HomeMy WebLinkAbout18, 2006 COP Refinancing
Workshop Item # 18 May 20, 2015 Participation (2006 COPs)Refunding Revenue Certicates of Refinancing of the Water 2006 Discussion of Proposed
Refinancing of 2006 COPs 2 Principal balance as of today is $20,080,000–A portion of SCADA–Primarily pipeline replacements–Funded water system capital improvements–Assessment District
Completed funding of water system of the Donner Lake –This portion cannot be refunded (refinanced)–Refunded $8,465,000 balance of 1996 COPs–Average interest rate is 4.10%–Mature in
2036–Revenue Certificates of Participation (2006 COPs)Corporation issued $26,570,000 of Water 2006 Refunding In 2006, Truckee Donner Public Utility District Financing •Background /
History
Refinancing of 2006 COPs 3 Saved Old Greenwood property owners over $3 million in 18 years–Old Greenwood bonds refunded in 2014–Saved District $1 million over 11 years–CalPERS Side Fund
refunding in 2011–Full service investment banking firm and broker /dealer–Brandis Tallman•Background / History
New Information Refinancing of 2006 COPs 4 Potentially save the District more than $2 million in 20 years–Interest rates range from 2.00% to 5%; 2.96% average–Mature in 2035–Public Utility
DistrictProposed sale of refunding bonds issued by Truckee Donner •More favorable terms are available compared to 2006 COPs•Municipal bond interest rates have recently decreased•feasibility
of refundingBrandis Tallman and the District have been discussing the •
Fiscal Impact Refinancing of 2006 COPs 5 Almost 1% of revenue–Savings already assumed in the water rate study–Approximately $100,000 for 20 years–Potential annual savings net of refunding
costs•
Recommendation Refinancing of 2006 COPs 6 Meetingtheir review and approval at the June 8, 2015 Board COPs and to present the financing documents to Board for Direct staff to pursue the
proposed refinancing of the 2006 •
7 Refinancing of 2006 COPs
Debt Schedule Refinancing of 2006 COPs 8 Comparison