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SECURITY ANDThe 2020B Bonds are a general obligation of the City, secured by its full faith and credit <br />and taxing power. <br />SOURCE OF <br />PAYMENT: <br />On February 1, 2021the City will (1) make their originally scheduled debt service <br />payments of $674,700on the 2010A Bonds and $380,087.50on the 2012A Bonds with <br />taxes previously levied and collected for these payments and (ii) redeem the <br />outstanding principal of the 2010A Bonds in the amount of $1,375,000and the <br />outstanding principal of the 2012A Bonds in the amount of $4,595,000. The City will <br />begin making payments on the 2020B Bonds on August 1, 2021, realizing interest cost <br />savings. <br />The City willmake their first levy for the 2020B Bonds in 2020 for collection in 2021. <br />Each year’s tax levy collections will be used to make the interest payment due on <br />August1 of the collection year and the February1, principal and interest payment due <br />in the following year. <br />STRUCTURINGIn consultation with Citystaff, the 2020B Bonds have been structured to provide for <br />SUMMARY:approximately equal annual savings over the same as each of the Prior CIPBonds. <br />The refunding of the Prior CIP Bonds is being conducted as a current refunding, where <br />bond proceeds are used within ninety (90) days of settlement to redeem the outstanding <br />callable maturities of the Prior CIP Bonds. <br />Projected savings resulting from this refunding transaction is detailed in the table below. <br />These estimates are net of all costs associated with the refunding. Actual results will be <br />determined by market conditions at the time of the sale. <br />2010A Bonds2012A Bonds <br />Estimated Net Future Value <br />Savings$45,426 $275,283 <br />Estimated Net Present Value <br />Savings$44,795 $255,869 <br />Estimated NPV Benefit/ <br />Refunded D/S %3.188%5.263% <br />Schedules attached for the 2020B Bonds can be found in Appendix B and include: <br />SCHEDULES <br />ATTACHED: <br />Refunding summary <br />Debt servicecomparisonas a whole and by each of the Prior CIP Bonds, <br />given current market conditions <br />Debt Service to Maturity and to Callfor the Prior CIP Bonds <br />Estimated debt service, given current market conditions <br />SALE TERMS ANDVariability of Issue Size:A specific provision in the sale terms permits modifications to <br />the issue size and/or maturity structure to customize the issue once the price and <br />MARKETING: <br />interest rates are set on the day of sale. <br />Prepayment Provisions:The 2020B Bonds maturing on or after February 1, 2030may <br />be prepaid at a price of par plus accrued interest on or after February 1, 2029. <br />Page 5 <br />