General fund operating results for fiscal 2017 were flat with the benefit of bond refunding savings and premiums prior to the consolidation of a fiscal 2017 internal service fund operating deficit of $5.5 million related to medical self-insurance fund costs.
The city generated approximately $31 million in bond refunding savings and premiums.
The bond refunding savings of $31 million helped offset the aggressive approximately $19 million in revenue initiatives that did not fully transpire as well as support over spending compared to budget.
The current bond refunding and new money issuances are projected to provide excess premium and upfront refunding savings of $33 million, approximately 6% of budget, in fiscal 2019.
Cost containment measures and one-time savings from bond refundings have not been sufficient to avoid a declining financial position, with projections for fiscal 2018 reflecting an operating deficit, further increasing the general fund's deficit position.
Results included $7 million in one-time revenue from bond premiums, better than anticipated property tax receipts, and $9 million in debt service savings as a result of a bond refunding negating the need to fully use the budgeted $10 million surplus.
The city has recently built up reserves to sound levels, although such growth can be attributed to non-recurring savings derived from bond refundings and bond premiums and a lack of fully funding ADCs of the city-administered pension plans.
Exhibit 2: DeKalb County's Bond Ratings General Obligation Existing 2013 Issue Moody's Investors Service Aa3/Neg Aa3/Stable Fitch Ratings AA-/Stable Water and Sewer Existing 2013 Issue Standards & Poor's AA-/A+ AA-/A+ Moody's Investors Service Aa3/Stable Aa3/Stable Fitch Ratings AA-/Stable Exhibit 3: Final Results of DeKalb County's Bond Refunding
Issuing Entity Refunding Par Realized NPV Savings DeKalb County $52,445 million $5,214,246 General Obligation 9.94% ACCG $15.730 million $1,627,804 10.34% Building Authority $8,795 million $793,621 9.02% Fulton-DeKalb $41.380 million $4,393,299 Hospital Authority 10.61% DeKalb County $134,375 million $13,346,268 Water and Sewer 9.93% $252,725 million $25,375,238 10.04%
Appoint budget committee members; approve 2010-11 board goals; enrollment report; approve budget calendar; pension bond refunding
presentation; discuss rate increases for Public Employees Retirement System; report on West Lane Tech.
POBs are sometimes mistakenly compared to a bond refunding. POBs are issued at an interest cost below the rate of return assumed by the actuaries in calculating the unfunded liability of the pension system.
For a brief comment on "savings" in a POB transaction, I will return to the bond refunding analogy.
Manage the bond refunding
process and negotiate key business points to accomplish the City s objectives.