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County of San Diego. 2002 Pension Obligation Bonds Rating Agency Presentation. June 2002. Table of Contents. A.Introductions B.Objectives C.Financial Results and FY 2002-03 Operating Plan D.Investment Pool E.Economic Highlights F.2002 Pension Obligation Bonds G.Conclusion. - PowerPoint PPT Presentation
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2002 Pension Obligation Bonds
Rating Agency Presentation
June 2002
County of San DiegoCounty of San Diego
Page 2
A. Introductions
B. Objectives
C. Financial Results and FY 2002-03 Operating Plan
D. Investment Pool
E. Economic Highlights
F. 2002 Pension Obligation Bonds
G. Conclusion
Table of ContentsTable of ContentsTable of ContentsTable of Contents
Page 3
County of San Diego William J. Kelly, Chief Financial Officer Lisa Keller-Chiodo, Capital Finance Manager Neil Rossi, Chief Deputy Treasurer Mark Friedrich, Investment Officer
Senior Manager Chris Mukai, Director, Salomon Smith Barney George Leung, Director, Salomon Smith Barney
Financial Advisor Miriam Maxian, Vice President, Program
IntroductionsIntroductionsIntroductionsIntroductions
Page 4
ObjectivesObjectivesObjectivesObjectives
Demonstrate – through our organized, structured and disciplined focus on prevention, continuous improvement, strategic planning and performance monitoring – that San Diego County is the best run county government in California.
Demonstrate that the County is well-positioned and prepared to manage future challenges, including State budget risk.
Attain the highest rating of any county in the State of California.
Page 5
Financial Highlights FY 2001-02Financial Highlights FY 2001-02Financial Highlights FY 2001-02Financial Highlights FY 2001-02
In fiscal 2001-2002, the County maintained structurally balanced operations. Annual recurring revenues have exceeded recurring spending.
Conservative budgeting practices again led to favorable variances between original budget estimates and actual revenues and spending. First three quarter expenditures are $256 million below original budget estimates.
Historic five-year labor agreements reached with employee unions, providing future certainty for largest expenditure item. Good labor relations maintained.
County has absorbed higher utility costs caused by the State’s energy crisis without cutting services.
Reduction in welfare cases in San Diego County has far exceeded other California counties over a five-year period beginning in 1995, County case load dropped 58% while rest of State dropped 41%
County sold its Tobacco Settlement Revenue stream for $467 million and funded an endowment to fund certain health programs, reducing its exposure to the tobacco industry.
Reduction of Long-Term Debt: San Pasqual and Interim Justice Refunding
Enhanced retirement benefits settled the Post-Ventura litigation and created competitive salaries and benefits with City of San Diego for a longer term
Page 6
Projected FY 2001-2002 Financial ResultsProjected FY 2001-2002 Financial ResultsProjected FY 2001-2002 Financial ResultsProjected FY 2001-2002 Financial Results
* Balances for the year ended June 30, 2001 were significantly affected by the implementation of GASB 33, which requires equity that was previously classified in certain agency funds to be consolidated with the General Fund. In fiscal year 2000-2001 the effect of GASB 33 was an additional $26.6 million in the unreserved and $152.2 million in the reserved fund balances.
Fund Balance Available:
Group Balances:
Public Safety 35.2Health and Human Services Agency 13.6Land Use & Environment 12.7Community Services 9.6Finance & General Government 34.0 General Revenue Balances 46.0
151.1
FY 1999-2000 FY 2000-2001 FY 2001-2002
(Audited) (Audited) (Estimated)
Group Balances $96.9 mm 146.1 mm $ 105.1mm
General Revenue Balances
60.4 mm 79.8 mm 46.0mm
Total Available/Undesignated
Fund Balance*
$157.3 mm $225.9 mm $ 151.1mm
County General Reserve $50.0 mm $50.0 mm $53.0 mm
Conservative estimates for FY2001-02.
