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Issuance of 2018 Tax Allocation Refunding Bonds December 20, 2017
<br />income that was previously allocated to the Redevelopment Agency, which includes the City of
<br />San Leandro.
<br />Staff emphasizes that these savings numbers are estimates based on the current market and
<br />other issuance assumptions such as assumed rating, and will not be certain until the
<br />Refunding Bonds are priced in March 2018. Interest rates can rise or fall significantly in just a
<br />matter of weeks and there is no way to predict accurately what the municipal market will look like
<br />months from now. But if municipal yields rise by an average of 50 basis points (.50%, or one-half
<br />of 1%), total nominal savings will fall to $7.1 million, which is total PV savings of $3.2 million.
<br />This translates to NPV savings of 14.3% of refunded par, which would still be an excellent
<br />refunding result.
<br />The following table compares debt service on the 2008 TABS compared to estimated refunding
<br />debt service and shows both nominal and PV debt service savings, on an annual and aggregate
<br />basis. The $1,878,857 in "prior funds" that are subtracted from gross PV savings upfront mostly
<br />represents the 2008 debt service reserve fund, which represents prior bond proceeds and therefore
<br />not savings. The Refunding Bonds assume purchase of a surety in place of a funded reserve.
<br />Debt Service
<br />Series 2008
<br />Series 2018
<br />Nominal
<br />Present Value
<br />Payment
<br />Debt Service
<br />Est. D S
<br />D S Savings
<br />D S Savin s
<br />9/1/18
<br />$1,237,219
<br />$1,053,783
<br />$183,435
<br />$181,131
<br />9/1/19
<br />1,827,188
<br />1,413,913
<br />413,275
<br />399,652
<br />9/1/20
<br />1,825,463
<br />1,407,913
<br />417,550
<br />392,360
<br />9/1/21
<br />1,821,975
<br />1,406,463
<br />415,513
<br />379,431
<br />9/1/22
<br />1,821,695
<br />1,407,063
<br />414,633
<br />367,978
<br />9/1/23
<br />1,819,735
<br />1,401,463
<br />418,273
<br />360,737
<br />9/1/24
<br />1,820,290
<br />1,404,863
<br />415,428
<br />348,205
<br />9/1/25
<br />1,818,885
<br />1,401,863
<br />417,023
<br />339,682
<br />9/1/26
<br />1,819,635
<br />1,402,663
<br />416,973
<br />330,060
<br />9/1/27
<br />1,818,135
<br />1,402,063
<br />416,073
<br />320,056
<br />9/1/28
<br />1,818,410
<br />1,405,063
<br />413,348
<br />308,988
<br />9/1/29
<br />1,821,135
<br />1,406,463
<br />414,673
<br />301,209
<br />9/1/30
<br />1,824,975
<br />1,411,263
<br />413,713
<br />292,008
<br />9/1/31
<br />1,825,125
<br />1,409,263
<br />415,863
<br />285,199
<br />9/1/32
<br />1,832,125
<br />1,415,663
<br />416,463
<br />277,506
<br />9/1/33
<br />1,835,450
<br />1,421,463
<br />413,988
<br />267,979
<br />9/1/34
<br />1,833,090
<br />1,416,063
<br />417,028
<br />262,202
<br />9/1/35
<br />1,831,950
<br />1,418,250
<br />413,700
<br />252,656
<br />9/1/36
<br />1,831,760
<br />1,414,188
<br />417,573
<br />247,688
<br />9/1/37
<br />1,827,250
<br />1,412,425
<br />414,825
<br />238,985
<br />9/1/38
<br />1,823,420
<br />1,409,363
<br />414,058
<br />231,671
<br />$37,734,909
<br />$29,241,508
<br />$8,493,400
<br />$6,385,384
<br />3/21/18
<br />Dated/delivery date: Series 2018
<br />$6,385,384
<br />Tot. PV savings
<br />2.86%
<br />Arbitrage yield: PV
<br />discount rate
<br />-1,878,857
<br />Less Prior funds
<br />$22,860,000
<br />Refunded par: Series
<br />2008
<br />$4,506,528
<br />Net PV savings
<br />$20,795,000
<br />Refunding par: Series 2018
<br />19.7%
<br />PV savings of refunded par
<br />21.7%
<br />PV savings of refunding par
<br />The following table shows the allocation of property tax revenues from the project area, with the
<br />taxing entities receiving the same proportion of nominal and PV savings. Each taxing entity will
<br />receive its proportional share of savings.
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