ParklandSchool District

Financial Analysis

December 2, 2014

Prepared by:Scott Shearer

Managing Director

Public Financial Management, Inc.One Keystone Plaza, Suite 300

North Front & Market StreetsHarrisburg, PA 17101

717.232.2723 (P) 717.232.8610 (F)

www.pfm.com

Public Financial Management, Inc.

Parkland School District 

Topics for Discussion 

December 2, 2014 

I)  2015 Goals 

Maximize Bank Qualified (“BQ”) benefit to the District  

Capitalize on 2015 refunding opportunities ♦ Capitalizing on refundings over the past 3 years has saved the District over $5M 

 

Accommodate new money requirements 

II)  Refunding Update 

The District has two upcoming current refunding opportunities in 2015 (dependent on interest rate environment)  

Series of 2008 Bonds ♦ $ 10,345,000 principal outstanding  

♦ 5.00% average existing rate 

♦ Callable March 1, 2015 

♦ Estimated net local effort savings of approximately $337,480 or 3.93% of refunded principal 

♦ Majority of savings are projected to impact FY 2014/15 

Series of 2010 Bonds ♦ $ 15,545,000 principal outstanding at the time of the new refunding 

♦ 3.65% average existing rate 

♦ Callable August 15, 2015 

♦ Estimated net local effort savings of approximately $397,458 or 2.56% of refunded principal 

♦ Majority of savings are projected to impact FY 2015/16 – FY 2019/20 

III)  New Money Financing Plan 

Additional new money issuance structured to maximize BQ capacity and minimize budget impact 

♦ $9,000,000 of BQ Tax‐Exempt New Money bonds in 2015 

♦ Additional borrowing as needed in 2016 

♦ FY 2014/15 General Fund budget dollars have been utilized for capital projects and will be reimbursed with a portion of the $9,000,000 borrowing  

♦ FY 2015/16 General Fund budget dollars may be utilized for capital projects and will be reimbursed in 2016 

IV)  Parameters and Reimbursement Resolutions 

The District can approve 1 Parameters Resolution to accomplish all the Refunding and New Money transactions for 2015 

The District will consider a Reimbursement Resolution for the 2015 New Money issue to reimburse General Fund budget dollars spent in FY 2014/15 

The District will consider a Reimbursement Resolution for the 2016 New Money issue to reimburse General Fund budget dollars spent in FY 2015/16 

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PARKLAND SCHOOL DISTRICTNew Money & 2008/2010 Refundings

ESTIMATED FINANCING TIMELINE

January

April

February

Close 2010 (Portion) Refunding Bonds (Transaction #3)Price 2010 (Remaining) Refunding Bonds (Transaction #4)

Price $9 Million of New Money Bonds (Transaction #1)Price 2008 Refunding Bonds (Transaction #2)

2015 Financing Timeline

May

June

Close $9 Million of New Money Bonds (Transaction #1)Close 2008 Refunding Bonds (Transaction #2)

Price 2010 (Portion) Refunding Bonds (Transaction #3)

Close 2010 (Remaining) Refunding Bonds (Transaction #4)

December 16Adoption of Parameters Resolution and Reimbursement Resolutions

December 2 Board Presentation

Public Financial Management, Inc. 12/2/2014  

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PARKLAND SCHOOL DISTRICTSUMMARY OF OUTSTANDING INDEBTEDNESS

A A

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Fiscal G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds Sub-Total G.O. Bonds TotalYear Series of Series of Series of Series of Series of Series of Series A of Series of Series of Series A of Debt Series of Debt

Ended 1998 2008 2009 2010 2011 2012 2012 2013 2014 2014 Service 2007 (Forward) [1] Service

6/30/2015 4,695,069 2,409,488 1,011,303 737,818 2,917,075 680,200 681,643 472,506 291,322 453,104 14,349,526 1,219,675 15,569,2016/30/2016 4,697,975 2,408,888 1,011,148 739,618 2,913,125 769,900 596,543 476,791 477,255 547,206 14,638,448 1,216,550 15,854,9986/30/2017 4,610,669 2,400,725 1,010,985 745,905 2,914,525 851,450 597,943 475,441 481,468 547,188 14,636,298 1,217,300 15,853,5986/30/2018 2,392,575 1,010,795 771,530 1,015,000 589,143 474,091 480,118 7,371,425 14,104,676 1,216,700 15,321,3766/30/2019 2,389,175 1,010,605 760,893 1,023,750 585,343 477,606 473,138 8,040,338 14,760,846 1,219,750 15,980,5966/30/2020 7,630,415 769,893 5,229,950 481,443 475,856 475,731 15,063,288 1,221,225 16,284,5136/30/2021 12,718,665 758,443 634,443 478,756 467,131 15,057,438 1,226,125 16,283,5636/30/2022 7,337,200 786,618 734,243 335,856 293,456 9,487,373 1,229,225 10,716,5986/30/2023 3,643,288 741,843 335,725 1,213,338 5,934,193 1,235,525 7,169,7186/30/2024 3,639,438 744,043 335,594 1,209,288 5,928,361 1,239,800 7,168,1616/30/2025 3,633,875 745,943 335,463 1,213,300 5,928,580 1,242,050 7,170,6306/30/2026 3,629,000 752,543 335,331 1,204,050 5,920,924 1,247,275 7,168,1996/30/2027 1,066,000 753,743 2,330,200 1,614,200 5,764,143 1,250,250 7,014,3936/30/2028 758,938 3,320,200 1,616,800 5,695,938 1,255,975 6,951,9136/30/2029 767,625 3,312,400 1,612,000 5,692,025 1,259,225 6,951,2506/30/2030

