project finance eric bode. tobacco securitization approved as part of fy08-09 budget
TRANSCRIPT
Project Project FinanceFinance
Eric Bode
Tobacco Securitization
• Approved as part of FY08-09 Budget
OSFC Funding Sources• GRF- backed
bonds• Tobacco
settlement funds
• Cash Transfers and other
• Total need = $14.8 billion estimate
OSFC Appropriations by Source by Year ($Millions)
-
200
400
600
800
1,000
1,200
1,400
Tobacco - actual
Tobacco Bonds - projected
Cash - projected
Cash - actual
Bonds - projected
Bonds - actual
Priority of Districts
• Move up the equity list
• In FY1998, start with #1
• In July, 2007, reached #243
• In July, 2008, reached #341
• Next group: through #375
• Voluntary program
Timeline
State/Local Share
• A set percentage, locked in at beginning of project
• x = LocalShare
Local%
MFPBudget
Local Share Determination
• Set in state law, unchanged since 1997
• Higher of 2 Calculations1. District’s percentile on equity list
2. “Net bonded indebtedness”
• Locked in for ELPP districts
Financial Requirements of School Districts
1. Obtain local share
2. Obtain maintenance funding (half mill X 23 years)
3. Share in financial risk
School District Financing• Flexibility in
ways to obtain local share
• Nearly all do some type of levy
• Must get $ within one year of OSFC approval
BOND PASSAGE RATE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
OSFC
ELPP
OTHER
The Cost of WaitingOSDM Inflation rate
3.3%2.5%
3.9%3.3%
2.2%2.5%
8.3%
5.9%
4.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007
Project Finance
• Sign Project Agreement
• Approvals from District and OSFC
• District Treasurer pays all the bills
Locally Funded Initiatives
• What are they?
• Examples
• Process for approval
• May be early financial decision
Questions?
Eric BodeChief Financial OfficerOhio School Facilities [email protected]
Lois SnyderDeputy Chief Financial [email protected]