Loading...
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 ~ ~ 0 I :5: m z --1 -->. 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) ~ ~ () :r: s: m z -1 N lJ Ill (Q (l) N 0 -...... N 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