HomeMy WebLinkAbout10 Power Point 2006 Revenue COPs Remaining Balance Refunding
WORKSHOP ITEM #102006 COPs Remaining Balance Refunding2006 COPs Remaining Balance Refunding March 2, 2016
2006 Revenue COPs Remaining Balance Refunding Outstanding balance at call date will be $3,848,600•2006 COP balance is callable 11/15/2016unrefundedThe •Did not refund $4,315,000 remaining
balance•Average interest rate of 2.96%•Mature in 2035•In 2015, a portion of the 2006 Revenue COPs were refunded •Funded water system improvements•Average interest rate was 4.10%•2006
COPs originally matured in 2036•Participation (2006 COPs)issued $26,570,000 of Water Utility Revenue Certificates of In 2006 Truckee Donner Public Utility District Financing Corporation
•BACKGROUND / HISTORY 2006 Revenue COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding NEW INFORMATION Provides full compliance with advance refunding restrictions •Lock into low rates now and close in October 2016•Private
placement with long closing process •has identified a refunding opportunityTallmanBrandis•COPs balanceDistrict is reviewing opportunities to refund the remaining 2006 •2006 Revenue
COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding NEW INFORMATION increase in staff timePublic placement is more involved and would require a significant •However, District would be exposed
to market rate risk until Fall ‘16 •Possible to save an additional $3,800 per year with public offering•consider a public offeringAlternatively, the District can wait until November
2016 call date and •3% savings industry standard threshold for refunding•NPV savings of 4.25% or $160,000•Interest rate of 2.92% (all expenses included) •or $185,500 in totalPrivate
placement rate lock would save the District $30,900 per year •2006 Revenue COPs Remaining Balance Refunding
FISCAL IMPACT Savings are not included in the Financial Master Plan•Interest rate of 2.92%•Includes the outstanding balance and $60,500 cost of issuance •Total bond par amount at refunding
would be $3,909,000•The benefit to the District is $30,900 per year, or $185,500 in total•2006 Revenue COPs Remaining Balance Refunding2006 Revenue COPs Remaining Balance Refunding
RECOMMENDATION Review this workshop item and provide direction to staff•2006 Revenue COPs Remaining Balance Refunding2006 Revenue COPs Remaining Balance Refunding
RECOMMENDATION 2006 Revenue COPs Remaining Balance Refunding2006 Revenue COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding NEW INFORMATION 2006 Revenue COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding.45% difference in all in interest rate ~ 5 to 10 points for long term close•yrs2.6 Average life: •2.47%All in TIC: •1.34%Interest Cost:
True •Public Offering•yrsAverage life: 2.4 •All in TIC: 2.92%•True Interest Cost: 2.25%•Private Placement•NEW INFORMATION 2006 Revenue COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding 2015 refunding was .6% of par•In line with standard rates & fees•Standard fee ~1/2 point = ~20,000•Brandis Tallman’s fees: •Rate would go
out to bid to maintain a competitive offering •Other lenders interested in similar program•“Rate Lock” program, being offered by Capital One•Private Placement•NEW INFORMATION 2006 Revenue
COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding 111,000.0010,000.00Printing/Miscellaneous2,500.00Verification12,500.00Rating6,000.00Trustee25,000.00District Admin. & Legal20,000.00Disclosure
Counsel35,000.00Bond CounselAmountCost of IssuancePublic Offering2016 Refunding Revenue Certificates of ParticipationTruckee Donner Public Utility DistrictCost of Issuance60,500.002,500.00Miscellane
ous2,000.00Verification1,000.00Escrow Agent/COI Custodian5,000.00District Admin. & Legal20,000.00Placement Agent30,000.00Bond CounselAmountCost of IssuancePrivate PlacementParticipation2016
Refunding Revenue Certificates of Truckee Donner Public Utility DistrictCost of Issuance NEW INFORMATION 2006 Revenue COPs Remaining Balance Refunding
2006 Revenue COPs Remaining Balance Refunding 4,123,3574,123,357214,3573,909,000688,430342,8143,8142.250%339,00011/15/2021345,6167,6162.250%338,0005/15/2021703,651349,41911,4192.250%338,00011/15/2020
354,23315,2332.250%339,0005/15/2020704,659350,96818,9682.250%332,00011/15/2019353,69122,6912.250%331,0005/15/2019700,250348,31426,3142.250%322,00011/15/2018351,93629,9362.250%322,0005/15/2018703,5493
49,49133,4912.250%316,00011/15/2017354,05837,0582.250%317,0005/15/2017622,818622,8187,8182.250%615,00011/15/2016ServiceAnnual Debt Debt ServiceInterestCouponPrincipalPeriod Ending10/13/2016Dated
DatePrivate Placement2016 Refunding Revenue Certificates of ParticipationTruckee Donner Public Utility DistrictBond Debt Service NEW INFORMATION 2006 Revenue COPs Remaining Balance
Refunding