Live - Life - Lincoln - Live Life Lincoln-Live Life Lincoln - Live Life - Lincoln . Live - Life Lincoln.  MINUTES  CITY OF LINCOLN CITY COUNCIL & LINCOLN REDEVELOPMENT SUCCESSOR AGENCY SPECIAL MEETING MINUTES Council Work Session July 24, 2019  3:00PM -6 6:00PM -First Floor Conference Room Mayor Joiner called the meeting to order at 4:00PM.  1.  ROLL CALL Councilmembers present: Holly Andreatta  Dan Karleskint Alyssa Silhi Paul Joiner Jerry Harner, City Treasurer Andrew Sisk Ed Gonzalez Larry Whitaker Linda Laubinger Richard Pearl  Mayor:  Councilmembers absent: Peter Gilbert  FIOC members present:  Roll Call: 10 members present, 1 members absent, 0 members excused.  Staff members present:  Jennifer Hanson, City Manager Kristine Mollenkopf, City Attorney Susan May, Finance Director Ruthann Codina, Budget Manager Sara Roush, Accounting Manager Gwen Scanlon, City Clerk  Ray Leftwich, City Engineer/Acting Public Works Director  Consultants present:  Justin Williams, Mann, Urratia & Nelson/City Auditor Stephanie Beauchaine, Municipal Finance Consultant  Various City employees, consultants and members of the public were also present.  2. FLAG SALUTE led by Mayor Paul Joiner.  3. 4.  PUBLIC COMMENT ON NON-AGENDAITEMS-none.  STAFF REPORT  4.A. Basics of Governmental Financial Reporting.  Justin Williams, Mann, Urrutia, Nelson CPA's, gave a brief staff report and revised powerpoint presentation, made a part oft these minutes by mention thereof. A lengthy discussion ensued regarding: example oft fiduciary funds; charging a franchise fee for water; narrative by Finance Director; fraud -1 types, hotline, prevention and whistleblower policy; Comprehensive Annual Financial Report (CAFR)- -types of findings, requirements and when the City might expect a clean audit.  4.B. Outstanding Bonds 2019.  Stephanie Beauchaine, Municipal Finance Consultant, gave a brief staff report and revised powerpoint presentation, made a part of these minutes by mention thereof. Al lengthy discussion ensued regarding: new duties of FIOC; bond history in binders rather than electronic; only inactive bonds that were reviewed are those that had been refunded; types of bonds - city debt, fiduciary and redevelopment; whether the bonds are callable; who would be responsible for bond payments ini the event of a catastrophe; past refunds and accounting problems that stemmed from them; bond reserves being used for additional improvements or lowering assessment rates; and length of time it took to research and summarize the City's bond history being part of the City's effort to overhaul the Finance  Department.  600 Sixth Street * Lincoln, CA a'smmdiliaainaan 916-434-2400    Live Life . Lincoin . Live Life Lincoln. Live - Life Lincoln Live Life - Lincoln . Live - Life Lipcoln  Page: 2of3 Special City Council/Fiscal Investment & Oversight Committee (FIOC) Meeting Minutes July 24, 2019  4.C. Seek City Council consensus to proceed and bring a request toi transfer un-utilized bond proceeds and other fund balances to reduce or eliminate deficit fund balances in Funds 750 (Airport), Jennifer Hanson, City Manager, and Stephanie Beauchaine, Municipal Finance Consultant, gave a brief staff report stating it was determined the City had bond proceeds on hand that could be utilized to reduce deficits in the Fire, Drainage and Airport Funds. A review of other internal sources of cash was completed and in addition to the bond funds discussed above, Fund 236 Supplemental Annexation Fees was identified as a source of potential funding for the PFE- Fire Fund 242. Fund 275 Storm Water Retention was identified as an appropriate source of funding for the PFE-Drainage Fund 247. Ifthe City Council approves the recommended transfers, the PFE Fire Fund deficit of -$7.4 million would be completely eliminated, the PFE Drainage Fund