HomeMy WebLinkAbout12 Power Point 2006 COP Refinancing
Action Item # 12 June 8, 2015(2006 COPs)Certificates of Participation 2006 Refunding Revenue Refinancing of the Associated with the Consideration of Documents
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 Additional $400,000 estimated savings–Substitut a surety bond in lieu of a cash reserve –District’s Water Utility savings would be approximately
$2 million–Interest rates range from 2.00% to 5%; 2.96% average–Mature in 2035–New bonds issued by Truckee Donner Public Utility District•More favorable terms are available compared
to 2006 COPs•feasibility of refundingBrandis Tallman and the District have been discussing the •
Next Steps Refinancing of 2006 COPs 5 November 2015–Call the 2006 COPs •October 2015–Send the call notices for the 2006 COPs •July 2015–Close the transaction and deposit funds •July
2015–Sell the 2015 Refunding Bonds •July 2015–Publish the Public Offering Statement •June 2015–Meet with the rating agencies •Adopt the resolution approving the documents (tonight)•
Fiscal Impact Refinancing of 2006 COPs 6$100,000 savings already assumed in the water rate study–Minimum savings of $53,000 per year–Approximately $90,000 to $105,000 for 20 years–Potential
annual savings net of refunding costs•
Recommendation Refinancing of 2006 COPs 7 Bonds and approving related documentsissuance of the District’s Water 2015 Revenue Refunding 14 authorizing the sale and -Adopt Resolution 2015•
8 Refinancing of 2006 COPs
Debt Schedule Refinancing of 2006 COPs 9 Comparison