FC042121SPECIAL FINANCE COMMITTEE MEETING
April 21, 2021
Elected Officials Participating Virtually Staff Participating Virtually
Councilmember Vivian Olson Dave Turley, Finance Director
Councilmember Diane Buckshnis (joined at 3:45 p.m.) Scott Passey, City Clerk
1. CALL TO ORDER
The Edmonds City Council virtual online Special Finance Committee meeting was called to order at
3:34 p.m. by Councilmember Olson.
2. COMMITTEE BUSINESS
1. PFD Financial Discussion
The following PFD representatives were present:
• Joe Mclalwain, Executive Director
• Matt Keller, Director of Operations
• David Brewster, PFD Board President
• Rick Canning, ECA Board Member
• Rob Shelley, EPFD Financial Advisor, Piper Sandler
Mr. Mclalwain provided background on the formation of the PFD an overview of the EPFD Capital
debt:
2002/2012 Bond Issue
• Issued by City of Edmonds 11/19/2002
• Refunded by City of Edmonds10/18/12
• Guaranteed by projected PFD sales tax
• Amount of original bond issue: 7,015,000 ($1,015,000 paid by City and $6,000,000 paid by
EPFD)
• Interest rate: 3%-4.9%
• Amount refunded in 2012: $4,95,000 ($4,965,000 paid by EPFD)
• Interest rate: 1.69%
• Final payment eue 12/1/2026
• Callable December 2022
2008 Bond Issue/2018 Bank Loan
• Issued by EPFD
• Guaranteed by project PFD sales tax revenue
• Amount of original bond issue: $4M ($4M paid by EPFD)
• Interest rate: 425%-4.5%
• Amount refunded in 2018 ( bank loan): $2,803,516 ($2,803,516 paid by EPFD)
• Interest rate: 3%
• Final payment due: 12/1/2028
Total Capital debt outstandin
Remaining Principal I Remaining Interest Remaining Total
04/21/21 Finance Committee Minutes, Page 2
2012 Refunded bonds
$2,585,000
$173,298
$2,758,298
2018 Refunded Bonds FFBW
$2,523,164
$384,082
$2,907,246
Total Bond Debt Outstanding
$5,108,164
$557,380
$5,665,544
Due to City of Edmonds Loan
1,215,552
Total Outstanding Capital Debt
$6,881,096
Mr. Mclalwain reviewed considerations related to timing, structure, term, amount/use.
Mr. Shelley reviewed:
• Financing overview
o Graph of outstanding debt (city loan payments, 2018 bank loan and 2012 city LTGO
Bonds)
o Goals for refinancing
■ Secure the district's sales and use tax revenue stream through 2041,per RCW
82.14.390
■ Achieve cash flow savings in years 22021-2028
o Market Conditions
■ Graph of historical tax-exempt interest rates 10-year AAA MMD
■ Graph of range of tax-exempt interest rates (MMD) April 2011-present (average and
current)
Refinancing Options (annual debt service payments - currently and if refunded)
o Scenario 1 — refunding in fall 2021 — potential components include the following:
■ Taxable refunding of 2012 City LTGO Bonds
■ Tax-exempt refunding of 2018 bank loan
■ Taxable refunding of City loan
o Scenario 2 — refunding in fall 2022 — potential components include the following:
■ Tax-exempt refunding of 2012 City LTGO Bonds
■ Tax-exempt refunding of 2018 bank loan
■ Taxable refunding of City loan
Questions and discussion followed regarding extension of the PFD legislation to 2041 that requires a
portion of original debt be outstanding until 2041, whether that law could be changed, reasons for
considering refinancing, whether there was any benefit to consolidating and refinancing all debt, Mr.
Shelley's history with the EPFD, involving the City's bond counsel, Tier 1 and 2 sales tax revenue
streams, whether interest rates will change, tax-exempt versus taxable refunding, assumption a
principal payment would not be required in 2021, total amount if all three are refunded, whether
refunding the 2012 bonds would require the City to refinance as well, life of the asset, whether the
City would be interested in issuing bonds that mature in 2041, benefits of repaying the loan to the
City, estimated sales tax collections vs. debt service payments, adding sales tax collections to the
graphs in the scenarios, variability of Tier 2 sales tax revenue, funds received from SnoCo LTAC
2021-2025, market for this size an issue, and benefits of the City issuing the bonds on behalf of the
PFD.
Mr. Mclalwain relayed the PFD Board has not yet considered refunding or the options; that is the first
step.
Action: Information only.
3. ADJOURN
The meeting was adjourned at 4:51 p.m.