TO: Mayor Bien-Willner and Town Council Members
FROM: Jill Keimach, Town Manager
Douglas Allen, CPA
DATE: February 13, 2020
DEPARTMENT: Finance
Staff Contact Douglas Allen, CFO, 480-348-3696
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AGENDA TITLE:
Title
Update and Discussion of the CIP and PSPRS Financial Plans
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SUMMARY STATEMENT:
The 2020 Budget and 2019 audited Financial Statements identify adequate revenue and cash for the Town to:
* Pay the entire PSPRS Unfunded Liability;
* Fund the Capital Improvement Plan;
* Continue status quo Town operations; and
* Maintain sufficient reserves per Town policy.
But there is not adequate Annual Expenditure Limitation capacity to do so. Another concern with the Town's AEL is the timing of developer reimbursements for Capital Expenditures.
Staff will have a brief presentation followed by Council discuss regarding the current status on the Town's Capital Improvement Plan ("CIP") and Public Safety Personnel Retirement System ("PSPRS") financing plans for the fiscal year ending June 30, 2020.
Other related topics for discussion include SB1280 that proposes to exclude payments of the PSPRS Unfunded Liability from the Annual Expenditure Limitation ("AEL") and potential impacts on the Town's AEL and issuing Excise Tax Debt Obligations for CIP.
A Stifle representative will provide an update of recent activities, next steps and timing to issuing excise tax obligations that will be available by Tuesday February 11th.
WHY BOND IN GOOD ECONOMIC TIMES
* The Arizona Constitution prescribes an Annual Expenditure Limitation ("AEL")
* Paradise Valley voters approved an increase the AEL to assist paying the PSPR unfunded liability
* Two types of expenditures: "subject to" the AEL and "exempt from" the AEL
* Expenditures that are "exempt from" include spending federal grant funds, investment earnings, contributions and donations from private organizations, the use of bond proceeds and the repayment of bonded debt.
* Availability of cash and rev...
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