Value Delivered:

The Napa County Transportation Planning Agency (NCTPA) called on KNN Public Finance to provide strategic planning and financial advisory services for a proposed ½ cent sales tax for transportation projects. KNN assisted NCTPA in developing a Sales Tax Ordinance, Cash Flow Model and Expenditure Plan that provided sufficient funding for both County wide projects and local agency member projects.
   
Strategic Implementation:

KNN provided NCTPA guidance on optimizing the allocation of sales tax revenues under a broad array of project cost scenarios and financing alternatives. The complexity of the analysis compounded due to the additional consideration of a number of sales tax structures -- i.e. differing terms and varying amounts for the sales tax. The KNN advisors:

• Created cash flow models and performed debt capacity analyses for the Agency and Agency members for a variety of scenarios.
• Identified an appropriate mix of bonds, pay-as-you-go, and State and Federal revenues to meet Agency project needs.
• Developed conservative investment criteria on accumulated sales tax revenues and trustee-held funds.
• Optimized allocation of sales tax revenues among three primary projects and local agency projects. Optimization included consideration of political issues and polling results.
• Evaluated alternative bond structuring including senior/junior liens, short term bridge financing, debt service reserve fund surety bonds, and delayed payment of principal.

Based on KNN's analysis, the Napa County Transportation Planning Agency was able to complete the Measure H Ordinance and Expenditure Plan. With the Ordinance and Expenditure plan complete, NCTPA could move forward with the June 2006 vote on Measure H. Though the Measure did not garner the necessary two-thirds voter approval, the Agency expects to return to the voters in 2008.