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HomeMy WebLinkAboutRevolving Fund Loan Program Due Diligence Form D Indiana Revolving Fund Loan Program Due Diligence Form Part I SRF Names 1. Name of Qualified Entity (QE) City of Jeffersonville 2. Federal Tax Identification Number 35- 6001067 3. County or counties in which situated Clark • 4. Mailing address 500 Quartermaster Court, Ste 300 Jeffersonville, IN 47130 -4029 5. QE Contact Name Mike Moore Title Mayor Telephone (812) 285 -6400 Email Address mmoore @cityofjeffnet FAX Number (812) 285 -6468 6. Type of QE: City X Conservancy District County Regional Sewer District Sanitary District Town Private Not - For - Profit 7. Legislative body (example: Town Council, Board of Directors or Trustees) Common Council 8. Estimated amount of proposed loan $11,865,000 a. Proposed loan authorized by Common Council b. Date authorized October 15, 2012 c. Dated date of bonds December 13, 2012 (est.) d. Is SRF or Non -SRF loan subject to any constitutional or statutory debt limit? YES [ ] NO[X] e. Debt limit (dollars) $ N/A % of assessed valuation N/A f. (i) Is SRF loan parity or junior? Parity (ii) Is Non -SRF loan parity or junior? N/A g. Desired closing date? December 13, 2012 (est.) h. Other funding anticipated Federal grant(s)* State grant(s)* Issuer contribution SRF Loan -1- Non -SRF Loan Other *Identify entity /program(s) from which grant(s) is (are) anticipated i. Grants or commitments received to date j. Does QE plan to follow through with SRF if anticipated grants are not approved? N/A YES [ ] NO [ ] - • 9. Professional Advisors a. Bond Counsel Ice Miller LLP Contact Name Pattie Zelmer Phone Number (317) 236 -2487 Email Address Patricia.Zelmer @icemiller.com Fax Number (317) 592 -4801 b. Political Subdivision's Counsel Contact Name Scott Lewis Phone Number (812) 288 -6820 Email Address rs11012 @yahoo.com Fax Number c. Project Engineer Jacobi Toombs & Lanz, Inc. Contact Name Jorge Lanz Phone Number (812) 288 -6646 Email Address j.lanz @jtleng.com Fax Number (812) 288 -6656 d. Grant Administrator Contact Name Phone Number Email Address Fax Number e. Rate/Financial Consultant Umbaugh Contact Name John M. Seever Phone Number (317) 465 -1500 Email Address seever()a,umbaugh.com Fax Number (317) 465 -1550 f. Other WWTP Dirctor Contact Name Len Ashack Phone Number (812) 280 -3880 Email Address lashack @cityofjeff.net Fax Number (812) 285 -6454 10. Are there any other factors, including threatened or pending litigation, not described above, that might affect your revenues, expenditures or overall financial condition? YES [X] NO [ ] If yes, please submit an explanation in detail and attach to this form. Enforcement action with respect to the consent decree concerning the City's combined sewer overflows. -2- Part II 1. Fiscal Year (January 1 to December 31) 2012 2. List Political Subdivision's long -tern debt (longer than one year) outstanding as of the date of this application with latest Standard & Poor's, Moody's, or Fitch ratings, if any: * Example: "S &P /A -" or "M/Baa" a. Tax supported: As of (date) October 1, 2012 Ratings* General obligation $ - _ Special taxing districts (if a city or county or a portion thereof): Lease obligations: (1) $ 28,270,820 Total tax supported $ 28,270,820 b. Revenue supported: Water $ Sewer $ 89,004,773 Electric $ Gas $ Other $ 807,756 Drainage Works $ 2,225,000 Total revenue supported $ 92,037,529 c. Are employees members of the Indiana Public Employees' Retirement Fund? YES [ ] NO [ ] If no, please describe any retirement plan which the municipal employees are members of and include a brief description listing the estimate of unfunded pension liability, if any. (1) The City is anticipating issuing approximately $11,000,000 in Tax Increment Revenue Bonds in 2012. -3- 3. List temporary loans in anticipation of receipt of taxes, revenues, bond proceeds, federal or state grants. Original Date Item Amount of Issuance Maturity Date Taxes or revenues $ Bonds $ Grants $ TOTAL $ 4. Debt outstanding by maturity of Political Subdivision (not including SRF or Non -SRF loan) See attached amortization schedules for the Sewage Works. Year Payable Principal Amount Aggregate Interest Total 2003 $ $ $ 2004 $ $ $ 2005 $ $ $ 2006 $ $ $ 2007 $ $ $ 2008 $ $ $ 2009 $ $ $. 