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Home My WebLink AboutPackets - Council Packets (1935)Town Council Meeting Regular Session March 19, 2025 Town Council Meeting Regular Session March 19, 2025 Town Council Meeting Announcements Upcoming meetings Meetings are subject to change. Check the Town website for meeting status. Stormwater Utility Commission March 20 at 4 p.m. Hopi Conference Room Planning and Zoning Commission April 1 at 6 p.m. Council Chambers Town Council Regular Session April 2 at 6 p.m. Council Chambers 5 OV’s Path Forward Resident Working Group Meetings Topic: Housing Thursday, March 20 5:30 - 7:30 PM Online via Zoom Topic: Economic Development Tuesday, March 25 5:30 - 7:30 PM Online via Zoom Topic: Transportation Tuesday, March 26 5:30 - 7:30 PM Online via Zoom Topic: Community Character/Arts & Culture Thursday, March 27 5:30 - 7:30 PM Online via Zoom The community’s next 10-year action plan OV Trail Connect Planning for future tails and paths Upcoming Meetings and Events Trail Stakeholder Group Meeting #2 Wednesday, April 23 5:30 - 7:30 PM Online via Zoom Visit OVPathForward.com Visit OVTrailsConnect.com Get Involved in OV’s Future! Town Council Meeting Regular Session March 19, 2025 8 Spotlight on Youth – Mia Gutierrez Town Council Meeting Regular Session March 19, 2025 Explore OV DMO Report Paul Melcher, Community and Economic Development Director Crystal Franke, Destination Marketing Manager 11 Report Topics Operations Resort and Limited-Service Hotel Support Budget Update 12 Operations: Full DMO Presence 1.DMO Operations Shift mid-2024 2.Quarterly Stakeholder Meetings a)Advisory Board 3.Leisure Travel Plan a)Study Kick-off b)Website Development Coordination c)Post-Study Tourism Advisory Board 4.Marketing and Branding a)Explore OV website b)Explore OV App c)Instagram: OV and Shared Content 5.Group Events 6.Public Art Tours 7.Resort Support Strategies 13 Resort and Limited-Service Hotel Support 1.DMO Support Goals Marketing and Platforms 2.Trade show off-sets 3.Master Credit Account Support 4.Familiarization Events 5.Monthly check-ins FY24-25 Budget Sponsorships and Fees $142,500 Group Event Sponsorships Tourney Application and Bid Fees Second Party Event Agreements TBD Public Art Tours Pilot Program Marketing and Platforms $126,010 Leisure Travel Strategy via Consultant Marketing, Social Media Webpage or other marketing platforms Promo Materials Resort Support $125,000 Meeting Planner & FAM Visits Contract Incentives OV Trade Show Participation Staffing Support $92,690 SM, DIGI Content and Webpage CIP for Venue Improvements Venue Assessment Venue Improvements Miscellaneous Operations $36,300 Administrative Expenses Staff Startup Expenses Placer AI Town of Oro Valley Budget Summary 15 Budget Update: Expenditures YTD 16 Questions Paul Melcher, Community and Economic Development Director Crystal Franke, Destination Marketing Manager Town Council Meeting Regular Session March 19, 2025 Overview of Private Placement Financing Town of Oro Valley, Arizona Senior Lien Water Project Revenue Obligation, Series 2025 Presented By: Mark Reader, Managing Director, Stifel March 19, 2025 Public Policy Objectives Partially fund Oro Valley’s portion of the partnered Northwest Recharge, Recovery and Delivery System (NWRRDS) project The construction of the NWRRDS will enable the Oro Valley Water Utility to physically recover up to an additional 4,000 acre -feet of Central Arizona Project (CAP) water effectively reducing groundwater pumping to sustainable levels, allowing the aquifer to recover, while still meeting the needs of a growing community Seek proposals from private placement bidders for 10 and 15-year amortizations Total Project Fund: $18,000,000 $6,000,000 privately placed Senior Lien Water Project Revenue Obligation, Series 2025 ► To fund a portion of the Partnered piece of the NWRRDS project $12,000,000 WIFA Clean Water State Revolving Fund Loan (to be considered April 16th) ► To fund a portion of the Independent piece of the NWRRDS project Private Placement Bid Summary 6 private placement bids received (ranging 4.085% – 5.100%) Winning bid at 4.085% 10-year amortization Redemption provision beginning July 1, 2028 – enables early debt repayment All debt service paid from Net Water Utility Revenues Preliminary Sources and Uses of Funds Bond Statistics Par Amount $6,084,550.00 Project Fund $6,000,000.00 Cost of Issuance 84,550.00 Total Sources & Uses $6,084,550.00 TIC 4.08% All-In TIC 4.35% Annual Debt Service $759,014.39 Closing and Funding April 22, 2025 Historical and Budgeted Water Utility Revenues and Expenses (a) 2022 Corrected figure. (b) Revenues do not include expected loan proceeds of $20,000,000 in 2024/25. (c) Expenses do not include capital outlay for projects. Prepared