Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019 1 - - PowerPoint PPT Presentation

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Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019 1 - - PowerPoint PPT Presentation

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Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019 1 AGENDA 1. Welcome Joanne Gore, Chair 2. Bond 2014 Update Oscar Perez, Carolina Fuzetti 3. Bond 2018 Update Oscar Perez, Zandra Becerra Contract Updates

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Bond Oversight Committee Bond 2014 and Bond 2018 April 25, 2019

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  • 1. Welcome – Joanne Gore, Chair
  • 2. Bond 2014 Update – Oscar Perez, Carolina Fuzetti
  • 3. Bond 2018 Update – Oscar Perez, Zandra Becerra
  • Contract Updates
  • Bond Program Financials/Dashboard
  • Small Business Initiative Update
  • Malala Yousafzai (Pkg 001) – ES51 Update
  • New Construction/Renovation, Work in Progress
  • 4. Communications Update – Veronica Sopher
  • 5. Technology Update – Jojo Jacob
  • 6. Debt Service Fund Update – Steve Bassett
  • 7. Questions/Comments

AGENDA

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April 25, 2019

Bond Oversight Committee 2014 Bond program

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PROGRAM STATUS

Overall Bond Program

Complete In progress Next step

PHASE/ % COMPLETE DESIGN CONSTRUCTION

SD DD CD BID CONST CLOSE/ WNTY

I/99% II/100% III/95%

LEGEND

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PROJECTED PROGRAM BUDGET

Notes: Data as of 3/31/2019 Current 2014 Bond Program Contingency = $18.2M Projected Bond Program Balance includes rounding tolerance

* Projected estimate to complete (based on estimates and pending commitments)

Item Total Current Commitments/ Approved Change Orders

(A)

$439.2M Estimates/ Pending Change Orders*

(B)

$ 35.7M Total Projected Budget

(C)=(A) + (B)

$474.9M 2014 Bond Budget

(D)

$486.7M Projected Bond Program Balance (E)=(D) - (C) $ 11.8M

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Awarded Construction Contracts Total SBE Commitment Board Goal 25% SBE Paid to Date

SMALL BUSINESS INITIATIVE

66% 29% 77%

$91,079,616 $319,308,804 $69,922,186

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James Reese Career and Technical Center

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Construction Progress

  • Substantial completion

7/25/2019

  • Opening fall 2019
  • Construction 72% complete
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2014 Bond Wireless Upgrade

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Bond Oversight Committee 2018 Bond Program April 25, 2019

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A/E Contracts (Design) 42 of 51 (A/E) Architect/Engineer contracts have been executed JOC Contracts (Construction) 14 of 20 Job Order Contracts (JOC) construction contracts have been executed CSP/CMAR Contracts (Construction) 0 of 29 Competitive Sealed Proposal (CSP)/Construction Manager at Risk (CMAR) construction contracts have been executed

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Contract Updates

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Bond Program Dashboard/Financials

Spent to Date $24M Commitments $81M

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Small Business Initiative

2018 Bond Program

Construction Awarded Construction Contracts $39,634,707 Total SBE Commitment $10,892,247 SBE Paid to Date $4,013,853 A/E Services Awarded Construction Contracts $38,402,545 Total SBE Commitment $10,054,444 SBE Paid to Date $185,051

26% 85% 0.5% 10% 27% 7%

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New elementary school (#51) in the Aliana Community

  • 10 Classroom Addition approved by BOT in

February 2019, Bond 2018 funded

  • Construction of classroom addition in progress
  • Building envelope is 75% complete
  • Substantial completion date is 12/2019
  • Mid-year opening - student on-campus start

date is January 2020

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MALALA YOUSAFZAI

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New Construction

ES 52, ES 53, HS 12

  • Land acquisition in progress
  • Schematic Design ongoing
  • BOT approval Summer 2019

Meadows ES

  • Schematic Design complete and approved by

BOT, February 2019

  • Demo/Construction start date summer 2019
  • Opening date 2021

Lakeview ES

  • Programming complete
  • Visioning sessions with community ongoing
  • Construction start date summer 2020

MS 16-Net Zero

  • Benchmark Case study in progress
  • Land purchase being evaluated

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New Construction/Renovation Progress

Additions/Renovations

Neill ES Addition - 12 classroom

  • Schematic Design approved by BOT February 2019
  • Design Development ongoing

Madden ES Addition - 10 classroom

  • Schematic Design approved by BOT March 2019
  • Design Development ongoing

Fine Arts

  • Schematic Design ongoing
  • Projected construction start January 2020
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Construction Work in Progress

  • Door Locks and Window Film (Security) – Install summer 2019
  • Playgrounds – Install summer 2019
  • Hall Stadium Repairs/Renovation ongoing
  • Estimated completion date August 2019
  • PA/Sound and Clocks
  • Bond Signage – Summer 2019
  • Fencing around Portable Buildings
  • Water Softeners
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  • Bond update included in April

FBISD News Magazine Planned:

  • Back-to-school magazine to

include longer article about bond progress.

  • Video PSA in progress regarding

installation of door locks at campuses throughout the District

  • Additional social media posts

and videos to be shared as appropriate

Communications Plan Update

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Technology Progress

  • IT HVAC Project
  • Phase 1 (17 campuses)
  • Construction work is completed. Access control is

installed in about 30% of the campuses.

