ansonia debt analysis

8/18/2019 Ansonia Debt Analysis

1/9

City of

Ansonia,

Connecticut

Existing

&

Proposed Debt Analysis

April 7,

2016

Barry Bernabe

Managing

Director

PrroENrx

ADVISORS,

LLC


2/9

Long-term

lnterest

Rates

Ten

Year

U.S.

Treasury Yield

-

January

1,1970

to

April

2016

17o/"

160/o

1$Vo

14o/"

13o/o

12o/o

11o/o

1Oo/o

9o/o

8o/o

7o/o

60/o

5o/o

4o/o

3o/o

2o/o

1olo

17o/o

160/o

15o/o

14o/o

13o/o

12o/o

11o/o

1Oo/o

9o/o

8o/o

7olo

60/o

5o/o

4o/o

3o/o

2o/o

1olo

FF+

BFTE

EqBEqEEq

qEEE

EqqHE?E*

q

5

8t58gi

0$5

$PI fi95 $t5

$E

5

g

E

E

si

i

Prronxrx

,"\D\IIS0R\Lt"C

dMWtu

%*t*M

\

High:

September

1981

t

16.0%

Low:

July 2012, 1.5OYo

l-,

\-

I

\

it

I \-

r1 \

t

U

\-

.I

-l

\-

A f' /Y'LA

\-

\

,

/v

"\n/

U

^l

\-

Ul

-,rrl"

'\.

lkry\ tu \-

v

u

\/\n. \-

ts

-Y-\.

r^ltl,/w \.

11

'

vlr,r1

n

r

v[

/\*

--***M,,

Page

2


3/9

Standard &

Poor's Rating

Scale

H

ighest

AAA

Greenwich, Westport,

West

Hartford

BBB- None

PuonNrx

ADVISORS,IJ,C

n

Shelton, Southington,

Suffield

Derby,

Seymour,

Watertown

Ansonia,

Bolton,

Portland

Bridgeport,

Waterbury

Hartford, Hamdefl,

West

Have

East Haven, New

Haven

None

None

:

-

+

A,A+

AA

aA-

A+

A

&

BBB

BBB

Lowest

Page 3


4/9

Existinq

Short-Term

Bond

Anticipation

Notes

(BANs)

Project

Amount

Authorized

Lot A

Tax-

Exempt

to

Mature 5123116

Lot

B Taxable

to

Mature

5t23t16

Demolition of the

Rircrside

Housing

Complex

$5,200,000 $2,975,000

2013-14 CIP

-

Various

Capital

lmprorcments 5,120,000 3,750,000

Total

$3,750,000

$2,975,000

Page 4


5/9

Existinq

Debt

Seruice Pavments

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$0

N2013-14

CIP

aRiverside

P&l

rExisting

NET Debt Service

INN

N

#+d

t#t-H

l]JrJ]+

ffi

I

I

FiscalYear

Page

5


6/9


7/9

Existing

&

Proposed Debt

Spreadsheet

Line

Descriiption

Tvpe FY 2015-16 FY 2OL6-LI FY 2OL7-L8 FY 2018-19 FY 20L9-20 FY 2020-2L

7 2004 Bond Principal

School

1,610,000

1,080,000 1,075,000

2

2011 Bond Principal

School

1,190,000

1.200.000

1,180,000 1,165,000

3

2004 Bond lnterest

School L37,225 72,675 24,1,88

4

2011 Bond lnterest School L24.200 88.350

52,650 77,475

5

Chase

Ambulance

&

Dump Truck

Lease

ARMS/PW 85,356

85,356 85,356

6 Plow Truck Lease PW

77,913

7L.913

7

Fire Truck

and Sweeper Fire/PW 1.44,400 L3L,47A t3L,470 L37,470

73L,470 78,865

8 Riverside BAN Principal

Citv/Housins

1s0.000

18s,000 325,000

300,000 300,000 300,000

9 Riverside

BAN

lnterest

City/Housing

50,000 50,000 50,000 50,000 s0,000 s0,000

10 2OL3-L4

CIP

Princioal

City 200,000 200,000 200,000 200,000

200,000

LI

2OL3-L4

CIP

lnterest

Citv 50,000 150,000 125,000

LL7,OOO

110,500 108,000

L2

Future 2OL6-L7

CIP

Debt

Service City

25,000 540,000 1,0s5,000 1,110,000

L3

Total Gross Debt 3.613.094

3,314,764 3,273,664 2,520,945 1-,846,970 1,846,865

L4

Less

State

Reimbursements

(1,,762,1.s81

(1,464,s74\

(1,399,132) (672,952

15 Net Debt

Service 1.850.936 1,850,190 1.,874,532

L,847,993 L,846,970 L,8,46,965

Amount

budgeted

for

Debt

Service

FY 2075-76

Page


8/9

Existing

& Proposed

Debt

Service

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

o

N

o

N

FiscalYear

EFuture

Debt

Capacity

N2013-14

CIP

e

Riverside P&l

r Existing

NET Debt

Service

Page

8


9/9

Summary Points

o

Though

the

Fed has started

to

raise short-term interest rates,

they

remain

at

close to

historic

Iow

levels

(about

0.50%) and so do long-term rates.

.

The City

has rating

of

AA-

which

will

allow

for strong

investor demand.

.

The

City has an opportunity for a

possible

upgrade to AA

o

The

City's existing debt service amortizes

very

aggressively.

.

Structured appropriately

-

the City can

issue over

$4

million

per year

with no impact on

the

debt service

budget.

o

The

City currently budgets about

$1.8

million

per

year

for

debt service.

The

City

would

need

to

keep debt service budgeted

at

the

$1.8

million.

Page

9

ansonia debt analysis

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