HomeMy WebLinkAbout12_2006 COPs Remaining Balance Refunding
ACTION ITEM #12Refundingthe 2006 COPs Remaining Balance Accept a Lenders Commitment Letter for Consideration to Authorize Staff to Refundingthe 2006 COPs Remaining Balance Accept a Lenders
Commitment Letter for Consideration to Authorize Staff to April 6, 2016
2006 COPs remaining balance refunding Refunding will maintain compliance with advance refunding restrictions •week low -Refunding will capitalize on interest rates near 52•or over $30,000
annually Refunding the remaining balance was estimated to save $170,000 in total, •at that timeMajority were refunded in 2015 except $4.3M that was ineligible to refund •remaining balance
of the 2006 Certificates of Participation (COPs)On March 2, 2016 staff presented an opportunity to refund the •BACKGROUND / HISTORY 2006 COPs remaining balance refunding
NEW INFORMATION 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding Includes all fees and cost of issuance•All in Total Interest Cost between 2.39% and 2.95%•Interest
rates between 1.62% and 2.25% •RFP responses were favorable, improving over prior estimate•One of three non compliant with necessary timelines•Three responses received •Five lenders
were provided the RFP•Tallman, the District issued an RFP BrandisWith support from •
NEW INFORMATION 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding Which will also allow staff to lock the interest rate •to the Board financing documents for
approval Selecting the commitment letter will allow staff to prepare and provide •the most favorable lenderThe District is now able to evaluate the commitment letters and select •
FISCAL IMPACT 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding Savings are not yet included in the Financial Master Plan•Staff and bond counsel are evaluating
for eligibility•Additional savings of up to $46,000•Possibility for further savings if refunding is deemed ‘Bank Qualified’•NPV savings over 4.3%•Annual savings of over $38,000•The
benefit to the District is over $192,000•
RECOMMENDATION 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding financing documents favorable lender’s commitment letter, subject to the Boards approval of
Authorize the District Treasurer or General Manager to select the most •
Backup Slides 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding
Backup Slides 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding
Backup Slides 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 Issuance60,500.002,500.00Miscellaneous2,000.00Verification1,000.00Escrow
Agent/COI Custodian5,000.00District Admin. & Legal20,000.00Placement Agent30,000.00Bond CounselAmountCost of IssuanceParticipation2016 Refunding Revenue Certificates of Truckee Donner
Public Utility DistrictCost of Issuance 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding
Backup Slides 2015 refunding was .6% of par•In line with standard rates & fees•Standard fee ~1/2 point = ~20,000•Brandis Tallman’s fees: •2006 COPs remaining balance refunding 2006 COPs
remaining balance refunding
Backup Slides 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%338,00011/15/2020354,23315,2332.250%339,0005/15/2
020704,659350,96818,9682.250%332,00011/15/2019353,69122,6912.250%331,0005/15/2019700,250348,31426,3142.250%322,00011/15/2018351,93629,9362.250%322,0005/15/2018703,549349,49133,4912.250%316,00011/15/2
017354,05837,0582.250%317,0005/15/2017622,818622,8187,8182.250%615,00011/15/2016ServiceAnnual Debt Debt ServiceInterestCouponPrincipalPeriod Ending10/13/2016Dated Date2016 Refunding
Revenue Certificates of ParticipationTruckee Donner Public Utility District 2006 COPs remaining balance refunding 2006 COPs remaining balance refunding