Page 7
FY 2002-2003 Proposed Operating PlanFY 2002-2003 Proposed Operating PlanFY 2002-2003 Proposed Operating PlanFY 2002-2003 Proposed Operating Plan
$795.80
$1,408.97
$298.20 $16.10
$40.50$84.90
Public Safety
Health & Human Services
Land Use & Environment
Community Services
Finance & General Government & Other
Contingencies and Designation
$2.64 Billion General Fund Operating PlanFY 2002-2003(in Millions)
Appropriations
$326.60
$1,409.49
$207.98
$560.92 $57.09
$20.60$33.30$28.44
Current Property Taxes
Other Taxes
Licenses, Permits & Franchises
Fines & Forfeitures
Use of Money & Property
Intergovernmental Revenue
Charges for Current Service
Other Revenues (Other, Fund Balance,Misc. Revenue & Reserve/Designations)
Revenues
Page 8
County of San Diego FY 2002-2003County of San Diego FY 2002-2003Proposed Operating Plan – General FundProposed Operating Plan – General Fund
County of San Diego FY 2002-2003County of San Diego FY 2002-2003Proposed Operating Plan – General FundProposed Operating Plan – General Fund
Total Public Health and Human Land Use & Community Finance & Finance County Safety Services Agency Environment Group Services Group General Gov Other
ExpendituresSalaries & Employee Benefits 1,059,021,225 558,113,349 338,479,473 56,121,155 19,050,229 87,257,019 Services & Supplies 966,684,577 161,126,569 680,188,663 26,089,819 11,328,555 63,723,702 24,227,269 Other Charges 516,655,191 92,629,323 380,662,190 883,202 6,000 108,000 42,366,476 Fixed Assets - Equipment 4,442,604 2,501,863 1,028,741 477,000 45,000 390,000 Expend, Transfers & Reimbursements (19,005,102) (18,564,550) (277,187) (163,365) Reserves 11,000,000 11,000,000 Reserve/Designation Increase 17,016,000 11,916,000 5,100,000 Operating Transfers 63,385,123 3,766,594 211,324 2,993,220 70,510 56,343,475 Management Reserves 25,334,202 5,079,728 1,130,620 7,090,742 12,033,112
Total 2,644,533,820 795,806,554 1,408,928,202 84,913,120 40,513,746 175,334,978 139,037,220
RevenuesReserves/Designation 112,000 112,000 Fund Balance 73,011,429 5,606,722 10,000,000 3,611,563 5,876,836 32,816,308 15,100,000 Taxes Current Property 326,639,437 Taxes Other Than Current Secured 57,093,532 907,532 Licenses Permits & Franchises 28,445,286 306,000 714,507 22,028,029 1,966,750 430,000 Fines Forfeitures & Penalties 33,304,658 17,581,265 3,518,940 276,428 9,000 664,525 Revenue Use of Money & Property 20,621,616 4,371,115 379,437 457,264 13,800 Intergovernmental Revenue 1,409,498,218 158,904,505 1,040,886,481 8,767,674 10,593,588 543,183 Charges for Current Services 207,981,126 99,606,837 34,894,333 16,246,356 8,626,689 42,826,198 Miscellaneous Revenue 19,379,084 781,288 10,428,338 926,879 835,962 5,906,617 500,000 Other Financing Sources 468,447,434 208,531,873 258,040,166 1,850,395 25,000 General Revenue Allocation 300,116,949 50,066,000 29,729,000 12,604,921 92,109,347 123,437,220
Total 2,644,533,820 795,806,554 1,408,928,202 84,913,120 40,513,746 175,334,978 139,037,220
Page 9
FY 2002-2003 Reserves and Resources FY 2002-2003 Reserves and Resources FY 2002-2003 Reserves and Resources FY 2002-2003 Reserves and Resources
* source: 02-03 Operational Plan, as of July 1, 2002 .
**Can be redirected by supermajority vote of Board of Supervisors or substitution with replacement facility
Reserves and Resources* (in millions)
Undesignated Fund Balances 151.10County General Reserve 53.00 Subtotal - Unrestricted Reserves 204.10
Debt Service Reserves 28.60Public Liability Reserve 19.50Workers Compensation Reserve 32.00Environmental Trust Fund Reserve 91.20Endowment Fund 389.00Non-Endowment Tobacco 34.00 Subtotal - Restricted Reserves** 594.30
County has significant reserves and financial flexibility.
