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APPENDIX A - Page 1 of 2 APPENDIX A Anaheim Resort Improvements Anaheim Public Financing Authority (APFA) 1997 Lease Revenue Bonds and 2007 Refunding Lease Revenue Bonds Description In February 1997, the APFA sold $510,427,465.45 of lease revenue bonds to construct public improvements in The Anaheim Resort. In June 2007, the APFA sold $256,320,000 of lease revenue bonds to defease $248,335,000 of the 1997 lease revenue bonds. The bonds are special obligations of the APFA payable solely from lease payments to be made by the City to the APFA for the use and occupancy of the leased premises. Debt service requirements to maturity for these lease revenue bonds are paid from lease payment measurement revenues (LPMR) defined as amounts equal to: 1) 3% of the 15% transient occupancy taxes (TOT) (i.e. 20% of the total transient occupancy taxes) for all hotel properties in the City, excluding Disney properties; 2) 100% of the incremental TOT revenues from all Disney properties over the 1995 base, adjusted each year by the CPI change, with a minimum 2% increase annually; 3) 100% of the incremental sales tax revenues from all Disney properties over the 1995 base, adjusted each year by the CPI change, with a minimum 2% increase annually; and 4) 100% of the incremental property tax revenues from all Disney properties over the 1995 base, adjusted annually by The City is not required to pay any additional sums should the LPMR fall short of the amount required to pay debt service on the bonds. The Walt Disney Company provided a guarantee as to certain bonds to the bond insurer to enable the issuer to obtain municipal bond insurance. LPMR Compared to Debt Service LPMR began on January 1, 2001, with the first payment made to the trustee on July 7, 2001, for the LPMR generated during the period January through June 2001. Subsequent to that date, LPMR is collected and remitted to the trustee LPMR collections remitted to the trustee have generally exceeded annual debt service payments. The following is a summary of LPMR collections compared to debt service payments, followed by a comparison to the estimated LPMR collections from the latest market and feasibility study performed in 2007: Fiscal Year Ending June 30, Debt Service Actual/ Budgeted LPMR Excess of LPMR Over Debt Service Estimated LPMR* LPMR Over/ (Under) Estimated LPMR 2007 32,269,415 $ 33,369,816 $ 1,100,401 $ 32,623,757 $ 746,059 $ 2008 22,436,315 35,717,408 13,281,093 33,965,584 1,751,824 2009 26,434,436 32,073,703 5,639,267 35,707,823 (3,634,120) 2010 27,101,286 27,536,019 434,733 37,685,568 (10,149,549) 2011 28,082,962 28,534,355 451,393 39,146,263 (10,611,908) 2012 31,631,052 33,539,622 1,908,570 40,422,054 (6,882,432) 2013 32,533,377 40,534,107 8,000,730 41,608,456 (1,074,349) 2014 33,456,797 45,028,218 11,571,421 42,825,801 2,202,417 2015 34,403,632 45,490,713 11,087,081 44,079,049 1,411,664 2016 35,380,503 48,889,005 13,508,502 45,369,262 3,519,743 2017 36,378,580 51,050,879 14,672,299 46,697,539 4,353,340 2018 37,999,268 53,458,885 15,459,617 48,065,009 5,393,876 2019 39,115,941 55,470,072 16,354,131 49,472,833 5,997,239 **Preliminary projections as of July 11, 2014. ***Based on FY 2014/15 Adopted Budget. *Estimated LPMR based on PKF Consulting Study of Potential Future Transient Occupancy Tax (TOT) Collections to be received by the City of Anaheim, dated May 8, 2007. ---PAGE BREAK--- APPENDIX A - Page 2 of 2 LPMR in excess of debt service is held with the trustee for future debt service. City staff estimates that after the principal and interest payment due on September 1, 2014, cash remaining with the trustee for future debt service will be approximately $47.2 million, which is 1.3 times more than the $36.0 million debt service requirement in the following year. Future Debt Service Requirements Debt service requirements and estimated LPMR to maturity for the 1997 Anaheim Lease Revenue Bonds, and the 2007 Anaheim Lease Revenue Refunding Bonds to be paid by the Anaheim Resort Improvements Debt Service Fund from future LPMR are as follows: Fiscal Year Ending June 30, Principal Interest Total Debt Service Estimated LPMR* LPMR to Debt Service Ratio 2015 18,510,000 $ 15,893,632 $ 34,403,632 $ 44,079,049 $ 128% 2016 20,630,000 14,750,503 35,380,503 45,369,262 128% 2017 22,900,000 13,478,580 36,378,580 46,697,539 128% 2018 11,666,943 26,332,325 37,999,268 48,065,009 126% 2019 12,030,403 27,085,538 39,115,941 49,472,833 126% 2020 12,616,374 27,780,952 40,397,326 50,922,212 126% 2021 13,279,130 28,463,508 41,742,638 52,414,373 126% 2022 13,782,396 29,197,307 42,979,703 53,950,590 126% 2023 14,378,110 29,854,212 44,232,322 55,532,169 126% 2024 14,970,958 30,552,464 45,523,422 57,160,457 126% 2025 15,623,822 31,226,393 46,850,215 58,836,840 126% 2026 16,159,744 32,018,534 48,178,278 60,562,746 126% 2027 16,629,649 32,966,847 49,596,496 62,339,644 126% 2028 17,249,188 33,888,822 51,138,010 64,169,049 125% 2029 17,951,935 34,686,263 52,638,198 66,052,523 125% 2030 18,658,498 35,516,558 54,175,056 67,991,667 126% 2031 19,140,461 36,332,902 55,473,363 69,988,138 126% 2032 19,952,586 37,158,739 57,111,325 72,043,637 126% 2033 20,762,095 38,028,373 58,790,468 74,159,918 126% 2034 21,659,712 38,864,063 60,523,775 76,338,787 126% 2035 22,605,079 39,700,403 62,305,482 78,582,103 126% 2036 23,577,405 40,557,789 64,135,194 80,891,783 126% 2037 48,467,979 57,131,834 105,599,813 83,269,797 79% Total 433,202,467 $ 731,466,541 $ 1,164,669,008 $ 1,418,890,125 $ *Estimated LPMR based on PKF Consulting Study of Potential Future Transient Occupancy Tax (TOT) Collections to be received by the City of Anaheim, dated May 8, 2007.