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STRUCTURINGIn consultation with Citystaff, the 2020C Bonds have been structured to provide for <br />SUMMARY:approximately equal annual savings over the same term as the 2014B Bonds. <br />The issuance of the 2020C Bonds is being conducted as a“crossover” advance <br />refunding in which the proceeds of the 2020C Bonds will be placed in an escrow account <br />with a major bank, certain amounts of which are invested in permitted securities.These <br />investments, their earnings, and any cash balances are structured to pay interest on <br />the 2020CBonds to and includingFebruary 1, 2022 (the call date of the 2014B Bonds), <br />at which time the escrow account will redeem the callablematurities for the 2014B <br />Bonds. <br />A verification agent will be retained to verify the sufficiency of the escrow account to <br />satisfy is cashflow requirements. <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 <br />be determined by market conditions at the time of the sale: <br />2014B Bonds <br />Estimated Net Future Value <br />Savings$411,695 <br />Estimated Net Present Value <br />Savings$352,915 <br />Estimated NPV Benefit/ <br />Refunded D/S %4.746% <br />Schedules attached forthe 2020CBonds can be found in Appendix C and include: <br />SCHEDULES <br />ATTACHED: <br />Refunding summary <br />Debt servicecomparison, given current market conditions <br />Debt Service to Maturity and to Callfor the 2014B Bonds <br />Estimated net debt service, given current market conditions <br />Crossover escrow fund cashflow <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 2020C Bonds maturing on or after February 1, 2031may <br />be prepaid at a price of par plus accrued interest on or after February 1, 2030. <br />Bank Qualification:The 2020C Bonds are taxable obligations and,therefore, bank <br />qualification does not apply. <br />Federal Considerations:The Tax Cuts and Jobs Act signed into law on December 22, <br />2017, prohibits the issuance of tax-exempt bonds to advance refund outstanding tax- <br />exempt bonds after 2017. Federal limitations restricting the issuance of advance <br />refunding bonds do to not apply to taxable bonds that refund tax-exempt bonds. <br />Therefore, the 2020CBonds are being issued as taxable obligations. Interest cost <br />Page 7 <br />