3 - PACC Staff UpdateCITY OF
Federal Way
PERFORMING ARTS
V- �
6, CONFERENCE CENTER
Presented by:
Ade' Ariwoola, MBA, CG FM
Finance Director
APRIL 21, 2015
BACKGROUND
• Prior Presentation
May 8, 2014
Total Cost $ 31,850,000
Makeup of the funding
Beg. 144,877
Funding from City (Utility Tax, LIFT and REET) $ 9,944,763
Expected
CDBG Loan 3,000,000
4 Culture Grant
2,000,000
State Capital Funding
2,000,000
Hotel Pad Sale
1,000,000
Future LIFT - Future
501,202
4 Culture Grants - Future
150,000
Building for Arts Grant - Future
325,000 8,976,202
To be Funded (Bridge)
12,784,158
BACKGROUND
• Prior Presentation
Funding of Balance ($12,784,158)
Temporary Financing Before Other Funding (Bridge)
Permanent Financing After Other Funding (GAP)
Likely
Naming Rights 27250,000
Fundraising Campaign 750,000
Grants 1,000,000
New Market 0
4,000,000
To be Funded 12,784,158
Potential Bonding 8,784,158
Potential
3,500,000
1,000,000
1,500,000
7.200.000
13,200,000
12,784,158
BACKGROUND
• Prior Presentation
Bond - Up to $9,000,000
20 years
Rate on Bond
Annual Payment
10 years
Rate on Bond
Annual Payment
3%
$604,942*
3%
1,055,075*
Resolution No. 14-667 - Interfund Loan
Up to $13.0 m
Up to 3 years
At 1%
Resolution No. 14-669 - Redevelopment Zone
*Amount do not include issuing costs
UPDATE
Makeup of the funding
Beg.
Funding from City (Utility Tax, LIFT and REET)
Expected:
CDBG Loan
4 Culture Grant
State Capital Funding
Hotel Pad Sale
Future LIFT - Future
4 Culture Grants - Future
Building for Arts Grant - Future
To be Funded (Bridge)
144,877 +
$ 9,944,763 +
3,000,000
Application Due June
2,000,000
Will know soon - Construction
2,000,000
In the budget - Construction
1,000,000
In negotiation
5017202
$310,000 in 2015
150,000
120,000
325,000
98,000 8,976,202
12.784.158
CITY OF
A. Federal Alay
UPDATE
Funding of Balance ($12,784,158)
Temporary Financing Before Other Funding (Bridge)
Permanent Financing After Other Funding (GAP)
Likely
Naming Rights 2,250,000
Fundraising Campaign 750,000
Grants 1,000,000
New Market 0
4,000,000
To be Funded 12,784,158
Potential Bonding 8,784,158
Potential
3,500,000
1,000,000
1,500,000
7.200.000
13,200,000
12,784,158
Working on it
613,000
Will know in June
Since Construction is not expected to start before September we will know more about NMTC, State
Capital Funding, 4 Culture, Naming Rights, and fund raising activities before then.
CITY OF
�. Federal Alay
SPENDING UPDATE
Bud et Spent
Land $ 5.4 $5.4
Design 6.6 2.7
Construction 25.7
M isc. 0.5 0.5
$ 38.2 $8.6
Less Land - 5.4
32.8
CITY OF
A. Federal Way
UPDATE ON CITY'S FINANCES
City's Debt Capacity:
• Councilmanic: $92.63 m
• With a Vote: $83.19 m
• Total debt capacity: $175.82 m
Debt and interest payments by the City as a percentage of general government expenses:
Principal Interest Total/Total Gen. Govt Exp
• 2004 $3.08 m $1.80 m 12%
• 2005 $3.1 m $1.53 m 11.5 %
• 2014 $0.995 m $0.985 m 4.1%
The City has maintained healthy reserves and has a bond rating (on our own) of Aa3
CITY OF
A. Federal Alay
CONCLUSION
• The grants are reimbursements ONLY - We will have
to spend it to be reimbursed.
• We will know more about NMTC in June
• We will know more about Section 108 towards the end
of the year but we have the allocation.
• If We have to Bond -Between $0 and $9 million