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Refunding Feasibility Analysis <br />March 12, 2010 <br />Page 2 <br />Current Municipal Market <br />BBI 25 -bond (Revenue) and <br />6.6% <br />6.4% <br />6.2 %0 <br />6.0% <br />5.8% <br />5.6% <br />5.4% <br />co 5.2 % <br />ce 50% <br />48% <br />4.6% <br />4,4% <br />4.2% <br />4.0% <br />3.8% <br />20 -bond (G.O.) Rates for 5 Years Ending 3/412010 <br />- .BBI 25 Bond <br />BBI 20 Bond <br />3/4'2014 <br />25 bond 4 53% <br />20 bond: 4.34% <br />MIIM TAT" <br />ir <br />\ , .� s� zc1 O� O � \Q`s g \„ O <br />4 ,\ \ 4 rj \b, �„j\© 40hr` <br />Dates <br />Next Steps <br />Before a final decision is made on whether to proceed, we recommend you consider the unique characteristics of this <br />issue and your additional borrowing plans this year. We will be in touch to schedule an opportunity to discuss the <br />following considerations and determine the true viability of the refunding for interest cost savings as well as any other <br />related potential objectives from debt restructuring. <br />Among an issue's particular characteristics, we recommend you consider the following: <br />• Review the current cash balance in the debt service fund and apply any build -up of excess funds to the <br />refunding. This will help to establish a more accurate present value benefit of the refunding. <br />Given new statutory authority this lease revenue issue could be refunded by general obligation capital <br />improvement bonds. This fundamental change in the issue's security enhances the refunding potential. <br />Examine the current revenue stream(s) in order to better match the debt service of the new refunding issue <br />to future revenue expectations. This may result in a refunding structure other than level savings or impact <br />the term of the new refunding obligations. <br />Consider if you are undertaking other tax - exempt financings in the current calendar year to determine if the <br />refunding will affect your bank qualification status for all such issues. Obligations that are bank - qualified <br />generally have slightly lower interest rates. <br />Consider if the refunding can be sold in conjunction with other debt to save costs of issuance. <br />Discuss your desired minimum threshold for savings. <br />Consider the interest rate at which the current debt service reserve fund is invested. <br />We appreciate your consideration of this analysis and the potential for your jurisdiction. <br />Sp n <br />Public Sector Advisors <br />