HomeMy WebLinkAboutFinance Committee Agenda - March 25, 20131 This Finance Committee is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Finance
Committee’s agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be
allowed to comment on agenda items before the Finance Committee and items not on the agenda but are within the subject matter jurisdiction of the Finance Committee. The Finance Committee may limit public comments to a reasonable amount of time, generally three (3) minutes per person.
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CITY OF NEWPORT BEACH FINANCE COMMITTEE AGENDA
Council Conference Room, 3300 Newport Blvd., Newport Beach Monday, March 25, 2013 – 4:00 PM
Finance Committee Members: Staff Members:
Mike Henn, Council Member, Chair
Keith Curry, Mayor
Tony Petros, Council Member
Dave Kiff, City Manager
Dan Matusiewicz, Finance Director
Steve Montano, Deputy Finance Director
____________________________________________________ 1) CALL MEETING TO ORDER
2) ROLL CALL 3) PUBLIC COMMENTS Public comments are invited on agenda and non-agenda items generally considered to be
within the subject matter jurisdiction of the Finance Committee. Speakers must limit comments
to 3 minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Finance Committee has the discretion to extend or shorten the speakers’ time limit
on agenda or non-agenda items, provided the time limit adjustment is applied equally to all
speakers. As a courtesy, please turn cell phones off or set them in the silent mode.
4) APPROVAL OF MINUTES
Approval of minutes of the Finance Committee meetings of June 11, 2012, and February 28,
2013. 5) CURRENT BUSINESS
A. Reserve Level Funding Status: This item summarizes the funding status of key reserves and long term liabilities for the Fiscal Year ending June 30, 2012.
B. Council Policy B-1, Park Fee Policy Revisions: Staff recommendation to revise policy to
designate three additional park projects as citywide community parks and direct placement of park fees to the Facilities Financing Fund.
2
C. Facilities Finance Plan Update: Using three scenarios, staff has projected the timing, means of financing, and fiscal impacts associated with the funding the high-priority projects that
were designated by the City Council.
D. Draft Debt Management Policy and Proposed Changes to Facilities Replacement Plan Policy F-28: Based on prior comments received from the Committee, staff will present the
second draft of the Debt Management Policy. Staff is also proposing changes to the
Facilities Replacement Plan Policy F-28 necessitated, in part, by the new Debt Management Policy.
E. Review of the Request for Proposal (RFP) Outline for the Residential Solid Waste Program:
Review the attached RFP structure for the Residential Solid Waste Program
• Collection Method
• Core Services
• Optional Services
• Contract Terms 6) FINANCE COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) 7) ADJOURNMENT
All documents distributed for this meeting are available in the
administration office of the Finance Department
1
CITY OF NEWPORT BEACH CITY COUNCIL FINANCE COMMITTEE
MINUTES 1. CALL TO ORDER
The June 11, 2012, Finance Committee meeting was called to order at 2:05 p.m. in the Council Conference Room, 3300 Newport Blvd., Newport Beach, California
92663.
2. ROLL CALL
Present: Mayor Pro Tem Keith Curry (Chair) and Council Member Mike Henn
Excused: Council Member Leslie Daigle
Staff present: Assistant City Manager Dana Smith, Finance Director Tracy
McCraner, Deputy Finance Director Dan Matusiewicz, Accounting Manager
Rukshana Virany, Budget Manager Susan Giangrande and Administrative
Coordinator Tammie Frederickson
Members of the public: Jim Mosher
Outside entities: Nitin Patel and Daphne Munoz of White Nelson Diehl Evans
3. PUBLIC COMMENTS
Mr. Mosher commented it is hard to reconcile the financial structure of Business Improvement Districts (BIDs) with the Streets and Highways Code Section that
calls out district boards as advisory bodies. He noted the City Council, not the
BIDs, actually spends the BID levy through normal City mechanisms. He also
questioned what a cash basis fund is, as referred to in a section of the Charter
that puts certain limits on what can be done with capital improvement funds.
Deputy Director Matusiewicz explained the cash basis fund is old terminology and should be updated to reflect modified accrual basis accounting.
4. APPROVAL OF MINUTES
The minutes for the Finance Committee meeting of May 7, 2012, were approved
with the recommendation going forward to change footer reference from Administrative Services Department to Finance Department.
5. CURRENT BUSINESS
A. Audit Entrance Conference
Finance Director McCraner introduced the outside auditors from White Nelson
Diehl Evans who will conduct the Fiscal Year 2011-12 audit for the City.
All documents distributed for this meeting are available in the
administration office of the Finance Department
2
Nitin Patel, Partner with White Nelson Diehl Evans, went over the scope of the audit and the work plan. He stated the auditor’s responsibility is to express an
opinion on whether the financial statements are prepared in conformity with generally accepted accounting principles. It is the responsibility of management
and those in charge of governance to communicate any concerns or ask any pertinent questions. The audit is designed to give reasonable assurance that the
financial statements are free of material misstatements. Any significant matters will be communicated at the conclusion of the audit.
Beginning July 16, the interim phase of fieldwork will commence for the audit of all City funds and a single audit of Federal grants using a threshold of $500,000.
Mr. Patel explained internal control procedures will be tested during the interim phase. Final fieldwork is expected to start October 29, with the completion of the
audit by the end of November. The auditor opinion will be issued in December.
Mr. Patel noted during the initial planning meeting with staff, significant financial
transactions that happened during the year were discussed in addition to new
GASB standards that are pertinent for the current fiscal year, as well as upcoming
applicable GASB standards. Mr. Patel remarked GASB Statement 68 on pension
disclosure is expected to impact fiscal year ending June 30, 2015, with a required
implementation for all governmental entities. He discussed further the details of
Statement 68. Mayor Pro Tem Curry noted it is important keep in mind that
nothing has changed other than the way the math is computed and the
numbers the accounting authority has directed be used which causes a big
spike in the perceived liability.
Council Member Henn commented on the practice of producing a financial
statement five months after the close of the fiscal year and questioned whether
it is standard timing in other cities for production of an audit. Mr. Patel replied it is
standard in the municipal environment to complete the audit and financial
statements by the end of December. Ms. McCraner added that tax revenues
are not known or received until the end of August.
In response to a question raised by Mr. Mosher, Mr. Patel indicated the auditors do not express an opinion about adequate bonding of City officers.
Having no further discussion on this agenda item, Mayor Pro Tem Curry stated the Finance Committee would meet with the auditors at the conclusion of the audit
without staff present.
B. Assessment District Bond Issuance Update
Council Member Henn recused himself on discussion of this item since it involves
a financial impact on Assessment District 100 of which he is a participant. Prior to leaving the room, he requested staff provide a district-by-district impact of the
proposal.
Deputy Director Matusiewicz stated requests for bids were sent to 11 different
banks and the most favorable bid received which included a financing rate of
All documents distributed for this meeting are available in the
administration office of the Finance Department
3
2.26% was from BBVA Compass. The low financing rate makes it financially feasible to include all 14 outstanding assessment districts into one reassessment
district. He noted with this rate a net present value (PV) savings of $1.1 million will be achieved. Mr. Matusiewicz added that including all of the districts with this
current refunding represents a cash flow savings to the customers. Mayor Pro Tem Curry confirmed that because the cost of issuance is shared and the market
is at a low, it is a good time to proceed.