Deficit of -$1.9 million would be completely eliminated, and the Airport Fund deficit of -$6.9 million would be reduced to -$2.0 million. Mayor Joiner asked if the remaining funds int the Fund 236 Supplemental Annexation could be used on public safety expenses. Ms. Hanson stated the City should not use gap funding on ongoing costs such as salaries and confirmed that the City didn't drawdown any funds from this fund for a period of approximately 5 years which is why there is a remaining balance. Councimember Silhi asked Kristine Mollenkopf, City Attorney, to confirm legality of proposed actions and Ms. Mollenkopf stated the Councilmember Karleskint asked about the nexus between proposed actions. Ms. Hanson stated when the Redevelopment Agency was disbanded in 2014 a determination was made that allowed the remaining proceeds of bonds funded before 2016 to be used for redevelopment activities such as economic development and the Airport is key to economic development in Lincoln therefore there is a Ed Gonzalez, FIOC member, questioned whether Bond Counsel had reviewed these proposals. Ms. Mollenkopf stated Counsel had reviewed and have provided verbal approval. Mr. Gonzalez suggested the City get a written opinion and received consensus from City Council and FIOC members to proceed. Ms. Hanson stated the Capital Improvement Fund 540 would be transferred back for capital improvement projects the City had already completed and Storm Water Retention Fund 275 would be used fori improvements to Lakeview Farm Detention Basin as the initial funds were only used for land acquisition, giving direct nexus for both uses. Councimember Karleskint asked if the bond debt related to Lincoln Airpark Fund 856 would still be considered a lease and al brief discussion ensued regarding Lincoln Airport being inside the boundaries and uses of Lincoln Airpark bond proceeds. Richard Pearl, FIOC member, questioned whether the Buzz Oates buildings were included in the Lincoln Airpark Bond and Mayor Joiner requested a list of all past projects be provided to City Council when proposed action came forward. Councilmember Karleskint also requested all past projects from  247 (PFE-Drainage) and 242 (PFE-Fire).  proposed actions are all legal but did require out-of-the-box thinking.  direct nexus.  the Capital Improvement Fund 540.  Mayor Joiner exited the room at 5:18PM and returned at 5:20PM.  Ab brief discussion ensued regarding the 12 Bridges 1999 and 2001 and which fire stations could be  supported by the bond proceeds.  Jerry Harner, City Treasurer, exited the room at 5:20PM and returned at 5:24PM.  A brief discussion ensued regarding additional improvements in Twelve Bridges such as widening roads or constructing a pocket park without raising tax rates. Ms. Hanson stated if City Council did not  600 Sixth Street I Lincoln, CA 95648 . www.dl.liucoln.ca.u 916-434-2400    Live - Life . Lincoln . Live  Life - Lincoln. Live Life Lincoln Live: Life - Lincoln . Live - Life Lincoln  Page 30 of3 Special City Council/Fiscal Investment & Oversight Committee (FIOC) Meeting Minutes July 24, 2019  choose toi implement any of these transfers then the General Fund could be used but that would require the City to go out to the voters with a tax measure. Abrief discussion ensued regarding whether City Council and FIOC members would like Staff to bring the proposals forward with consensus that they would like to see the proposal with additional data as well as legal opinions. Mayor Joiner opened the discussion to the public at 5:35PM with the following comment: a) Stan Nader, a Lincoln resident, stated he was concerned with the 12 Bridges bond proceeds being used fori fire stations other than the 12 Bridges Fire Station and 12 Bridges residents suing the Mayor Joiner closed the public discussion at 5:37PM with no further comments. A brief discussion ensued regarding FIOC meetings in the next few months and Brown Act restrictions.  