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Manheim Township School District Debt Profile & Capital Project Financing Review

February 9, 2017

Ken Phillips Managing Director RBC Capital Markets 2101 Oregon Pike Lancaster, PA 17601 Tel: (717) 519-6001 ken.phillips@rbccm.com

Lauren Stadel Vice President RBC Capital Markets 2101 Oregon Pike Lancaster, PA 17601 Tel: (717) 519-5925 lauren.eby@rbccm.com

Scott Shearer Managing Director Public Financial Management One Keystone Plaza, Suite 300 Harrisburg, PA 17101-2044 Phone: (717) 232-2723 shearers@pfm.com


Gross Debt Manheim Township School District Gross Debt Service Outstanding As of July 1, 2016 (2) (3) (4) Series of Series of Series of 2012 2013 2014 G.O. Bonds G.O. Bonds G.O. Bonds 515,885 817,650 316,013 517,435 821,500 315,963 516,973 819,600 335,893 516,648 822,100 1,080,455 515,348 818,850 1,329,285 513,048 1,334,445 515,093 1,325,690 516,543 1,333,140 517,280 1,331,578 517,280 1,329,458 516,620 1,329,425 515,490 1,331,200 513,665 516,015 516,910 512,340 516,500 26,931,375 8,769,070 4,099,700 12,692,543 Landis Run, Landis Run, 2001 Capital Bucher, Bucher miscellaneous Project miscellaneous (1) Partially refunded by 2016 Note, callable 8/1/18, average remaining coupon 3.60%. (2) Callable 8/1/17, average coupon 2.65%. (3) Non-callable, average coupon 2.91%. (4) Call date required 12/1/18, average coupon 3.24%. (5) 2014A FRN at budget rate of 0.75%, callable 11/1/17, mandatory tender 5/1/18. (6) Swap payments per new confirm. (7) Non-callable, average coupon 2.83%. (8) Fulton Bank loan, fixed at 2.20%. As of Fiscal Year Ending June 30 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total Associated Project

(1) Series of 2010 G.O. Bonds 905,445 729,533 769,283 1,297,908 1,326,378 1,357,628 1,396,703 1,838,550 9,759,550 7,550,400

1 | Manheim Township School District

(5) Series of 2014A FRN 5,641,838 5,817,575 5,906,700 6,094,850 7,071,275 8,080,050 8,365,875 8,284,113 1,007,500

(6) 2011 Swap 2,169,478 1,963,523 1,748,910 1,525,842 1,293,714 1,020,114 702,423 370,841 40,265

56,269,775 High School

10,835,110 High School

(7) Series of 2015 G.O. Bonds 2,310,125 2,315,900 2,308,638 822,150

(8) Series of 2016 G.O. Note 169,367 265,760 264,550 263,340 267,130 265,810 264,490 263,170 266,850 3,565,420 5,871,390

7,756,813 Bucher

11,727,277 Landis Run, Bucher

Total 12,845,800 12,747,188 12,670,545 12,423,292 12,621,979 12,571,094 12,570,273 12,606,356 12,923,023 12,962,558 7,717,435 1,846,690 513,665 516,015 516,910 512,340 516,500 139,081,662

RBC Capital Markets | Public Financial Management


Net Debt Manheim Township School District Net Debt Service Outstanding As of July 1, 2016 As of Fiscal Year Ending June 30 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total

Series of 2010 G.O. Bonds 811,876 654,142 689,785 1,163,781 1,189,309 1,217,330 1,252,367 1,648,554 8,750,995 6,770,139 0 0 0 0 0 0 0 24,148,277

2016-17 MVAR Reimb % State Effort Local Effort

2 | Manheim Township School District

39.67% 26.05% 10.33% 89.67%

Series of 2012 G.O. Bonds 478,741 480,179 479,750 479,448 478,242 476,108 478,005 479,351 480,035 480,035 479,423 478,374 476,681 478,861 479,692 475,451 479,311 8,137,688 39.67% 18.15% 7.20% 92.80%

Series of 2013 G.O. Bonds 764,487 768,087 766,310 768,648 765,609 0 0 0 0 0 0 0 0 0 0 0 0 3,833,141 39.67% 16.39% 6.50% 93.50%

Series of 2014 G.O. Bonds 286,766 286,720 304,806 980,459 1,206,260 1,210,942 1,202,997 1,209,758 1,208,340 1,206,416 1,206,387 1,207,997 0 0 0 0 0 11,517,846 39.67% 23.33% 9.26% 90.74%

Series of 2014A FRN 5,194,438 5,356,239 5,438,297 5,611,526 6,510,521 7,439,299 7,702,458 7,627,180 927,605 0 0 0 0 0 0 0 0 51,807,563 39.67% 19.99% 7.93% 92.07%

2011 Swap 2,169,478 1,963,523 1,748,910 1,525,842 1,293,714 1,020,114 702,423 370,841 40,265 0 0 0 0 0 0 0 0 10,835,110 39.67% 0.00% 0.00% 100.00%

