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HomeMy WebLinkAboutPower Point TDPUD - Utility Revenue Bonds (Capital Projects) Deck Final 8 11 21 TRUCKEE DONNER PUBLIC UTILITY DISTRICT August 18, 2021 NUMERICAL ANALYSIS(WATER AND ELECTRIC SYSTEM CAPITAL IMPROVEMENTS)UTILITY REVENUE BONDS Underwriter 2 OTICE 17 N-MSRB G.capacitythatinservetoadvisormunicipalaengagetofreeisIssuerthethenIssuer,thetodutiesfiduciarylegalhasthattransactionthisinadvisormunicipalalikewouldIssuertheIf.appropri atedeemsitextentthetoapplicable,asadvisors,otherandtaxaccounting,legal,municipal,and/orfinancialownitswithconsultshouldIssuerThe.1934ofActExchangeSecuritiestheofB15Sectionofmeaningthewithin“advice”as construedbenotshouldandbetointendednotisprovidedinformationThe.IssuerthebysecuritiesmunicipalofissuancethewithconnectioninentityorpersonotheranyorIssuerthetofiduciaryoradvisorfinancialadvisor,municip alaasnotandprincipalaasactingisOppenheimer.IssuertheofthosefromdifferthatinterestsotherandfinancialhasOppenheimerandOppenheimer,andIssuerthebetweentransactioncommerciallength-arm’sanininvestors,tores aleforsecurities,purchasetois,nderwriterUanasOppenheimer,ofroleprimaryThe.“Issuer”)(theDistrictUtilityPublicDonnerTruckeethetoUnderwriterasservingofanticipationinonlypurposesdiscussionfordocumentthis incontainedinformationtheprovidingisOppenheimer Notice17-G Historical MMD Yields 30-Year MMD10-Year MMD MMD Yields Over the Past 30 Years 8/1/20218/1/20208/1/20198/1/20188/1/20178/1/20168/1/20158/1/20148/1/20138/1/20128/1/20118/1/20108/1/20098/1/20088/1/2007 8/1/20068/1/20058/1/20048/1/20038/1/20028/1/20018/1/20008/1/19998/1/19988/1/19978/1/19968/1/19958/1/19948/1/19938/1/19928/1/19918.00%7.00%6.00%5.00%4.00%3.00%2.00%1.00%0.00%1.27%0.58%August 11, 2020-Low time-All1.48%0.88%August 11, 2021-Current MMD Year MMD-30Year MMD-10 Source: Bloomberg 3 Capital Improvement Projects rates to show what the cost of the financing would look like today. 2022 or 2023. We have performed an analysis using today’s interest Timing of capital project funding with bonds is to be determined, •Year Public Offering-20•Year Public Offering-30•utility revenue bonds could finance these projectsexempt -We have prepared a numerical analysis showing how tax•$6 million for electric system capital improvements•$5 million for water system capital improvements•following amounts:As an example, if the District wishes to finance capital projects in the •4 Numerical Analysis 16,620,485 9,066,321 7,554,164 Total Debt Service554,827 302,655 252,172 Average Fiscal Year Debt Service NUMERICAL RESULTS 8/1/20518/1/20518/1/2051Final Maturity 2.91%2.91%2.91%In True Interest Cost (2)-All2.78%2.78%2.78%True Interest Cost (2)1,668,349 909,905 758,444 Original Issue Premium258,349 139,905 118,444 Cost of Issuance (1)11,000,000 6,000,000 5,000,000 Project Fund9,590,000 5,230,000 4,360,000 Par AmountCOMBINEDImprovementsElectric Capital ImprovementsWater Capital FINANCING SUMMARY Interest rates are preliminary, and subject to change with market conditions.(2)printing/miscellaneous.Includes municipal advisor, underwriter, bond counsel, disclosure counsel, rating, trustee, and (1):otesN Source: Oppenheimer & Co. Inc.5 Year Term-30– Numerical Analysis 13,961,865 7,617,216 6,344,649 Total Debt Service699,737 381,832 317,905 Average Fiscal Year Debt Service NUMERICAL RESULTS 8/1/20418/1/20418/1/2041Final Maturity 2.39%2.39%2.39%In True Interest Cost (2)-All2.21%2.21%2.21%True Interest Cost (2)1,762,121 961,508 800,612 Original Issue Premium257,121 141,508 115,612 Cost of Issuance (1)11,000,000 6,000,000 5,000,000 Project Fund9,495,000 5,180,000 4,315,000 Par AmountCOMBINEDImprovementsElectric Capital ImprovementsWater Capital FINANCING SUMMARY Interest rates are preliminary, and subject to change with market conditions.