Mr. Matusiewicz outlined the closing scheduled for July 2, 2012, is pending City
Council approval on June 26, 2012.
Mr. Mosher inquired how much the savings would be if the districts were
refinanced separately. Mr. Matusiewicz explained there would not be any
additional savings and the benefit of consolidating to one district spreads the
loan origination fees across all the districts. Mayor Pro Tem Curry added that it is
an improvement because the districts’ credit quality is enhanced by a higher
number of people who make up the reassessment district.
With the discussion of this item concluded, Council Member Henn returned to the
meeting.
C. Proposed FY 2012-13 Budget
Ms. McCraner reviewed the details of the budget checklist and provided
explanation on any items that changed since the City Council budget discussion
at the May 22, 2012, meeting. She summarized the checklist recommendations
total an increase of $2.4 million to the operating and CIP budget. Additionally,
the checklist recommendations were funded by reprioritization or by using
restricted reserves, as in the purchase of the fire trucks. The increases did not
affect any General Fund reserves.
In response to a question raised by Mr. Mosher, Ms. McCraner explained
relinquishment funds received from the State are dedicated to a certain area
and Public Works will verify the area qualifies as an eligible use for that revenue.
D. Facilities Financing Plan (FFP) Update
Mr. Matusiewicz explained the Facilities Financing Plan (FFP) developed several
years ago needs certain improvements to make it a more usable document for
the public. He noted one of the improvements includes separating the FFP
balance from the project balance to show the amount in reserves versus the
funds dedicated for a specific project. Other improvements include the addition of some visual aids to better show the solvency of the Plan, enhanced analytical
tools, and modernization to enable easier updates. Mr. Matusiewicz requested Finance Committee guidance on further improvements to incorporate in the FFP.
Without something specific to review at this time, Mayor Pro Tem Curry and Council Member Henn determined their comments would be offered when the
All documents distributed for this meeting are available in the
administration office of the Finance Department
4
next draft of the FFP is presented. Council Member Henn also offered assistance on discussing concepts.
6. FINANCE COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-
DISCUSSION ITEM)
No future agenda items were discussed.
7. ADJOURNMENT
The Finance Committee adjourned at 2:45 p.m.
Filed with these minutes are copies of all material distributed at the meeting.
Attest:
Keith Curry, Mayor Pro Tem Date
Finance Committee Chair
All documents distributed for this meeting are available in the
administration office of the Finance Department
1
CITY OF NEWPORT BEACH CITY COUNCIL FINANCE COMMITTEE
MINUTES 1. CALL TO ORDER
The February 28, 2013, Finance Committee meeting was called to order at 4:14
p.m. in the Council Conference Room, 3300 Newport Blvd., Newport Beach,
California 92663.
2. ROLL CALL
Present: Council Member Mike Henn (Chair), Mayor Pro Tem Keith Curry and
Council Member Tony Petros
Staff present: City Manager Dave Kiff, Deputy City Manager/HR Director Terri
Cassidy, Finance Director Dan Matusiewicz, Deputy Finance Director Steve
Montano, and Accounting Manager Rukshana Virany,
Members of the public: Jim Mosher
Outside entities: Nitin Patel and Kassie Radermacher of White Nelson Diehl
Evans; John Bartel of Bartel Associates
3. PUBLIC COMMENTS
Mr. Mosher suggested in the interest of transparency, the check register of all payments made by the City should be presented at each Council meeting. He
also believed the Council needs to have an ordinance since the recent Charter revision states the payment of demands should be filed as prescribed by
ordinance. He commented on the proposal to change beach parking lots
enforcement and thinks the proposal violates the Charter.
4. APPROVAL OF MINUTES
Council Member Henn noted the minutes for the meeting of June 11, 2012, were
not included in the Finance Committee packet and he instructed the minutes be brought for approval to the next Finance Committee meeting.
Council Member Henn also directed a revision be made to the September 10,
2012, minutes on Item 5B, page 3, where a statement refers to sales tax being
$1.1 million less than pre-recession “low” but should read pre-recession “high.” With Council Member Petros abstaining, a motion was made by Mayor Curry,
seconded by Council Member Henn to approve the minutes as amended.
All documents distributed for this meeting are available in the
administration office of the Finance Department
2
5. CURRENT BUSINESS
A. Audit Review
Nitin Patel, partner with White Nelson Diehl Evans reviewed the three audit letters
intended to fulfill required communication obligations with the government
body. Mr. Patel stated the aspects evaluated during the audit were determined
to be reasonable in relation to the financial statements; there were no difficulties
in performing the audit; no significant adjustments were made as a result of the
audit procedure; and there were no significant misstatements or material
weaknesses in internal control or compliance issues reported. Mr. Patel
commented that one recommendation for improvement was made on
receivables older than one year. To more accurately reflect fund balances, an
allowance for uncollectible accounts should be recorded when the City sends
outstanding invoices older than 90 days to any collection agency. Council
Member Henn requested to know the dollar amount of these receivables
accounts.
Council Member Henn expressed appreciation for the format of the information
presented.
Staff then stepped out of the room for an executive session with the auditors.
B. Finance Committee Charter Review and Update
Deputy Finance Director Steve Montano explained the proposed revisions to the Finance Committee Charter add the responsibility to review the structure and
documentation of any proposed debt financing and the purview to conduct audit conferences with auditors in the absence of staff.
Council Member Henn discussed identifying an additional responsibility for review and recommendations associated the City’s Facilities Financing Plan
(FFP).
Mr. Mosher commented on the addition of item G under responsibilities, it isn’t
clear what kind of risk is being assessed associated with debt usage. He also
questioned the intent of item H regarding discussion with auditors in the absence
of staff since the meeting is recorded and members of the public are present.
City Manager Kiff remarked he is comfortable knowing Council can get the
straight scoop from the auditors without staff present.
Council Member Petros motioned, Mayor Curry seconded to direct staff to bring
the revised Finance Committee Charter as amended to the full City Council for
approval.
C. 2013 Finance Committee Work Plan
Deputy Director Montano reviewed the proposed 2013 work plan. The work plan
includes topics historically brought before the Finance Committee, topics
All documents distributed for this meeting are available in the
administration office of the Finance Department
3
Committee Members asked be placed on future agendas and scheduled topics based on milestones during the year such as budget and audit calendars.
Mayor Curry noticed the review the Quarterly Financial Report is missing from the work plan. It should go to the Finance Committee before it goes to the City
Council.
Council Member Petros questioned if there is enough time between the April 22
agenda topic of revenue modeling and sensitivity analysis and the May 13 budget review topic. Mr. Montano explained the revenue modeling and
sensitivity analysis is a new tool that will be used to inform Council’s deliberations and discussions of the upcoming budget and long-range forecasting. Council
Member Henn recognized that this may not have much have impact on the upcoming budget year deliberations but he is glad to start engaging with long-
range thinking and he looks forward to a more robust discussion. Council Member Petros suggested that in the future the topic be moved forward on the
calendar to allow adequate time to better use the information.
Council Member Henn directed the addition of an agenda item on the
September agenda regarding review of principal proposed key budget
assumptions to set the template before the budget process begins in December.
In response to a comment from Council Member Henn, Mr. Matusiewicz stated
review of the fire fee schedule is targeted for the March 25 Finance Committee
meeting but it will be brought to the City Council for consideration on an
agenda in April. Mayor Curry advised the fee review should remove fees that are
no longer applicable.
