09-26-2016 Council Packet - Laserfiche WebLink

Home Search

Page 7 STRUCTURING SUMMARY: In consultation with the City, the 2016C Bonds have been structured with a term matching that of the 2006C Bonds to achieve approximately level annual savings. Based on current interest rate estimates, the refunding transaction is projected to result in savings averaging approximately $22,779 per year. This results in future value savings of approximately $139,673 with a net present value benefit to the City of $133,833. These estimates are net of the costs associated with the refunding. SCHEDULES ATTACHED: Schedules attached for the 2016C Bonds include a refunding summary, debt service schedule given the current interest rate environment, debt service comparison and debt service to call and to maturity. RISKS/SPECIAL CONSIDERATIONS: The outcome of this financing will rely on the market conditions at the time of the sale. Any projections included herein are estimates based on current market conditions. For a qualified 501(c)(3) issue, there is a 2% limit on the amount of bond proceeds that can be used to pay costs of issuance, including underwriter’s discount. SALE TERMS AND MARKETING: Variability of Issue Size: A specific provision in the sale terms permits modifications to the issue size and/or maturity structure to customize the issue once the price and interest rates are set on the day of sale. Prepayment Provisions: Optional Redemption: Based on the short duration of the 2016C Bonds, and to avoid possible negative pricing impacts, the 2016C Bonds will not be subject to optional redemption prior to their stated maturities. Extraordinary Redemption: The 2016C Bonds will be subject to extraordinary redemption. Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt obligations that count against the $10 million limit for this calendar year; therefore, the 2016C Bonds are designated as bank qualified.