  • Phase 2 (A&E)
  • Currently reviewing the 90% Construction

Documents

  • Majority of project in initial phases (planning, bids, etc.)
  • Board approved purchases

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Phase 1 & 2 Classroom Toolset

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  • Currently finalizing counts & gathering quotes
  • Anticipated Delivery is late July – August

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  • Currently finalizing counts & gathering quotes
  • Anticipated Delivery is late July – August

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SUMMARY OF OUTSTANDING DEBT

AS OF 3/31/2019

Summary Statistics Principal Composition

Total Outstanding Principal 977,230,164 $ Total Fixed Rate 813,325,164 83.23% Total Variable Rate 163,905,000 16.77% Total Interest Payments 456,434,221 Callable Principal (%) 0.00% Percent of Principal Retired w/in 5 years 23.69% w/in 10 years 54.86% w/in 15 years 78.74% Noncallable 24.07% w/in 20 years 90.52% Callable 75.93% w/in 25 years 98.42% w/in 30 years 100.00% Final Maturity 8/15/2048

Underlying Ratings Voted Authorization

Fitch AA+ Date Issued Balance CP Issued Unissued S&P AA+ 11/6/2007 409,000,000 $ 19,000,000 $ 10,000,000 $ 9,000,000 $ 11/4/2014 370,000,000 114,000,000 65,000,000 49,000,000 11/6/2018

  • 992,600,000

25,000,000 967,600,000 779,000,000 $ 1,125,600,000 $ 100,000,000 $ 1,025,600,000 $ 992,600,000 1,904,600,000 $ Amount 428,000,000 $ 484,000,000 24.07% 75.93% 75.93%

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$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 $100,000,000 Aggregate Debt Service

Principal Interest

Period Ending 8/31

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SUMMARY OF OUTSTANDING DEBT

PRINCIPAL & INTEREST

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Callable Call Bond Issue Principal Date Unlimited Tax Refunding Bonds, Series 2009 28,390,000 $ 8/15/2019 Unlimited Tax School Building Bonds, Series 2009 121,860,000 8/15/2019 Unlimited Tax School Building & Refunding Bonds, Series 2010 66,580,000 8/15/2020 Unlimited Tax Refunding Bonds, Series 2012 46,870,000 8/15/2022 Unlimited Tax Refunding Bonds, Series 2014 46,145,000 8/15/2024 Variable Rate Unlimited Tax School Building Bonds, Series 2015A 31,630,000 8/1/2019 Variable Rate Unlimited Tax School Building Bonds, Series 2015B 39,250,000 8/1/2019 Unlimited Tax Refunding Bonds, Series 2016A 35,755,000 8/15/2024 Unlimited Tax Refunding Bonds, Series 2017A (Green Bonds) 36,525,000 8/15/2026 Unlimited Tax Refunding Bonds, Series 2017B 28,080,000 8/15/2026 Variable Rate Unlimited Tax Refunding Bonds, Series 2017C (Green Bonds) 44,060,000 8/1/2020 Variable Rate Unlimited Tax Refunding Bonds, Series 2017D 48,965,000 8/1/2021 Unlimited Tax Refunding Bonds, Series 2018 119,585,000 8/15/2027 Unlimited Tax School Building Bonds, Taxable Series 2018 48,300,000 8/15/2027

CALLABLE BONDS

  • The following table shows the District’s callable bonds as of March 31, 2019

SUMMARY OF OUTSTANDING DEBT

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TAX EXEMPT COMMERCIAL PAPER

  • The District established a Commercial Paper Program on November 3, 2016
  • On January 22, 2019, the Board of Trustees approved expanding the commercial

paper program from $100 million to $150 million effective February 20, 2019. The Board also approved adding the 2018 Bond to the commercial paper program

  • Currently, the District has $100 million outstanding in commercial paper with rates

ranging from 1.62% to 1.86%

  • As of 3/31/2019, the District has saved approximately $8.58 million in interest

expense

Fixed Rate Interest Period Total Interest Issue - Total Expense Ending Series A Series B Expense Interest Expense Difference 3/31/2019 1,324,230 $ 48,759 $ 1,372,989 $ 9,960,049 $ (8,587,060) $ Interest Expense Comparison Commercial Paper Notes

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RECAP OF DEBT TRANSACTIONS

  • Series 2019A Refunded Bonds - $100,000,000 VARIABLE
  • Commercial Paper refunded at par
  • Priced 4/23/19 and will close 5/22/19
  • Three-year put at 1.95%
  • All-in True Interest Cost (TIC) = 1.98%
  • Average life of bonds = 16.84 years
  • District saved approximately $5 million in interest expense

savings versus a fixed rate bond in the first three years

  • Series 2019B Refunded Bonds - $131,550,000 FIXED
  • Series 2009 and Series 2009 Refunding
  • Refunded total = $150,250,000
  • Priced 4/23/19 and will close 5/22/19
  • Net Present Savings of $26.2 million
  • All-in True Interest Cost (TIC) = 2.78%
  • Average life of bonds = 10.13 years
  • District saved over $7 million in net present value savings

by not advance refunding in December 2017

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  • Series 2015A and Series 2015B Bonds
  • Combine bonds for a total of $70.8 million
  • Remarketing in July 2019
  • Available Transactions from January 2019 Bond Order
  • $50 million in commercial paper
  • $100 million in new money bonds
  • District will continue to monitor market conditions for new

money issuances and future refundings

  • Rating Agencies – Fitch and Standard & Poors (S&P)
  • Maintained AA+ rating
  • S&P upgraded District financial management from

“Good” to “Strong”

UPCOMING TRANSACTIONS

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Bond 2014 Weighted Average Analysis

Debt: Weighted Average Maturity 14.43 years Assets: Weighted Average Useful Life 21.39 years

Per the Board Resolution adopted on 8/25/2014, the weighted average of maturity of the debt issued will not exceed the weighted average economic life of the assets by more than 120%.

WEIGHTED AVERAGE ANALYSIS

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Bond Oversight Committee April 25, 2019

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