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Debt Issuance Servicm <br />[__f..�..— ---- – ..........-- -- — - -----–--- <br />--------- <br />Bank Qualification: Because the City is issuing less than $10,000,000 in the calendar year, the <br />City will be able to designate the I3onds as "bank qualified" obligations. <br />Bank qualified status broadens the market for the Bonds, which can result <br />in lower interest rates. <br />Term/Call Feature: The 2011B Bonds are being issued for a 9 -year period. Interest is <br />payable each six months. Principal on the 2011B Bonds will be due on <br />February 1 in the years 2013 through 2021 (2004A will be paid off in <br />2020). The Bonds maturing February 1, 2020, and thereafter will be <br />subject to prepayment at the discretion of the City on February 1, 2019. <br />Other Based on current coupon rates, the estimated cash flow savings as a result <br />Considerations: of this current refunding of the Bonds is approximately $194,311 which is <br />a $178,795 (7.476%) Net Present Value after all fees and expenses. <br />2004A GO Improvement Bonds - $92,557 or 8.058% Net Present Value <br />after all fees and expenses (annual savings of approximately $12,500). <br />2005A GO Improvement Bonds - $86,237 or 6.938% Net Present Value <br />after all fees and expenses (annual savings of approximately $10,500). <br />The projected interest rates are based on current market rates. Rates higher or <br />lower on the day of the sale will change the actual savings. GFOA <br />recommends issuers have at least a 3% Net Present Value Savings, <br />Presale Report November 8, 2011 <br />Page 3 <br />