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6.C. - Page 28 of 57 <br />Bond Allocation and Defeasance .Analysis I December 6, 2019 � pg 4 <br />Allocable Debt Service. The total par amount <br />(principal) of the outstanding Series 2019 Bonds is <br />$48,775,000. Of this total, bonds maturing from 2020 — <br />2029, representing 514.575 million in outstanding par <br />amount, are non -callable, and bonds maturing from 2030 <br />— 2042, representing $3.1200 million in par amount, are <br />callable and subject to optional redemption on September <br />1, 2029. Inclusive of principal and interest, total debt <br />service through the first call date of September 1, 2029 <br />equates to 536,410,513.89 and total debt service through <br />the September 1, 2042 maturity equates to S83,739,013,89. <br />In Attachment A we provide a schedule of the <br />outstanding maturities of the Series 2019 Bonds. The <br />schedule to the right details the Town of Atherton's <br />allocable debt service based on the assumption that 3.25116) <br />of the outstanding Series 2019 Bonds are attributable to <br />the Member Agency. <br />Period <br />9 1 2(139 <br />1OUM <br />5 (1005: <br />Mnual Dept Coll <br />Ending <br />Prtnrlpal <br />Coupon <br />Interest <br />S"A" Dnte <br />91.2020 <br />AND <br />3 WO".„ <br />39,625 <br />69,6'-5 <br />9.1.2021 <br />41),(0) <br />51x111% <br />77,750 <br />117.750 <br />9111022 <br />401(100 <br />5000% <br />75,750 <br />115,7511 <br />911/-'023 <br />45.1x10 <br />5.00% <br />73,750 <br />119,750 <br />9112024 <br />50.000 <br />5,0111)," <br />71,500 <br />1211.500 <br />91 n25 <br />50.000 <br />5 000% <br />69.000 <br />I I9A00 <br />913026 <br />5n,011115 <br />(x10°. <br />66.500 <br />116.51x1 <br />9• l 3027 <br />55.000 <br />5,000, <br />64-000 <br />l KIM <br />91'0'8 <br />601000 <br />5,IxxW6 <br />(I1250 <br />I21?50 <br />9.'1.2029 <br />600x) <br />5Mr..„ <br />59,25) <br />11x,250 <br />9112030 <br />60 (") <br />5,M)I4 <br />55.250 <br />115.250 91 2029 <br />9112031 <br />65,(x10 <br />5.00(rn <br />52.250 <br />117?50 9'12029 <br />91/1032 <br />70.000 <br />50M)"'. <br />49.000 <br />II9.(m 9x2039 <br />9112033 <br />701W0 <br />5.000^,;, <br />45,500 <br />115,50n 9/I2@9 <br />91!2034 <br />15,1x1(1 <br />5,OWI1 <br />43,000 <br />117,(N)U 91121)21) <br />W1/1035 <br />x0.000 <br />5.000"x, <br />38,250 <br />II8,'5n 9?Ir2n?9 <br />9L2036 <br />NJAW) <br />,5,1100% <br />34.250 <br />119,250 9.1 ^_11]9 <br />9'12037 <br />911.0110 <br />5.000°6 <br />30.OW1 <br />120,000 91.21139 <br />912039 <br />9).1x10 <br />S0W)^6 <br />25,500 <br />115.50() 912029 <br />First call date of September 1, 2029. The escrow <br />sufficiency would be the amount necessary to pay principal and interest on the non -callable maturities <br />through their respective maturity dates plus the total amount of callable principal to be redeemed on <br />the September 1, 2029 call date. <br />Escrow Cost. assuming an escrow invested in SLGS bearing interest rates as of December 4, 2019 <br />and an escrow period from March 2, 2020 (a Monday) to the September 1, 2029 call date, a defeasance <br />of all outstanding Series 2019 