City over misuse and also requested a deep dive by Legal Counsel.  5. 6.  COUNCIL INITIATED BUSINESS - none.  ADJOURNMENT - adjourned by Mayor Joiner at 5:42PM.  duencaR  Submitted by Gwen Scanlon, City Clerk  600 Sisth Street * Lincoln, CA 95648 "wwa.d.lincoln.ta.uw 916-434-2400    MUN CPAS  Basics of Governmental  Financial Reporting  City of Lincoln  City Council and Fiscal Investment  Oversight Committee  July 24, 2019  Justin Williams, CPA    OVERVIEW  MUN CPAS  Financial Reporting  Governmental Financial Statements  What reports should Council and Finance  Committee be reviewing What questions to ask Fraud in Government  - Controls to address fraud risk Interpreting Audit Results  MUN CPAS Certified Public Accountants  2    FUND ACCOUNTING  MUN  What is Fund Accounting?  Fund accounting groups financial data together into funds or accounts that  share a similar purpose.  MUN CPAS Certified Public Accountants  3    TYPES OF FUNDS  MUN  Governmental Funds  Proprietary Funds  Fiduciary Funds  MUN CPAS Certified Public Accountants  4    GOVERNMENTAL FUNDS  MUN  Used by the government to account for tax supported activities  Governmental Funds:  General Fund, Special Revenue Funds, Capital Project Funds, Debt Service Funds, and Permanent  Funds  General Fund:  Chief operating fund of a local government. Used to account for all financial resources except those required to be accounted for in a different fund  Special Revenue Funds:  Used to account for revenues raised for a specific purpose. Examples include Gas Tax fund and gran  funds.  MUN CPAS Certified Public Accountants  5    MUN  GOVERNMENTAL FUNDS (Continued)  Capital Projects Funds:  Used to report major capital acquisitions separately from ongoing operating  activities.  Debt Service Funds:  Used to account for the accumulation of resources for payment of long-term debt  and interest.  Permanent Funds:  First Introduced as part of GASB 34  reporting model.  MUN CPAS Certified Public Accountants  6    PROPRIETARY FUNDS  MUN C  Used to account for the type activities (activities supported, at lead in part, by fees or charges)  Proprietary Funds:  Enterprise funds and Internal Service  funds.  Enterprise Funds:  Used to report any activity for which a fee is charged to external users for goods and  services.  Internal Service Funds:  Used to account for the allocation of  services between funds.  MUN CPAS Certified Public Accountants  7    FIDUCIARY FUNDS  MUN CPAS  Used to report assets held in a trustee or agency capacity for others and therefore cannot be used  to support the governments own operations.  Examples:  Pension and employee benefit trust  funds, investment trust funds (pooled with other  entities), agency funds.  MUN CPAS Certified Public Accountants  8    FINANCIAL REPORTING  MUN C  Financial Reporting to City Council  and Finance Committee  MUN CPAS Certified Public Accountants  9    FINANCIAL REPORTING  MUN CPAS  What kind of reports do you receive/deliver?  What do people do with them? How often are they received?  Dor reports provide meaningful information?  Dor reports compare expectations with actual results?  Dot they discuss key variances?  Is there a plan to address problem areas?  ONE WAY  Are there inconsistencies?  Do reports frequently contain surprises?  ANOTHER WAY  MUN CPAS Certified Public Accountants  10    KEY FINANCIAL REPORTS  MUN  Balance Sheet/ Statement of Net Position Income statement / Statement of Activities  Budget-Actual comparison Cash Flow projections Check register  Investment Performance  Narrative provided by Finance Director  MUN CPAS Certified Public Accountants  11    UNDERSTAND THE RIGHT QUESTIONS  MUN CPAS  TO ASK  Financial Reporting:  How do department managers compare budget to  actual operations or other reports?  