2010 $ $ $ 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ 2015 $ $ $ 2016 $ $ $ 2017 $ $ $ 2018 $ $ $ 2019 $ $ $ 2020 $ $ $ 2021 $ $ $ 2022 $ $ $ 2023 $ $ $ 2024 $ $ $ 2025 $ $ $ 2026 $ $ $ 2027 $ $ $ 2028 $ $ $ 2029 $ $ $ 2030 $ $ $ TOTAL $ $ $ -4- 5. In addition to the indebtedness described in part II number 2, list all debt that Political Subdivision is indirectly liable for and other expenses that are incurred by various overlapping government authorities and agencies, such as city, town, county, school, townships, special taxing districts, etc. Political Subdivision's Outstanding Share of Category Debt Outstanding Debt City or Town $ County Clark $ 33,955,500 35.89 % School Greater Clark County Schools $ 113,751,964 57.78 Township $ Special taxing district: (for example, sanitary districts) Jeffersonville Twp Public Library $ 2,616,000 61.03 % Other: $ $ ov TOTAL $ 150,323,464 6. Authorized but unissued debt (not including SRF or Non -SRF loan): Remaining To be Included Authorized Purpose Amount in This Issue (But Unissued) $ $ $ $ $ $ $ $ $ $ $ $ TOTALS $ $ $ 7. Other than SRF project(s), are any other capital projects currently planned? If yes, please describe the plans and funding sources for implementing the projects. The Sewage Works is in the planning stage for the development of the proposed projects which will be required for the City's Long -Term Control Plan. The amount of the improvements is anticipated to be approximately $80 million, based on construction estimates provided by the City's consulting engineers. -5- Part III 1. Assessed Valuation (last five years) Total Net Real Personal Assessed True Year Property Property Valuation Tax Value 2008 $ 1,134,922,973 $ 163,532,850 $ 1,298,455,823 $ 1,298,455,823 2009 $ 1,143,842,744 $ 173,954,430 $ 1,317,797,174 $ 1,317,797,174 2010 $ 1,092,707,032 $ 179,968,854 $ 1,272,675,886 $ 1,272,675,886 (1) 2011 $ 1,291,805,119 $ 189,031,928 $ 1,480,837,047 $ 1,480,837,047 2012 $ 1,225,193,505 $ 195,100,834 $ 1,420,294,339 $ 1,420,294,339 (1) According to the Clark County Auditor's Office, the net assessed valuation for pay 2010 decreased due to • trending and a large number of appeals being granted. 2. Tax anticipation note borrowing (last five years) Date of Issue Amount of Issue Due Date 2007 $ 2008 $ 2009 $ 2010 $ 2011 $ 3. Tax collections (last five years) Total Property Collected by Year Tax Levy Year End % Collection 2007 $ 11,482,843 $ 11,721,953 102.08 % 2008 $ 12,056,327 $ 11,930,962 98.96 % 2009 $ 14,848,066 $ 14,392,685 96.93 % (1) 2010 $ 16,337,155 $ 15,775,523 96.56 % (2) 2011 $ 20,107,200 $ 18,298,524 91.00 % (3) (1) In 2009, the City had $13,468 in Circuit Breaker Tax Credit which would have resulted in 97.02% of taxes collected. (2) In 2010, the City had $831,184 in Circuit Breaker Tax Credit which would have resulted in 101.74% of taxes collected. (3) In 2011, the City had $1,767,241 in Circuit Breaker Tax Credit which would have resulted in 99.77% of taxes collected. -6- 4. Gross tax rate, including city, town, school, county, district, townships, etc., for the last five years (or include copy of tax rate tables): Jeffersonville City - OFW Category 2008 2009 2010 2011 2012 State $ 0.0024 $ $ $ $ County 0.2453 0.1962 0.2242 0.2928 0.3574 Township 0.0155 0.0170 0.0197 0.0194 0.0207 School 1.6228 0.8119 0.9526 0.9406 1.0450 Library 0.0695 0.0849 0.0827 0.0936 0.1016 City 0.9772 1.1720 1.3263 1.3845 1.6290 Special Flood General 0.0307 TOTALS $ 2.9634 $ 2.2820 $ 2.6055 $ 2.7309 $ 3.1537 Jeffersonville City - IFW Category 2008 2009 2010 2011 2012 State $ 0.0024 $ $ $ $ County 0.2453 0.1962 0.2242 0.2928 0.3574 Township 0.0155 0.0170 0.0197 0.0194 0.0207 School 1.6228 0.8119 0.9526 0.9406 1.0450 Library 0.0695 0.0849 0.0827 0.0936 0.1016 City 0.9772 1.1720 1.3263 1.3845 1.6290 Special Flood General 0.1302 0.1104 0.1243 0.1083 0.1097 TOTALS $ 3.0629 $ 2.3924 $ 2.7298 $ 2.8392 $ 3.2634 Jeffersonville City - Utica Twp - OFW Category 2008 2009 2010 2011 2012 State $ 0.0024 $ $ $ $ County 0.2453 0.1962 0.2242 0.2928 0.3574 Township 0.0076 0.0092 0.0055 0.0053 0.0116 School 1.6228 0.8119 0.9526 0.9406 1.0450 Library 0.0348 0.0443 0.0468 0.0478 0.0503 City 0.9772 1.1720 1.3263 1.3845 1.6290 Special Flood General 0.0307 TOTALS $ 2.9208 $ 2.2336 $ 2.5554 $ 2.6710 $ 3.0933 Jeffersonville City - Chas Twp Category 2008 2009 2010 2011 2012 County $ N/A $ 0.1962 $ 0.2242 $ 0.2928 $ 0.3574 Township N/A 0.0266 0.0286 0.0294 0.0308 School N/A 0.8119 0.9526 0.9406 1.0450 Library N/A 0.0443 0.0468 0.0478 0.0503 City N/A 1.1720 1.3263 1.3845 1.6290 TOTALS $ N/A $ 2.2510 $ 2.5785 $ 2.6951 $ 3.1125 -7- 5. Ten largest taxpayers (list in descending order) Most Recent Property Type of Assessed Tax for Name Business Valuation FY 2012 1. Icon Orchard Hill Apartments $ 18,921,940 $ 422,746 2. Meijer Retail discount store $ 15,124,480 $ 453,734 3. US Industrial REIT II Distribution center $ 14,784,700 $ 439,941 4. PGP Properties/Voss -Clark Steel processing $ 14,535,212 $ 432,517 Payroll, credit/debit card, check management 5 • Heartland Payment Systems processing $ 14,111,945 $ 419,922 6. Steel Dynamics Inc. Mfg. flat rolled steel $ 13,957,426 $ 415,324 7. LRG LLC Real estate $ 13,697,200 $ 285,897 8. Kroger/Eastmoor Acres Realty Grocery store $ 11,382,790 $ 341,484 • Mfg. lubricants for Idemitsu Lubricants American automotive /industrial 9. Corporation markets $ 11,377,920 $ 338,455 10. Chemtrusion Inc. Mfg. polymer compounds $ 10,954,780 $ 325,790 a. Note any of the ten largest taxpayers listed above that have been delinquent in paying property taxes (more than 90 days after due date) during any one or more of the last three fiscal years. 6. Describe geographical location, number of square miles and the major transportation facilities available in the QE and the surrounding area. The City of Jeffersonville is located in Clark County in the far southern part of Indiana. The City is immediately north of Louisville, Kentucky across the Ohio River. Indianapolis is approximately 100 miles north of the City, and Cincinnati is approximately 100 miles to the northeast. The City has a total area of 34.35 square miles. -8- Part IV 1. Population (as reported in U.S. Census) QE Total 2000 Census Data 27,362 2100 Census Data 44,953 Percentage Change 64.29% Principal County in which QE is Situated 2000 Census Data 96,472 2010 Census Data 110,232 Percentage Change 14.26% 2. Personal income (as reported in most recent U.S. Census) Clark QE County 2010 Median Household Income 48,543 44,775 2010 Per Capita Income 24,238 32,986 3. Largest employers (more than ten employees) in descending order for 2012. Circle whether Political Subdivision, SMSA, or County' information. Number (Approximately) Name Business of Employees 1. Clark Memorial Hospital Healthcare 1,600 2. Greater Clark County Schools Public education 1,351 (1) Barge transportation and 3. American Commercial Lines, Inc. construction 923 ( 4. West Clark Community Schools Public education 553 (3) 5. Clark County County government 493 6. Wal -Mart, Inc. Retail 450 7. City of Jeffersonville City government 350 Mfg. plastic interior components and wiring • 8. D.A. Inc. harnesses 350 9. Bass Pro Shops Outdoor World Retail 300 Product warranty 10. Service Net Solutions, LLC insurance carrier 265 (1) Includes 713 certified and 638 non - certified employees. (2) As reported by One Southern Indiana Chamber & Economic Development. (3) Includes 291 certified and 262 non-certified employees. -9- 4. Employment a. By industry (circle whether QE, SMSA, or