Series of 2015 G.O. Bonds 2,102,096 2,107,351 2,100,743 748,115 0 0 0 0 0 0 0 0 0 0 0 0 0 7,058,305 39.67% 22.70% 9.01% 90.99%

Series of 2016 G.O. Note 151,864 238,296 237,211 236,126 239,525 238,341 237,158 235,974 239,274 3,196,968 5,264,639 0 0 0 0 0 0 10,515,376

Total 11,959,746 11,854,538 11,765,811 11,513,946 11,683,179 11,602,134 11,575,408 11,571,657 11,646,513 11,653,559 6,950,448 1,686,371 476,681 478,861 479,692 475,451 479,311 127,853,306

39.67% 26.05% 10.33% 89.67%

RBC Capital Markets | Public Financial Management


Capital Projects Financing Studies


Scenario 1: $70,000,000 Project, 4-year Millage Phase-In, no District cash 09-Feb-17

1

2

3

4

5

Less: Fiscal Total Net Interest Year Outstanding Series of 2019 Series of 2020 Earnings/ Ending D/S $35,000,000 $35,000,000 SD Reserves

Total Net Debt

6

7

8

9

10

11

Total New Total Budget Value of Mills Equivalent Mills in Dollars Surplus 1 Mill Required Mills Place Appropriated (Deficit)

2017

11,959,746

0

0

11,959,746 3,150,000

3.80

0.000

3.86

12,158,000

198,254

2018

11,854,538

0

0

11,854,538 3,150,000

3.76

0.196

4.06

12,775,400

920,862

2019

11,765,811

0

0

11,765,811 3,150,000

3.74

0.196

4.25

13,392,800

1,626,989

2020

11,513,946

1,585,665

0

13,099,611 3,150,000

4.16

0.197

4.45

14,013,350

913,739

2021

11,683,179

1,416,771

1,529,780

14,629,730 3,150,000

4.64

0.197

4.65

14,633,900

4,170

2022

11,602,134

1,496,771

1,529,652

14,628,557 3,150,000

4.64

0.000

4.65

14,633,900

5,343

2023

11,575,408

1,524,539

1,529,513

14,629,460 3,150,000

4.64

0.000

4.65

14,633,900

4,440

2024

11,571,657

1,526,250

1,529,363

14,627,270 3,150,000

4.64

0.000

4.65

14,633,900

6,630

2025

11,646,513

1,452,559

1,529,203

14,628,274 3,150,000

4.64

0.000

4.65

14,633,900

5,625

2026

11,653,559

1,446,015

1,529,031

14,628,605 3,150,000

4.64

0.000

4.65

14,633,900

5,295

2027

6,950,448

6,149,539

1,528,847

14,628,833 3,150,000

4.64

0.000

4.65

14,633,900

5,066

2028

1,686,371

11,412,331

1,528,655

14,627,357 3,150,000

4.64

0.000

4.65

14,633,900

6,543

2029

476,681

12,622,693

1,528,454

14,627,827 3,150,000

4.64

0.000

4.65

14,633,900

6,073

2030

478,861

8,024,940

6,128,247

14,632,048 3,150,000

4.65

0.000

4.65

14,633,900

1,851

2031

479,692

0

14,148,916

14,628,608 3,150,000

4.64

0.000

4.65

14,633,900

5,292

2032 2033

475,451 479,311

0 0

14,153,810 4,335,090

14,629,261 3,150,000 4,814,401 3,150,000

4.64 1.53

0.000 0.000

4.65 4.65

14,633,900 14,633,900

4,639 9,819,498

Total 127,853,306

48,658,073

52,528,559

Assessed Valuation

Median

0 229,039,937

0.786

Portion of tax bill attributable to project

$100,000

$78.60

$150,000

$117.90

$163,500

$128.51

$200,000

$157.20

$250,000

$196.50

(1) Annual Net Debt Service for Series of 2009A, 2010, 2012, 2013, 2014, 2014A FRN, 2011 Swap, and 2015 Bonds. (2) Proposed Series 2019, $35,000,000 dated March 1, 2019. Avg. Coupon 4.08% (current rates + 1% contingency). Local Effort 100% (3) Proposed Series 2020, $35,000,000 dated March 1, 2020. Avg. Coupon 4.36% (current rates + 1% contingency). Local Effort 100% (6) FY2016-17 collect mill is worth $3,150,000 and it remains constant (per the administration February 2017). (9) Assumes District currently funded to approximately $12,158,000 (FY 2016-2017) for annual NET debt service. (11) Annual surpluses could be used for capital project costs to reduce final borrowing amount or to phase in mills. 4 | Manheim Township School District

RBC Capital Markets | Public Financial Management


Scenario 2: $70,000,000 Project, 7-year Millage Phase-In, with District cash 09-Feb-17

1

2

3

4

Less: Fiscal Total Net Interest Year Outstanding Series of 2019 Series of 2020 Earnings/ Ending D/S $35,000,000 $35,000,000 SD Reserves

5

Total Net Debt

6

7

8

9

Total New Value of Mills Equivalent 1 Mill Required Mills

10

11

Total Budget Mills in Dollars Surplus Place Appropriated (Deficit)