Do the budget versus actual variances make sense? Are the reports consistent from one reporting period  to another?  Are there often "surprises' on the financial reports?  Specific areas of staff concerns?  Upcoming issues that impact the City financially?  MUN CPAS Certified Public Accountants  12    MUN CPAS  Fraud and Internal  Controls  MUN CPAs Certified Public Accountants  13    THE FRAUD TRIANGLE  MUN CPAS  Ini normal circumstances all three factors  must be present:  The Fraud Triangle  Opportunity - Pressure  Rationalization  a  Pressure  MUN CPAS Certified Public Accountants  14    FRAUD TRIANGLE- OPPORIUNIY  MUNCPAS  Poor controls/lack of segregation of duties  Poor supervision  Too much trust  Poor communication within organization or  Board/City Council  MUN CPAS Certified Public Accountants  15    FRAUD TRIANGLE-  MUN CPA  INCENTIVES / PRESSURES  Financial pressures- Internal or External  Meeting investor/analyst expectations Meeting debt covenant requirements  ( Credit cards and bills  - Sickness or unfortunate circumstances  Vice pressures  Addictions  Drugs, gambling  MUN CPAS Certified Public Accountants  16    FRAUD TRIANGLE  MUN CPAS  INCENTIVES / PRESSURES (CONTINUED)  Work related pressures  Fear of losingjob  Being overlooked for a promotion  Feeling underpaid - Get even with employer  Other pressures  Satisfy greed with high lifestyle Imposed by self, spouse or others  MUN CPAS Certified Public Accountants  17    FRAUD TRIANGLE- RATIONALZATION  MUN CPA  I(or the organization) deserve(s) it.  The organization can turn it around if we can just comply with debt covenants one more time.  It's not hurting anyone.  I'm only borrowing it and I'II pay it back.  Ineed it more than my boss.  The organization can afford it.  It's for a good purpose.  MUN CPAS Certified Public Accountants  18    ACFE REPORT TO THE NATIONS  MUN CPAS  ON OCCUPATIONAL FRAUD & ABUSE  2018 Edition based on 2,690 cases of  occupational fraud as reported by the Certified Fraud Examiners (CFES) who investigated them  3 Primary Categories of Fraud:  Asset misappropriation (89% of cases)  C Corruption (38% of cases)  - Financial statement fraud (10% of cases)  MUN CPAS Certified Public Accountants  19    ACFE REPORT TO THE NATIONS  MUN CPAS  ON OCCUPATIONAL FRAUD & ABUSE (CONTINUED)  Governments were victimized by fraud in 16%  of the cases reported  Median loss for all governments- $125,000  Median loss for local governments $92,000  MUN CPAS Certified Public Accountants  20    ACFE REPORT TO THE NATIONS  MUN  ON OCCUPATIONAL FRAUD & ABUSE (CONTINUED)  How is fraud detected?  040% of all cases detected by a tip  01 15% detected by internal audit  013% detected by management review  07% detected by accident  04% detected by external audit  MUN CPAS Certified Public Accountants  21    ACFE REPORT TO THE NATIONS  MUN CPAS  ON OCCUPATIONAL FRAUD & ABUSE (CONTINUED)  Primary Internal Control Weaknesses Observed  by CFE  oLack of internal controls  oLack of management review  OC Override of existing controls  OP Poor tone at the top  MUN CPAS Certified Public Accountants  22    WHERE TO LOOK - COMMON SCHEMES  MUN  Billing (False / Inflated Invoices)  Payroll (Inflated hours)  Expense Reimbursements  Inventory (Stealing)  Skimming  ( Check Tampering (Stolen / Altered checks)  Fraudulent Disbursements (false entries in  register / undocumented refunds)  MUN CPAS Certified Public Accountants  23    WHICH CONTROLS SHOULD BE IN PLACE? MUN CPAS  What should you doas a board member to make sure your organization has controls in place to  mitigate the risk of fraud?  