TOTAL 14,003,713 12,000,850 32,741,115 21,682,315 8,744,725 9,570,250 10,165,415 13,971,818 13,122,593 16,959,260 152,962,053 18,496,650 171,458,703

15 16 17 18 19 20 21 22 23 24 25 26 27 28

Fiscal G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds G.O. Bonds Sub-Total G.O. Bonds TotalYear Series of Series of Series of Series of Series of Series of Series A of Series of Series of Series A of Local Series of Local

Ended 1998 2008 2009 2010 2011 2012 2012 2013 2014 2014 Effort 2007 (Forward) [1] Effort

6/30/2015 4,311,925 2,217,122 913,403 699,086 2,697,391 615,026 626,466 472,506 291,322 416,115 13,260,361 1,219,675 14,480,0366/30/2016 4,314,594 2,216,570 913,263 700,791 2,693,738 696,131 548,255 476,791 477,255 502,535 13,539,923 1,216,550 14,756,4736/30/2017 4,234,413 2,209,059 913,116 706,749 2,695,033 769,867 549,541 475,441 481,468 502,518 13,537,204 1,217,300 14,754,5046/30/2018 2,201,560 912,945 731,029 917,747 541,454 474,091 480,118 6,769,655 13,028,597 1,216,700 14,245,2976/30/2019 2,198,431 912,773 720,949 925,658 537,961 477,606 473,138 7,383,960 13,630,477 1,219,750 14,850,2276/30/2020 6,891,749 729,477 4,728,837 442,472 475,856 475,731 13,744,122 1,221,225 14,965,3476/30/2021 11,487,429 718,628 583,087 478,756 467,131 13,735,032 1,226,125 14,961,1576/30/2022 6,626,919 745,324 674,809 335,856 293,456 8,676,364 1,229,225 9,905,5896/30/2023 3,452,033 681,793 335,725 1,213,338 5,682,889 1,235,525 6,918,4146/30/2024 3,448,385 683,815 335,594 1,209,288 5,677,082 1,239,800 6,916,8826/30/2025 3,443,115 685,561 335,463 1,213,300 5,677,439 1,242,050 6,919,4896/30/2026 3,438,496 691,627 335,331 1,204,050 5,669,504 1,247,275 6,916,7796/30/2027 1,010,040 692,730 2,330,200 1,614,200 5,647,170 1,250,250 6,897,4206/30/2028 697,505 3,320,200 1,616,800 5,634,505 1,255,975 6,890,4806/30/2029 705,489 3,312,400 1,612,000 5,629,889 1,259,225 6,889,1146/30/2030

TOTAL 12,860,932 11,042,741 29,571,598 20,544,102 8,086,162 8,653,266 9,342,565 13,971,818 13,122,593 15,574,782 142,770,558 18,496,650 161,267,208

Principal*: 8,830,000 10,345,000 25,670,000 15,705,000 5,690,000 8,800,000 8,575,000 9,240,000 9,395,000 14,860,000 117,110,000 13,215,000 130,325,000

PE%: 27.22% 26.63% 32.29% 17.51% 25.12% 31.96% 27.00% 0.00% 0.00% 27.23% 0.00%PE% Status: Temporary Temporary Temporary Temporary Permanent Permanent Temporary Estimated Estimated Permanent Estimated

CARF%: 29.98% 29.98% 29.98% 29.98% 29.98% 29.98% 29.98% 29.98% 29.98% 29.98% 29.98%Call Date: NonCallable 3/1/2015 12/1/2016 8/15/2015 Non-Callable 2/1/2017 2/1/2018 8/1/2018 2/1/2019 Non-Callable TBD

Purpose:

New Money CurRef 93A

AdvRef 94AA,95

CurRef - 1998 CurRef - 1999

CurRef - 2005 New Money CurRef - 2001 CurRef - 2006 CurRef - 2007 New Money New Money CurRef - 2005A New Money

[1] Remaining authorized but unissued forward purchase agreement entered into in 2007. For these purposes, assumed at a rate of 4.50%, actual rates to be determined at final pricing.* Outstanding as of December 1, 2014

DEBT SERVICE REQUIREMENTS

LOCAL EFFORT REQUIREMENTS

Public Financial Management, Inc.

