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HomeMy WebLinkAboutTDPUD Information for 6-8-15 Brd MtgBRANDIS TALLMAN LLC 22 Battery Street Suite 500 San Francisco, CA 94111 Bob Mescher, Treasurer and Administrative Services Manager Truckee Donner Public Utility District 11570 Donner Pass Road Truckee, CA 96161 Dear Bob: Phone: 415-912-5630 Fax: 415-912-5636 www.brandistallman.com VIA EMAIL June 3, 2015 Per our recent conversations, we updated the refinancing model that was presented to the Board on May 20' to reflect current market interest rates (as of 6/2/15). An interest rate graph showing market movement follows this letter. This model assumes the contribution of a proportional share of the reserve fund to the refunding, leaving a proportional share in place for the unrefunded COPS. Based on today's rates, average annual savings are about $90,000, total savings are approximately $1,854,000, and Net Present Value (NPV) savings are $1,373,000, or 8.71%. We also performed a sensitivity analysis to monitor how an increase in interest rates affects savings. For every 10 basis point (0.10%) increase in interest rates, average annual savings go down approximately $6,600. At NPV savings of 5.00%, the minimum level set by the Resolution, average annual savings are about $53,000. Please see the sensitivity analysis on Table 1, and debt service summaries on Tables 2 and 3. Additionally, based on due diligence performed over the last two weeks with bond and tax counsel, we updated the refinancing model to include a contribution of the entire reserve fund toward the refunding, substituting a surety bond in lieu of the cash reserve fund for the unrefunded COPS. Based on today's rates, average annual savings are about $108,000, total savings are approximately $2,247,000 and NPV savings are $1,673,000, or 10.61%. At NPV savings of 5.00%, the minimum level set by the Resolution, average annual savings are about $54,000. Please see the debt service summaries on Tables 4 and 5. Under both scenarios, we assumed a surety in lieu of a cash funded reserve fund on the refunding. Therefore, the term of the refunding is shortened by one year to match the effective term the 2006 COPS; the cash reserve fund on the 2006 COPS would be used to pay the last year of debt service, making its effective term 2035. Best Regards, Nicki Tallman Member FINRA SIPC MSRB EI rail ;� OE: u� r `o O N 0 u7 N _ ti OJ c 7 LL7 O O r I 47 4? r 0 00 r_ 47 O � ti 47 47 r 0 O fiJ O 47 O Q 47 go 0 m 0 47 Q kfl r_ In O 0 In i 0 � R kcj O r 0 r 0 kci 1 u� 0 In r N O LO r_ CD 0 m 0 0 • � gmg I o 0 LO N O w Iq N O m m N N N N _T f9 p r ti O Sr] o C) co sn o O o O C2 T Q Q O Q } d C' Y O U' (O i 7. 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