Timely audit reports  oAudit reports can help identify control deficiencies implementation of surprise internal audits  Whistleblower Policy/Tip Lines  Work with management on fraud risk  assessment  MUN CPAS Certified Public Accountants  24    MUN  AUDITS  MUN CPAS Certified Public Accountants  25    AUDITS  MUN  What is a Financial Statement Audit?  What an Audit IS NOT  Understanding Audit Results  What kind of questions should you ask?  MUN CPAS Certified Public Accountants  AVDIT  26    WHAT IS AN AUDIT?  MUN  An audit requires an assessment of risk by the auditor and  auditee.  Includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements  Assessing the accounting principles used and significant  estimates made by management  Evaluating the overall financial statement presentation..  MUN CPAS Certified Public Accountants  27    TYPES OF AUDIT OPINIONS  MUN CPAS  Unmodified- Clean opinion. Financials are fairly  stated  Qualified- An except for" opinion. Fairly stated  except for a certain area.  Disclaimer- Unable to form an opinion.  Adverse- Financials are not representative of the organizations actual financial position or activity.  MUN CPAS Certified Public Accountants  28    WHAT AN AUDIT IS NOT  MUN CPAS  An audit IS NOT a 100 percent examination or  review of all transactions (payments) made by the  entity or of the actions taken by the Board.  The financial statements and related disclosures  are your responsibility.  The auditor's responsibility is to express an  opinion on the financial statements and footnotes  based their audit...  MUN CPAS Certified Public Accountants  29    WHAT AN AUDIT IS NOT (CONTINUED)  MUN C  An audit IS NOT a 100 percent guarantee that any  fraud or collusion has been identified.  Standards require that the auditors plan and  perform the audit to obtain reasonable assurance as to whether the financial statements are free of  material misstatement..  MUN CPAS Certified Public Accountants  30    REPORT ON INTERNAL CONTROL  MUN  Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an  Audit of Financial Statements Performed in  Accordance with Government Auditing Standards  OA Any compliance findings or significant control deficiencies would be included in this report.  MUN CPAS Certified Public Accountants  31    INTERNAL CONTROL DEFICIENCY  MUN  Material Weakness  Significant Dericiencies  Control Deficiency  MUN CPAS Certified Public Accountants  32    MATERIAL WEAKNESS  MUN  A material weakness is a deficiency, or a  combination of deficiencies, in internal control over financial reporting, such that there is a  reasonable possibility that a material  misstatement of the Company's financial  statements will not be prevented, or detected  and corrected on a timely basis.  Certified MUN Public CPAS Accountants  33    SIGNIFICANT DEFICIENCY  MUN CPAS  Asignificant deficiency is a deficiency, or a  combination of deficiencies, in internal  control over financial reporting that is less  severe than a material weakness, yet  important enough to merit attention by  those charged with governance.  MUN CPAS Certified Public Accountants  34    CONTROL DEFICIENCY  MUN CPAS  A deficiency in internal control over financial  reporting exists when the design or operation  of a control does not allow management or  employees, in the normal course of performing  their assigned functions, to prevent, or detect  and correct misstatements on a timely basis.  MUN CPAS Certified Public Accountants  35    SCHEDULE OF FINDINGS  MUN  Parts required by Government Auditing  Standards:  Criteria, Condition, Cause, Recommendation,  Management's Response, Status  MUN CPAS Certified Public Accountants  36    WHAT KINDS OF QUESTIONS SHOULD MUN C  THE BOARD ASK ABOUT THE AUDIT  Management If the audit was not timely, what were the  reasons?  Staff turnover?  Lack of adequate preparation by staff? Auditors had scheduling issues?  Management- How are we addressing audit findings?  Who, How and When?  