Page 10
Analysis of Governor’s May ReviseAnalysis of Governor’s May ReviseAnalysis of Governor’s May ReviseAnalysis of Governor’s May Revise
Minimal Impact on General Purpose Revenues
Estimated Total Impact to County = $68.5M
20% reduction in funding for administration of various HHSA programs: $19.74M
Cost shift to counties of 10% share of funding for growth in Early Periodic screening, Diagnosis and Treatment (EPSDT): $4.2M
Cost shift to counties of Child Support Penalties: $3.5-7M
Elimination of Juvenile Crime Prevention Program: $10.29M
Suspension of funding for Reimbursable Mandates (SB 90): $5.32M
County operating efficiencies minimize impact of reductions targeted at administrative costs.
Spring of 2002, County prepared contingency plans for $200 million reduction in General Purpose Revenues or State Program Reductions or cost shifts from the State
Page 11
San Diego County Rated Among Best in Government Service
A February 2002 study conducted by the Maxwell School and Governing Magazine ranked San Diego County as the top County in the nation in terms of Financial Management, Capital Management and Managing for Results
Golden Watchdog Award for the Securitization of the Tobacco Settlement Revenue
Financial Management A-
Capital Management A-
Human Resources B-
Information Technology B+
Managing for Results A-
OVERALL B+
Excellence in GoverningExcellence in GoverningExcellence in GoverningExcellence in Governing
Page 12
Financial Management (A-) Weakness in IT have restricted effective use of financial data
Capital Management (A-) Old financial management information system has impeded good data flow about capital Some departments still submit “wish lists” in capital requests $200 million backlog of planned road projects
Human Resources (B-) Too many employees at top of pay grade – makes compensation increases difficult Too many classification titles Multiple bargaining units impede change Many salary increases still based on step system, so-called “pay for breathing” Discipline process cumbersome Weak individual appraisals
Managing for Results (A-) More citizen participation needed Agency strategic plans need improvement
Information Technology (B+) Current entity-wide information systems antiquated, although new ones coming on line soon Procurement slightly slow Behind the curve with online citizen transactions
Opportunities for Improvement Opportunities for Improvement Opportunities for Improvement Opportunities for Improvement
Page 13
Challenges and Potential ResponsesChallenges and Potential ResponsesChallenges and Potential ResponsesChallenges and Potential Responses
Risk of local discretionary revenue shifts Operating Plan assumes full local discretionary revenue
Risk of State Responsibility Shifts EPSDT
Factors affecting San Diego economic prosperity High cost and uncertain supply of energy Rising housing costs State budget
Regional economy San Diego’s employment growth remains strong, though it has slowed from previous
levels Local sales tax transactions continue to do well Real estate market continues to be strong due to high demand and low financing costs
Budget impact General Purpose Revenues are expected to be between 6.5% and 7% vs. fiscal year 99-
00 and 00-01 where growth was 9.2% and 10.8% respectively General Management System matured to handle adversity
Page 14
San Diego County Investment Pool Strength and StabilitySan Diego County Investment Pool Strength and StabilitySan Diego County Investment Pool Strength and StabilitySan Diego County Investment Pool Strength and Stability
Highly Liquid Vast majority of funds are mandatory Low weighted average maturity 32% of securities mature within 180 days
Portfolio focus is Safety, Liquidity, Return
High Credit Quality High credit quality (100% of securities are rated AAA or A1/P1/F1) Weighted average yield of 3.20%
Professionally managed
Varied Pool Participants Only 2.39% comprised of Voluntary Depositors
Strong cash flow model
Page 15
San Diego County Investment Pool Asset AllocationSan Diego County Investment Pool Asset Allocationas of April 30, 2002as of April 30, 2002
San Diego County Investment Pool Asset AllocationSan Diego County Investment Pool Asset Allocationas of April 30, 2002as of April 30, 2002
