14-0916_ORRICK, HERRINGTON & SUTCLIFFE_C1_Agenda ReportTO:
n Capistrano
aport
FROM: Cindy Russell, Chief Financial Officer/City Treasurec.ee---
DATE: September 16, 2014
9/16/2014
C1
SUBJECT: Consideration of the Refunding Opportunities for the 2002 and 2004 Water
Certificates of Participation (Water System Facilities) and the San Juan Basin
Authority Lease Revenue Bonds (Groundwater Recovery Project) Issue of 2002
RECOMMENDATION:
By motion,
1. Authorize City staff to proceed with a combined refunding of the 2002 and 2004 Water
Certificates of Participation through a competitive private placement financing; and,
2. Authorize City staff to proceed and work with the San Juan Basin Authority on a
refunding of the San Juan Basin Authority Lease Revenue Bonds (Groundwater
Recovery Project) Issue of 2002 through a competitive private placement financing;
and notify the San Juan Basin Authority of the City's intent to proceed with the
refunding; and,
3. Authorize the City Manager to execute a Second Amended and Restated Agreement
for Bond Counsel Services with Orrick, Herrington, and Sutcliffe, LLP approved as to
form by the City Attorney for a revised fixed fee amount of $180,000; and,
4. Authorize the City Manager to execute an agreement for placement agent services
with the successful bidder based on a Request for Proposals and approved as to form
by the City Attorney.
EXECUTIVE SUMMARY:
In an effort to continue to reduce costs, City staff in conjunction with the City's financial
advisor Fieldman, Rolapp and Associates (Fieldman Rolapp), evaluated the outstanding
long-term financing obligations of the City's Water Enterprise Fund in early 2013. On June 4,
2013, the City Council authorized City staff to proceed with a combined refunding
(refinancing) of the San Juan Capistrano Public Financing Authority (SJCPFA) for the
Certificates of Participation, Series 2002 (2002 COPs) and Series 2004 (2004 COPs) that
were issued for water system improvements, as well as work with the San Juan Basin
Authority to refund the San Juan Basin Authority Lease Revenue Bonds, Issue of 2002 (2002
SJBA Bonds) issued for the construction of the Groundwater Recovery Plant (GWRP) in
order to realize savings on the City's annual lease payments (debt service costs) on these
City Council Agenda Report
September 16, 2014
Page 2 of 6
obligations. However, on August 28, 2013, the Superior Court of California entered a
judgment which invalidated the City's water rate structure; and the refunding was postponed
while the City is appealing that judgment; completed a water rate study and adopted a new
water rate structure.
On June 17, 2014, the City adopted a new water rate structure and a new five-year schedule
of water rates. Fieldman Rolapp has indicated that based on current interest rates and
market conditions, the City's Water Enterprise Fund could realize savings on its annual lease
payments (debt service costs) at this time and that the City should consider moving forward
with the refunding process (two issues together, the 2014 Refunding Issues). The City's
bond counsel, Orrick, Herrington, and Sutcliffe, LLP (Orrick) indicates the pending appeal on
the judgment related to the City's previous water rates makes it difficult to provide complete
and accurate disclosure to potential investors in a public offering. Therefore, in order to best
protect the City while taking advantage of the opportunity to realize savings, Orrick has
advised that the City Council should consider a private placement of proposed 2014
Refunding Issues as opposed to a public offering.
Fieldman Rolapp has investigated the private placement opportunities in the market. Based
on preliminary estimates, it is expected that by reducing the average interest rate on these
obligations and using the debt service reserve fund (not required for private placement
financing) to pay down $4.2 million of the current principal amount outstanding, the City could
potentially realize an estimated gross average annual savings of $245,331 on a combined
refunding (refinancing) of the 2002 COPs and 2004 COPs, as well as an estimated $322,138
on the 2002 SJBA Bonds for an estimated gross average annual savings of $567,469
(Attachment 1) and still pay these obligations off in the time frame originally planned for. The
estimated net average annual savings for the total 2014 Refunding Issues are $165,739
(Attachment 1) after adjusting for interest earned on the debt service reserve fund and use of
the debt service reserve fund to pay down principal as part of the 2014 Refunding Issues.
Additionally, the net present value savings as a percentage of the amounts refunded are
estimated at 6.08% and 9.27% for the 2002 and 2004 COPs and 2002 SJBA Bonds,
respectively and are well above the City's Debt Management Policy benchmark savings for
refunding debt of 3%, as well as the typical industry benchmark of 3% to 5% of the amount
refunded.
Pursuant to Section 2B of the Amended and Restated Agreement for Bond Counsel Services,
the City and Orrick agreed to determine a revised fixed amount for the cost of bond counsel
services to complete the work on the proposed 2014 Refunding issues. The revised fixed fee
amount for the combined refunding is $180,000, an increase of $45,000 from the original
contract amount of $135,000 because the legal documents are required to be redone due to
the postponement of the refunding. The cost of financial advisory services from Fieldman
Rolapp of $78,000 is unchanged. Additionally, the City will issue a Request for Proposals for
placement agent services and will enter into an agreement with the successful proposer.
These costs are included in the estimated cost of issuance to be paid from the proceeds of
the proposed 2014 Refunding Issues and have been included in the calculations above.
DISCUSSION/ANALYSIS:
In early 2013, interest rates were trending or moving down from January through May 2013,
and then went up significantly through September 2013. There was an increase in interest
City Council Agenda Report
September 16, 2014
Page 3 of 6
rates of approximately 130 basis points (an additional 1.3% of interest cost) from the low in
May 2013. After September 2013, interest rates have trended lower again and are currently
about 10 to 15 basis points (an additional 0.1% to 0.15%) higher than the low of May 2013;
however, still very favorable in terms of generating cost savings for the City.
The City filed its notice of appeal of the judgment regarding the City's water rate structure on
September 6, 2013. The appeal is fully briefed, but it is anticipated that the court of appeal
will not schedule the appeal hearing until early 2015 or later. However, Orrick has indicated
that the uncertainty of the outcome of the appeal makes it difficult to provide complete and
accurate disclosure to potential investors in a public offering. Therefore, in order to best
protect the City against claims from bond holders should the outcome of the appeal
negatively impact the City; its bond rating; and/or the value of its bonds in the market, Orrick
has advised that the City Council should consider a private placement of refunding debt
obligations as opposed to a public offering if it desires to move forward with the refunding at
this time.
A private placement is a bond purchase agreement between an Issuer (in our case, the City)
and a Private Placement Provider (a qualified bank or financial institution), through a
placement agent (broker) as opposed to selling bonds to an underwriter for sale to the
general public. Additionally, since this transaction would not be available to the public, the
City will not be required to secure a credit rating for this refunding. Fieldman Rolapp indicates
that qualified banks and financial institutions have significant amounts of capital to make
loans to public agencies like the City. Additionally, the volume of bank loans to public
agencies has risen significantly over the past several years. Fieldman Rolapp has met with
two qualified financial institutions that provide this type of financing to California public
agencies to get a sense of interest in the financial market, and indicates that there is interest
in the City's refunding and that interest rates are comparable to a public offering. The timing
to complete a private placement is approximately 40-60 days, and staff anticipates
completion of the transaction by early November 2014.
