FY 2019 Annual Report
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BUILDING ReportFY 2019 Annual Georgia’s FUTURE CREDITS: The 2019 Georgia State Financing and Investment Commission Annual Report is published on behalf of the State Property Officer and Director of Financing and Investment, Marty W. Smith and Diana Pope. Compiled and edited by Morgan Smith Williams, Jamiel Jones, Lindsey Sprewell, and Erin Bryant. Digital copies of this publication and prior reports are available at www.gsfic.ga.gov. LAYOUT AND DESIGN: Sherry Britt, Georgia Building Authority PRINTING: Fast Printing TA BLE OF CONTENTS 2 Introduction 3 Mission, Vision, and Core Values 4 Commission Members and Executive Team 6 FY 2019 Organization Highlights 8 Conservative Debt Management 12 Building Georgia’s Future 18 FY 2019 Construction Projects 20 Project Achievements and Awards 23 State ADA Coordinator’s Office 25 TIA Program 26 FY 2019 Earnings 27 Statement of Net Position 1 INTRODUCTION The Georgia State Financing and Investment Commission (GSFIC), created by constitutional amendment in 1972, is responsible for the proper application of proceeds from general obligation debt and the issuance of all public debt by the State. No agency or authority can incur debt or employ other financial or investment advisory counsel without Commission approval. The Financing and Investment Division (F&I Division) is respon sible for the issuance of general obligation bonds, the review of state authority debt financings, and the investment and ac counting of all general obligation bond proceeds. Investment earnings fund GSFIC’s operating budget, and also enable the Commission to retire state debt prior to maturity. The F&I Division prepares the State’s Debt Management Plan and monitors agency expenditures of bond proceeds for compliance with federal tax regulations. The Construction Division provides all of the support services for GSFIC and is responsible for disbursing bond proceeds and for managing capital outlay projects funded, in whole, or in part, with bond proceeds. The Construction Division also provides the following services for state Agencies: • ADA Compliance Assistance • Procurement Services • Construction Services • Design Review Services 2 MISSION, VISION AND CORE VALUES Building Georgia’s future by providing financial and construction management with the highest level of customerMission service, integrity, fairness and efficiency. To be the State’s premier resource for financialVision and construction management services. Excellence • LeadershipCore • ValuesFairness • Stewardship 3 COMMISSION MEMBERS CONSTRUCTION DIVISION Governor Brian Kemp Marty Smith Marvin Woodward Chief Executive Officer, Chairman State Property Officer Deputy Executive Director Director, GSFIC Construction Carmen Cureton Gerald Pilgrim Director, Construction Services Chief of Staff Geoff Duncan John Jefferson Lt. Governor, Vice Chairman April King Director, Design Review Chief Financial Officer Stacey Valrie Peace Alisa Pereira State ADA Coordinator Director, Legal Services David Ralston Jeff Lacks Speaker, House of Representatives Alan Perry Director, Procurement Chief Technology Officer Alex Volodarsky Morgan Smith-Williams Director, Accounting Director, Marketing & Greg Griffin Communications State Auditor, Secretary and Treasurer FINANCING & INVESTMENT DIVISION Chris Carr Diana Pope Attorney General Director, GSFIC Financing & Investment Lee McElhannon Director, Bond Finance Gary Black Kim Site Commissioner, Department of Agriculture Director, Accounting Lynne Riley State Treasurer 4 WELCOME On behalf of Governor Brian P. Kemp, Chairman of the Georgia State Financing and Investment Commission, it is our privilege to present the Commission’s FY 2019 Annual Report. Through the leadership of Governor Kemp, members of the Commission, and the Georgia General Assembly, we have the honor of serving a state that has maintained AAA ratings on its general obligation debt from the three major credit rating agencies every year since 1997. This credit rating- which is the highest rating to be obtained by a state- allows Georgia to fund infrastructure investments that are vitally important for economic growth and competitiveness. At the beginning of FY 2019, we successfully closed the Series 2018A/B gen- eral obligation bonds which provided over $1.3 billion of proceeds for capital projects. In June 2019, GSFIC received competitive bids reflecting very low true interest costs on the Series 2019A/B/C general obligation bonds which will fund over $1 billion for priority capital investments. Looking forward to FY 2020, GSFIC will deliver construction management ser- vices to over 100 new bond projects, including a new Carroll County campus at MARTY SMITH West Georgia Technical College, Convocation Center at Georgia