by Stifel, Nicolaus & Company, Incorporated (the Financial Advisor). Source: Town of Oro Valley audited financial statements and Water Rates Analysis Report for 2024/25. Audited Budgeted 2020/ 21 2021/ 22 2022/ 23 2023/ 24 2024/ 25 (b) Revenues: Water revenues 14,679,253$ 14,406,542$ 14,539,682$ 16,252,902$ 18,061,494$ Water impact fees 4,100,556 1,167,086 1,818,383 2,367,405 988,878 Groundwater preservation fees 2,617,452 2,413,719 2,256,987 2,391,910 2,564,213 Other revenues 906,925 1,528,588 916,789 924,314 800,000 Interest income (1,211) (830,161) 426,923 725,801 553,243 Total Revenues 22,302,975$ 18,685,774$ 19,958,764$ 22,662,332$ 22,967,828$ Expenses: Personnel 3,480,942$ 3,233,737$ 3,519,660$ 3,616,586$ 3,995,564$ Operations and maintenance 4,133,238 4,414,647 5,037,212 5,109,857 5,872,836 CAP water costs 3,736,489 4,123,353 4,223,033 5,081,666 5,661,394 Total Expenditures (c)11,350,669$ 11,771,737$ 12,779,905$ 13,808,109$ 15,529,794$ Net Water System revenues 10,952,306$ 6,914,037$ 7,178,859$ 8,854,223$ 7,438,034$ (a) (a) Estimated Debt Service Schedule and Projected Coverage (a) * Preliminary, subject to change. (a)Prepared by Stifel, Nicolaus & Company, Incorporated (the Financial Advisor). (b) Source: Town of Oro Valley, Arizona Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024. (c) Includes the Town’s outstanding 2014 WIFA Loan and Series 2021A-B Senior Lien Water Project Revenue Refunding Obligations. (d) WIFA Loan assumes closing on May 23, 2025, an 85% interest rate subsidy (AAA 20-year MMD as of 3/4/2025: 3.71% * 85% = 3.15%) and $1,012,500 estimated forgivable principal. (e) Senior Lien Water Project Revenue Obligation, Series 2025 assumes closing on April 22, 2025, an interest rate of 4.085%, and a first interest payment date of January 1, 2026. (f) Coverage is calculated based on Net Revenues for the fiscal year ending June 30, 2024. (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)(11) Obligations Water Infrastructure Finance Authority of Arizona (WIFA)Senior Lien Water Project Revenue Obligation, Estimated Projected Outstanding (c)Clean Water State Revolving Fund Loan (d)Series 2025 (e)Combined Debt Fiscal Net Estimated Estimated Estimated Debt Service Year Revenues (b)Principal Principal*Interest*Debt Service*Principal*Interest*Debt Service*Service*Coverage (f)* 2023/ 24 8,854,223$ 2024/ 25 1,189,224$ 1,189,224$ 7.45x 2025/ 26 1,191,269 261,440$ 383,267$ 644,707$ 462,820$ 296,193$ 759,013$ 2,594,989 3.41x 2026/ 27 1,185,576 306,270 338,438 644,708 529,370 229,648 759,018 2,589,301 3.42x 2027/ 28 879,581 315,910 328,790 644,700 550,990 208,023 759,013 2,283,294 3.88x 2028/ 29 119,499 325,860 318,839 644,699 573,500 185,515 759,015 1,523,213 5.81x 2029/ 30 - 336,130 308,575 644,705 596,930 162,087 759,017 1,403,722 6.31x 2030/ 31 - 346,720 297,987 644,707 621,310 137,703 759,013 1,403,719 6.31x 2031/ 32 - 357,640 287,065 644,705 646,690 112,322 759,012 1,403,717 6.31x 2032/ 33 - 368,900 275,799 644,699 673,110 85,905 759,015 1,403,714 6.31x 2033/ 34 - 380,530 264,179 644,709 700,610 58,409 759,019 1,403,727 6.31x 2034/ 35 - 392,510 252,192 644,702 729,220 29,789 759,009 1,403,711 6.31x 2035/ 36 - 404,880 239,828 644,708 - - - 644,708 13.73x 2036/ 37 - 417,630 227,074 644,704 - - - 644,704 13.73x 2037/ 38 - 430,780 213,919 644,699 - - - 644,699 13.73x 2038/ 39 - 444,350 200,349 644,699 - - - 644,699 13.73x 2039/ 40 - 458,350 186,352 644,702 - - - 644,702 13.73x 2040/ 41 - 472,790 171,914 644,704 - - - 644,704 13.73x 2041/ 42 - 487,680 157,022 644,702 - - - 644,702 13.73x 2042/ 43 - 503,040 141,660 644,700 - - - 644,700 13.73x 2043/ 44 - 518,890 125,814 644,704 - - - 644,704 13.73x 2045/ 46 - 535,240 109,469 644,709 - - - 644,709 13.73x 4,565,148$ 9,774,550$ 5,112,100$ 12,894,072$ 6,084,550$ 1,505,594$ 7,590,144$ Sale Type Analysis Private Placement Market vs. Public Sale of Bonds Lower costs on smaller transactions Significant demand from bidders with locked in 4.085% fixed rate Obligation is callable on July 1, 2028 / public sale of bonds would likely require no call feature Ability to call bonds provides flexibility to payoff debt if desired No additional cost and staff time to provide ongoing continuing disclosure compliance Public sale of bonds requires additional staff time – subject to market fluctuations Tentative Financing Calendar Date Event February 25th Bids due. March 19th Town Council approves Resolution authorizing the issuance of the Obligation and Reimbursement Resolution. April 22nd Closing. Funds wired to the Trustee. March 2025 S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 April 2025 S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Questions? Town Council Meeting Regular Session March 19, 2025 Town Council Meeting Regular Session March 19, 2025