Bonds would require an escrow that costs S61,193,433,24. The table <br />below calculates the Town of Atherton's proportional defeasance cost based on varying approaches to <br />the application of their allocable percentage of total outstanding bond obligations. <br />Total Cost of Defeasance - Series 2019 Bonds $ 61,193,433.24 <br />Scenario 1: 'Host Recent Calendar fear 2018 'Ibnnage <br />Allocable Percentage= 3.25",, 5 1,987,908.71 <br />Scenario 2: lvcragc Tonnage Percentage - I ast Three Years <br />Illocablc Percentage = 3.27),1 5 3,00!,02537 <br />Scenario 3: T1ircc-Year I listoricai Tonnage Rounded <br />111ocable Percentage = 3.301w 5 3,019,383.30 <br />13011 Clay Street, S4111c 1000 I (Oakland, CA 9#613 I Main 5111-839-8200 I has 510-208-8222 <br />1351 Quail Srrcet, Suite 3110 I Newport Beach, CA 92660 I Nlam 949-346.49011 I I,as 5111-7118-8282 <br />5757 W. Century i4nulecard, Suite 7110 I hos Angeles. CA 90045 I Main 310-318-291)1 I 1,ax 510-208-8282 <br />SBWMA BOD PACKET 8/20/2020 <br />AGENDA ITEM: 5A ATTACHMENT 2 - p4 <br />+t� <br />9 1 2(139 <br />1OUM <br />5 (1005: <br />21 [x)1) <br />121,000 91 2029 <br />Because Series 2019 Bonds maturing after 2029 are <br />91 2(140 <br />1000W <br />5.(W,,4 <br />Ir,.an <br />116.0m 9 1 2029 <br />callable and can be optionally redeemed by SBWNL-1, a <br />412041 <br />110,000 <br />5.aal°.o <br />ILODO <br />121!9x) 912029 <br />defeasance escrow would therefore be structured to the <br />91204' <br />1RONI <br />L5x5.000 <br />5.'xxw" <br />5.500 <br />1,0x2.x75 <br />115,500 q 2029 <br />2,667.X71 <br />First call date of September 1, 2029. The escrow <br />sufficiency would be the amount necessary to pay principal and interest on the non -callable maturities <br />through their respective maturity dates plus the total amount of callable principal to be redeemed on <br />the September 1, 2029 call date. <br />Escrow Cost. assuming an escrow invested in SLGS bearing interest rates as of December 4, 2019 <br />and an escrow period from March 2, 2020 (a Monday) to the September 1, 2029 call date, a defeasance <br />of all outstanding Series 2019 Bonds would require an escrow that costs S61,193,433,24. The table <br />below calculates the Town of Atherton's proportional defeasance cost based on varying approaches to <br />the application of their allocable percentage of total outstanding bond obligations. <br />Total Cost of Defeasance - Series 2019 Bonds $ 61,193,433.24 <br />Scenario 1: 'Host Recent Calendar fear 2018 'Ibnnage <br />Allocable Percentage= 3.25",, 5 1,987,908.71 <br />Scenario 2: lvcragc Tonnage Percentage - I ast Three Years <br />Illocablc Percentage = 3.27),1 5 3,00!,02537 <br />Scenario 3: T1ircc-Year I listoricai Tonnage Rounded <br />111ocable Percentage = 3.301w 5 3,019,383.30 <br />13011 Clay Street, S4111c 1000 I (Oakland, CA 9#613 I Main 5111-839-8200 I has 510-208-8222 <br />1351 Quail Srrcet, Suite 3110 I Newport Beach, CA 92660 I Nlam 949-346.49011 I I,as 5111-7118-8282 <br />5757 W. Century i4nulecard, Suite 7110 I hos Angeles. CA 90045 I Main 310-318-291)1 I 1,ax 510-208-8282 <br />SBWMA BOD PACKET 8/20/2020 <br />AGENDA ITEM: 5A ATTACHMENT 2 - p4 <br />+t� <br />