City of Ansonia, Connecticut

Existing & Proposed Debt Analysis

April 7, 2016
Barry Bernabe
Managing Director

PrroENrx
ADVISORS, LLC

Long-term lnterest Rates

Ten Year U.S. Treasury Yield - January 1,1970 to April 2016

17o/o

17o/"

dMWtu

%*t*M \

160/o
15o/o

13o/o

it

12o/o
11o/o

1Oo/o

7olo
60/o
5o/o
4o/o
3o/o
2o/o
1olo

r1

A f'
, /v "\n/

Ul -,rrl"

\-

-l

/Y'LA

160/o

1$Vo
14o/"
13o/o
12o/o

11o/o

\-

.I

9o/o
8o/o

\-

il-,

14o/o

High: September 1981 t 16.0%

Low: July 2012, 1.5OYo

1Oo/o

\-

9o/o

\-

\-

'\.
^l lkry\ tu
v u

8o/o

\-

\/\n. -Y-\.
ts
r^ltl,/w
11

'

7o/o
60/o

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EqqHE?E* q
5 8t58gi 0$5 $PI fi95 $t5 $E 5 g E E si i
n

5o/o
4o/o
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1olo

Prronxrx
,"\D\IIS0R\Lt"C
Page 2

Standard & Poor's Rating Scale

H

ighest

AAA
A,A+

AA

aA-

A+

&
BBB -+
Lowest

BBB

BBB-

Greenwich, Westport, West Hartford

Shelton, Southington, Suffield
Derby, Seymour, Watertown
Ansonia, Bolton, Portland
Bridgeport, Waterbury
Hartford, Hamdefl, West Have n
East Haven, New Haven
None
None
None
PuonNrx
ADVISORS,IJ,C

Page 3

Existinq Short-Term Bond Anticipation Notes (BANs)

Project

Amount
Authorized

Demolition of the Rircrside Housing Complex

$5,200,000

2013-14 CIP - Various Capital lmprorcments

5,120,000

Total

Lot A TaxExempt to
Mature 5123116

Lot B Taxable
to Mature
5t23t16
$2,975,000

3,750,000
$3,750,000

$2,975,000

Page 4

Existinq Debt Seruice Pavments

$3,500,000

$3,000,000

N2013-14

CIP

aRiverside

P&l

rExisting NET Debt Service

$2,500,000

$2,000,000

$1,500,000

$1,000,000

N
INN

$500,000

H#+d
t#t-H
l]JrJ]+
ffi

$0

FiscalYear

Page 5

Proposed Capital Projects

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It

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I{MS

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ri{$dI3 {'

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F}T*$!S SYSTNM FOR FUEILIC WORKS
VNICE NVEN IF SHOF{E SYSTEM .CITY H.ALI. WJVGIC.EMAIL

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IUALTU tir{.h.L I Y

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7t'Ridino Mower
f ity Wlds Euildiilg Up$r*des {SSE ATTCHM6}iTi
Fronl St*tls st Citv l"lell

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15.000

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75,SSS

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15.000
75.000

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45.008

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775.00S

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Page 6

Existing & Proposed Debt Spreadsheet

Line

Descriiption

2004 Bond Principal

2
3

Tvpe

FY

2015-16

FY

2OL6-LI

FY 2OL7-L8

School

1,610,000

1,080,000

1,075,000

2011 Bond Principal

School

1,190,000

1.200.000

1,180,000

2004 Bond lnterest

School

L37,225

72,675

24,1,88

School

L24.200

88.350

52,650

ARMS/PW

85,356

85,356

2011 Bond lnterest

Chase Ambulance & Dump Truck Lease

FY

2018-19

FY

20L9-20

FY

2020-2L

1,165,000
77,475

Plow Truck Lease

77,913

85,356
7L.913

Fire Truck and Sweeper

Fire/PW

1.44,400

L3L,47A

t3L,470

L37,470

73L,470

78,865

Riverside BAN Principal

Citv/Housins

1s0.000

18s,000

325,000

300,000

300,000

300,000

Riverside BAN lnterest

City/Housing

50,000

50,000

50,000

50,000

s0,000

s0,000

200,000

200,000

200,000

200,000

200,000

150,000

125,000

LL7,OOO

110,500

108,000

25,000

540,000

1,0s5,000

1,110,000

3,273,664

PW

10

2OL3-L4 CIP Princioal

City

LI

2OL3-L4 CIP lnterest

Citv

L2

Future 2OL6-L7 CIP Debt Service

City

L3
L4
15

Total Gross Debt

3.613.094

Less State Reimbursements

Net Debt Service

Amount budgeted for Debt Service

50,000

FY

3,314,764
(1,464,s74\

1,846,865

(1,399,132)

2,520,945
(672,952

1-,846,970

(1,,762,1.s81

1.850.936

1,850,190

1.,874,532

L,847,993

L,846,970

L,8,46,965

2075-76

Page

Existing & Proposed Debt Service

$3,500,000

$3,000,000

Capacity N2013-14 CIP

e Riverside P&l
r Existing NET Debt Service
EFuture Debt

$2,500,000

$2,000,000

$1,500,000

$1,000,000

o
N
o
N

FiscalYear

Page 8

Summary Points

o Though the Fed has started to raise short-term interest rates, they remain at close to
historic Iow levels (about 0.50%) and so do long-term rates.

.
.

The City has rating of AA- which will allow for strong investor demand.
The City has an opportunity for a possible upgrade to AA

o The City's existing debt service amortizes

very aggressively.

Structured appropriately - the City can issue over $4 million per year with no impact on
the debt service budget.

o The City currently budgets about $1.8 million per year for debt service. The City would
need to keep debt service budgeted at the $1.8 million.

Page 9