0.01%
37.97%
1.64%15.45% 9.57%
6.23%
29.13%
Time Deposits .01%
C. P. 37.97%
Med. Term Notes 1.64%
Negotiable CD's 15.45%
Repo 9.57%
Money Market 6.23%
Agencies 29.13%
Page 16
San Diego County Investment Pool Credit QualitySan Diego County Investment Pool Credit Qualityas of April 30, 2002as of April 30, 2002
San Diego County Investment Pool Credit QualitySan Diego County Investment Pool Credit Qualityas of April 30, 2002as of April 30, 2002
55.74%
44.26%
AAA 44.26%
A-1/P-1/F-1 55.74%
Page 17
San Diego County Investment Pool Pool ParticipantsSan Diego County Investment Pool Pool Participantsas of April 30, 2002as of April 30, 2002
San Diego County Investment Pool Pool ParticipantsSan Diego County Investment Pool Pool Participantsas of April 30, 2002as of April 30, 2002
44.87%
38.38%
2.39%
4.75% 9.61%
County Funds 38.38%
Voluntary Depositors2.39%Schools 44.87%
Community Colleges4.75%Unapportioned Tax/Int.Funds 9.61%
Page 18
San Diego County Investment Pool StatisticsSan Diego County Investment Pool Statisticsas of April 30, 2002as of April 30, 2002
San Diego County Investment Pool StatisticsSan Diego County Investment Pool Statisticsas of April 30, 2002as of April 30, 2002
Percent Of Market Accrued Unrealized Yield ToPortfolio Book Value Price Interest Market Value Gain/(Loss) Maturity
Federal Farm Credit Bank Notes 0.68% 25,003,947 100.06% 281,250 25,015,750 $11,803 2.22%Federal Home Loan Bank Notes 9.79% 354,941,008 101.00% 7,633,080 358,532,747 $3,591,739 5.73%Federal Nat'l Mortgage Assoc. Notes 10.53% 380,535,770 101.35% 2,171,969 385,681,221 $5,145,450 4.64%Federal Home Loan Mortg. Corp. Notes 7.04% 254,964,941 101.05% 2,963,403 257,685,350 $2,720,409 4.57%Student Loan Marketing Assoc. Notes 1.37% 50,017,375 100.02% 368,750 50,008,000 ($9,375) 2.20%Corporate Medium Term Notes 1.64% 60,000,000 99.88% 21,452 59,930,400 ($69,600) 1.84%Money Market Funds 6.23% 228,000,000 100.00% 596,977 228,000,000 $0 1.85%Repurchase Agreements 9.56% 350,000,000 100.00% 18,896 350,000,000 $0 1.94%Negotiable Certificates Of Deposit 15.44% 564,973,419 100.12% 4,949,236 565,655,750 $682,331 2.28%Commercial Paper 37.72% 1,381,114,609 99.48% 0 1,381,596,726 $482,117 2.02%Collateralized Certificates of Deposit 0.01% 490,000 100.00% 631 490,000 $0 2.75%Totals For April 2002 100.00% $3,650,041,069 100.13% $19,005,645 $3,662,595,943 $12,554,875 2.86%
Totals For March 2002 100.00% $2,968,810,141 100.07% $21,834,702 $2,975,753,846 $6,943,705 3.20%
Change From Prior Month $681,230,928 0.06% $686,842,097 $5,611,170 -0.35%
Overall Portfolio Effective Duration 0.42 years
Fiscal YearApril '02 To Date Calendar YearReturn Annualized Return Annualized To Date Return Annualized
Book Value 0.243% 2.951% 3.358% 4.031% 1.089% 3.313%Market Value 0.414% 5.032% 3.473% 4.170% 0.866% 2.635%
Page 19
San Diego County region exhibited stronger economic performance than other California counties in 2001
Property tax valuation increased 9.6% for 2001-02 from the prior year
Gross Regional Product (GRP) climbed to $120.5 billion in 2001, a record for total economic production in the region
County employment and population have continued to rise and unemployment remains below State average
Economic HighlightsEconomic HighlightsEconomic HighlightsEconomic Highlights
Page 20
San Diego’s Gross Regional Product (GRP) is expected to reach $126.7 billion in 2002
County currently contributes 8.5% towards California’s GRP
Gross Regional ProductGross Regional ProductGross Regional ProductGross Regional Product
San Diego GRP(Billions Percentage of:
Year of Dollars) Calif. U.S. 1990 $64.737 8.10% 1.12% 1991 $66.733 8.19% 1.11% 1992 $67.857 8.16% 1.07% 1993 $69.222 8.16% 1.04% 1994 $71.838 8.17% 1.02% 1995 $75.109 8.11% 1.01% 1996 $79.562 8.17% 1.02%1997 $86.086 8.24% 1.03%1998 $93.627 8.32% 1.07%1999 $103.316 8.41% 1.11%2000 $113.727 8.38% 1.15%
2001e $120.526 8.49% 1.18% 2002f $126.675 8.65% 1.19%
*Adjusted by GDP/GSP implicit price deflator. e: estimate f: forecastSource: Bureau of Economic Analysis, U.S. Department of Commerce; UCLA Anderson Forecast;Economic Research Bureau, San Diego Regional Chamber of Commerce.