(2)printing/miscellaneous.Includes municipal advisor, underwriter, bond counsel, disclosure counsel, rating, trustee, and (1):otesN Source: Oppenheimer & Co. Inc.6 Year Term-20– Sample Public Offering Timeline ISS= Issuer; UW= Underwriter; BC=Bond Counsel & Disclosure Counsel; MA=Municipal Advisor ALLClose financingTwelveUW/ISSAgreementPrice bonds, execute Bond PurchaseTenUWPOS to investorsDistributeUW/MAbidsReceive rating and insuranceEightALLRating call with rating agencySevenUW/MApackage to rating agency and bond insurersDistribute creditBCand POSFinalize bond documentsSixALLdocumentslegal to approve financing and allmeeting District BoardFiveISS/BCDistrict Board meetingAgenda deadline for FourALLComments on legal documents due ThreeBCof Resolution, legal documents, and POS are distributeddraft st 1TwoALLcall with financing teamoff-KickOne PartyLeadEventWeek7 8 Financing Team servicerepayment of debt guaranteeing the Enhances rating by •Bond Insurerrisks to investorsthat describes the bonds and its Prepares the Official Statement •Disclosure Counselapplicableexemption, if -Gives opinion of tax•drafts primary bond documentsProvides legal advice to issuer and •Bond Counselother financing team membersRepresents issuer in dealings with •pricing, terms, etc.Advises issuer on structuring, •Municipal Advisorinvestorssells them to bonds from issuer and Purchases •pricesfinancing, sets Structures •Underwriterthe bonds, if applicableProvides credit rating for •Rating AgencybondholdersMay hold funds in trust on behalf of •payments and redemptionsCommercial bank who administers •Trustee Authorizes issuance of bonds•and key parameters of debtDetermines borrowing needs •Selects financing team•Issuer All 9 1RM090711PF.portfolioinSecuritiesMunicipalofsuitabilitytheregardingadvisortaxwithconsultshouldInvestors.advicetaxorprovidenotdoesemployees,orofficersaffiliates,itsofanyincluding,.Inc.Co&Oppenhe imer.OppenheimerofpermissionwrittenthewithoutmanneranyinreproducedbemaypresentationthisofpartNo.reservedrightsAll.SIPCMemberandExchangesPrincipalAllonBusinessTransacts.Inc.Co&Oppenheimer2021©.youfora ppropriateorsuitableistransactionanythatrepresentationanorpositionortransactionparticularamaintainorintoyouthatrecommendationaneitherconstitutesyoutoavailablematerialsanyormaterialsthemadehasOppenhei merthatfactThe.therewithconnectioninactionanytaketoormaterialtheofusethetorespectwithpartiesorOppenheimerbyexperienceddifficultiesanyofusertheinformtoresponsibilitynohavewillOppenheimer.damagessuchof possibilitytheofadvisedbeenhasOppenheimerifevenmaterial,thisorhereinprovideddatatheusertheofaccountonexperiencedorincurredbemaydamagesconsequentialorincidentalindirect,special,anyforliablebeOppenheim erwillnoIn.materialthisofperformancetheofaspectanyfororhereinprovidedformulaeordatatheofcompletenessorperformancereliability,pricing,timeliness,accuracy,quality,correctness,theforwhatsoever,responsib ilityanyorparties,tooruserthetootherwise,orcontingentliability,nohaveOppenheimer.kindanyoflimitationanyimposingOppenheimerwithoutbenefits,taxincomefederal.S.Uanysupporttonecessaryarethathereindescrib edstructureortransactionpotentialanyofaspectsallandanydisclosemayyoulaw,applicabletosubjectmutuallyweaddition,In.purposesoraccounting,tax,anyfororrecordsandyourofmaintenancetheforuponreliedbenotshoul dmaterialsThe.counselorandadvisorsyourwithdiscussedbeshouldthatimplicationsortax,accounting,havetransactionindicativeproposedanythatbeshouldyouhowever,;adviceortaxaccounting,providenotdoesOppenheimer .strategytradinganyinparticipatetoorinstrumentorsecurityanysellorbuytoanofsolicitationaorsellorbuytoannotisandpurposesinformationalforsolelypreparedbeenhashereincontainedinformationThe.informationoro pinionsupdatetoobligationnoareWe.indicateddatetheofasonlyalsoarevalue(s)orprice(s)historicalAny.indicateddatetheofasonlyopinionscurrentarehereinexpressedOpinions.madeishereincontainedinformationanyof completenessoravailabilitycontinuedtimeliness,performance,accuracy,quality,toaswarrantiesto,limitednotbutincludingwhatsoever,warrantynoimplied,orexpressregulation,orlawapplicablewithcomplytosodotoreq uiredasfarsoinExcept.prohibitedisinorininformation,thisofreproductionAny.anytoinformationsuchanydivulgenotwillandpurposenoforandhereindescribedstrategiestheininterestpotentialitsevaluatetoonlyinforma tiontheusetorepresentativesandemployeesofficers,partners,directors,itswillitanditthatagreesrecipienttheinformation,thisacceptingBy.confidentialishereincontainedinformationThe.noticefurtherwithoutchan getosubjectareandonlyopinionspresentourareexpressedOpinions.agreementformalabyevidencedbewillandnegotiationanddiscussionfurthertosubjectareconditionsandFinalized.onlypurposesdiscussionforandindicativ eareconditions,andproposedincludingmaterials,