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Refunding Summary

Public Financial Management, Inc. 4

PARKLAND SCHOOL DISTRICTSUMMARY OF REFUNDING PLAN

1 2 3 4

TOTAL

Principal $8,970,000 $9,995,000 $6,135,000 $25,100,000

Refunding Bonds Series of 2008 Series of 2010 Series of 2010 -

Est. Net Savings $337,480 $312,438 $85,020 $734,938

5 6 7 8 9

Fiscal Series of 2008 Series of 2010 Series of 2010 TotalYear Net Savings Net Savings Net Savings Estimated

Ending Estimate Estimate Estimate Savings6/30/2015 327,985 327,9856/30/2016 3,140 129,370 35,249 167,7596/30/2017 3,053 47,640 30,804 81,4976/30/2018 3,266 47,700 639 51,6046/30/2019 36 47,771 3,446 51,2536/30/2020 24,356 1,784 26,1416/30/2021 1,470 742 2,2126/30/2022 2,721 4,486 7,2076/30/2023 4,097 3,407 7,5036/30/2024 880 4,464 5,3446/30/2025 4,236 4,2366/30/2026 887 8876/30/2027 1,309 1,3096/30/20286/30/20296/30/2030

TOTAL 337,480 312,438 85,020 734,938

Note: Assumes current interest rates

Three Separate Current Refundings

SUMMARY OF 2008 & 2010 REFUNDING PLAN

Public Financial Management, Inc. 12/2/2014 5

New Money Summary

Public Financial Management, Inc. 6

PARKLAND SCHOOL DISTRICTSUMMARY OF NEW MONEY FINANCING PLAN

1

2015

Principal $9,000,000

Approx. Proceeds $8,830,000

Settlement February 2015

Structure Wrap

2 3 4 5 6

Fiscal Existing 2015 Total NetYear Local Estimated Local Millage

Ending Effort [1] Local Effort [2]Effort Impact [3]

6/30/2015 14,474,542 14,474,5426/30/2016 14,750,969 337,701 15,088,670 0.086/30/2017 14,748,953 361,391 15,110,3446/30/2018 14,239,758 911,307 15,151,0656/30/2019 14,844,788 350,374 15,195,1626/30/2020 14,959,600 350,261 15,309,8616/30/2021 14,955,495 350,133 15,305,6276/30/2022 9,899,717 1,044,989 10,944,7066/30/2023 6,891,217 1,302,309 8,193,5266/30/2024 6,889,713 1,302,519 8,192,2326/30/2025 6,892,362 1,298,746 8,191,1086/30/2026 6,889,689 1,301,956 8,191,6456/30/2027 6,889,463 1,306,514 8,195,9766/30/2028 6,890,480 1,301,935 8,192,4156/30/2029 6,889,114 1,303,266 8,192,3806/30/2030

TOTAL 161,105,858 12,823,399 173,929,257 0.08

[1] Includes estimated local effort from unissued grandfathered debt

[2] Assumes no state reimbursement

[3] Assumes value of 1 mill = $7,357,423.

$9,000,000 Million Tax-Exempt New Money

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4,000,000

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18,000,000

2015

2016

2017

2018

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2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2015 Local Effort

Existing Local Effort

Public Financial Management, Inc. 12/2/2014

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MMD YIELD CURVE

HISTORICAL MMD CURVE ILLUSTRATION ‐ SINCE JANUARY 1, 2004

SPOT ANALYSIS ‐ 10 YEAR MMD ‐ SINCE JANUARY 1, 2004

MUNICIPAL MARKET UPDATEDecember 2, 2014

The MMD Yield Curve is a high grade municipal yield curve published daily by Municipal Market Data.  It is one of the most commonly used benchmarks in municipal finance.  The yields within the curve reflect the current yields for each maturity year at which bondholders would  be likely to sell high quality (AAA rated) general obligation backed bonds.   Theyield curve is typically influenced by new issuances in the primary market as well as post‐issuance trading in the secondary market.

Municipal bonds typically trade at a "spread to MMD", meaning the difference between the yield in a specific year of a bond issue and the respective yield in the MMD Yield Curve.  While these spreads vary over time, they can be a meaningful and powerful tool in trying to compare relative yield levels in a volatile interest rate environment.

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22 Year

23 Year

24 Year

25 Year

26 Year

27 Year

28 Year

29 Year

30 Year

Range Average Current

Maturity Year

Yield (%)

1.30

1.80

2.30

2.80

3.30

3.80

4.30

4.80

1/1/04 1/1/05 1/1/06 1/1/07 1/1/08 1/1/09 1/1/10 1/1/11 1/1/12 1/1/13 1/1/14

Yield (%)

Since 1/1/2004 Amount Date

Min 1.470 11/28/2012

Max 4.860 10/15/2008

Average 3.067 n/a

Current 2.060 12/2/2014

Public Financial Management, Inc.8