Since the private placement does not require a debt service reserve fund, the approximately
$4.5 million total debt service reserve funds on the 2002 and 2004 COPs and 2002 SJBA
Bonds, less approximately $300,000 of issuance costs, net of interest savings will be used to
reduce or "pay-down" $4.2 million of the principal amount currently outstanding as opposed to
offsetting lease payments (debt service) in the last year of each issue. This results in the City
realizing lease payment (debt service) savings throughout the remaining life of the refunding
as opposed to a lump sum in the last year of each issue (December 1, 2021, and December
1, 2034 ). The reduction to the principal (par) amount outstanding on these obligations based
on the proposed 2014 Refunding Issues is as follows:
Estimated Reduction in Principal (Par) Amount Outstanding-Proposed 2014 Refunding Issues
Principal (Par) Debt Service Principal (Par)
Amount Currently Funds Available Debt Service Cost of Amount of 2014
Refunding Issue Outstanding 12/1/2014111 Reserve Fund Issuance Refunding Issues
SJCPFA 2002 and 2004 COPS
Refunding (Combined) $22,985,000 ($1 ,091 ,619) ($2,173,381) $200,000 $19,920,000
SJBA 2002 Bonds Refunding 23,790,000 (1,094,685) (2,305,315) 180,000 20,570,000
Total $46,775,000 ($2,186,304) ($4,478,696) $380,000 $40,490,000
111 This amount represents the debt service payment budgeted for the December 1, 2014, payment less net interest savings from November 14, 2014
through December 1, 2014.
City Council Agenda Report
September 16, 2014
Page 4 of 6
Additionally, the current obligations have interest earnings on the bond reserve funds of
approximately 5% annually from guaranteed investment contracts that were available in the
market at the time of the original issue. However, guaranteed investment contracts are no
longer available, and the City will not be able to invest its debt service reserve funds at
comparable interest rates.
The following is an overview of refunding the 2002 and 2004 COPs and the 2002 SJBA
Bonds through a private placement:
Private Placement
Purchaser Bond purchase agreement placed directly with a bank,
and not available to the general public
Competitive Process Bids to be solicited from approximately ten (1 0) qualified institutions
Pricing Comparable to a public offering
Cost of Issuance Approximately twenty-five percent (25%) less than the public offering
Bond Reserve Fund Not required, and the City can use the existing bond
reserve fund to pay down the outstanding obligations
Timing 40-60 days
Rating Not required, and the City saves the cost of obtaining the initial rating
(estimated at $50,000) and on-going (approximately $10,000 annually)
Term Twenty (20) years
Annual Disclosure Limited financial information provided annually to the financial institution
only. The City saves the cost (approximately $10,000 annually)
of annual disclosure reporting.
Since the City's 2009 Certificates of Participation (a public offering) are still outstanding, the
City would still have a water bond rating (currently an A rating with a stable outlook, which
means the City has an "upper-medium grade credit, with a low credit risk and a low likelihood
of change over the next couple of years) and the same annual disclosure requirements for
one outstanding public issue as opposed to four outstanding public issues.
The very conservative preliminary estimates of the savings potential based on a private
placement of the proposed 2014 Refunding Issues are based on:
• A combined refunding of the 2002 and 2004 COPs and a separate refunding of the
2002 SJBA Bonds under the current structure.
• A competitive solicitation to approximately ten (10) institutions that provide this type of
financing to California public agencies.
• An average coupon or interest rate based upon current interest rates and market
conditions.
• All costs associated with the refunding issue are included.
• No extension on the term of either issue past its original end date of December 1,
2021, or December 1, 2034.
• No need for a credit rating and on-going disclosure costs.
The total principal (par) amount of the 2002 and 2004 COPs and 2002 SJBA bonds that are
currently outstanding is $46.775 million and the average interest rate to maturity is 4.85%.
The total principal (par) amount of the proposed 2014 Refunding Issues is reduced to
$40.490 million and the average interest rate to maturity is reduced to 3.74%. Attachments 2
City Council Agenda Report
September 16, 2014
Page 5 of 6
and 3 to this report are summaries of the 2002 and 2004 COPs Combined Refunding and the
2002 SJBA Refunding results, respectively, as well as detailed information for reference. The
following is an overview of the results:
Summary of 2002 and 2004 Certificates of Participation and SJBA 2002 Bonds
and Preliminary Refunding Estimates
2002 and 2004 SJBA2002
Refunding Issue COPs Bonds Total
Attachments 2 and 3
Current COPS
Principal (Par) amount outstanding $22,985,000 $23,790,000 $46,775,000
Final Maturity Date 12/01/34 12/01/34 12/01/34
Average Interest Rate to Maturity 4.68% 5.03% 4.85%
Refunding (Preliminary Estimates)
Principal (Par) amount $19,920,000 $20,570,000 $40,490,000
Average Interest Rate 3.79% 3.69% 3.74%
True ("Ali-in) Interest Cost 3.81% 3.71% 3.76%
Final Maturity Date 12/01/34 12/01/34 12/01/34
Total Refunding Debt Service $27,978, 159 $27,527,518 $55,505,677
Total Gross Savings $4,906,611 $6,442,769 $11,349,380
Net Present Value Savings($) $1,398,092 $2,206,048 $3,604,140
Net Present Value Savings(%) 6.08% 9.27% 7.68%
Average Annual (Budgeted) Savings $245,331 $322,138 $567,469
Net Average Annual Savings<1J $55,299 $110,440 $165,739
(1) Represents average annual (budgeted) savings which includes the on-going credit rating and disclosure cost savings Jess
the savings from the debt service reserve funds used to reduce the 2014 Refunding and the interest currently earned on debt
service reserve funds.
FISCAL IMPACT:
Based on the estimated average interest rate of 3. 7 4%, and the pay-down of approximately
$4.2 million ($4.5 million of available debt service reserve funds less approximately $300,000
of issuance costs, net of interest savings) in additional principal currently outstanding, the
total savings in lease payments (debt service costs) over the life of the 2014 Refunding
Issues are estimated at $11.3 million, or an average of $567,469 annually and $6.87 million,
or an average of $343,534, excluding the debt service reserve funds. Net of the interest
earned on the bond reserve funds (currently just under $200,000 annually) and other annual
cost savings, the estimated net savings on the City's lease payments totals $3.3 million, or an
average of $165,739, annually. Attachment 1 provides the detailed calculation of the annual
amount of savings, and the following is a summary of that information:
Calculation of Gross (Budgeted) Savings to Net Annual Savings
Debt Service
Gross Lease Payment Net Lease Payment Reserve Fund
(debt service cost) Debt Service (debt service cost) Interest Earnings Total Net
Refunding Issue Savings Reserve Funds Savings Less Annual Costs Savings
SJCPFA 2002 and 2004 COPS
Refunding (Combined) $4,906,611 ($2, 173,381) $2,733,230 ($1 '627 ,258) $1,105,972
SJBA 2002 Bonds Refunding 6,442,769 (2,305,315) 4,137,454 (1 ,928,660) 2,208,794
Total $11,349,380 ($4,478,696) $6,870,684 ($3,555,918) $3,314,766
Average Annual Savings $567,469 $343,534 $165,739
City Council Agenda Report
September 16, 2014
Page 6 of 6
The cost of financial advisory, bond counsel, placement agent and other services have been
included in the estimated cost of issuance for each refunding. The cost of issuance for each
refunding issue have been conservatively estimated at $200,000 and $180,000 or 1.000%
and 0.875% of the principal amount to be issued for the 2002 and 2004 COPs Combined
Refunding and 2002 SJBA Bonds, respectively. See Attachments 2 and 3, page 1.