State University, State Property Officer Academic Learning Center at Kennesaw State University, renovating and revi- Director, Construction Division sioning the Metro State Prison as a transitional facility, and major renovations at the Georgia World Congress Center and Savannah Convention Center. Consistent with Governor Kemp’s Strategic Goals for Georgia, which includes DIANA POPE making this State #1 for small business, the Construction Division has prioritized Director, Financing & educating both vendors and agencies. The agency conducted two workshops Investment Division regarding the Construction Management at Risk Delivery Method, geared to firms with little or no experience bidding on those types of projects. Both events attracted more than 100 attendees from the contractor community. We are honored to serve a state that makes fiscally conservative debt manage- ment a priority. Our continued commitment to serving state agencies and state authorities with excellence reflects our charge of “Building Georgia’s Future”. 5 2019 ORGANIZATION HIGHLIGHTS HELPING GEORGIA GROW During FY 2019, Georgia maintained AAA credit ratings on its general obligation debt from the three major credit rating agencies—Moody’s, Standard & Poor’s, and Fitch—as it has every year since 1997. Factors contributing to the coveted high ratings include the State’s conservative debt management, commitment to fully fund the actuarially determined employer contribution for the State’s pension plans, Georgia’s strong economy, growth of the rainy-day fund, and strong fiscal management. The AAA ratings allow the State to sell its bonds at the lowest possible interest rates, which results in the lowest possible debt service payments while investing in vital infrastructure and providing more employment opportunities for Georgia’s construction industry. Construction management is an intricate art of planning, designing, and coordinating. This year, GSFIC’s project managers learned Microsoft Project Management along with methods to aid in the evaluation/analysis of construction project schedules. Completion of this training provides the team with more tools to stay on track or make adjustments if they are behind. Beyond training and managing GSFIC’s construction projects, the team provided their expertise to aid agencies with their internally managed projects. While the Georgia Technology Authority was the lead on the construction of the Georgia Cyber Center in Augusta, GSFIC expedited all of the life safety and constructability reviews/permitting so the project could stay on an accelerated schedule. GSFIC also assisted with the Bobby Jones Foundation’s complete renovation of the Bobby Jones Golf Course, including a new clubhouse and parking deck. 6 5 Number of Projects by Using Agency 22 GSFIC believes 41 TechnicalTechnical College College System System of Georgia of Georgia that successful construction BoardBoard of of Regents Regents projects don’t DepartmentDepartment of of Transportation Transportation just create 32 employment DepartmentDepartment of of Education Education 14 opportunities; SoilSoil and & Water Water ConservationConservation Center Center they help build 12 8 OtherOther Georgia’s future. # of Total Delivery Method Project Contracts Projects Contract Budgets Other - CxA, Special Inspections, FFE, Using Agency Reserves, Allotments, Testing, Design Construction Land Acquisition, Hazardous Materials Construction Manager/ 53 $88,482,297.35 $986,447,068.07 $151,472,266.32 $1,226,401,631.74 General Contractor Design Build 14 $0.00 $75,621,614.81 $8,563,051.49 $84,184,666.30 Design Bid Build 56 $18,485,719.92 $204,975,320.46 $33,654,814.73 $257,115,882.11 Other 2 $139,000.00 $0.00 $913,710.00 $1,052,710.00 Task Order 4 $254,605.00 $3,974,980.58 $2,938,967.32 $6,659,342.90 Grand Total 129 $107,361,622.27 $1,271,018,983.92 $197,542,809.86 $1,575,923,416.05 7 June 2019 Bond Sale Higher Education 37% CONSERVATIVE DEBT K-12 Education 30% MANAGEMENT Transportation and Transit 16% In July 2018, the State issued general obligation bonds which provided funding for approximately Economic Development 9% $1.321 billion for authorized capital projects. The “True Interest Cost,” which considers all the Public Safety, Health, Other 8% associated costs incurred to issue the bonds, as well as the interest which will be paid on the bonds through final maturity, was a very low “Georgia works diligently 3.176%. This reflects a great demand for the bonds. to maintain our coveted AAA bond rating,” said The largest amount of funding provided over $485 million for higher education (the Governor Brian P. Kemp. University System of Georgia and the Technical “I am incredibly proud of College System of Georgia), followed by $396 our state’s efficient use million for K-12 schools, and $212 million