HomeMy WebLinkAbout15 Power Point CalPERS Side-Fund Refunding
Action Item # 15 June 1, 2011 Fund Refinancing-CalPERS SideConsideration of Approving the
Consideration of Refinancing 2 Paid jointly by District and District employees–7.75% rate–Amortized over eleven years, through June 2022––pension poolthe rest of the existing participants’
contributions in the fund” is the obligation to pay an amount to catch up to -“Side•pooled pension planCalifornia Public Employees’ Retirement System (CalPERS) District employees joined
–2004 •Background / History Fund-the CalPERS Side
Municipal Bond Market Fund-the CalPERS SideConsideration of Refinancing 3 No official statement required–No credit rating required –as a bankDirect purchase of Bond by a single institutional
investor such –Private placement•
Consideration of Refinancing 4 Chris Johnson–Trustee: The Bank of New York Mellon Trust Company,N.A. •George Diesch, Mac McElroy, Legal Counsel Seyfarth Shaw LLC–Lender: Umpqua Bank
•Nicki Tallman, Rick Brandis, Jeff Land –Placement Agent: Brandis Tallman LLC•David Casnocha–Bond Counsel: Stradling Yocca Carlson & Rauth•Sandra McDonald–Financial Advisor: McDonald
Partners, Inc.•Bob Mescher, Stephen Hollabaugh, Nancy Waters–Issuer: Truckee Donner Public Utility District•New Information Fund-the CalPERS Side
SUMMARY $ 91,073Average Annual Savings$ 1,048,877Fund (Annual Payment)-SideCalPERSExisting$ 957,803(Annual Payment)New Refunding LoanFY22thruFY12AVERAGE FISCAL YEAR DEBT
SERVICE $ 1,001,806Eleven YearsSavings Over)P&I(Fund -SideCalPERSExisting)P&ILoan (New RefundingInterest)TOTAL DEBT SERVICE (Principal &5.31%True Interest Cost In-All5.00%Interest
Rate$ 7,820,000$ 136,798Cost of Issuance$ 7,683,202of 6/30/11Fund Payoff Amount as-SideCalPERSREFUNDING LOAN PRIVATE PLACEMENT REFINANCING (Estimate)
Financing Structure Fund-the CalPERS SideConsideration of Refinancing 6 District employee payroll deductions–Water Utility budgeted pension expense–Electric Utility budgeted pension
expense–Paid by:–Electric Utility deferred pension expense–Liability on Electric Utility balance sheet•Electric Utility obligation•
Resolution (Highlights)Fund-the CalPERS SideConsideration of Refinancing 7 Umpqua Bank (Purchaser)Bond Purchase Agreement by and between the District and –Section 3: Approval of Purchase
Agreement•Describes the Trust Agreement–$8,000,000exceed -to-Bonds in the aggregate principal amount not–Section 2: Issuance of Bonds•
Resolution (Highlights)Fund-the CalPERS SideConsideration of Refinancing 8 until Bonds are retiredannual principal and interest payments on the Bonds, -Semi–Consistent with current allocation
of the Side Fund Liability–Section 5: Repayment Contribution•shall not be later than July 1, 2022maximum rate allowed by law, and the final bond maturity and final year shall not exceed
the th Agreement) for the 115.25% and that the Reset Rate (as defined in the Trust so long as such rates for the first 10 years do not exceed (ii) the final interest rates on various
maturities of the Bonds, –IssuanceSection 4: Authorized Officers to Establish Final Terms of •
Private Placement Refunding Timeline Fund-the CalPERS SideConsideration of Refinancing 9 Close transaction and payoff Cal PERSJune 29•Execute documents & sign BPABy June 28•Finalize
all document, credit approvalBy June 24•Due diligence meeting with BankJune 13•authorizes obligationBoard adopts resolution and June 1 •
Fiscal Impact Fund-the CalPERS SideConsideration of Refinancing 10 therefore won’t add any expenses to FY 2011The issuance costs will be rolled into the bonding and •for eleven years.The
proposed refunding would save about $91,000 per year •
Recommendation Fund-the CalPERS SideConsideration of Refinancing 11 presentedapproving additional actions related substantially to the form execution of a Trust Agreement and purchase
contract, and Public Utility District, approving the form and authorizing the certain side fund pension obligations of the Truckee Donner Authorize the Resolution for the issuance of
bonds to refund •