PRIOR CITY COUNCIL REVIEW:
• May 21, 2013 -The City Council authorized City staff to proceed with a combined
refunding of the 2002 and 2004 Water Certificates of Participation and the San Juan
Basin Authority Lease Revenue Bonds (Groundwater Recover Project) Issue of 2002;
approve the Agreement for Financial Advisor Services with Fieldman, Rolapp and
Associates, Inc.; and approve the Agreement for Bond/Disclosure Counsel Services
with Orrick, Herrington Sutcliffe, LLP.
• April 1, 2014-The City Council approved the Amended and Restated Agreement for
Bond Counsel Services for the Refunding of the 2002 and 2004 Water Certificates of
Participation and the 2002 San Juan Basin Authority Lease Revenue Bonds which
included the provision to determine a revised fixed fee amount to include costs
incurred through September 1, 2013, and costs to complete the combined refunding.
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
On August 19, 2014, the Utilities Commission approved the recommendation to City Council
to proceed with a combined refunding of the 2002 and 2004 Water Certificates of
Participation and the San Juan Basin Authority Lease Revenue Bonds (Groundwater
Recover Project) Issue of 2002 through a competitive private placement financing.
NOTIFICATION:
Jim Fabian, Principal-Fieldman, Rolapp and Associates, Inc.
Stephen A. Spitz, Partner-Orrick, Herrington, and Sutcliffe, LLP
ATTACHMENTS:
Attachment 1 -Net Refunding Calculation -Private Placement
Attachment 2 -Summary and Detail of 2002 and 2004 Certificates of Participation Combined
Refunding-Private Placement
Attachment 3 -Summary and Detail of the San Juan Basin Authority Lease Revenue Bonds
(Groundwater Recovery Project) Issue of 2002-Private Placement
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Period Ending
12/1/2015
12/1/2016
12/1/2017
12/1/2018
12/1/2019
12/1/2020
12/1/2021
12/1/2022
12/1/2023
12/1/2024
12/1/2025
12/1/2026
12/1/2027
12/1/2028
12/1/2029
12/1/2030
12/1/2031
12/1/2032
12/1/2033
12/1/2034
Average Annual
Savings
City of San Juan Capistrano
Proposed Bond Refunding-2014
Net Refunding Savings Calculation -Private Placement
2002 and 2004 Certificates of Participation 2002 SJBA lease Revenue Bonds
Reserve Fund Reserve Fund
Interest Earnings Net Interest Earnings Net
Less Annual Refunding Less Annual Refunding
Gross Savings Costs Savings Gross Savings Costs Savings
334,823 103,032 231,791 322,119 96,433 225,686
336,384 103,032 233,352 321,389 96,433 224,956
337,468 103,032 234,436 320,663 96,433 224,230
336,734 103,032 233,702 323,448 96,433 227,015
338,955 103,032 235,924 324,480 96,433 228,047
334,553 103,032 231,522 323,761 96,433 227,328
333,047 800,870 (467,823) 321,133 96,433 224,700
194,468 69,695 124,773 320,388 96,433 223,955
198,634 69,695 128,939 322,923 96,433 226,490
196,402 69,695 126,707 323,487 96,433 227,054
198,697 69,695 129,002 322,080 96,433 225,647
194,444 69,695 124,749 323,048 96,433 226,615
194,637 69,695 124,942 323,003 96,433 226,570
198,843 69,695 129,148 321,947 96,433 225,514
195,782 69,695 126,086 319,813 96,433 223,380
196,861 69,695 127,166 321,601 96,433 225,168
196,844 69,695 127,149 322,062 96,433 225,629
195,731 69,695 126,035 321,196 96,433 224,763
198,473 69,695 128,777 324,002 96,433 227,569
194,833 1,545,238 (1 ,350,406) 320,230 2,401,748 (2,081,518)
4,906,611 3,800,639 1,105,972 6,442,769 4,233,975 2,208,794
245,331 55,299 322,138 110,440
Gross Savings
656,942
657,773
658,131
660,181
663,435
658,314
654,180
514,856
521,556
519,889
520,777
517,492
517,640
520,790
515,594
518,462
518,906
516,926
522,474
515,063
11,349,380
567,469
Total
Net
Refunding Savings
457,478
458,308
458,666
460,717
463,971
458,849
(243,123)
348,728
355,428
353,761
354,649
351,364
351,512
354,661
349,466
352,334
352,778
350,798
356,346
(3,431,924)
3,314,767
165,739
Aug 8, 2014 3:03pm Prepared by Fieldmau, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page I
Notes:
Sources:
Bond Proceeds:
Par Amount
Other Sources ofFnnds:
SOURCES AND USES OF FUNDS
SAN JUAN CAPISTRANO
Private Placement Refunding of2002 and 2004 COPs
Dated Date
Delivery Date
11112/2014
11/12/2014
Refunding of Refunding of
2002 Water 2004 Water
Revenue COPs Revenue COPs
3,155,000.00 16,765,000.00
Debt Service Reserve Fund
December 1, 2014 Debt Service
697,838.00
559,968.13
1,475,543.00
1,010,781.25
Uses:
Refunding Escrow Deposits:
Cash Deposit
Delivery Date Expenses:
Cost of Issuance
Placement Agent Fee
Other Uses of Funds:
Additional Proceeds
I ,257,806.13
4,412,806.13
Refunding of
2002 Water
Revenue COPs
4,380,054.47
26,925.20
4,751.51
31,676.71
1,074.95
4,412,806.13
2,486,324.25
19,251,324.25
Refunding of
2004 Water
Revenue COPs
19,081,040.80
143,074.80
25,248.49
168,323.29
1,960.16
19,251,324.25
Assumes fixed rate of 3.79%
Costs of Issuance assumes $170,000, including $39,000 for FRA contingent on successful bond closing.