Page 21
Diverse Economy and Employment BaseDiverse Economy and Employment BaseDiverse Economy and Employment BaseDiverse Economy and Employment Base
The County possesses a diverse economic base consisting of manufacturing (electronics, technology, ship building), defense-related industries, and a large tourist industry bolstered by the favorable climate of the region.
San Diego is recognized as having one of the most diversified economies in the U.S.
Employer Service/Product
10,000 OR MORE EMPLOYEES:Federal Government GovernmentState of California GovernmentUniversity of California, San Diego Higher EducationCounty of San Diego GovernmentSan Diego Unified School District EducationCity of San Diego Government
5,000-9,999 EMPLOYEES:Sharp Healthcare Corp. HealthcareU.S. Postal Service Postal ServiceQUALCOMM, Inc. TelecommunicationsKaiser Permanente Medical Group HealthcareScripps Health HealthcarePacific Bell Telecommunications
3,000-4,999 EMPLOYEES:Science Applications International Corp. Technology ServicesAlbertson's Inc. Retail Food ChainSempra Energy UtilitiesSan Diego State University Higher EducationSony Technology Center Communication/WirelessPalomar Pomerado Health Systems HealthcareUnited Parcel Service Mail Delivery ServiceNational Steel & Shipbuilding Co. Shipbuilders and RepairersAce Parking Parking Stations and Garages
Source: San Diego County Chamber of Commerce.
Page 22
1993-99SAN DIEGO
San Jose
Los Angeles/ Long Beach
Orange
County
San
Francisco
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Significant Growth in Manufacturing and ExportsSignificant Growth in Manufacturing and ExportsSignificant Growth in Manufacturing and ExportsSignificant Growth in Manufacturing and Exports
Among California’s major metropolitan areas, exports have grown significantly faster in San Diego than other areas.
Page 23
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
1997 1998 1999 2000 2001 (e) 2002 (f)
U.S. California County of San Diego
High Employment LevelsHigh Employment LevelsHigh Employment LevelsHigh Employment Levels
Labor Force - Unemployment*Annual Averages 1997-2001
Source: State Data - California Employment Development Department; National Data - U.S. Department of Labor, Bureau of Labor Statistics.* Data not seasonally adjusted and through December 2001.
High Employment = Low Welfare & Strong Tax Base
Page 24
Economic Overview: Strong Tax Base GrowthEconomic Overview: Strong Tax Base GrowthEconomic Overview: Strong Tax Base GrowthEconomic Overview: Strong Tax Base Growth
Assessed Valuation of PropertyFY 1994-1995 through 2001-2002
Source: County of San Diego Auditor and Controller. Secured tax roll statistics.Note: Net Assessed Valuation for Tax Purposes figures include local secured, unsecured, state unitary and redevelopment valuation.
9.6% growth for 2001-02 Expectation of 8.5% growth for 2002-03
Bill
ions
$144
.20
$145
.68
$146
.00
$149
.61 $1
60.1
0
$176
.11
$191
.19
$209
.28
$130
$140
$150
$160
$170
$180
$190
$200
$210
$220
1994
-95
1995
-96
1996
-97
1997
-98
1998
-99
1999
-00
2000
-01
2001
-02
Page 25
Enhanced Retirement Package (Approved March 2002) Will consolidate existing tiers and proactively resolve both Ventura Litigation and
PERS parity issue (2% @ 50)
County planning for “worst case” Elimination of surplus (107% as of 6/30/2001 actuarial valuation) Net Funding Ratio of approximately 80%
County in FY 02-03 sets aside $5M annually, which together with future freed up debt capacity from maturing 1994 POBs, will be sufficient to satisfy UAAL, which by SDCERA policy would be amortized over 10 years.
