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File Number: 14-240 <br />outstanding Tax Allocation Bonds : <br />Table 1: Tax Allocation Bonds Status <br />Series Name Issue Size Final Maturity Outstanding Par Next Call Date <br />Series 2002 15,935,000 9/1/2032 11,080,000 Currently Callable <br />Series 2004 5,500,000 9/1/2034 4,850,000 Currently Callable <br />Series 2008 27,530,000 9/1/2038 25,195,000 Currently Callable <br />$48,956,000 $41,125,000 <br />The current municipal bond market allows the Successor Agency to refinance the 2002 and <br />2004 TABs, reducing annual debt service and realizing total savings as detailed in Table 2 <br />below: <br />Table 2: 2014 Refunding Bonds Savings Analysis <br />Description Amount <br />2002 & 2004 TABs Debt Service $23,679,338 <br />2014 TABs Debt Service $18,888,361 <br />Cash Flow Savings $ 4,790,977 <br />Net Present Value of Savings $1,652,045 <br />As Percent of Refunded Par 10.94% <br />Based on municipal bond market rates effective May 30, staff estimates that the City will <br />realize $4.79 million in total cash flow savings over the life of the 2002 and 2004 TABs. This <br />corresponds to $1.65 million in net present value savings, or 10.94% when taken as a <br />percentage of the refunded par amount. The general rule of thumb is that a refunding <br />financing should be executed if net present value savings exceeds 3%. <br />The refunding of the 2002 TABs is expected to generate $4.24 million in gross savings, <br />corresponding to $1.23 million in net present value savings (11.91% of refunded par). The <br />final maturity will match the 2002 TABs maturity of 9/1/2032. Similarly, refunding the 2004 <br />TABs is expected to generate $551,000 in gross savings, corresponding to $416,000 in net <br />present value savings (8.82% of refunded par). The final maturity will match the 2004 TABs <br />maturity of 9/1/2034. <br />Sources and Uses of Funds <br />The estimated sources and uses of funds for the 2014 Refunding Bonds are as follows: <br />Sources of Funds <br />Par Amount of 2014 Refunding Bonds $ 13,255,000 <br />Release from 2002 TABs Escrow Fund 1,427,880 <br />Release from 2002 TABs Reserve Fund 1,130,064 <br />Page 2 City of San Leandro Printed on 6/10/2014