Council Member Henn instructed the removal of the audit entrance conference
shown in June on the work plan and replaced with a requirement that the
auditors contact Finance Committee members individually to solicit views.
Mr. Mosher noted in addition to the quarterly financial report, there is a monthly
financial report filed by the Finance Director that is posted online and the link is
provided in the City Manager’s Newsletter. He observed the work plan for the
June meeting shows an audit entrance conference and the Charter specifies
the auditors work forward rather than backwards in looking at what the City did
the year before. He commented an opportunity was missed when the Charter was amended in November to synchronize the Charter with what is actually
done.
Council Member Henn confirmed a revised work plan will be brought back to a
future meeting to receive and file.
D. Review of 2013-14 Post Employment Retiree Insurance Actuarial Valuation (AKA OPEB)
Mr. Matusiewicz reviewed the highlights of the OPEB actuarial valuation noting funds are set aside to prefund the liability which is largely made up of our legacy
plan that has a defined benefit component. The accrued liability is currently $34 million and the unfunded component is $27 million. As the actuarial and
All documents distributed for this meeting are available in the
administration office of the Finance Department
4
accounting professions are considering a change to the valuation of community and non-community related health plans, a liability would be recorded that is
associated with active employees subsidizing retiree premiums. Mr. Bartel of Bartel Associates has performed a sensitivity analysis of the unfunded liability
which would rise substantially to $72 million.
Mr. Bartel explained the increase in liability has to do with the difference
between the claims for retirees versus claims for active employees. The difference results in a liability referred to as an “implied subsidy.” He noted the
proposed change is an exposure draft but it is likely to become mandatory. Mayor Curry commented that nothing is changing except the way the numbers
are calculated. Council Member Henn confirmed it has no impact on fulfilling the obligation in the budget. In response to a question by Council Member
Petros, Mr. Bartel explained as the exposure draft is currently written the way the liability is calculated is based on the demographics of the entire risk pool.
Mr. Matusiewicz commented the amount contributed in the budget on an
annual basis will increase from $3 million to $3.4 million in fiscal year 2013-14 and
the increase would continue for a number of years before leveling off. The
liability is amortized over a 15-20 year period which is shorter than most agencies.
The portion of the annual required contribution funded by the City does not
include the implied subsidy.
As this item is presented to the Committee to receive and file, there is no action
recommended at this time. Council Member Petros remarked it would be
beneficial to understand the timing of when the additional contributions will be
addressed.
E. PERS Funding Direction
Mr. Matusiewicz explained PERS is reviewing many of their actuarial assumptions
and it is anticipated the amount of employer contributions will increase. Mayor
Curry remarked these assumptions result in an increase liability though the City
has done nothing differently. Mr. Matusiewicz reviewed the option given by PERS
for clients to phase-in increased contribution rates and defer the phase-in using
a 30-year rolling amortization methodology. He stated the City can elect not to defer the phase-in and save approximately $789,000 of interest by paying more
of it now.
Mr. Bartel discussed the methodology used by PERS and noted the calculations
as presented in the staff report will achieve approximately a 7.5 percent discount. Council Member Henn noticed the upfront cost is shown as $765,000
and he questioned whether to use the PERS reserve to pay the upfront cost. Mr. Matusiewicz cautioned there will be a lot of PERS rate volatility in the coming
years and showing a fairly substantial cushion to absorb the expected volatility on the balance sheet would be a good thing for the rating agencies. Council
Member Henn remarked the PERS reserve is intended for this purpose.
Mr. Matusiewicz continued the discussion regarding the unfunded liability and
proposed accelerating the amortization period of the remaining unfunded
All documents distributed for this meeting are available in the
administration office of the Finance Department
5
pension liabilities by using a fixed declining amortization period. Mr. Bartel expressed a favorable opinion that it is fiscally prudent to do whatever is under
the City’s control to not have the unfunded liability grow.
The Committee concurred with staff’s recommendations to implement the new
rates without the phase-in option and begin amortizing the unfunded pension liability over a fixed declining amortization period.
Mr. Mosher requested clarification on Attachment B. City Manager Kiff explained the total amount paid includes employees’ contributions, the more employees
pay, the less the City pays on the total.
6. FINANCE COMMITTEE ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM)
No future agenda items were discussed.
7. ADJOURNMENT
The Finance Committee adjourned at 5:55 p.m.
Filed with these minutes are copies of all material distributed at the meeting.
Attest:
Mike Henn, Chair Date
Finance Committee Chair
Scenario A 3/21/2013 Est. Project
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0
0
,
0
0
0
30
,
0
0
0
,
0
0
0
20
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
An
n
u
a
l
GF
Co
n
t
r
i
b
u
t
i
o
n
s
Pe
r
i
o
d
i
c
GF
or
On
e
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e
Tr
a
n
s
f
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r
s
Pr
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v
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Co
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b
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s
In
t
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t
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n
i
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g
s
Ca
s
h
Co
n
t
r
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b
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n
s
Key Metric
T
a
r
g
e
t
M
a
x
Debt Svc as % of Revenues
5
.
0
%
8
.
0
%
FFP Balance (000's)
1
1
,
0
4
0
$ NA Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
9,197 7,747 Debt Service (000's)
7
,
4
5
8
8,012 7,757 GF Contributions to FFP as % Rev
2
.
8
5
%
4
.
3
%
4
.
0
%
Debt Svc as % of Revenues
3
.
2
4
%
4
.
9
%
4
.
0
%
FFP Balance (000's)
1
1
,
8
0
8
$ 40,140 $ 27,918 $ Project Balance (000's)
0
$ 11,512 $ 1,992 $
5
6Policy15 Year
0.
0
0
%
1.
0
0
%
2.
0
0
%
3.
0
0
%
4.
0
0
%
5.
0
0
%
6.
0
0
%
7.
0
0
%
8.
0
0
%
9.
0
0
%
10
.
0
0
%
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
0
2
1
2
0
2
2
2
0
2
3
2
0
2
4
2
0
2
5
2
0
2
6
2
0
2
7
2
0
2
8
2
0
2
9
2
0
3
0
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0
3
1
2
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3
2
2
0
3
3
2
0
3
4
2
0
3
5
2
0
3
6
2
0
3
7
2
0
3
8
2
0
3
9
2
0
4
0
2
0
4
1
GF
Co
n
t
r
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b
u
t
i
o
n
to
FF
P
as
a Pe
r
c
e
n
t
of
GF
Re
v
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n
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e
GF
Co
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t
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b
u
t
i
o
n
% Bu
d
g
e
t
De
b
t
Se
r
v
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c
e
‐
as
% of
Re
v
e
n
u
e
s
$0
$2
,
0
0
0
,
0
0
0
$4
,
0
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0
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,
0
0
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0
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,
0
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,
0
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0
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2
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4
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6
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6
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2041
GF
Co
n
t
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b
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t
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o
n
to
FF
P
Co
m
p
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d
to
De
b
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GF
Co
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b
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n
to
FF
P
De
b
t
Se
r
v
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c
e
Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
12,995 9,553 Debt Service (000's)
3
,
6
1
7
11,040 8,773 GF Contributions to FFP as % Rev
2
.
8
5
%
4
.
5
%
4
.
0
%
Debt Svc as % of Revenues
1
.