Management Was there anything significant discussed with management that has not been communicated to the Council?  MUN CPAS Certified Public Accountants  37    MUN CPAS  AUDITOR QUESTIONS  Were there any problems where the staff was not able to provide documentation or explanations to  the satisfaction of the auditor?  Are there any changes that we could/should make to improve our manager's oversight?  Are there any changes that we could/should make to improve the Council's oversight?  MUN CPAS Certified Public Accountants  38    AUDITOR QUESTIONS (CONTINUED)  MUNCPA  Should management or Council have any  particular concerns about current controls  and operations?  Are there any recommendations for  improvement for controls and operations,  outside of the management letter?  MUN CPAS Certified Public Accountants  39    WRAP UP  MUN CPAS  Financial Reporting  ( Governmental Financial Statements  I What reports should Council and Finance Committee be  reviewing  - What questions to ask  Fraud in Government  C Controls to address fraud risk  Interpreting Audit Results  MUN CPAS Certified Public Accountants  40    City of Lincoln  Outstanding Bonds 2019  CITY COUNCIL & FISCAL INVESTMENT OVERSIGHT COMMITTEE JULY 24, 2019  STEPHANIE N. BEAUCHAINE, MUNICIPAL FINANCE CONSULTANT SB    SB  Project Deliverables  Inthe Spring of 2019 we began reviewing the City's bonds  Goals:  Identify allOutstanding Bonds issued by the City Determine the Purpose ofthe Bond issuance Verify that all Debt Service Obligations are being met  Verify that all Post Issuance Compliance Obligations & Continuing Compliance  reporting are being completed  Determine which Bonds correlate to which ofthe City's Funds  Review all Cash Balances both Internally and Externally with the FiscalAgent Document the Findings and provide an Administration Guide for City Staff  City of Lincoln, Outstanding Bonds 2019    SB  Resources  ( Official Bond Documents- Issued by Bond Council EMMA- Electronic Municipal MarketAccess  CSDA Administrators Fiscal Agent  Continuing Compliance Consultants Post Issuance Compliance Consultants Resolutions Issued by the City  City of Lincoln, Outstanding Bonds 2019    Process Summary  Thoroughly reviewed each ofthe City's Bond Issuance Documents  Catalogued bothActive and Inactive Bonds  Reviewed all Debt Service & Amortization Schedules  Identified all Project Descriptions and the intended purpose ofeach Bond  Reviewed each ofthe Bonds' Terms  Identified both the Continuing Compliance & Post Issuance Compliance  Obligations  CITY OF LINCOLN, OUTSTANDING BONDS 2019    Compliance Findings  AIIDebt Obligations are being met for each active Bond AllContinuing Compliance Obligations are being met All Post Issuance Compliance Obligations are being met  CITY OF LINCOLN, OUTSTANDING BONDS 2019    Active Bonds  Ofthe 25 bond issuances reviewed, 14 remain outstanding The outstanding Debt has been classified into 3 Categories  City Debt- Administered and Funded by the City The City has 1 Lease Revenue Bond- City Debt  Fiduciary Debt- Administered by the City Funded by the District 45 Bond Funded Assessment Districts- Fiduciary Debt 8Bond Funded Community Facility Districts- Fiduciary Debt  Redevelopment Debt- Administered by the City Funded by the Redevelopment Agency  1TaxAllocation Bond- RecevelopmentAgeney (SuccessorA Agency)  CITY OF LINCOLN, DUISTANDING BONDS 2019    SB  Active Bonds- City Debt  Categoryl- City Debt  1. Lease Revenue Refunding Bond, Series 2016A & 2016B $17,760,000 City Hall Project, Public Safety, Corporationlard, Airport Hanger Project  City of Lincoln, Outstanding Bonds 2019    Active Bonds- Fiduciary Debt  Categoryz- Fiduciary Debt  **All Fiduciary debt listed was issued for the purpose offunding district infrastructure**  1. CFD Lincoln Airpark, Series 199853,380,000  