County information.) (Source: Indiana Employment Security Division) Average Number % Total of Employees Employment Services & Other 30,581 49.98% Wholesale, retail trade 9,338 15.26% Manufacturing 7,022 11.48% Transportation 5,031 8.22% Finance, insurance, real estate 4,736 7.74% Construction 3,246 5.30% Agriculture, forestry, mining 640 1.05% Communications 363 0.59% Utilities 234 0.38% Total Employment 61,191 100.00% b. Employment Trends QE Annual Average 2009 56,240 Annual Average 2010 55,576 Annual Average 2011 55,899 5. Unemployment Rates Q Annual Average 2009 8.8% Annual Average 2010 9.4% Annual Average 2011 8.7% 6. Building permits (last five years): Year Residential Non - Residential Other Total Number of Permits 2007 $ N/A $ N/A $ N/A $ 416 2008 $ N/A $ N/A $ N/A $ 436 2009 $ N/A $ N/A $ N/A $ 567 2010 $ N/A $ N/A $ N/A $ 481 2011 $ N/A $ N/A $ N/A $ 443 7. Distribution of assessment of taxable property: Year Residential Commercial Industrial 20 % -10- 8. General economic characteristics: Navigation continues to play an important economic role within the community. American Commercial Barge Lines and Jeff Boat, Inc. are headquartered in Jeffersonville. American Commercial Barge Lines provides barge transportation and Jeff Boat manufactures barges. Additionally, Jeffersonville residents have the opportunity for employment with several large employers located in Clark County and the proximity of Jeffersonville to Louisville, Kentucky provides residents with a broader economic base. -11- Part V 1. Rate covenants a.) Rates must be set to generate net revenues at 125% of debt service b.) Have you been in violation of this covenant during the past five years? If so, explain. No c.) Provisions for additional parity bonds See Bond Ordinance d.) Debt service reserve 1) Required debt service reserve (Maximum Annual Debt Service, Other) Maximum Annual Debt Service 2) After this issue, debt service reserve will be $ 7,124,998 3) Have you ever had to use debt service reserve? [ ] YES [X] NO If yes, please give details (when, amount withdrawn, when was fund replenished ?) Five -year build up. 4) Source of funds (for example: a five year build up from pledged revenues, one time deposit, bond issue ?) Five year build up from pledged revenues. 2. Rates a. Who sets rates? Common Council b. Regulatory approval required? YES [ ] NO [X] By Whom? N/A • Date of Approval: N/A Remonstrance period: N/A c. Has the QE opted out of Indiana Utility Regulatory Commission (IURC)? [ ] YES [ ] NO N/A -12- d. Rate History: Year Rate Requested Rate Approved 2015 $ 34.87 $ 34.87 2014 $ 31.79 $ 31.79 2013 $ 29.01 $ 29.01 2012 $ 26.48 $ 26.48 2010 $ 24.15 $ 24.15 2004 $ 11.66 $ 11.66 1998 $ 8.64 $ 8.64 3. Customers a. Ten largest customers (in descending order) (Calendar Year 2011) • Usage (circle whether Name Revenues Gals, or CCF) 1. Dallas Group $909,082 113,344 2. Clark Memorial Hsopital 477,043 46,752 3. Jeffboat /Commercial Barge 272,036 45,371 4. Krunchers, Inc. 239,217 31,747 5. Voss Industries 230,776 29,887 6. Chemtrusion 117,507 19,530 7. Southern Indiana YMCA 93,946 15,590 8. Philedelphia Co. 92,603 12,758 9. Manag Claysburg, SGF 88,725 14,717 10. Clark Co. Sherriff's Office 64,000 26,897 b. Use by type of customer For FY 2011 % of Total Consumption % of Total Revenues Commercial 16 15 Industrial 17 16 Residential 67 69 c. Customer Base Year Number of Users Total Billed Flow (CCF) 2011 13,858 1,570,085 2010 13,630 1,598,452 2009 13,398 1,537,525 2008 13,193 1,413, 839 2007 1 2,258 N/A 4. Preliminary Engineering Report approved? YES [X] NO [ ] -13- I hereby certify that the foregoing information is true and correct to the best of my knowledge and belief. Qualified Entity: Title: Date: Upon completion, please return the original and ONE COPY of this form AND any additional documentation to: 100 North Senate Avenue, Room 1275, Indianapolis, Indiana 46204 William D. Harkins, Jr. (317) 234 -4862 -14-