Assumes no reserve fund
Reserve balances from FY 12-13 Annual Continuing Disclosure Statement
Total
19,920,000.00
2,173,381.00
1,570,749.38
3,744,130.38
23,664,130.38
Total
23,461,095.27
170,000.00
30,000.00
200,000.00
3,035.11
23,664,130.38
ATTACHMENT 2-Page 1 of 12
Aug 8, 2014 3:03pm Prepared by Ficldman, Rolapp & Associates (JC)
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Series
Rcti.mding of2002 Water Revenue COPs
Refunding of2004 Water Revenue COPs
SUMMARY OF FINANCING RESULTS
SAN JUAN CAPISTRANO
Private Placement Refunding of 2002 and 2004 COPs
Bond Par
3,155,000.00
16,765,000.00
19,920,000.00
Aggregate
Arbitrage Yield
Escrow Yield
Bond
Yield
3.789%
3.790%
3.789753%
Contingency
1,074 95
1,960.16
3,035.11
Escrow
Yield
(Finance 7.009 San Juan Capistrano, City of:REF0204) Page 2
Negative
Arbitrage
0.00
Net
Savings
147,813.55
1,250,278.68
1,398,092.23
Aug 8, 2014 3:03pm Prepared by Fie1dman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 3
Dated Date
Delivery Date
Arbitrage Yield
Escrow Yield
Value of Negative Arbitrage
Bond Par Amount
True Interest Cost
Net Interest Cost
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PV of prior debt
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
SUMMARY OF REFUNDING RESULTS
SAN JUAN CAPISTRANO
Private Placement Refunding of 2002 and 2004 COPs
Refunding of Refunding of
2002 Water 2004 Water
Revenue COPs Revenue COPs
11112/2014 11112/2014
11/12/2014 11112/2014
3.789753% 3.789753%
3,155,000.00 16,765,000.00
3.829277% 3.806324%
3.825856% 3.802664%
3.790000% 3.790000%
4.200 11.892
4,285,000.00 18,700,000.00
5.019332% 4.652660%
3.795 11.705
4,558,401.40 20,497,676.85
147,813.55 I ,250,278.68
3.449558% 6.685982%
4.685057% 7.457672%
Total
11/12/2014
11/12/2014
3.789753%
19,920,000.00
3.807990%
3.804110%
3.790000%
10.674
22,985,000.00
4.678016%
10.231
25,056,078.25
I ,398,092.23
6.082629%
7.018535%
ATTACHMENT 2-Page 3 of 12
Aug 8, 2014 3:03pm Prepared by Fie1dman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 4
Bond
Matmity
Date
SUMMARY OF BONDS REFUNDED
SAN JUAN CAPISTRANO
Refunding of2002 Water Revenue COPs
Interest
Rate
Par
Amount
Call
Date
Call
Price
San Juan Capistrano Public Financing Authority Revenue Certificates of Participation, Series 2002, 2002COPS:
SERIAL 12/01/2014 4.500% 455,000.00 11/14/2014 100.000
12/01/2015 4.625% 475,000.00 11/14/2014 100.000
12/0112016 4.800% 495,000.00 11/14/2014 100.000
12/01/2017 4.875% 520,000.00 11/14/2014 100.000
12/01/2018 5.000% 545,000.00 11/14/2014 100.000
12/01/2019 5.000% 570,000.00 11114/2014 100.000
12/01/2020 5.100% 595,000.00 11114/2014 100.000
12/0112021 5.125% 630,000.00 11/14/2014 100.000
4,285,000.00
ATTACHMENT 2-Page 4 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 5
Bond
Maturity
Date
SUMMARY OF BONDS REFUNDED
SAN JUAN CAPISTRANO
Refunding of2004 Water Revenue COPs
Interest
Rate
Par
Amount
Call
Date
Call
Price
San Juan Capistrano Public Financing Authority Revenue Certificates of Participation, Series 2004, 2004COPS:
SERIAL 12/01/2014 3.625% 590,000.00 11/14/2014 100.000
12/01/2015 3.750% 575,000.00 11/14/2014 100.000
12/01/2016 3.875% 595,000.00 11/14/2014 100.000
12/01/2017 4.000% 620,000.00 11/14/2014 100.000
12/01/2018 4.100% 650,000.00 11/14/2014 100.000
12/01/2019 4.200% 675,000.00 11/14/2014 100.000
12/01/2020 4.300% 705,000.00 11/14/2014 100.000
12/01/2021 4.400% 735,000.00 11/14/2014 100.000
12/01/2022 4.400% 770,000.00 11/14/2014 100.000
12/01/2023 4.500% 805,000.00 11/14/2014 100.000
12/01/2024 4.500% 845,000.00 11/14/2014 100.000
12/01/2025 4.600% 885,000.00 11/14/2014 100.000
12/01/2026 4.600% 930,000.00 11/14/2014 100.000
12/01/2027 4.625% 975,000.00 11/14/2014 100.000
TERM2030 12/01/2030 4.750% 3,230,000.00 11114/2014 100.000
TERM2034 12/01/2034 4.750% 5,115,000.00 11114/2014 100.000
18,700,000.00
ATTACHMENT 2-Page 5 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 6
Date
12/01!2014
12/01/2015
12/01/2016
12/01/2017
12/01/2018
12/01/2019
12/01/2020
12/01/2021
SAVINGS
SAN JUAN CAPISTRANO
Refunding of2002 Water Revenue COPs
Prior Prior Prior Refunding
Debt Service Receipts Net Cash Flow Debt Service Savings
559,968.13 559,968.13
664,461.26 664,461.26 525,885.38 138,575.88
662,492.50 662,492.50 524,414.50 138,078.00
663,732.50 663,732.50 523,496.50. 140,236.00
663,382.50 663,382.50 522,010.00 141,372.50
661,132.50 661,132.50 519,955.00 141,177.50
657,632.50 657,632.50 517,331.50 140,301.00
662,287.50 662,287.50 524,139.50 138,148.00
5,195,089.39 559,968.13 4,635,121.26 3,657,232.38 977,888.88
Savings Swnmary
PV of savings from cash flow
Less: Prior funds on hand
Plus: Refunding funds on hand
Net PV Savings
844,576.60
-697,838.00
1,074.95
147,813.55
Present Value
to 11112/2014
@ 3.7897532%
133,727.11
128,389.71
125,517.01
121,796.05
ll7,067.03
111,973.04
106,106.66
844,576.60
ATTACHMENT 2-Page 6 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 7
Date
12/0112014
12/01/2015
12/0112016
12/0112017
12/0112018
12/01/2019
12/0112020
12/0112021
12/0112022
12/0112023
12/0112024
12/01/2025
12/0112026
12/01/2027
12/01/2028
12/0112029
12/0112030
12/0112031
12/01/2032
12/0112033
12/01/2034
SAVINGS
SAN JUAN CAPISTRANO
Refunding of2004 Water Revenue COPs
Prior P1ior Prior Refunding
Debt Service Receipts Net Cash Flow Debt Service Savings
1,010,781.25 I ,0 I 0,781.25
1,395,175.00 1,395,175.00 1,198,928.16 196,246.84
1,393,612.50 1,393,612.50 I ,195,306.50 198,306.00
1,395,556.26 1,395,556.26 I, 198,324.50 197,231.76
1,400,756.26 1,400,756.26 1,205,395.00 195,361.26
1,399,106.26 1,399,106.26 1,201,328.50 197,777.76
1,400,756.26 I ,400,756.26 I ,206,504.00 194,252.26
I ,400,441.26 I ,400,441.26 1,205,542.50 194,898.76
1,403,101.26 1,403,101.26 I ,208,633.50 194,467.76