2. ADTwelve Bridges, Series 99.4500.9.090 - partiallyrerunded 3. ADTwelve Bridges, Series 2001510,095,000-535,550,0oopartiallyrefunded  4. ADTwelve Bridges, Series 2011ABBS41,B00,000 5. CFD Sorrento, Series 2009 $2,190,000 6. CFD Sorrento, Series 201355,165,000 7. CFD Sorrento, Series 2014A55,680,000 8. CFDSorrento, Series 2016 $8,860,000  CITY OF LINCOLN, OUTSTANDING BONDS 2019    Active Bonds- Fiduciary Debt, Continued  Category2- Fiduciary Debt. Continued 9. CFD Lakeside Area 1, Series 2013 $4,830,000 10. CFD Lakeside Area 2, Series 201756,235,000 11. AD Foskett Ranch, Series 2017 $2,975,000 12. CFD LincolnCrossing, Series 2018 $64,470,000  CITY OF LINCOLN, OUTSTANDING BONDS 2019    SB  Active Bonds- Redevelopment Agency  Category3- Redevelopment Debt  1.Tax A Allocation Refunding Bond, Series 2016A& B$8,250,000  80% Redevelopment 20% Housing Set-Aside  City of Lincoln, Outstanding Bonds 2019    City Administration Guide  Allinformation has been documented ina Bond Administration Guide providedto  City Staffwhich Includes:  1. Master Schedule offallBonds- Fund Number, Type, ParValue, Description, Status,  Delivery Date, and Maturity Date 2. Master Debt Payment Schedule  3. Summary Sheet for each Bond- Authorization and Purpose, Term, Rate, Payment  Dates, Continuing Disclosure Requirements, Post Issuance Compliance Requirements, Contact Information forConsultants and Administrator, Listingorcorresponding  FiscalAgent Account Numbers  CITY OF LINCOLN, OUTSTANDING BONDS 2019    City Administration Guide, Continued  4. Document Checklist  5. Master Documents for each Bond- Official Statement, Maturity Schedule, Debt Schedule, Authorization & Purpose Documentation, Continuing Disclosure Certificate, Developer Continuing Disclosure Documentation, Post Issuance Compliance Checklist, Parties  involved documentation, Other as necessary  CITY OF LINCOLN, DUTSTANDING BONDS 2019    SB  Bond Financial Review  Final Step- Financial Review ofeach Bond  Review all Internal Cash  Review all Fiduciary Cash Balances Question- "What are we looking for?" Isthere a sufficient debt service reserve? 6-12 Months Debt Service on Hand Are there proceeds on hand for acquisition?  Funds in excess of Reserve for additional mprovements  City of Lincoln, Outstanding Bonds 2019    Bond Financial Review  AIIE Bonds appeared to have sufficient reserves for debt service  5lssuances were determined to have proceeds on hand foraddition I capital  improvements  TaxA Allocation Revenue Bond, Series 2004A- Redevelopment LincolnAirpark Special Tax Bond, Series 1998- Fiduciary  Twelve Bridges Limited Obl Rev Bonds, Series 2001/1999 Fiduciary  Sorrento Special - Tax Bonds, Series 2016- Fiduciary  Lincoln Crossing Special Tax Refunding, Series 2016/2007- Fiduciary  CITY OF LINCOLN, OUTSTANDING BONDS 2019    SB  Bond Financial Review  Question: Why do we have extra money for improvements/"  Bond Refunding   Refundings result in savings, just like refinancing a loan for a better interestrate Variations in Capital Improvement Budget VS. Actual Cost resulting in fluctuations from initial projections Question: "What do we do with it?"  Sometimes when a project is completed, it costs MORE OrLESS than what was anticipated,  Constructadditional Improvements in the Benefit District  Supplement Citywide Project Budgets that provide a Benefitt to the District  Reduce the Tax Levy  Questions: "Doesthis happen in other City's?"  Yes! It's a common and expected when ssuing/refunding Bonds!  City of Lincoln, Outstanding Bonds 2019    Bond Financial Review  Question: "What's going to bedone Witr - ds  The information has been shared with City Staff who will make recommendations  to the Council on how to utilize those funds  CITY OF LINCOLN, OUTSTANDING BONDS 2019    Questions??  City of Lincoln, Outstanding Bonds 2019