Special Citizens Bond Advisory Committee  Task Force Meeting June 27, 2019, 3:00 p.m. Meeting Minutes  The Special Citizens Bond Advisory Committee's' Task Force ofthe City of Denton, Texas, convened in a meeting on Thursday, June 27, 2019, at 3:00 p.m., ini the City Council Work Session Room, Main  City Hall, 215 E. McKinney Street, Denton, Texas.  PRESENT: Committee members: John Crew, Tim Crouch, Susan Parker, Eric  Pruett, Randy Robinson, Janet Shelton, Patrick Smith  STAFF PRESENT: Todd Hileman, City Manager, Antonio Puente, Jr., Chief Financial  Officer, David Gaines, Director of Finance, Sara Hensley, Assistant City Manager, Nancy Towle, Treasury Manager, Randee Klingele, Senior Treasury Analyst, Hailey Payne, Treasury Analyst, and Theresa Jaworski, Executive Assistant and Recording Secretary.  OTHERS PRESENT: Adam LanCarte, Vice President, Hilltop Securities, Inc.  Pat Smith, Committee Chair brought the meeting to order at 3:06 p.m.  1. ITEMS FOR CONSIDERATION  CBAC19-017 Receive a report and hold a discussion regarding financial considerations of David Gaines, Director of Finance, addressed the financial considerations of the proposed 2019 Bond Program and set out the objectives of the meeting for the Task Force, gave an Overview of the City's Debt that includes outstanding debt, the debt service fund, maturity schedule, level of debt service payments general obligations, and certificates of obligation; the review of outstanding debt service and followed with the current tax rate breakdown that included maintenance and operations at $0.405, the debt service interest at $0.215, and the decline in the tax rate. The Task Force discussed the reason for the decline in the tax rate, the nine year call option and the recent change in the tax reform bill that no longer allows the City to utilize advance refunding, allowing the refunding of bonds early for an interest rate savings; the one-time option to refinance after the nine years or accelerate the payments to pay off the debt early, and the rationale in the law change for transparency allowing voters time to petition C.O. issuances, ifthey SO desire. Gaines continued with the debt review that included the outstanding debt, debt service fund, maturity schedule, level ofservice payments, general obligations and certificates ofc obligation, then went over the bond program language requirements with updates following the 2019 Legislative Session; including language regarding the Bond Programs on a $100K appraised residential  the proposed 2019 Bond Program.  homestead, and the general government bond issuance history.    The Task Force discussed the ballot language, the impact of the tax rate based on what future assumptions in terms of property value, the reason for the spike in the bonds issued for funding Gaines shared a graph on the outstanding debt service over future fiscal years, the bond ratings, how they are rated and factors for ai ratings upgrade, and an additional graph on the assessed value history noting for comparison sake, the difference when including the freeze values, then followed with information on the financial assumptions, current project cost update, and the potential bond The Task Force discussed the steady growth ofe existing value, the breakdown on new construction and increased assessed value, the assessed value of four percent and the impact when working on the allowable rate calculations, the use of fund balance to drawdown debt service, the priority of street lighting and open spaces funding, the reasoning behind the change in the Ryan Road funding, the plan on the state funding for FM 428, and also working with the state in negotiating the intersection at the Ryan Road, and the intersection at Teasley, the new development in that area and the options under consideration, and issuance for the Police Department and Substation Gaines presented the forecast scenarios for the different amounts of bond programs followed by breakdowns on each program, with the tax rate impact, moderate and aggressive and mixed growth The Task Force discussed the scenarios, what the 3.5% rollback is and how it is applied, using the average assessed value and how that works together, the difficulty in predicting using various growth scenarios, legal requirements in bond language, staff's providing additional information on the two propositions, other sources for funding some ofthese projects, and different considerations The Task Force asked to see scenarios and bond potential bond language associated with 4%, 5%, Committee Chair Smith stated that the Task Force will meet on July 11, 2019, at 4:00 p.m., to determine ai recommendation to the full Committee for the amount of the 2019 Bond Program and  cost increase in 2017-18, and funding for work to begin on Fire Station 8.  sale schedule.  issuance at the same time.  scenarios, respectively.  for a conservative or aggressive strategy with flexibility for the bond program.  and 6% AV growth assumptions at the next Finance meeting.  ar recommended tax rate. The meeting adjourned at 4:50 p.m. were approved on July 11,2019. hoi  The Special Citizens Advisory Bond Committee Meeting Task Force Minutes for June 27, 2019,  PATRICK COMMITTEE CHAIR CITY OF DENTON, TEXAS  AhwDaak THERESAJ JAWORSKI RECORDING SECRETARY CITY OF DENTON, TEXAS  SMITH  2