0
9
%
4
.
9
%
3
.
8
%
FFP Balance (000's)
1
1
,
8
0
8
$ 48,018 $ 28,844 $ Project Balance (000's)
0
$ 11,512 $ 1,380 $
7
830 Year
‐
5,
0
0
0
,
0
0
0
10
,
0
0
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0
0
0
15
,
0
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Ca
p
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x
De
b
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‐
8%
of
Re
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De
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0.
0
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0
%
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0
0
%
4.
0
0
%
5.
0
0
%
6.
0
0
%
7.
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0
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0
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9.
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0
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10
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0
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%
2
0
1
1
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1
2
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4
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1
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2
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2
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2041
De
b
t
Se
r
v
i
c
e
as
% of
GF
Re
v
e
n
u
e
s
De
b
t
Se
r
v
i
c
e
‐
as
% of
Re
v
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n
u
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s
7
8
FY
F
V
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t
YR
C
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$
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.
5
%
Growth
C
o
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t
r
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b
t
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C
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b
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Svc @ 5%
1
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1
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‐
135,000,000 8,781,944
1
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97,954,176 6,372,060
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F
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1 ‐
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4,899,705 318,733
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2,219,446 2,219,445 144,378
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5,147,752 334,869
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9,083,779 590,913
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4,330,625 281,713
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5,276,446 343,240
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29,593,022 1,925,069
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7,737,111 7,930,538 8,128,802 8,332,022 8,540,322 8,753,830
Pe
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1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
In
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7
7
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‐
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‐
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Po
l
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@ Co
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‐
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‐
‐
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Pe
n
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9
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‐
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‐
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(489,970)
(2,694,838) (1,714,897)
‐
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2 ‐
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d
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3
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6
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5
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7
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9
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‐
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‐
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6 ‐
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n
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s
5
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2
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4
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‐
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‐
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(527,645) (2,902,045) (1,846,756)
‐
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7 ‐
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H
1
2
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5
2
2
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0
8
9
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5
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1
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5
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3
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4
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8
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‐
‐
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‐
‐
‐
‐
‐
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Ut
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‐
‐
‐
‐
‐
‐
‐
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‐
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n
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1
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6
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7
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6
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‐
‐
‐
‐
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(489,970)
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D
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Pe
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So
u
r
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s
& Us
e
s
Pr
o
f
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r
m
a
14
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
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20
2
6
2
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6
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27
3
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6
280,141,075 287,144,602 294,323,217 301,681,298 309,223,330 316,953,913
2.
5
0
%
2
.
5
0
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2
.
5
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2
.
5
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2
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3
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3
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4
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4
.
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4
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3
.
9
3
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3
.
8
3
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3
.
7
3
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3
.
6
4
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3
.
5
5
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3
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4
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33
,
4
8
2
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4
36
,
6
6
6
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8
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9
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9
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7
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14
,
0
9
2
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6
5
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16
,
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17,603,273 19,862,081 21,751,894 23,979,982 26,553,351 29,489,904
8,
9
7
2
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6
7
6
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9
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9
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6
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11
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7
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11
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9
9
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9
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10
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9
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5
11,905,996 11,485,784 11,772,929 12,067,252 12,368,933 11,093,387
1,
0
0
0
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0
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1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
66
9
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6
4
4
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3
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7
80
2
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7
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1
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8
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3
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0
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9
84
8
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9
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3
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5
0
8
28
1
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8
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3
32
7
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0
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5
352,065 397,242 435,038 479,600 531,067 589,798
10
,
6
4
2
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2
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10
,
9
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2
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9
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13
,
2
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9
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3
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7
5
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13
,
2
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0
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7
5
7
12
,
2
5
9
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3
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9
13,258,061 12,883,026 13,207,967 13,546,852 13,900,000 12,683,185
(7
,
4
5
7
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6
6
2
)
(7
,
4
5
7
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(7
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4
9
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)
(7
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)
(7
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4
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(1
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)
(1
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0
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8
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6
)
(1
1
,
0
2
1
,
1
7
5
)
(1
1
,
0
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8
,
3
4
1
)
(10,999,253) (10,993,213) (10,979,879) (10,973,482) (10,963,448) (10,949,311)
‐
‐
‐
‐
(1
0
,
0
0
0
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0
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0
)
(1
0
,
0
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)
(2
2
,
9
5
4
,
1
7
6
)
‐
‐
‐
‐
‐
‐
‐
‐
(7
,
4
5
7
,
6
6
2
)
(7
,
4
5
7
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6
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1
)
(7
,
4
4
9
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4
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3
)
(7
,
4
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2
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7
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)
(1
7
,
4
3
7
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)
(2
1
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0
3
9
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6
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)
(3
3
,
9
8
2
,
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2
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)
(1
1
,
0
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)
(1
1
,
0
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8
,
3
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1
)
(10,999,253) (10,993,213) (10,979,879) (10,973,482) (10,963,448) (10,949,311)
36
,
6
6
6
,
8
6
2
40
,
1
3
9
,
5
3
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,
9
1
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,
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,
4
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34
,
6
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6
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16
,
3
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2
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2
3
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17
,
6
0
3
,
2
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3
19,862,081 21,751,894 23,979,982 26,553,351 29,489,904 31,223,778
0
0
0
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20
4
,
5
8
3
11
,
3
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9
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7
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‐
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10
,
0
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10
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0
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22
,
9
5
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,
1
7
6
‐
‐
‐
‐
‐
‐
‐
‐
‐
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‐
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‐
‐
‐
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55
,
0
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2
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9
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2
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‐
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(9
,
7
9
5
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4
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3
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8
7
4
,
7
9
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)
(3
4
,
2
8
3
,
9
6
1
)
‐
‐
‐
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‐
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(9
,
7
9
5
,
4
1
8
)
(5
3
,
8
7
4
,
7
9
7
)
(3
4
,
2
8
3
,
9
6
1
)
‐
‐
‐
‐
‐
‐
‐
‐
0
0
0
0
20
4
,
5
8
3
11
,
3
2
9
,
7
8
6
0
0
0
0 0 0 0 0 0
DE
B
T
SE
R
V
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C
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Avg
0
0
0
1
2
3
4
Pr
o
j
e
c
t
To
t
a
l
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n
t
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s
t
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u
a
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M
a
t
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D
e
b
t
2
0
1
0
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0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
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2
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1
6
Pr
o
c
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d
s
C
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s
s
u
e
R
a
t
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T
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(N
e
t
)
20
1
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v
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s
1
2
3
,
0
0
0
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0
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0
1,
2
8
9
,
4
4
2
12
4
,
2
8
9
,
4
4
2
4.
4
4
%
3
0
2
0
1
1
2
0
4
1
(
7
,
5
9
8
,
4
5
0
)
‐
(6
8
2
,
7
5
5
)
(8,165,374)(8,008,421) (8,011,446) (8,011,921) (7,990,221)
Tr
a
u
n
c
h
2
5
5
,
0
0
0
,
0
0
0
60
7
,
5
0
0
55
,
6
0
7
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5
0
0
5.
0
0
%
3
0
2
0
3
1
2
0
6
1
(
3
,
6
1
7
,
3
4
8
)
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
3
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
4
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
5
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
6
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
7
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
8
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
9
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
10
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Tr
a
u
n
c
h
11
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(1
1
,
2
1
5
,
7
9
7
)
‐
(6
8
2
,
7
5
5
)
(8,165,374)(8,008,421) (8,011,446) (8,011,921) (7,990,221)
11
,
0
3
9
,
6
3
3
.
