Debt Management

Debt Management

Page Intentionally Left Blank

Debt Management

Department Description

The Debt Management Department conducts planning, structuring, and issuance activities for all City financings to fund cash flow needs and to provide funds for capital projects, essential equipment, and vehicles.

Bond financings are conducted for capital projects secured by the General Fund and the enterprise funds, as well as projects supported by dedicated revenue sources such as the San Diego Redevelopment Successor Agency and special districts. In addition to bond financings, various State and Federal Loans are evaluated and executed to fund infrastructure projects. The Department also administers certain short-and medium-term financing mechanisms, including capital leases and a commercial paper program.

The Department coordinates and monitors various post-issuance administrative functions related to bond financings, the commercial paper program, loans, and capital leases. The Department regularly reviews outstanding obligations for refunding opportunities and timely refinances to lower interest costs. The Department manages credit and investor outreach functions, providing information to current bondholders, prospective investors, and rating agencies that monitor the City's credit profile.

The Department coordinates the Community Facilities District and 1913/1915 Act Assessment District formation procedures and related conduit bond issuances to fund public infrastructure in addition to the enrollment process for assessments and special taxes with assistance from consultants to maintain databases and administer special tax formulas.

The Department's mission is: To effectively plan, implement, and manage City debt obligations

The Department's vision is: Strong debt management to achieve citywide financing priorities

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City of San Diego Fiscal Year 2019 Adopted Budget

Debt Management

Goals and Objectives

Goal 1: Safeguard public assets through strong financial management x Maintain strong internal controls x Establish fiscally sound financial policies x Produce transparent financial reporting x Maintain secure data environments x Prepare fiscally sound balanced budgets and capital plans

Goal 2: Optimize financial resources through long-term fiscal planning x Identify and implement continuous business process improvements x Seek strategic opportunities to reduce costs and enhance revenues x Provide sound long-term financial and infrastructure plans

Goal 3: Excellent customer service x Own the problem until it is resolved x Reach out to customers and collaborate to meet their goals x Provide accurate and timely financial information

Goal 4: Strengthen the City's financial knowledge, skills, and abilities x Maximize use of the City's financial data x Provide robust training programs for Finance Branch staff x Establish training programs for citywide staff x Build bench strength in key financial competencies

Key Performance Indicators

Performance Indicator

Bond payments made to bond trustees on time

Percentage of disclosures for outstanding bonds filed in a timely manner consistent with continuing disclosure agreements

City public bond offerings comparably priced to similar credits

Percentage of bond-related investments that are actively evaluated and re-invested as they come to term

Percentage of eligible outstanding debt monitored annually to evaluate potential refunding opportunities

FY2017 Target 100% 100%

100%

100%

100%

FY2017 Actual 100% 100%

100%

100%

100%

FY2018 Target 100% 100%

100%

100%

100%

FY2018 Actual 100% 100%

100%

100%

100%

FY2019 Target 100% 100%

100%

100%

100%

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City of San Diego Fiscal Year 2019 Adopted Budget

Department Summary

FTE Positions (Budgeted) Personnel Expenditures Non-Personnel Expenditures Total Department Expenditures Total Department Revenue

FY2017 Actual

21.00 $ 2,455,395 $

275,101

$ 2,730,496 $

$ 1,050,430 $

Debt Management

FY2018 Budget

21.00 2,785,133 $

376,506

3,161,639 $

736,019 $

FY2019 Adopted

FY2018-2019 Change

20.00

(1.00)

2,846,806 $

61,673

257,113

(119,393)

3,103,919 $

(57,720)

1,041,456 $

305,437

General Fund

Department Expenditures

Debt Management Total

FY2017 Actual $ 2,730,496 $

$ 2,730,496 $

Department Personnel

Debt Management Total

FY2017 Budget

21.00

21.00

Significant Budget Adjustments

Salary and Benefit Adjustments Adjustments to reflect savings resulting from vacant positions for any period of the fiscal year, retirement contributions, retiree health contributions, and labor negotiations. Otay Mesa Enhanced Infrastructure Financing District Addition of one-time non-personnel expenditures and supporting revenue for the Otay Mesa Enhanced Infrastructure Financing District (EIFD) formation. Debt Issuance Reporting Fees Addition of non-personnel expenditures associated with reporting fees for new debt issuance.

FY2018 Budget 3,161,639 $

3,161,639 $

FY2019 Adopted

3,103,919 $

FY2018-2019 Change

(57,720)

3,103,919 $

(57,720)

FY2018 Budget

21.00

21.00

FY2019 Adopted

20.00

20.00

FY2018-2019 Change (1.00)

(1.00)

FTE 0.00 $

Expenditures 164,983 $

Revenue -

0.00

20,250

129,811

0.00

15,000

-

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City of San Diego Fiscal Year 2019 Adopted Budget

Significant Budget Adjustments

Support for Information Technology Adjustment to expenditure allocations according to a zerobased annual review of information technology funding requirements.