I ,404,221.26 I ,404,221.26 1,205,587.50 198,633.76
I ,407,996.26 I ,407,996.26 1,211,594.00 196,402.26
I ,409,971.26 1,409,971.26 I ,211,274.00 198,697.26
I ,414,261.26 1,414,261.26 1,219,817.00 194,444.26
I ,416,481.26 I ,416,481.26 I ,221 ,844.00 194,637.26
1,421,387.50 I ,421,387.50 I ,222,544.50 198,843.00
1,422,700.00 I ,422,700.00 I ,226,918.50 195,781.50
I ,426,637.50 I ,426,637.50 I ,229,776.50 196,861.00
I ,427,962.50 I ,427,962.50 1,231,118.50 196,844.00
1,431,675.00 1,431,675.00 1,235,944.50 195,730.50
1,437,537.50 1,437,537.50 1,239,065.00 198,472.50
I ,440,312.50 1,440,312.50 I ,245,480.00 194,832.50
29,260,430.11 1,010,781.25 28,249,648.86 24,320,926.66 3,928,722.20
PV of savings from cash flow
Less: Prior funds on hand
Plus: Refunding funds on hand
Net PV Savings
Savings Summary
2,723,861.52
-1,475,543.00
1,960.16
1,250,278.68
Present Value
to 11/12/2014
@ 3.7897532%
189,713.62
185,205.05
177,413.82
169,254.95
164,997.12
156,082.00
150,795.31
144,882.38
142,470.19
135,643.63
132,112.92
124,484.13
119,958.58
117,959.64
111,803.05
108,202.12
104,131.23
99,651.41
97,240.57
91,859.83
2,723,861.52
ATTACHMENT 2-Page 7 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 8
Date
12/01/2014
12/01/2015
12/01/2016
12/01/2017
12/01/2018
12/01/2019
12/01/2020
12/01/2021
12/01/2022
12/01/2023
12/01/2024
12/01/2025
12/01/2026
12/01/2027
12/01/2028
12/01/2029
12/01/2030
12/01/2031
12/01/2032
12/01/2033
12/01/2034
SAVINGS
SAN JUAN CAPISTRANO
Private Placement Refunding of2002 and 2004 COPs
Prior Prior Prior Refunding
Debt Service Receipts Net Cash Flow Debt Service Savings
1,570,749.38 I ,570,749.38
2,059,636.26 2,059,636.26 1,724,813.54 334,822.72
2,056,105.00 2,056, I 05.00 I, 719,721.00 336,384.00
2,059,288.76 2,059,288.76 1,721,821.00 337,467.76
2,064,138.76 2,064,138.76 1,727,405.00 336,733.76
2,060,238.76 2,060,238.76 1,721,283.50 338,955.26
2,058,388.76 2,058,388.76 1,723,835.50 334,553.26
2,062,728.76 2,062,728.76 1,729,682.00 333,046.76
1,403,101.26 1,403, I 01.26 1,208,633.50 194,467.76
I ,404,221.26 1,404,221.26 1,205,587.50 198,633.76
1,407,996.26 I ,407,996.26 I ,211,594.00 196,402.26
I ,409,971.26 1,409,971.26 1,211,:274.00 198,697.26
I ,414,261.26 I ,414,261.26 1,219,817.00 194,444.26
I ,416,481.26 I ,416,481.26 I ,221,844.00 194,637.26
1,421,387.50 1,421,387.50 I ,222,544.50 198,843.00
I ,422,700.00 1,422,700.00 1 ,226,918.50 195,781.50
1,426,637.50 1,426,637.50 I ,229,776.50 196,861.00
1,427,962.50 1,427,962.50 1,231,118.50 196,844.00
I ,431 ,675.00 1,431,675.00 I ,235,944.50 195,730.50
1,437,537.50 1,437,537.50 1,239,065.00 198,472.50
1,440,312.50 1,440,312.50 1,245,480.00 194,832.50
34,455,519.50 1,570,749.38 32,884,770.12 27,978,159.04 4,906,611.08
Savings Summaw
PV of savings from cash flow
Less: Prior funds on hand
Plus: Refunding funds on hand
Net PV Savings
3,568,438.13
-2,173,381.00
3,035.11
I ,398,092.24
Present Value
to 11/12/2014
@ 3.7897532%
323,440.73
313,594.76
302,930.82
291,051.00
282,064.16
268,055.03
256,901.97
144,882.38
142,470.19
135,643.63
132,112.92
124,484.13
119,958.58
117,959.64
Ill ,803.05
108,202.12
104,131.23
99,651.41
97,240.57
91,859.83
3,568,438.13
ATTACHMENT 2-Page 8 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San .Juan Capistrano, City of:REF0204) Page 9
SAVINGS
SAN JUAN CAPISTRANO
Private Placement Refunding of2002 and 2004 COPs
Present Value
Prior Prior Prior Refunding Annual to 11/12/2014
Date Debt Service Receipts Net Cash Flow Debt Service Savings Savings @ 3.7897532%
12/0112014 1,570,749.38 I ,570,749.38
06/0112015 504,818.13 504,818.13 417,329.54 87,488.59 85,691.66
12/0112015 1,554,818.13 1,554,818.13 I ,307,484.00 247,334.13 334,822.72 237,749.07
06/0112016 483,052.50 483,052.50 359,860.50 123,192.00 116,215.74
12/0112016 I ,573,052.50 I ,573,052.50 I ,359,860.50 213,192.00 336,384.00 197,379.02
06/01/2017 459,644.38 459,644.38 340,910.50 118,733.88 107,882.85
12/01/2017 I ,599,644.38 I ,599,644.38 1,380,910.50 218,733.88 337,467.76 195,047.97
06/01/2018 434,569.38 434,569.38 321,202.50 I 13,366.88 99,210.86
12/01/2018 1,629,569.38 I ,629,569.38 I ,406,202.50 223,366.88 336,733.76 191,840.14
06/0112019 407,619.38 407,619.38 300,641.75 106,977.63 90,169.84
12/01/2019 1,652,619.38 1,652,619.38 1,420,641.75 231,977.63 338,955.26 191,894.31
06/01/2020 379,194.38 379,194.38 279,417.75 99,776.63 81,001.39
12/01/2020 1,679,194.38 1,679,194.38 1,444,417.75 234,776.63 334,553.26 187,053.64
06/01/2021 348,864.38 348,864.38 257,341.00 91,523.38 71,563.41
12/0112021 1,713,864.38 1,713,864.38 1,472,341.00 241,523.38 333,046.76 185,338.56
06/01/2022 316,550.63 316,550.63 234,316.75 82,233.88 61,930.57
12/0112022 I ,086,550.63 I ,086,550.63 974,316.75 I 12,233.88 194,467.76 82,951.81
06/0112023 299,610.63 299,610.63 220,293.75 79,316.88 57,532.76
12/0112023 1,104,610.63 I, I 04,610.63 985,293.75 119,316.88 198,633.76 84,937.43
06/01/2024 281,498.13 281,498.13 205,797.00 75,701.13 52,886.79
12/01/2024 1,126,498.13 1,126,498.13 1,005,797.00 120,701.13 196,402.26 82,756.83
06/01/2025 262,485.63 262,485.63 190,637.00 71,848.63 48,345.79
12/01/2025 1,147,485.63 1,147,485.63 I ,020,637.00 126,848.63 198,697.26 83,767.12
06/01/2026 242,130.63 242,130.63 174,908.50 67,222.13 43,566.01
12/01/2026 1,172,130.63 1,172,130.63 I ,044,908.50 127,222.13 194,444.26 80,918.12
06/01/2027 220,740.63 220,740.63 158,422.00 62,318.63 38,899.92
12/0112027 1,195,740.63 1,195,740.63 I ,063,422.00 132,318.63 194,637.26 81,058.66
06/0112028 198,193.75 198,193.75 141,272.25 56,921.50 34,221.77
12/0112028 1,223,193.75 1,223,193.75 1,081,272.25 141,921.50 I 98,843.00 83,737.87
06/0112029 173,850.00 173,850.00 123,459.25 50,390.75 29,179.12
12/0112029 1,248,850.00 1,248,850.00 1,103,459.25 145,390.75 195,781.50 82,623.93