1
8
Scenario B 3/21/2013 Est. Project
S
t
a
r
t
Y
r
s
to Priority Projects Cost
D
a
t
e
S
t
a
r
t
1 Marina Park 30,000,000 2013
0
2 Sunset Ridge
7
,
0
0
0
,
0
0
0
2013
0
3 West Newport Land Purchase
4
,
3
0
8
,
1
9
9
2013
0
4 Lifeguard Head Qtrs
1
,
5
0
0
,
0
0
0
2014
1
11 Fire Station 5 ‐ CDM
4
,
2
2
5
,
0
0
0
2014
1
5 City Hall Demo/Parking Lot
1
0
0
,
0
0
0
2015
2
7 Fire Station 2 ‐ Lido
4
,
2
2
5
,
0
0
0
2015
2
8 West Newport Comm Ctr
1
0
,
0
0
0
,
0
0
0
2015
2
9 Park Placeholder
2
,
0
0
0
,
0
0
0
2015
2
10 Utilities/Corporate Yard Merge ‐ 2015
2
6 Big Canyon Aux. Yard
1
,
0
5
0
,
6
2
5
2015
2
1
2 12 Fire Station 1 Peninsula 4
2
2
5
0
0
0
2019 2
FA
C
I
L
I
T
I
E
S
FI
N
A
N
C
I
N
G
PL
A
N
(F
F
P
)
DA
S
H
B
O
A
R
D
‐
20
,
0
0
0
,
0
0
0
40
,
0
0
0
,
0
0
0
60
,
0
0
0
,
0
0
0
80
,
0
0
0
,
0
0
0
10
0
,
0
0
0
,
0
0
0
12
0
,
0
0
0
,
0
0
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
0
2
1
2
0
2
2
2
0
2
3
2
0
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4
2
0
2
5
2
0
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6
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7
2
0
2
8
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9
2
0
3
0
2
0
3
1
2
0
3
2
2
0
3
3
2
0
3
4
2
0
3
5
2
0
3
6
2
0
3
7
2
0
3
8
2
0
3
9
2
0
4
0
2041
Pr
o
j
e
c
t
Fu
n
d
i
n
g
Ca
s
h
Fu
n
d
e
d
Co
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o
n
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b
t
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e
d
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t
i
o
n
‐
10
,
0
0
0
,
0
0
0
20
,
0
0
0
,
0
0
0
30
,
0
0
0
,
0
0
0
40
,
0
0
0
,
0
0
0
50
,
0
0
0
,
0
0
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60
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0
0
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70
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0
3
6
2
0
3
7
2
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3
8
2
0
3
9
2
0
4
0
2
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4
1
Pr
o
j
e
c
t
Ex
p
e
n
d
i
t
u
r
e
s
1
2 12 Fire Station 1 ‐ Peninsula 4 ,225 ,000 2019 2 Police Station 64,375,000 2030
1
7
Total
1
3
3
,
0
0
8
,
8
2
4
Scenario Highlights 1Marina Park ‐ 2013 2
S
u
n
s
e
t
Ridge ‐ 2013 3Lifeguard Head Qtrs ‐ 2014 4West Newport Comm Ctr ‐ 2015 5
P
o
l
i
c
e
Station @ Current Site ‐ 2030 6Predicated on $29 million of developer contributions in FY 2014 7
$
4
4
million of projects cash funded from 2013 ‐2017 8
$
2
0
million of new debt in 2014 9
$
5
5
million debt issue in 2031 for Police Station
3
4
‐
5,
0
0
0
,
0
0
0
10
,
0
0
0
,
0
0
0
15
,
0
0
0
,
0
0
0
20
,
0
0
0
,
0
0
0
25
,
0
0
0
,
0
0
0
30
,
0
0
0
,
0
0
0
35
,
0
0
0
,
0
0
0
40
,
0
0
0
,
0
0
0
45
,
0
0
0
,
0
0
0
50
,
0
0
0
,
0
0
0
2
0
1
1
2
0
1
3
2
0
1
5
2
0
1
7
2
0
1
9
2
0
2
1
2
0
2
3
2
0
2
5
2
0
2
7
2
0
2
9
2
0
3
1
2
0
3
3
2
0
3
5
2
0
3
7
2
0
3
9
2
0
4
1
FF
P
Re
s
e
r
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l
a
n
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e
‐
5,
0
0
0
,
0
0
0
10
,
0
0
0
,
0
0
0
15
,
0
0
0
,
0
0
0
20
,
0
0
0
,
0
0
0
25
,
0
0
0
,
0
0
0
30
,
0
0
0
,
0
0
0
20
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
An
n
u
a
l
GF
Co
n
t
r
i
b
u
t
i
o
n
s
Pe
r
i
o
d
i
c
GF
or
On
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m
e
Tr
a
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s
f
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r
s
Pr
i
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b
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n
i
n
g
s
Ca
s
h
Co
n
t
r
i
b
u
t
i
o
n
s
Key Metric
T
a
r
g
e
t
M
a
x
Debt Svc as % of Revenues
5
.
0
%
8
.
0
%
FFP Balance (000's)
1
1
,
0
4
0
$ NA Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
9,772 7,974 Debt Service (000's)
8
,
0
0
8
9,696 9,328 GF Contributions to FFP as % Rev
2
.
8
5
%
4
.
3
%
4
.
1
%
Debt Svc as % of Revenues
3
.
9
8
%
5
.
8
%
4
.
8
%
FFP Balance (000's)
1
8
,
7
2
7
$ 45,325 $ 36,796 $ Project Balance (000's)
0
$ 14,012 $ 1,592 $
5
6Policy15 Year
0.
0
0
%
1.
0
0
%
2.
0
0
%
3.
0
0
%
4.
0
0
%
5.
0
0
%
6.
0
0
%
7.
0
0
%
8.
0
0
%
9.
0
0
%
10
.
0
0
%
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
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1
9
2
0
2
0
2
0
2
1
2
0
2
2
2
0
2
3
2
0
2
4
2
0
2
5
2
0
2
6
2
0
2
7
2
0
2
8
2
0
2
9
2
0
3
0
2
0
3
1
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0
3
2
2
0
3
3
2
0
3
4
2
0
3
5
2
0
3
6
2
0
3
7
2
0
3
8
2
0
3
9
2
0
4
0
2
0
4
1
GF
Co
n
t
r
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b
u
t
i
o
n
to
FF
P
as
a Pe
r
c
e
n
t
of
GF
Re
v
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e
GF
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b
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% Bu
d
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t
De
b
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v
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e
‐
as
% of
Re
v
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e
s
$0
$2
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0
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$4
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0
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$6
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0
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0
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6
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9
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2
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3
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3
2
2
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3
3
2
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3
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2
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3
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2
0
3
6
2
0
3
7
2
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8
2
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3
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2041
GF
Co
n
t
r
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b
u
t
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o
n
to
FF
P
Co
m
p
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d
to
De
b
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GF
Co
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r
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b
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to
FF
P
De
b
t
Se
r
v
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c
e
Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
12,995 9,535 Debt Service (000's)
3
,
6
1
7
11,040 9,671 GF Contributions to FFP as % Rev
2
.