Vested deferred explosion defused with enhanced retirement plan
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
-
500
1,000
1,500
2,000
2,500
3,000
3,500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Page 26
2002 POB Financing Strategy Estimated unfunded accrued actuarial liability (UAAL)
UAAL from Benefits Enhancements (1/31/02) $ 870.8 mmEstimated Additional Increases 129.2 mm Total $ 1,000.0 mmExcess Assets Over Liabilities (6/30/01) (238.8) mmNet $ 761.2 mm
Financing Approach Prepay a portion of Net UAAL ($400 - $500mm). Eliminate UAAL payments to SDCERA through at least FY08. Wrap new POB debt service around existing 1994 POBs. Refund 1994 POBs if debt service neutrality can be achieved. Create future prepayment and refinancing flexibility for POBs. Target funding ratio of 90%-95% and minimize risk of over-funding pension system.
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
Page 27
UAAL Funded: $400 - $500 mm
Term: 30 Years
Indicative Yield: 6.85%
Structure(s): Current Interest BondsCapital Appreciation BondsAuction Rate BondsAuction Rate Bonds with Swap
1994 POBs Refunded: Subject to market conditions. County will refund 1994 POBs only if it lowers overall POB debt service.
Prepayment Flexibility: Yes
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
Page 28
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
0
10
20
30
40
50
60
70
80
90
100
110
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
($M
illio
ns)
Existing 1994 POBs New Additional POB D/S from 2002 Issue*
Resources Available for POB and UAAL Payments
San Diego County Pension Bond AnalysisTotal Unfunded Liability Payments
Sufficient resources and capacity to prepay or issue more POBs in future if necessary.
*Assumes County Issues POBs to fund $500 million of UAAL at current market rates.
Page 29
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
SDCERA Historical Average Investment Returns
1-year -8.40%
3-year 5.97%
5-year 8.24%
10-year 9.58%
15-year 10.22%
San Diego County Pension Bond Analysis$500 Million Deposit (Assuming 9.50% Return on Assets)
78%90%
91%92%
93%94%
95%96%
97%98%
99%
100%
102%
103%
104%
(2,000,000)
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Market Value of Assets Unfunded Liability Actuarial Accrued Liability
2002 POBs sized to achieve targeted funding ratios.
Page 30
2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan2002 POB Financing Plan
0
10
20
30
40
50
60
70
80
90
100
110
120
130
1402
00
3
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
20
22
20
23
20
24
20
25
20
26
20
27
20
28
20
29
20
30
20
31
20
32
($M
illio
ns)
Existing County Debt Service Total County Debt Service with 2002 POBs (1)
(1) Assumes County Issues POBs to fund $500 million of UAAL at current market rates.
San Diego County Long Term Debt Obligations
Manageable impact on County debt service burden.
Page 31
No Impact on Net General Fund Debt ServiceNo Impact on Net General Fund Debt ServiceNo Impact on Net General Fund Debt ServiceNo Impact on Net General Fund Debt Service
Total FY 02-03 Lease Payments Budgeted $118,853,017
Total Offsets $ 37,137,062Net Cost to County $ 81,715,955 General Fund
ReimbFed/State/City
AB189Districts/Funds
Special
Fees/Other
County Debt Service Burden * = 4.49%
Debt Service Burden with offsets = 3.09%
Debt Service Burden net of POB’s = 2.36%
* % of County budget
Page 32
Financing ScheduleFinancing ScheduleFinancing ScheduleFinancing Schedule
Date Activity
June 11 Bond Insurance Bids Received
June 14-17 Rating Agency Conference Calls
June 18 County Board Approves Financing
June 21 Receive RatingsPost / Mail Preliminary Official Statement
July 8-11 Launch and Price Transaction
July 30 Closing
Page 33
ConclusionsConclusionsConclusionsConclusions
County continues to exercise fiscal prudence and build reserves
Consistent with its strategic plan and financial objectives, the County has maintained a structurally balanced budget
County continues to maintain strong cash position
County is well positioned to manage future challenges, including potential impact of State budgetary actions
Abundant reserves and resources available No public hospital system Diversified economy
County is proactively addressing Ventura, PERs parity and City of San Diego competitive issues with enhanced retirement benefits
County debt burden is manageable. POB financing plan is conservative and affordable