09/25/2006 Council Packet - Laserfiche WebLink

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• • • City of Lino Lakes, Minnesota September 18, 2006 The City has three outstanding bond issues for which a portion of the debt service is payable from the net revenues of the Water Utility. The table below shows the net revenues available for debt service of the City's Water Utility for fiscal year ending 2005 and the projected maximum debt service payable in any future year on the outstanding Bonds and the Series 2006F Bonds. 2005 Net Revenues Water Utility Operating Revenues $1,031,175 Operating Expenses (743,740) Add: Depreciation 338,451 Add: Interest Earnings 36,105 Net Revenues Available for Debt Service $661,991 Less Max Annual DS on Existing Bonds and the Series 2006F Bonds ($527,061) Net Revenues Remaining $134,930 Attached are a set of schedules that summarize the refunding statistics and the projected savings resulting from the sale of the Series 2006F Bonds. These schedules include the following information: • Preliminary Feasibility Summary: indicates the sizing of the Series 2006F Bonds, savings data and bond data — page 14 • Prior Original Debt Service: shows the existing debt service requirements on the Series 1996B Bonds without a refunding — page 15 • Debt Service to Call and to Maturity: shows the Series 1996B Bonds' remaining debt service to maturity and to the call date — page 16 • Debt Service Schedule: shows the new debt service on the Series 2006F Bonds, based on current estimated interest rates — page 17 • Debt Service Comparison: shows the debt service comparison and the projected annual cash flow savings of the Series 2006F Bonds to the Series 1996B Bonds — page 18 The success of a refunding transaction is dependent upon the performance of the interest rate market. We will continue to monitor the market during the period leading up to the day of the bond sale, and will keep you apprised of any change in conditions which may impact the success of these refunding transactions. Springsted Incorporated is pleased again to be of assistance to the City of Lino Lakes. Respectfully submitted, SPRINGSTED Incorporated ss - 6 4 - Page 8