06/01/2030 148,318.75 148,318.75 104,888.25 43,430.50 24,222.09
12/01/2030 1,278,318.75 1,278,318.75 1,124,888.25 153,430.50 196,861.00 83,980.04
06/01/2031 121,481.25 121,481.25 85,559.25 35,922.00 19,296.23
12/01/2031 I ,306,481.25 I ,306,481.25 I ,145,559.25 160,922.00 196,844.00 84,835.00
06/01/2032 93,337.50 93,337.50 65,472.25 27,865.25 14,416.85
12/01/2032 I ,338,337.50 I ,338,337.50 I, 170,4 72.25 167,865.25 195,730.50 85,234.57
06/0112033 63,768.75 63,768.75 44,532.50 19,236.25 9,585.68
12/0112033 1,373,768.75 1,373,768.75 1,194,532.50 179,236.25 198,472.50 87,654.88
06/01/2034 32,656.25 32,656.25 22,740.00 9,916.25 4,759.33
12/0112034 I ,407,656.25 I ,407,656.25 1,222,740.00 184,916.25 194,832.50 87,100.50
34,455,5 I 9.50 I ,570,749.38 32,884,770.12 27,978,159.04 4, 906,611.08 4,906,611.08 3,568,438.13
Savings Summary
PV of savings from cash flow 3,568,438.13
Less: Prior funds on hand -2,173,381.00
Plus: Reftmding funds on hand 3,035.1 I
Net PV Savings I ,398,092.24
ATTACHM 2-Page9of12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 10
SAVINGS
SAN JUAN CAPISTRANO
Refunding of2002 Water Revenue COPs
Present Value
Prior Prior Prior Refunding Annual to 11/12/2014
Date Debt Service Receipts Net Cash Flow Debt Service Savings Savings @ 3.7897532%
12/01/2014 559,968.13 559,968.13
06/01/2015 94,730.63 94,730.63 66,098.13 28,632.50 28,044.42
12/01/2015 569,730.63 569,730.63 459,787.25 109,943.38 138,575.88 105,682.69
06/01/2016 83,746.25 83,746.25 52,207.25 31,539.00 29,752.97
12/01/2016 578,746.25 578,746.25 472,207.25 106,539.00 138,078.00 98,636.74
06/01/2017 71,866.25 71,866.25 44,248.25 27,618.00 25,094.00
12/01/2017 591,866.25 591,866.25 479,248.25 112,618.00 140,236.00 100,423.00
06/01/2018 59,191.25 59,191.25 36,005.00 23,186.25 20,2'91.00
12/01/2018 604,191.25 604,191.25 486,005.00 118,186.25 141,372.50 101,505.05
06/01/2019 45,566.25 45,566.25 27,477.50 18,088.75 15,246.74
12/01/2019 615,566.25 615,566.25 492,477.50 123,088.75 141,177.50 101,820.30
06/01/2020 31,316.25 31,316.25 18,665.75 12,650.50 10,270.02
12/01/2020 626,316.25 626,316.25 498,665.75 127,650.50 140,301.00 101,703.01
06/01/2021 16,143.75 16,143.75 9,569.75 6,574.00 5,140.30
12/01/2021 646,143.75 646,143.75 514,569.75 131,574.00 138,148.00 I 00,966.36
5,195,089.39 559,968.13 4,635,121.26 3,657,232.38 977,888.88 977,888.88 844,576.60
Savings Summaw
PV of savings from cash flow 844,576.60
Less: Prior funds on hand -697,838.00
Plus: Refunding funds on hand 1,074.95
Net PV Savings 147,813.55
ATTACHMENT 2-Page 10 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page II
SAV!NGS
SAN JUAN CAPISTRANO
Refunding of2004 Water Revenue COPs
Present Value
Prior Prior Prior Refunding Annual to 11/12/2014
Date Debt Service -Receipts Net Cash Flow Debt Service Savings Savings @ 3.7897532%
12/01/2014 1,010,781.25 1,010,781.25
06/01/2015 410,087.50 410,087.50 351,231.41 58,856.09 57,647.24
12/0112015 985,087.50 985,087.50 847,696.75 137,390.75 196,246.84 132,066.38
06/01/2016 399,306.25 399,306.25 307,653.25 91,653.00 86,462.76
12/01/2016 994,306.25 994,306.25 887,653.25 106,653.00 198,306.00 98,742.28
06/01/2017 387,778.13 387,778.13 296,662.25 91,115.88 82,788.84
12/01/2017 1,007,778.13 1,007,778.13 901,662.25 106,115.88 197,231.76 94,624.97
06/0112018 375,378.13 375,378.13 285,197.50 90,180.63 78,919.86
12/01/2018 1,025,378.13 1,025,378.13 920,197.50 105,180.63 195,361.26 90,335.09
06/01/2019 362,053.13 362,053.13 273,164.25 88,888.88 74,923.11
12/01/2019 1,037,053.13 1,037,053.13 928,164.25 108,888.88 197,777.76 90,074.02
06/01/2020 347,878.13 347,878.13 260,752.00 87,126.13 70,731.37
12/01/2020 1,052,878.13 I ,052,878.13 945,752.00 107,126.13 194,252.26 85,350.63
06/01/2021 332,720.63 332,720.63 247,771.25 84,949.38 66,423.10
12/01/2021 1,067,720.63 1,067,720.63 957,771.25 109,949.38 194,898.76 84,372.20
06/01/2022 316,550.63 316,550.63 234,316.75 82,233.88 61,930.57
12/01/2022 1,086,550.63 1,086,550.63 974,316.75 112,233.88 194,467.76 82,951.81
06/01/2023 299,610.63 299,610.63 220,293.75 79,316.88 57,532.76
12/01/2023 1,104,610.63 1,104,610.63 985,293.75 119,316.88 198,633.76 84,937.43
06/0112024 281,498.13 281,498.13 205,797.00 75,701.13 52,886.79
12/01/2024 1,126,498.13 I ,126,498.13 1,005,797.00 120,701.13 196,402.26 82,756.83
06/01/2025 262,485.63 262,485.63 190,637.00 71,848.63 48,345.79
12/01/2025 1,147,485.63 1,147,485.63 1,020,637.00 126,848.63 198,697.26 83,767.12
06/01/2026 242,130.63 242,130.63 174,908.50 67,222.13 43,566.01
12/01/2026 1,172,130.63 1,172,130.63 I ,044,908.50 127,222.13 194,444.26 80,918.12
06/01/2027 220,740.63 220,740.63 158,422.00 62,318.63 38,899.92
12/0112027 I, 195,740.63 1,195,740.63 1,063,422.00 132,318.63 194,637.26 81,058.66
06/01/2028 198,193.75 198,193.75 141,272.25 56,921.50 34,221.77
12/01/2028 I ,223,193.75 1,223,193.75 1,081,272.25 141,921.50 198,843.00 83,737.87
06/0112029 173,850.00 173,850.00 123,459.25 50,390.75 29,179.12
12/0112029 I ,248,850.00 I ,248,850.00 1,103,459.25 145,390.75 195,781.50 82,623.93
06/01/2030 148,318.75 148,318.75 104,888.25 43,430.50 24,222.09
12/01/2030 1,278,318.75 1,278,318.75 1,124,888.25 153,430.50 196,861.00 83,980.04
06/01/2031 121,481.25 121,481.25 85,559.25 35,922.00 19,296.23
12/01/2031 1,306,481.25 1,306,481.25 1,145,559.25 160,922.00 196,844.00 84,835.00
06/01/2032 93,337.50 93,337.50 65,472.25 27,865.25 14,416.85
12/01/2032 1,338,337.50 1,338,337.50 1,170,472.25 167,865.25 195,730.50 85,234.57
06/0112033 63,768.75 63,768.75 44,532.50 19,236.25 9,585.68
12/01/2033 1,373,768.75 I ,373,768.75 I ,194,532.50 179,236.25 198,472.50 87,654.88
06/01/2034 32,656.25 32,656.25 22,740.00 9,916.25 4,759.33
