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6.3.C. - Page 2 <br /> approximately 4.25% of the amount of refunding bonds to be sold. Average annual debt <br /> service savings, in future dollars, would be approximately $55,000. <br /> These two bond issues would be refunded pursuant to a common plan of finance with a <br /> single bond sale. On a combined basis, total NPV savings are estimated at $3,750,000, <br /> or 6.86%. Annual debt service savings to the water enterprise would be approximately <br /> $220,000 annually. <br /> For a variety of factors it is not economical to refinance the 2007 Water Revenue Bonds <br /> at this time. <br /> Lease Revenue Bonds — The 2003 Bonds were sold in the amount of $11,475,000, of <br /> which $5,130,000 remain outstanding. Based on current market rates, the City's <br /> financial advisor estimates that the general fund could reduce debt service over the next <br /> 5 fiscal years, the remaining term of the 2003 Bonds, by approximately $200,000 <br /> annually. The NPV savings are approximately 6.75%. The structure for and credit of the <br /> 2003 Bonds refunding is separate and distinct from the Water Revenue Bonds and <br /> Lease Revenue refunding bonds must be structured and sold independently of the <br /> Water Revenue Bonds. <br /> Under current market conditions refunding the 2005 and 2006 Water Revenue Bonds is <br /> expected to generate savings for the water enterprise fund. Similarly, refunding the <br /> 2003 Lease Revenue Bonds is expected to generate savings for the City's capital outlay <br /> fund. Should market conditions change, the economic viability of refunding any one of <br /> these bonds could also change. <br /> Selection of Financing Professionals <br /> Since 1999 the City has sold 12 bond issues using the services of Nossaman LLC as <br /> bond counsel (Jeff Stava) and 14 bond issues using the services of William Euphrat <br /> Municipal Finance, Inc. as financial advisor (Bill Euphrat). Staff has been very pleased <br /> with the timeliness and quality of the services each of these firms has provided. The <br /> fees they have proposed are in line with what they charged on previous bond sales. <br /> Staff recommends the appointment of these firms for these bond sales. <br /> The City has used the services of Quint & Thimmig as disclosure counsel on its last two <br /> bond sales. As have the other financing professionals recommended for these <br /> financings by staff, Quint & Thimmig has provided excellent service at reasonable <br /> prices. Mr. Euphrat has advised staff that Quint & Thimmig's fee proposals for the <br /> subject financings are in line with what other law firms charge as disclosure counsel for <br /> similar kinds of financings of similar size. Staff recommends the appointment of Quint & <br /> Thimmig for these bond sales. <br /> All three of the City's water Revenue bond issues have been sold competitively via <br /> electronic, internet-based auctions. Highly rated utility enterprise bonds are in high <br /> demand at present, and the City's water enterprise (rated a strong Aa2/AA-) is an <br /> excellent candidate for a competitive bond sale. Barring structuring or rating issues that <br /> arise which might warrant a negotiated sale, staff expects that the Water Revenue <br />