8
5
%
4
.
3
%
4
.
0
%
Debt Svc as % of Revenues
1
.
0
9
%
5
.
8
%
4
.
2
%
FFP Balance (000's)
1
1
,
3
3
7
$ 47,068 $ 31,816 $ Project Balance (000's)
0
$ 14,012 $ 847 $
7
830 Year
‐
5,
0
0
0
,
0
0
0
10
,
0
0
0
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0
0
0
15
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0
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0
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p
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0
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2041
De
b
t
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r
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as
% of
GF
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s
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b
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‐
as
% of
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1
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5,147,752 334,869
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F
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9,083,779 590,913
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F
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4,330,625 281,713
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5,276,446 343,240
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F
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2
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Ba
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11
4
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9
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10,030 279,532 353,727 370,006 166,248 0
CA
S
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3,000,000 2,500,000 3,500,000 4,500,000 1,680,509
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PR
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8
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(489,970)
(2,694,838) (1,714,897)
‐
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2 ‐
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‐
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(527,645) (2,902,045) (1,846,756)
‐
FS
7 ‐
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1
2
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5
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(489,970)
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‐
EN
D
I
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G
BA
L
A
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OF
PR
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‐
11
4
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9
7
6
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2
9
6
44
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3
5
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3
5
5
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4
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1
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6
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3
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10,030
279,532 353,727 370,006 166,248 0 0
So
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b
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% of
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To
t
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:
Us
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b
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Pr
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PR
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20
1
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Se
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A & B
Tr
a
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0
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Po
l
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5
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280,141,075 287,144,602 294,323,217 301,681,298 309,223,330 316,953,913
2.
5
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37
,
9
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40
,
0
6
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4
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11
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3
3
6
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7
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12
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13,376,131 14,850,043 16,639,616 18,765,458 21,234,537 24,064,713
9,
5
3
3
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4
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8
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10
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6
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10
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11,205,643 11,485,784 11,772,929 12,067,252 12,368,933 11,093,387
1,
0
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1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
75
8
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9
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267,523 297,001 332,792 375,309 424,691 481,294
11
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12,473,166 12,782,785 13,105,721 13,442,561 13,793,624 12,574,681
(9
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(9
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(1
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)
(1
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8
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1
)
(10,999,253) (10,993,213) (10,979,879) (10,973,482) (10,963,448) (10,949,311)
‐
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(1
0
,
0
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)
‐
(3
2
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9
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)
‐
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(9
,
1
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1
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)
(9
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1
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(9
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8
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(10,999,253) (10,993,213) (10,979,879) (10,973,482) (10,963,448) (10,949,311)
40
,
0
6
3
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1
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4
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14,850,043 16,639,616 18,765,458 21,234,537 24,064,713 25,690,083
0
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32
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‐
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55
,
0
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0
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0
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0
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55
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2
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34
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2
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9
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0 0 0 0 0 0
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2
6
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2
7
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9
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9
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‐
‐
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(9
,
7
9
5
,
4
1
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)
(5
3
,
8
7
4
,
7
9
7
)
(3
4
,
2
8
3
,
9
6
1
)
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
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‐
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‐
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‐
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‐
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‐
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‐
‐
‐
‐
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‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
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‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
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‐
‐
‐
‐
‐
‐
‐
‐
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‐
‐
‐
‐
‐
‐
‐
‐
‐
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‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
(9
,
7
9
5
,
4
1
8
)
(5
3
,
8
7
4
,
7
9
7
)
(3
4
,
2
8
3
,
9
6
1
)
‐
‐
‐
‐
‐
‐
‐
‐
0
0
0
0
20
4
,
5
8
3
1,
3
2
9
,
7
8
6
0
0
0
0 0 0 0 0 0
Scenario C 3/21/2013 Est. Project
S
t
a
r
t
Y
r
s
to Priority Projects Cost
D
a
t
e
S
t
a
r
t
1 Marina Park 30,000,000 2013
0
2 Sunset Ridge
7
,
0
0
0
,
0
0
0
2013
0
3 West Newport Land Purchase
4
,
3
0
8
,
1
9
9
2013
0
4 Lifeguard Head Qtrs
1
,
5
0
0
,
0
0
0
2014
1
11 Fire Station 5 ‐ CDM
4
,
2
2
5
,
0
0
0
2014
1
5 City Hall Demo/Parking Lot
1
0
0
,
0
0
0
2015
2
7 Fire Station 2 ‐ Lido
4
,
2
2
5
,
0
0
0
2015
2
8 West Newport Comm Ctr
1
0
,
0
0
0
,
0
0
0
2015
2
9 Park Placeholder
2
,
0
0
0
,
0
0
0
2015
2
10 Utilities/Corporate Yard Merge ‐ 2015
2
6 Big Canyon Aux. Yard
1
,
0
5
0
,
6
2
5
2015
2
1
2 12 Fire Station 1 Peninsula 4
2
2
5
0
0
0
2019 2
FA
C
I
L
I
T
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S
FI
N
A
N
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(F
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0
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0
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60
,
0
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,
0
0
0
80
,
0
0
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,
0
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0
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1
2
2
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3
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1
4
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5
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0
1
6
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0
1
7
2
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8
2
0
1
9
2
0
2
0
2
0
2
1
2
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2
2
2
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2
3
2
0
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4
2
0
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5
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0
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6
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7
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8
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9
2
0
3
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3
1
2
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3
2
2
0
3
3
2
0
3
4
2
0
3
5
2
0
3
6
2
0
3
7
2
0
3
8
2
0
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4
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2041
Pr
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j
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c
t
Fu
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d
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g
Ca
s
h
Fu
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0
0
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0
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20
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0
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30
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0
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40
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0
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4
1
Pr
o
j
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c
t
Ex
p
e
n
d
i
t
u
r
e
s
1
2 12 Fire Station 1 ‐ Peninsula 4 ,225 ,000 2019 2 Police Station 64,375,000 2020
7
Total
1
3
3
,
0
0
8
,
8
2
4
Scenario Highlights 1Marina Park ‐ 2013 2
S
u
n
s
e
t
Ridge ‐ 2013 3Lifeguard Head Qtrs ‐ 2014 4Fire Station 5 ‐ CDM ‐ 2014 5West Newport Comm Ctr ‐ 2015 6
P
o
l
i
c
e
Station @ Current Site ‐ 2030 7Predicated on $29 million of developer contributions in FY 2014 8
$
4
4
million of projects cash funded from 2013 ‐2017 9
$
2
0
million of new debt in 2014 10
$
6
5
million debt issue in 2031 for Police Station
3
4
‐
10
,
0
0
0
,
0
0
0
20
,
0
0
0
,
0
0
0
30
,
0
0
0
,
0
0
0
40
,
0
0
0
,
0
0
0
50
,
0
0
0
,
0
0
0
60
,
0
0
0
,
0
0
0
2
0
1
1
2
0
1
3
2
0
1
5
2
0
1
7
2
0
1
9
2
0
2
1
2
0
2
3
2
0
2
5
2
0
2
7
2
0
2
9
2
0
3
1
2
0
3
3
2
0
3
5
2
0
3
7
2
0
3
9
2
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4
1
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r
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l
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e
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0
0
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0
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20
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0
0
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0
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25
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0
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0
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30
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0
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0
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20
1
4
2
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5
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6
2
0
1
7
2
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8
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n
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a
l
GF
Co
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b
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f
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n
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s
Ca
s
h
Co
n
t
r
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b
u
t
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o
n
s
Key Metric
T
a
r
g
e
t
M
a
x
Debt Svc as % of Revenues
5
.