12/01/2034 1,407,656.25 1,407,656.25 I ,222,740.00 184,916.25 194,832.50 87,100.50
29,260,430.11 I ,0 10,781.25 28,249,648.86 24,320,926.66 3,928,722.20 3,928,722.20 2,723,861.52
Savings Summary
PV of savings from cash flow 2,723,861.52
Less: Prior funds on hand -1,475,543.00
Plus: Refunding funds on hand 1,960.16
Net PV Savings 1,250,278.68
ATTACHMENT 2-Page 11 of 12
Aug 8, 2014 3:03pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:REF0204) Page 12
BOND SUMMARY STATISTICS
SAN JUAN CAPISTRANO
Private Placement Refunding of2002 and 2004 COPs
Dated Date
Delivery Date
Last Maturity
Arbitrage Yield
True Interest Cost (TIC)
Net Interest Cost (NIC)
All-In TIC
Average Coupon
Average Life (years)
Weighted Average Maturity (years)
Duration of Issue (years)
Par Amount
Bond Proceeds
Total Interest
Net Interest
Total Debt Service
Maximum Annual Debt Service
Average Annual Debt Service
Underwriter's Fees (per $1 000)
Average Takedown
Otber Fee
Total Underwriter's Discount
Bid Price
Par
Bond Component Value
Serial Bond 3,155,000.00
Bond Component 16,765,000.00
19,920,000.00
TIC
Par Value 19,920,000.00
+ Accrued Interest
+Premium (Discount)
-Underwriter's Discount -30,000.00
-Cost oflssuance Expense
-Other Amounts
Target Value 19,890,000.00
Target Date 111I2/2014
Yield 3.807990%
11/12/2014
11/12/2014
12/01/2034
3.789753%
3.807990%
3.804110%
3.912128%
3.790000%
10.674
10.674
8.418
19,920,000.00
19,920,000.00
8,058,159.04
8,088,159.04
27,978,159.04
1,729,682.00
1,395,226.11
1.506024
1.506024
99.849398
Average
Price Coupon
100.000 3.790%
100.000 3.790%
All-In
TIC
19,920,000.00
-30,000.00
-170,000.00
19,720,000.00
11/12/2014
3.912128%
Average
Life
4.200
11.892
10.674
Arbitrage
Yield
19,920,000.00
19,920,000.00
11112/2014
3.789753%
ATTACHMENT 2-Page 12 of 12
Aug 8, 2014 3:00pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:PP _ COPRF-REF02BON,REF02BON) Page I
Notes:
Assumes fixed rate of 3.69%
Assumes no reserve fund
SOURCES AND USES OF FUNDS
SAN JUAN CAPISTRANO
Refunding of 2002 Lease Revenue Bonds
*Private Placement*
Sources:
Bond Proceeds:
Dated Date
Delivery Date
Par Amount
Other Sources of Funds:
Debt Service Reserve Fund
December I, 2014 Debt Service
Uses:
Refunding Escrow Deposits:
Cash Deposit
Delivery Date Expenses:
Cost of Issuance
Placement Agent Fee
Other Uses of Funds:
Additional Proceeds
11/12/2014
11/12/2014
20,570,000.00
2,305,315.00
I ,645,406.25
3,950,721.25
24,520,721.25
24,338,228.99
150,000.00
30,000.00
180,000.00
2,492.26
24,520,721.25
Costs of Issuance assumes $150,000, including Financial Advisor fee of $44,000 contingent on bond sale closing.
Reserve balances from FY 12-13 Annual Continuing Disclosure Statement
ATTACHMENT 3-Page 1 of 6
Aug 8, 2014 3:00 pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:PP _ COPRF-REF02BON ,REF02BON) Page 2
SUMMARY OF REFUNDING RESULTS
Dated Date
Delivery Date
Arbitrage yield
Escrow yield
SAN JUAN CAPISTRANO
Refunding of2002 Lease Revenue Bonds
*Private Placement*
Value of Negative Arbitrage
Bond Par Amount
True Interest Cost
Net Interest Cost
Average Coupon
Average Life
Par amount of refunded bonds
Average coupon of refunded bonds
Average life of refunded bonds
PVofpriordebtto 11/12/2014@ 3.689736%
Net PV Savings
Percentage savings of refunded bonds
Percentage savings of refunding bonds
11/12/2014
11112/2014
3.689736%
20,570,000.00
3.709642%
3.705911%
3.690000%
9.166
23,790,000.00
5.030947%
9.428
26,721,104.65
2,206,047.60
9.273004%
10.724587%
ATTACHMENT 3-Page 2 of 6
Aug 8, 2014 3:00pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:PP _ COPRF-REF02BON,REF02BON) Page 3
Bond
Maturity
Date
SUMMARY OF BONDS REFUNDED
SAN JUAN CAPISTRANO
Refunding of 2002 Lease Revenue Bonds
*Private Placement*
Interest
Rate
Par
Amount
Call
Date
Call
Price
San Juan Basin Authority Lease Revenue Bonds (Ground Water Recovery Project) Issue of2002, 2002BOND:
SERIAL 12/0112014 5.250% 1,040,000.00 11/14/2014 100.000
12/01/2015 5.250% 1,095,000.00 11114/2014 100.000
12/0112016 5.250% 1,150,000.00 11114/2014 100.000
12/0112017 5.250% 1,210,000.00 11/14/2014 100.000
12/0112018 5.250% 1,275,000.00 11114/2014 I 00.000
12/0112019 5.250% 1,340,000.00 11114/2014 I 00.000
12/01/2020 5.250% 1,415,000.00 11114/2014 100.000
TERM2022 12/01/2022 5.000% 3,045,000.00 11114/2014 100.000
TERM2034 12/0112034 5.000% 12,220,000.00 11114/2014 100.000
23,790,000.00
ATTACHMENT 3-Page 3 of 6
Aug 8, 2014 3:00pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:PP _COPRF-REF02BON,REF02BON) Page 4
SAVINGS
SAN JUAN CAPISTRANO
Refunding of 2002 Lease Revenue Bonds
*Private Placement*
Present Value
Prior Prior P1ior Refunding to 11/12/2014
Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.6897361%
12/01/2014 1,645,406.25 I ,645,406.25
12/01/2015 2,251,212.50 2,251,212.50 1,929,093.08 322,119.42 312,770.61
12/01/2016 2,248,725.00 2,248,725.00 1,927,336.00 321,389.00 301,414.77
12/01/2017 2,248,350.00 2,248,350.00 1,927,687.00 320,663.00 289,814.65
12/01/2018 2,249,825.00 2,249,825.00 1,926,377.50 323,447.50 281,674.15
12/01/2019 2,247,887.50 2,247,887.50 1,923,407.50 324,480.00 272,274.70
12/01/2020 2,252,537.50 2,252,537.50 I ,928,777.00 323,760.50 261,769.96
12/01/2021 2,248,250.00 2,248,250.00 1,927,117.00 321,133.00 250,180.63
12/01/2022 2,249,000.00 2,249,000.00 1,928,612.00 320,388.00 240,501.38
12/01/2023 2,251,000.00 2,251,000.00 I ,928,077.50 322,922.50 233,538.67
12/01/2024 2,249,000.00 2,249,000.00 1,925,513.50 323,486.50 225,388.89
12/01/2025 I, 148,000.00 1,148,000.00 825,920.00 322,080.00 216,195.68
12/01/2026 1,147,750.00 1,147,750.00 824,702.50 323,047.50 208,973.46
12/01/2027 1,145,750.00 1,145,750.00 822,747.00 323,003.00 201,357.41
12/0112028 1,147,000.00 1,147,000.00 825,053.50 321,946.50 193,407.88
