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04/05/2010 Council Packet
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04/05/2010 Council Packet
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City Council
Council Document Type
Council Packet
Meeting Date
04/05/2010
Council Meeting Type
Work Session Regular
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pr rd <br />Refunding Feasibility Analysis <br />For <br />Lino Lakes, Minnesota <br />From: Terri Heaton <br />Dated: March 12, 2010 <br />Introduction <br />As part of Springsted's ongoing services, we routinely identify opportunities and subsequent updates for public <br />entities to refund outstanding bonds for interest cost savings. While other reasons exist to refund outstanding issues, <br />our initial focus is on interest cost savings. We recently reviewed the following debt issues on your behalf and have <br />summarized each issue's potential for interest cost savings in the current market. For those debt issues that offer the <br />best opportunity for interest cost savings, we have provided more detailed financial summaries. We look forward to <br />discussing this information with you, and possibly refining our analysis to ensure that any refunding is structured in <br />your best long -term interest. <br />Summary of Outstanding Issues Reviewed <br />(Shaded Issues Indicate Potential Refunding Candidates) <br />Summary Information on Potential Candidate Issues <br />The table above indicates one issue with potential savings that merits further review. For this candidate, we have <br />prepared a profile of significant financial statistics and estimates from the refunding feasibility analysis. This <br />information should be viewed as preliminary and as a general indicator of the individual issue's refunding feasibility. <br />We recommend additional discussion take place as to the decision to proceed with the refunding. In the concluding <br />section to this analysis, "Next Steps ", we have listed several topics which would facilitate the decision on the <br />appropriateness of moving ahead at this time. <br />Original Issue Size <br />$1,330,000 <br />Type <br />GO Imp & Util Rev <br />Refunded Issue <br />2004A <br />Refunding Issue <br />2010 <br />Type of Refunding <br />Current <br />Refunded Issue Call Date and Terms <br />7/01/2010 @100.000% <br />Net Future Value of Savings <br />$50,077.70 <br />Net Present Value of Savings <br />$45,408.11 <br />Net PV Savings to PV of Refunded Debt <br />Service <br />4.294% <br />Average Rate on Refunded Bonds <br />3.971% <br />Average Rate on Refunding Bonds <br />2.291% <br />More detailed financial summaries are attached for each issue. <br />Public Sector Advisors <br />fended <br />Debt cServlce <br />Summary Information on Potential Candidate Issues <br />The table above indicates one issue with potential savings that merits further review. For this candidate, we have <br />prepared a profile of significant financial statistics and estimates from the refunding feasibility analysis. This <br />information should be viewed as preliminary and as a general indicator of the individual issue's refunding feasibility. <br />We recommend additional discussion take place as to the decision to proceed with the refunding. In the concluding <br />section to this analysis, "Next Steps ", we have listed several topics which would facilitate the decision on the <br />appropriateness of moving ahead at this time. <br />Original Issue Size <br />$1,330,000 <br />Type <br />GO Imp & Util Rev <br />Refunded Issue <br />2004A <br />Refunding Issue <br />2010 <br />Type of Refunding <br />Current <br />Refunded Issue Call Date and Terms <br />7/01/2010 @100.000% <br />Net Future Value of Savings <br />$50,077.70 <br />Net Present Value of Savings <br />$45,408.11 <br />Net PV Savings to PV of Refunded Debt <br />Service <br />4.294% <br />Average Rate on Refunded Bonds <br />3.971% <br />Average Rate on Refunding Bonds <br />2.291% <br />More detailed financial summaries are attached for each issue. <br />Public Sector Advisors <br />
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