bonds, 30 yr Term
Total Project Cost:
State Funding Assistance:
Bond Authorization Amount:
$
$
$ 28,600,000.00
Estimated 2018 Tax Rate Increase over
2017 Tax Rate (Bonds Only)
(per $1,000 assessed value):
$0.30
Assessed
Value of
Gross Property
Tax Increase
Monthly
Gross
Property
for Bonds
Increase
$100,000
200,000
250,000
300,000
350,000
500,000
$30.00
60.00
75.00
90.00
105.00
150.00
$2.50
5.00
6.25
7.50
8.75
12.50
NOTE:
Net Tax Increase from
Bonds After Allowing for
Income Tax Deduction
Federal Income Tax Bracket
25%
28%
33%
39.6%
$22.50
45.00
56.25
67.50
78.75
112.50
$21.60
43.20
54.00
64.80
75.60
108.00
$20.10
40.20
50.25
60.30
70.35
100.50
$18.12
36.24
45.30
54.36
63.42
90.60
Qualified homeowners may apply for a senior exemption. Please contact your County
Assessor for details.
33
Tax Rate Comparison
Grant County School Districts
(1)
2017 Total Tax Rates
District
Assessed Value (2) ($)
Bonds ($)
M&O ($)
Capital ($)
Trans. ($)
Total ($)
176,795,177
0.0000
2.3745
0.0000
0.0000
2.3745
Almira School District No. 158
12,574,645
0.0000
2.6390
0.0000
0.0000
2.6390
Warden School District No. 146
434,958,254
0.0000
2.9242
0.0000
0.0000
2.9242
Royal City School District No. 160
686,746,491
1.1504
1.9949
0.0000
0.0000
3.1453
73,728,237
0.0000
3.1861
0.0000
0.0000
3.1861
Coulee Hartline School District No. 151
Wilson Creek School District No. 167
Odessa School District No. 166
24,804,440
0.4547
2.8916
0.0000
0.0000
3.3463
Grand Coulee School District No. 301
149,068,273
0.0000
4.1651
0.0000
0.0000
4.1651
Wahluke School District No. 73
639,472,316
1.5247
2.7153
0.0000
0.0000
4.2400
Quincy School District No. 144
3,299,455,464
1.8846
2.3952
0.0000
0.0000
4.2798
Ephrata School District No. 165
801,916,420
0.0000
4.7822
0.0000
0.0000
4.7822
Soap Lake School District No. 156
189,540,356
0.6131
4.3450
0.0000
0.0000
4.9581
3,909,744,283
0.5627
4.5407
0.0000
0.0000
5.1034
Moses Lake School District No. 161
(1) 2017 Bond Assessed Value does not include TAV.
(2) Grant County values only.
Neither this material nor any of its contents may be disclosed, sold, or redistributed, electronically or otherwise, without prior written consent of Davidson Companies. The
information presented herein is based on public information we believe to be reliable, prevailing market conditions, as well as our views at this point in time. We make no
representation or warranty with respect to the accuracy or completeness of this material. Past performance is not necessarily indicative of future results. Davidson
Companies does not assume any liability for any loss which may result from the reliance by any person upon such material. We make no representations regarding the legal,
tax, regulatory, or accounting implications of entering into a Transaction.
Required Disclosure Pursuant to MSRB Rule G-23: An underwriter’s primary role will be to purchase as principal, or arrange for the placement of the securities in a
commercial arm’s length transaction with the issuer, and may have financial and other interests that differ from those of the issuer. In its capacity as underwriter and not as
financial advisor, an underwriter may provide incidental financial advisory services at the issuer’s request, including advice regarding the structure, timing, terms and other
similar matters concerning the issuance. However, an underwriter does not assume any financial advisory or fiduciary responsibilities with respect to the issuer.