12/0112029 I, 146,250.00 I, 146,250.00 826,437.50 319,812.50 185,142.43
12/0112030 1,148,500.00 1,148,500.00 826,899.00 321,601.00 179,396.73
12/01/2031 1,148,500.00 1,148,500.00 826,438.00 322,062.00 173,106.75
12/0112032 1,146,250.00 I, 146,250.00 825,054.50 321,195.50 166,344.75
12/0112033 1,146,750.00 I ,146,750.00 822,748.50 324,001.50 161,669.00
12/0112034 1,149,750.00 1,149,750.00 829,520.00 320,230.00 153,947.81
35,615,693.75 1,645,406.25 33,970,287.50 27,527,518.58 6,442,768.92 4,508,870.34
Savings Summary
PV of savings from cash flow 4,508,870.34
Less: Prior fm1ds on hand -2,305,315.00
Plus: Refunding funds on hand 2,492.26
Net PV Savings 2,206,047.60
ATTACHMENT 3-Page 4 of 6
Aug 8, 2014 3:00pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistnmo, City of:PP _COPRF-REF02BON,REF02BON) Page 5
SAVINGS
SAN JUAN CAPISTRANO
Refunding of 2002 Lease Revenue Bonds
*Private Placement*
Present Value
Prior Prior Prior Refunding Annual to 11112/2014
Date Debt Service Receipts Net Cash Flow Debt Service Savings Savings @ 3.6897361%
12/01/2014 I ,645,406.25 I ,645,406.25
06/01/2015 578,106.25 578,106.25 419,576.58 158,529.67 155,357.92
12/01/2015 1,673,106.25 1,673,106.25 1,509,516.50 163,589.75 322,119.42 157,412.70
06/0112016 549,362.50 549,362.50 358,668.00 190,694.50 180,170.09
12/0112016 1,699,362.50 I ,699,362.50 1,568,668.00 130,694.50 321,389.00 121,244.68
06/01/2017 519,175.00 519,175.00 336,343.50 182,831.50 166,539.50
12/01/2017 I ,729,175.00 I ,729,175.00 1,591,343.50 137,831.50 320,663.00 123,275.16
06/01/2018 487,412.50 487,412.50 313,188.75 174,223.75 153,001.36
12/0112018 1,762,412.50 1 '762,412.50 1,613,188.75 149,223.75 323,447.50 128,672.79
06/01/2019 453,943.75 453,943.75 289,203.75 164,740.00 139,478.96
12/01/2019 1,793,943.75 1,793,943.75 1,634,203.75 159,740.00 324,480.00 132,795.75
06/01/2020 418,768.75 418,768.75 264,388.50 154,380.25 126,015.24
12/0112020 1,833,768.75 I ,833,768.75 1,664,388.50 169,380.25 323,760.50 135,754.72
06/0112021 381,625.00 381,625.00 238,558.50 143,066.50 112,587.71
12/01/2021 I ,866,625.00 1,866,625.00 1,688,558.50 178,066.50 321,133.00 137,592.93
06/01/2022 344,500.00 344,500.00 211,806.00 132,694.00 100,676.02
12/01/2022 I ,904,500.00 1,904,500.00 1,716,806.00 187,694.00 320,388.00 139,825.37
06/01/2023 305,500.00 305,500.00 184,038.75 121,461.25 88,845.24
12/01/2023 1,945,500.00 I ,945,500.00 1,744,038.75 201,461.25 322,922.50 144,693.43
06/01/2024 264,500.00 264,500.00 155,256.75 109,243.25 77,039.37
12/01/2024 1,984,500.00 1,984,500.00 I ,770,256.75 214,243.25 323,486.50 148,349.51
06/01/2025 221,500.00 221,500.00 125,460.00 96,040.00 65,296.81
12/0112025 926,500.00 926,500.00 700,460.00 226,040.00 322,080.00 150,898.87
06/01/2026 203,875.00 203,875.00 114,851.25 89,023.75 58,353.57
12/01/2026 943,875.00 943,875.00 709,851.25 234,023.75 323,047.50 150,619.89
06/01/2027 185,375.00 185,375.00 103,873.50 81,501.50 51,504.93
12/0112027 960,375.00 960,375.00 718,873.50 241,501.50 323,003.00 149,852.47
06/0112028 166,000.00 166,000.00 92,526.75 73,473.25 44,764.55
12/01/2028 981,000.00 981,000.00 732,526.75 248,473.25 321,946.50 148,643.33
06/01/2029 145,625.00 145,625.00 80,718.75 64,906.25 38,125.29
12/01/2029 1,000,625.00 1,000,625.00 745,718.75 254,906.25 319,812.50 147,017.14
06/01/2030 124,250.00 124,250.00 68,449.50 55,800.50 31,599.95
12/0112030 1,024,250.00 I ,024,250.00 758,449.50 265,800.50 321,601.00 147,796.78
06/01/2031 101,750.00 101,750.00 55,719.00 46,031.00 25,131.62
12/0112031 1,046,750.00 I ,046,750.00 770,719.00 276,031.00 322,062.00 147,975.13
06/0112032 78,125.00 78,125.00 42,527.25 35,597.75 18,737.61
12/01/2032 1,068,125.00 1,068,125.00 782,527.25 285,597.75 321,195.50 147,607.14
06/01/2033 53,375.00 53,375.00 28,874.25 24,500.75 12,433.48
12/0112033 1,093,375.00 I ,093,375.00 793,874.25 299,500.75 324,001.50 149,235.52
06/01/2034 27,375.00 27,375.00 14,760.00 12,615.00 6,171.95
12/0112034 I, 122,375.00 1,122,375.00 814,760.00 307,615.00 320,230.00 147,775.86
35,615,693.75 I ,645,406.25 33,970,287.50 27,527,518.58 6,442,768.92 6,442,768.92 4,508,870.34
Savings Summary
PV of savings from cash flow 4,508,870.34
Less: Prior funds on hand -2,305,315.00
Plus: Refunding funds on hand 2,492.26
Net PV Savings 2,206,047.60
ATTACHMENT 3-Page 5 of 6
Aug 8, 2014 3:00pm Prepared by Fieldman, Rolapp & Associates (JC) (Finance 7.009 San Juan Capistrano, City of:PP _COPRF-REF02BON,REF02BON) Page 6
BOND SUMMARY STATISTICS
SAN JUAN CAPISTRANO
Refunding of 2002 Lease Revenue Bonds
*Private Placement*
Dated Date
Delivery Date
Last Matnrity
Arbitrage Yield
True Interest Cost (TIC)
Net Interest Cost (NIC)
All-In TIC
Average Coupon
Average Life (years)
Weighted Average Maturity (years)
Duration of Issue (years)
Par Amount
Bond Proceeds
Total Interest
Net Interest
Total Debt Service
Maximmn Annual Debt Service
Average Annual Debt Service
Underwriter's Fees (per $1000)
Average Takedown
Other Fee
Total Underwriter's Discount
Bid Price
Bond Component
Par
Value
Serial Bond 20,570,000.00
20,570,000.00
TIC
Par Value 20,570,000.00
+ Accrued Interest
+ Premium (Discount)
-Unde1writer's Discount -30,000.00
-Cost of Issuance Expense
-Other Amounts
Target Value 20,540,000.00
Target Date 11/12/2014
Yield 3.709642%
11/12/2014
11112/2014
12/01/2034
3.689736%
3.709642%
3.705911%
3.809846%
3.690000%
9.166
9.166
7.465
20,570,000.00
20,570,000.00
6,957,518.58
6,987,518.58
27,527,518.58
1,929,093.08
1,372,753.39
Price
100.000
1.458435
1.458435
99.854157
Average
Coupon
3.690%
All-In
TIC
20,570,000.00
-30,000.00
-150,000.00
20,390,000.00
11/12/2014
3.809846%
Average
Life
9.166
9.166
Arbitrage
Yield
20,570,000.00
20,570,000.00
11/12/2014
3.689736%
ATTACHMENT 3-Page 6 of 6