Details for Report of the Director of the Office of State and Local Finance

Updated

REPORT OF THE DIRECTOR OF THE OFFICE OF STATE AND LOCAL FINANCE REGARDING THE ISSUANCE BY BRISTOL-BLUFF CITY UTILITY DISTRICT OF ITS WATERWORKS REVENUE BOND ANTICIPATION NOTES, SERIES 2019 Pursuant to the requirements of T.C.A.§ 7-82-501, the Director of the Office of State and Local Finance has reviewed the plan of finance (the "Plan") prepared by the Bristol-Bluff City Utility District (the "District") with the assistance of its proposed placement agent, Wiley Bros., for the proposed issuance of an estimated $1,525,000 Waterworks Revenue Bond Anticipation Notes, Series 2019 (the "Series 2019 BANs"). Plan of Finance The District indicated the purpose of issuing the Series 2019 BANs is to finance capital improvements to its waterworks treatment and distribution system prior to the planned issuance $3,000,000 revenue bonds. Balloon Indebtedness The requirements of T.C.A. § 9-21-134 concerning balloon indebtedness does not apply to notes issued that are subject to the approval of the Comptroller of the Treasury. Unaudited Financial Information for the Fiscal Year Ended July 31, 2019 For the fiscal year ended July 31, 2019, the District provided unaudited financial statements which reflect operating income of $281,269, and a positive change in net position of $35,692. The District's fiscal year 2019 debt service payments, according to its debt service schedule and statement of revenues and expenses, were $415,954, consisting of principal payments of $166,899 and interest payments of $249,055. The District reported $1,364,015 in unrestricted net position and $1,756,290 in cash and investments at the end of the fiscal year. Analysis The results of the transaction assume that the District intends to negoti- ate the sale of $1,525,000 Series 2019 BANs priced at a premium of $11,285 as a private placement directly with a bank or other financial institution. Estimated costs of issuance are $32,500 or $21.31 per $1,000 of the $1,525,000 par amount of the Series 2019 BANs. See Table 1 for individual costs of issuance. After the issuance of the Series 2019 BANs, the District projects that its net revenues will range from 1.72 to 1.79 times its maximum annual debt service for fiscal years 2020 through 2022. Table 1 Costs of Issuance Price per Amount $1,000 Bond Bond Counsel (Bass, Berry & Sims) $7,500.00 $4.92 Placement Fee 25,000.00 16.39 Total Costs of Issuance $32,500.00 $21.31 The District has not reported that it has engaged a municipal advisor. Municipal advisors have a fiduciary responsibility to the District. Underwriters have no fiduciary responsibility to the District. They represent the interests of their own firm and are not required to act in the District's best interest without regard to their own or other interests. The District prepared the Plan with the assistance of its proposed placement agent, Wiley Bros. This report of the Office of State and Local Finance does not constitute approval or disapproval by our office for the proposed Plan. This report is effective for a period of ninety (90) days from the date of the report. If the finance transaction has not been completed during the ninety (90) day period, a new plan of finance, with new analysis and estimates based on market conditions at the time, must be submitted to this office. Sandra Thompson Director of State and Local Finance November 22, 2019

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