0
%
8
.
0
%
FFP Balance (000's)
1
3
,
4
7
6
$ NA Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
11,496 9,499 Debt Service (000's)
8
,
0
0
8
13,476 11,322 GF Contributions to FFP as % Rev
2
.
8
5
%
5
.
0
%
4
.
9
%
Debt Svc as % of Revenues
4
.
8
7
%
6
.
8
%
5
.
8
%
FFP Balance (000's)
1
8
,
7
2
7
$ 56,025 $ 35,183 $ Project Balance (000's)
0
$ 21,115 $ 3,029 $
5
6Policy15 Year
0.
0
0
%
1.
0
0
%
2.
0
0
%
3.
0
0
%
4.
0
0
%
5.
0
0
%
6.
0
0
%
7.
0
0
%
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0
0
%
9.
0
0
%
10
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0
0
%
2
0
1
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1
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of
GF
Re
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% Bu
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as
% of
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3
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3
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2
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7
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2
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2041
GF
Co
n
t
r
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b
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t
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n
to
FF
P
Co
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p
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De
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P
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b
t
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r
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Key Statistics
M
i
n
M
a
x
A
v
g
GF Contribution to FFP (000's)
4
,
6
7
6
13,471 10,909 Debt Service (000's)
4
,
2
7
2
13,476 11,357 GF Contributions to FFP as % Rev
2
.
8
5
%
5
.
0
%
4
.
6
%
Debt Svc as % of Revenues
1
.
2
8
%
6
.
8
%
5
.
0
%
FFP Balance (000's)
1
8
,
7
2
7
$ 62,787 $ 35,678 $ Project Balance (000's)
0
$ 21,115 $ 1,515 $
7
830 Year
‐
5,
0
0
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0
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0
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0
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p
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0
0
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0
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0
0
%
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0
0
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0
0
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6.
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0
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0
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0
1
1
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2
2
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0
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4
2
0
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2
0
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6
2
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1
7
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1
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1
9
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3
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2041
De
b
t
Se
r
v
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c
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as
% of
GF
Re
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b
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c
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‐
as
% of
Re
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7
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FY
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1
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F
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4,899,705 318,733
4
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4
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2
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4
,
4
3
8
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1
2,219,446 2,219,445 144,378
4
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S
3 ‐
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a
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r
b
a
r
a
1
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a
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4
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2
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5,147,752 334,869
4
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PR
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CITY OF NEWPORT BEACH FINANCE COMMITTEE AGENDA ITEM INFORMATION
Agenda Item No. __E__
March 25, 2013
TO: HONORABLE CHAIR AND MEMBERS OF THE COMMITTEE
FROM: Municipal Operations Department
Mark Harmon, Municipal Operations Director
(949) 644-3055, Mharmon@newportbeachca.gov
SUBJECT: REVIEW OF THE REQUEST FOR PROPOSAL (RFP) OUTLINE FOR THE RESIDENTIAL SOLID WASTE PROGRAM
DISCUSSION
Currently, with a few exceptions such as Newport Coast and Santa Ana Heights, City staff and
equipment are responsible for the collection of residential refuse and recyclables within the City. Staff has identified several key concerns that may negatively impact the internal solid waste
operation in the near future, including the significant reduction of personnel due to past and pending retirements, and the age of the current collection fleet and cost of new alternative fuel trucks.
In addition to the operational challenges facing the city-provided collection program, staff and the consulting team of HF&H Consultants have also identified significant one-time and ongoing
cost savings that may result from contracting our these services. One time savings include the elimination of the $4.5M equipment replacement fund for refuse trucks and the sale of the
existing fleet valued at $1.5M. Ongoing savings include the elimination of the $410K annual
payment to the equipment replacement fund and the overall cost reduction per dwelling for the collection service. Contracting collection services may also provide the opportunity to enhance
current service levels by providing additional services, such as curbside collection of large,
bulky items.
City Council has directed staff to develop a Request for Proposal (RFP) document to solicit bids
for the residential solid waste program so that a cost-service benefit analysis can occur. Staff has provided an outline of this RFP (attached) so that we can take comments and suggestions
as we move forward with developing the formal document. The attached document includes the following key elements:
• Collection Methods
• Core Services
• Optional Services
• Contract Terms
Following input from the Finance Committee, staff will develop the formal RFP for presentation
at a future meeting of the full City Council.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 1 HF&H Consultants, LLC
Collection Method
Residential Collection
Option 1: Manual Option 2: Two-Cart Automated
• Manual Collection
• Single-Stream
• Mixed Waste Processing
• Customer-provided barrels with lids
• Automated Collection
• Dual Stream – Refuse and Recyclables
• Recycling Voluntary for Customers
• Contractor-Provided Carts
Core Services – Both Options
• Residential Collection Service (excluding Newport Coast and Santa Ana Heights)
• Mixed Waste Processing of Residential Waste
• Bulky Item Collection
• Summer Saturday Collection
• Alley Collection
• Special Event Collection
• Alternative Fuel Equipment
• Hire Qualified City employees
Optional Services – Both Options
• Lease of City Transfer Station to Utilize Excess Capacity
• Concierge/Backyard Service
• Enhanced Bulky Item Collection (large appliances)
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 2 HF&H Consultants, LLC
Residential “Core” Services
Service Term Current Arrangements RFP
Collection Method Unlimited manual co-collection of all solid waste in
customer provided containers.
Proposal:
Option 1: Continue current unlimited manual single stream
collection with mixed waste processing
Option 2: Automated two-cart refuse and recycling system
(recycling voluntary for customers)
Containers Customers provide refuse barrels. Option 1: Customer provided-barrels with lids under continued
manual collection.
Option 2: Contractor-provided carts under automated option.
Collection Location Collected from both parkway and alley.
Some rental and alley collection is from containers
placed within 8’ to 10’ of property line.
Option 1: Collection location remains the same as Current Location.
Option 2: Carts in most of the City could be collected from street
gutter. About 20% of the City would require alternative placement
and for the driver to possibly leave the cab to position carts for
collection.
Solid Waste
Processing
City transfers solid waste from City route trucks to
CR&R trailers at the City transfer station. CR&R
hauls solid waste to processing facility.
CR&R’s processing contract, including delivery
from transfer station to processing facility, can be
terminated upon six-month notice, or can be
extended to 2023.
Contractor may, but is not required to, use City transfer station at no
cost to contractor.
Contractor may use City’s contract with CR&R, or may propose
alternative processing arrangements
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 3 HF&H Consultants, LLC
Residential “Core” Services (continued)
Service Term Current Arrangements RFP
Guaranteed
Contractor-Collected
Diversion Rate
CR&R provides a 41% diversion rate. Proposers to propose a guaranteed diversion rate for residential
solid waste equal to or greater than current 41%.
Bulky Item Collection City crews collect unlimited items, provided they
can be easily broken down for collection in route
trucks (for example, no large appliances or pull-
out couches collected, but mattresses, chairs and
couches without pull-out beds are collected).
