University Park Recreation District Corporate Boulevard, Orlando, FL Phone:

Transcription

1 University Park Recreation District Corporate Boulevard, Orlando, FL Phone: The following is the proposed agenda for the upcoming special Assessment Workshop for the University Park Recreation District ( District ), scheduled to be held at 2:00 p.m. on Wednesday, October 24, 2018 at the University Park Country Club s Lakeside Room, 7671 The Park Blvd, University Park, FL If you would like to attend the Board Meeting by phone, you may do so by dialing: Phone: Participant Code: PROPOSED ASSESSMENT WORKSHOP AGENDA Public Comment Period 1. Opening Comments Chairman Wood 2. Overview of the Plan for UPRD Dr. Fishkind 3. Assessments 101 Dr. Fishkind 4. Assessment Options for UPRD Dr. Fishkind 5. Question and Answer 6. Closing Comments Adjournment

2 University Park Recreation District Opening Comments Chairman Wood

3 University Park Recreation District Overview of the Plan for UPRD Assessments 101 Assessment Options for UPRD Dr. Fishkind

4 University Park Recreation District Assessment Workshop October 24, 2018

5 Purpose and Overview Purpose provide assessment analysis to support Board decision concerning assessments scheduled for meeting. Overview RD formed by Manatee County Ordinance to acquire, operate, maintain Recreation Facilities ( RF ) Section (f) authorizes financing to purchase, maintain and upgrade RF Section (o) authorizes use of non-ad valorem assessments (imposed along with property taxes) pursuant to Chapter 170, F.S. to fund purchase and improvement of RF and the operations of UPRD UPRD will consider imposing assessments at its meeting on Fishkind & Associates, Inc. 2

6 Purchase Price and Upgrade Fund Purchase Price for RF, Land, and Facilities UPRD has not established the final price The final price will be determined by UPRD and the Seller Planning Group ( PG ) and Seller have conducted discussions coming to a recommended price of $16,750,000 PG identified deferred maintenance, desired upgrades, and reserves of approximately $3,000,000 At request of PG I estimated the bond financing and assessments to complete the transaction Estimates were used in the vote that approved forming UPRD Average annual assessment $1,200 per home Method: 50% fixed and 50% based on market value Fishkind & Associates, Inc. 3

7 Financing Plan for This Analysis This assessment analysis supports the long term financing needs of UPRD If authorized by a future referendum, UPRD would issue 30-year, tax-exempt, fixed-rate, bonds Bond structure is determined by municipal market norms Rate is determined by the market Having this assessments collected along with all other property taxes ( Uniform Method ) enables a high quality security at the most attractive rate Bonds are expected to be ratable or insured Rate expected +/- 4% Fishkind & Associates, Inc. 4

8 Market Rates AAA G.O. ET AL. A1/A/A California (State) GOs /01/ A2/A-/A- California St Pub Wks /01/ unch /AA-/- Dalton-Whitefield Cty Joint Dev Auth /15/ Aa2/-/AA Haris County,Texas /15/ Aa3/AA-/NR Health and Educational Facilities Auth /15/ Aa3/-/AA Indiana Finance Authority /01/ /AA/AA- Los Angeles County Facilities Inc /01/ Aa2/AA/AA New York City Transitional Fin Auth /15/ Aa1/AAA/AAA NYC Transitional Fin /01/ unch /AA/AAA Sales Tax Securitization Corp /01/ Aa2/AA/AA The City Of New York /01/ Aa3/AA-/AA- The Port Auth of New York and New Jersey /15/ Aa2/AA/AA The City Of New York /01/ Fishkind & Associates, Inc. 5

9 Projected Bond Sizing Standard Structure Structured to keep annual payments constant If interest rates vary from 4%, the bonded amount varies, but the annual payments remain the same Fishkind & Associates, Inc. 6

10 Special Assessments to Fund Bonds UPRD would impose $23,310,000 of assessments on all homes in UPRD annual assessments average $1,200 home Requirements for special assessments 170, F.S. Special Benefit demonstrated by the overwhelmingly favorable vote to form UPRD Equitable Apportionment standard is reasonably debatable and must not be arbitrary o Governments granted great deference o Many legal apportionment methods exist Therefore, the focus of balance of this report describes the options for apportionment available to the Board Fishkind & Associates, Inc. 7

11 Sensitivity Analyses of Assessments Bonds at 4% Interest and a 30-year Term Property values at market values as per property appraiser as of 9/1/2017 Par amount of bonds set at $23,310,000 for the purposes of this analysis amount could vary depending on interest rates, but annual assessment levels are fixed and will not change Varied annual base fee and millage rate: Base rate range $250 to $750 Solved for millage rate to provide balance of needed revenue to make debt service Fishkind & Associates, Inc. 8

12 Summary of Results Calculations are after administrative charges 4% early payment 3% for tax assessor and tax collector Inverse relationship between base charge and millage rate Average/home/year remains constant Fishkind & Associates, Inc. 9

13 Distribution of Homes by Neighborhood Fishkind & Associates, Inc. 10

14 Allocation set at Average for All Units and Millage = Fishkind & Associates, Inc. 11

15 Base Fee = $750 and Millage = Fishkind & Associates, Inc. 12

16 Base Fee = $500 and Millage = Fishkind & Associates, Inc. 13

17 Base Fee = $250 and Millage = Fishkind & Associates, Inc. 14

18 50% Value and 50% Fixed (1.21 mills) Fishkind & Associates, Inc. 15

19 Recommended Assessment Allocation 50% Base Fee and 50% Based on Market Value Rationale All properties receive some benefit from acquisition of RF, land and recreational facilities Assuming that all properties receive similar percentage benefit from the acquisition of the RF, the higher valued properties receive more benefit in dollar terms than lower valued properties 50/50 allocation of cost 50% base for all properties and 50% allocation by value is equitable Satisfies the requirement that the allocation is reasonably debatable in terms of equity Fishkind & Associates, Inc. 16

20 University Park Recreation District Question and Answer

21 University Park Recreation District Closing Comments