Non-Discretionary Adjustment Adjustment to expenditure allocations that are determined outside of the department's direct control. These allocations are generally based on prior year expenditure trends and examples of these include utilities, insurance, and rent.

Reduction of Program Coordinator Reduction of 1.00 Program Coordinator providing support for debt issuance and post-issuance administration.

One-Time Reductions and Annualizations Adjustment to reflect one-time revenues and expenditures, and the annualization of revenues and expenditures, implemented in Fiscal Year 2018.

Financing Services Revenue Addition of one-time revenue associated with reimbursable expenditures for debt management services provided to the Public Utilities Department.

Total

Expenditures by Category

PERSONNEL Personnel Cost Fringe Benefits

PERSONNEL SUBTOTAL NON-PERSONNEL

Supplies Contracts Information Technology Energy and Utilities Other Capital Expenditures NON-PERSONNEL SUBTOTAL Total

FY2017 Actual

$ 1,534,833 $ 920,563

2,455,395

$

18,965 $

190,778

43,259

17,720

4,357

23

275,101

$ 2,730,496 $

Debt Management

FTE

Expenditures

0.00

(4,354)

0.00

(5,289)

Revenue -

-

(1.00) 0.00 0.00

(103,310) (145,000)

-

175,626

(1.00) $

(57,720) $

305,437

FY2018 Budget

1,662,727 $ 1,122,406 2,785,133

19,310 $ 270,822

61,226 19,099

5,049 1,000 376,506 3,161,639 $

FY2019 Adopted

FY2018-2019 Change

1,706,835 $ 1,139,971 2,846,806

44,108 17,565 61,673

19,400 $ 154,356

56,872 20,436

5,049 1,000 257,113

3,103,919 $

90 (116,466)

(4,354) 1,337 -

(119,393)

(57,720)

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City of San Diego Fiscal Year 2019 Adopted Budget

Debt Management

Revenues by Category

Charges for Services Other Revenue Total

FY2017 Actual $ 1,050,404 $

26

$ 1,050,430 $

FY2018 Budget 736,019 $

-

736,019 $

FY2019 Adopted

1,041,456 $

-

FY2018-2019 Change

305,437

-

1,041,456 $

305,437

Personnel Expenditures

Job

Job Title / Wages

Number

FTE, Salaries, and Wages

20000149 Associate Economist

20000119 Associate Management Analyst

20000539 Clerical Assistant 2

20001101 Department Director

20001234 Program Coordinator

20001222 Program Manager

20000015 Senior Management Analyst

20000756 Word Processing Operator

Overtime Budgeted

FTE, Salaries, and Wages Subtotal

FY2017 Budget

FY2018 FY2019 Budget Adopted

Salary Range

Total

2.00 3.00

1.00 1.00 7.00 3.00 3.00 1.00

21.00

2.00 3.00

1.00 1.00 7.00 3.00 3.00 1.00

21.00

2.00 $ 55,843 - 67,489 $ 3.00 55,843 - 67,489

121,415 158,461

1.00 1.00 6.00 3.00 3.00 1.00

20.00

30,919 - 37,257 61,107 - 231,494 23,764 - 142,455 48,516 - 178,445 61,322 - 74,128 32,530 - 39,170

35,953 177,676 599,140 361,558 215,293

36,570 769

$ 1,706,835

Fringe Benefits Employee Offset Savings Flexible Benefits Insurance Long-Term Disability Medicare Other Post-Employment Benefits Retiree Medical Trust Retirement 401 Plan Retirement ADC Retirement DROP Risk Management Administration Supplemental Pension Savings Plan

FY2017 Actual

$

19,436 $

210,165

1,201

4,120

23,009

110,290

1,999

2,178

420,328

2,429

19,217

92,376

FY2018 Budget

19,529 $ 257,734

24,134 120,020 1,895 2,282 559,609 2,189 20,220 94,587

FY2019 Adopted

FY2018-2019 Change

20,122 $ 256,261

24,763 122,480 2,265 2,464 554,872 2,261 21,060 109,094

593 (1,473)

629 2,460 370 182 (4,737) 72 840 14,507

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City of San Diego Fiscal Year 2019 Adopted Budget

Unemployment Insurance Workers' Compensation Fringe Benefits Subtotal Total Personnel Expenditures

Debt Management

FY2017 Actual

2,795 11,019

$ 920,563 $

FY2018 Budget

2,975 17,232

1,122,406 $

$

FY2019 Adopted

2,864

21,465

FY2018-2019 Change

(111)

4,233

1,139,971 $

17,565

2,846,806

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City of San Diego Fiscal Year 2019 Adopted Budget

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