2017

11,959,746

0

0

11,959,746 3,150,000

3.80

0.000

3.86

12,158,000

2018

11,854,538

0

0

11,854,538 3,150,000

3.76

0.112

3.97

12,510,800

656,262

2019

11,765,811

0

0

11,765,811 3,150,000

3.74

0.112

4.08

12,863,600

1,097,789

2020

11,513,946

1,585,665

0

13,099,611 3,150,000

4.16

0.112

4.20

13,216,400

116,789

2021

11,683,179

1,416,771

1,529,780

1,060,530

13,569,200 3,150,000

4.31

0.112

4.31

13,569,200

0

2022

11,602,134

1,496,771

1,529,652

706,557

13,922,000 3,150,000

4.42

0.112

4.42

13,922,000

0

2023

11,575,408

1,524,539

1,529,513

351,510

14,277,950 3,150,000

4.53

0.113

4.53

14,277,950

0

2024

11,571,657

1,526,250

1,529,363

14,627,270 3,150,000

4.64

0.113

4.65

14,633,900

6,630

2025

11,646,513

1,452,559

1,529,203

14,628,274 3,150,000

4.64

0.000

4.65

14,633,900

5,625

2026

11,653,559

1,446,015

1,529,031

14,628,605 3,150,000

4.64

0.000

4.65

14,633,900

5,295

2027

6,950,448

6,149,539

1,528,847

14,628,833 3,150,000

4.64

0.000

4.65

14,633,900

5,066

2028

1,686,371

11,412,331

1,528,655

14,627,357 3,150,000

4.64

0.000

4.65

14,633,900

6,543

2029

476,681

12,622,693

1,528,454

14,627,827 3,150,000

4.64

0.000

4.65

14,633,900

6,073

2030

478,861

8,024,940

6,128,247

14,632,048 3,150,000

4.65

0.000

4.65

14,633,900

1,851

2031

479,692

0

14,148,916

14,628,608 3,150,000

4.64

0.000

4.65

14,633,900

5,292

2032 2033

475,451 479,311

0 0

14,153,810 4,335,090

14,629,261 3,150,000 4,814,401 3,150,000

4.64 1.53

0.000 0.000

4.65 4.65

14,633,900 14,633,900

4,639 9,819,498

Total 127,853,306

48,658,073

52,528,559

Assessed Valuation

Median

2,118,597 226,921,340

198,254

0.786

Portion of tax bill attributable to project

$100,000

$78.60

$150,000

$117.90

$163,500

$128.51

$200,000

$157.20

$250,000

$196.50

(1) Annual Net Debt Service for Series of 2009A, 2010, 2012, 2013, 2014, 2014A FRN, 2011 Swap, and 2015 Bonds. (2) Proposed Series 2019, $35,000,000 dated March 1, 2019. Avg. Coupon 4.08% (current rates + 1% contingency). Local Effort 100% (3) Proposed Series 2020, $35,000,000 dated March 1, 2020. Avg. Coupon 4.36% (current rates + 1% contingency). Local Effort 100% (6) FY2016-17 collect mill is worth $3,150,000 and it remains constant (per the administration February 2017). (9) Assumes District currently funded to approximately $12,158,000 (FY 2016-2017) for annual NET debt service. (11) Annual surpluses could be used for capital project costs to reduce final borrowing amount or to phase in mills. 5 | Manheim Township School District

RBC Capital Markets | Public Financial Management


Act 1 Index – Millage Impact Summary Manheim Township School District 5-Year Summary of Potential Act 1 Millage Impact at Index For Illustration Purposes Only 1

Fiscal Year Ending 06/30/2017 06/30/2018 06/30/2019 06/30/2020 06/30/2021 06/30/2022

2

3

Assumed Act 1 Index

Allowable Real Estate Millage Increase

Actual Index Assumed Index Assumed Index Assumed Index Assumed Index

2.50% 2.50% 2.50% 2.50% 2.50%

0.4763 0.4882 0.5004 0.5129 0.5257

4

Real Estate Millage Rate 19.0509 19.5272 20.0154 20.5157 21.0286 21.5543

5 Allowable Real Estate $ Increase 1,500,258 1,537,765 1,576,209 1,615,614 1,656,005

Notes * Per the District Administration, assumes 1 Collected Mill = $3,150,000 * Does not include any applicab le PDE exceptions * Historical Act 1 index for District b elow: Historical Act 1 Index for MTSD Fiscal Allowable Act 1 Year Index 2017-18 2.50% 2016-17 2.40% 2015-16 1.90% 2014-15 2.10% 2013-14 1.70% 2012-13 1.70% 2011-12 1.40% 2010-11 2.90% 2009-10 4.10% 2008-09 4.40% 2007-08 3.40% 2006-07 3.90%

6 | Manheim Township School District

(actual tax increase was 2.2%) (actual tax increase was 0%)

(actual tax increase was 3.96% - used exceptions)

(actual tax increase was 4.50% - first year of Act 1)

RBC Capital Markets | Public Financial Management

RBC capital markets presentation 2 9 2017  

RBC Capital Markets presentation given at February Work Session (2/9/17)

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