Core service will include collection of all items
currently collected.
As an optional service, include up to four pickups per year of larger
items on collection day with 24-hour advance call-in.
Continue collection of bags and extra smaller items that can be
collected with the manual truck (or can be placed in a cart for
collection in an automated truck, if applicable).
RFP to request a separate rate for collection of bulky items not
currently collectable with a manual truck.
Missed Pickup Currently, City provides next business day
collection of missed pickup, or forgotten put-out,
if notified by noon.
Continue existing service, providing hauler until no later than the
close of business the following business day to make up a missed
pickup or forgotten put-out.
Holiday Tree
Collection
Currently, Christmas Trees are collected for two
weeks following December 25th.
Continue existing service, notifying residents of the collection of
trees for three weeks following December 25th. Trees left after
three weeks will still be collected.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 4 HF&H Consultants, LLC
Residential “Core” Services (continued)
Service Term Current Arrangements RFP
Summer Saturday
Collection
Additional collection services are provided in select,
high-rental areas on Saturdays from nine to eleven
weeks each Summer.
Continue.
Special Event
Collection
Third-party contractors stage the containers. Tonnage is
currently included in residential tonnage and therefore
charged to the City. Events include the CdM 5K and
Fourth of July.
Contractor to continue existing service. Under the agreement,
the hauler will provide and service roll-off boxes and bins at
City-sponsored events at no additional charge. Contractor is
responsible for the processing/disposal of special event waste.
City to identify the events and estimated service levels to be
required.
Abandoned Item
Collection
City crews collect. Operation Maintenance crew
currently handles abandoned item collection. Tonnage
is included in residential tonnage.
Contractor to continue existing service.
Contractor shall continue to be responsible for disposal of
abandoned item tonnage collected by City crews, either from
City transfer station, or if another transfer station is proposed,
contractor shall service a roll-off box placed at the City yard.
Vehicles Hauler shall be required to propose a price to purchase
City vehicles, whether or not such vehicles will be used
under the new agreement.
City to provide list of vehicles for purchase.
CNG or LNG vehicles to be required within 12 months of service
initiation, or earlier if required by law.
Vehicles should be no more than 10 years old at any time
during the term.
RFP will request that proposers indicate whether they intend to
use the City’s CNG fueling station.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 5 HF&H Consultants, LLC
Optional Services to be Proposed
Service Current Status
Transfer Station
Lease
The City has excess capacity at its transfer station (approximately 150 tpd) and offers use of excess capacity to contractor
for a fixed annual lease payment. Tonnage may be in-City commercial tonnage or limited out-of-City tonnage.
Concierge/Backyard
Service
Under Option 2 (automation), allow proposers to propose a cost per participating home to receive collection service from
a back or side yard.
Emergency Services Currently, the City maintains a collection fleet which may be used for emergency clean up situations. RFP to include an
hourly rate for the use of one crew and one vehicle for on-call emergencies. Proposers to provide a rate.
Bulky Item
Collection
Request separate cost to City for bulky item collection under all options.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 6 HF&H Consultants, LLC
Other Services Identified by City to Be Discussed
The following items may be addressed in the RFP with City Council direction:
• Sharps Collection Program
• Paint, Battery, Household Cleaner and Garden Pesticide Collection
• Community Custom E-Waste Collection
• Community Shred-It Day(s)
• Community Compost Giveaway Day(s)
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 7 HF&H Consultants, LLC
Contract Terms
Contract Term Notes
Term Contracts are typically five to ten years, with seven years common. RFP will request proposals for a seven-year contract.
Extension At City’s sole option up to 36 months.
Proposed Cost to
City
RFP shall request proposal to include a total annual cost to City for providing all core services.
Compensation
Adjustment
Method
Suggest annual adjustments to contractor compensation based on the weighted change in the following cost categories’
corresponding published indices (currently disposal and all other/CPI used):
• Disposal (gate rate at the Orange County landfill system)
• Fuel (published index for natural gas)
• All other (CPI less food and energy)
Include all three components.
Extraordinary Rate
Adjustment
Specify:
• Circumstances for which adjustments will not be made,
• That such adjustments are at the sole, unfettered discretion of the City, and
• That the City may request documentation and consider cost changes over several years.
Public Education Contractor shall be responsible for conducting transition and other community meetings, and for notifying customers of
transition information, holiday schedules, other solid waste events, and, under Option 2, materials to be placed in each
cart through mailings and a website.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 8 HF&H Consultants, LLC
Contract Terms (continued)
Contract Term Notes
Hazardous
Substance
Indemnification
Include indemnification language from Newport Coast agreement.
AB 939
Indemnification
Include indemnification language from Newport Coast agreement.
Insurance City to confirm types and levels. Typical insurance includes General Liability, Automobile Liability, and Workers’
Compensation. General and automotive liability levels typically range from $3 million to $10 million. Newport Coast
agreement levels - $5 million for general and automotive.
City’s risk manager to confirm insurance levels.
Performance
Surety
City to confirm with City’s risk manager. City may request a performance bond or letter of credit, or combination of both.
A typical level is equal to one to two-month’s revenue. Newport Coast agreement requires a labor and performance bond
equal to six-month’s revenue.
City’s risk manager will provide required bond amount.
Warning Tags Contractor to leave an educational warning tag on improperly set out material (such as HHW in the refuse can or bulky
items that were not called in).
Default Provisions Include a list of key events constituting contractor’s default.
Excuse from
Performance
Include a limited list of occurrences that would constitute an excuse from contractor performance. Include limitations on
duration and mitigating steps to be taken by contractor in such events, particularly for labor unrest.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 9 HF&H Consultants, LLC
Contract Terms (continued)
Contract Term Notes
Records and
Reports
Include monthly and annual reporting requirements, including tonnage, complaints records, and service counts.
Audits Include an audit after the first year, and anytime thereafter at City request. It will be important to verify reported tonnage
and diversion rate.
Dedicated Routes Separate routes (residential/commercial) increase reporting accuracy. Several businesses with manual can service could
be serviced on residential routes.
Transition to Next
Franchisee
Include requirements and deadlines by which contractor will provide information and assistance to the next contractor.
Include liquidated damages for failure to comply.
Collection Hours Collection permitted between 7:00 am and 7:00 pm, Monday through Friday, plus Saturday of summer/ holiday weeks.
City is open to changing route days to better balance daily routes, subject to City approval.
Office Location and
Hours, Customer
Service
Proposers shall be requested to describe their office location and hours, and telephone answering and other customer
service procedures. Service calls are to be directed to the contractor, not the City.
City of Newport Beach Project Plan
Residential Solid Waste Services Agreement
March 14, 2013 10 HF&H Consultants, LLC
Contract Terms (continued)
Contract Term Notes
Holiday Schedule Continue current holiday schedule.
All collections for the remainder of a holiday week pushed back one day (with Friday collection made up on Saturday)
Government
Liaison and Route
Supervisor
Require contractor to designate a specific point of contact for all contract and service matters, and to designate a route
supervisor as well. Provide City with option to approve these positions.
Performance
Standards
Include list of performance standards and liquidated damages to be assessed if standards are not met.
Customer
Satisfaction Survey
One Customer Satisfaction Survey to be required first year, and upon City request up to once every three years thereafter.
City to approve survey content and provide addresses or, at contractor’s cost, may mail the surveys.