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04-16-90 Special/Workshop - . - CITY OF DELRAY BEACH, FLORIDA SPECIAL/WORKSESSION MEETING - CITY COMMISSION April 16, 1990 6:00 P.M. AGENDA See Below Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting or hearing, such persons will need a record of these proceedings, and for this purpose such persons may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. The City does not provide or prepare such record. SPECIAL MEETING Pursuant to Section 3.07 of the City Charter of the City of Delray Beach, Florida, Mayor Thomas E. Lynch has instructed me to advise you of a Special Meeting of the Commission to be held in the Commission Chambers at 6 P.M. on Monday, April 16, 1990. This meeting has been called for the purpose of considering: 1. Short Term Financing for the Wastewater Treatment Plant. 2. Selection of Candidate to fill City M~~it~~~ Alison J. MacGregor City Clerk WORKSESSION AGENDA This meeting will take place in the 1st Floor Conference Room, immediately following the above Special Meeting. 1. Discussion reo Goal Setting Sessions. ~ M E M 0 RAN DUM TO: Robert A. Barcinski Assistant City Manager/Community Services FROM: ~ David M. Huddleston . Director of Finance SUBJECT: Recommendation for Financing for Proposed Water & Sewer Projects DATE: April 13. 1990 On April 11. 1990. a committee consisting of Herb Thiele. Jeff Kurtz. Susan Ruby. David Kovacs, Bill Greenwood, Rick Miller (Mudge Rose), Steve Sanford (Mudge Rose), Tom Huestis (Financial Management, Inc.), Mary Ann Young, Becky O'Connor, and myself met to discuss financing options for the proposed Water and Sewer projects. The options for financing consist of the following: ~ l. One Bond Issue 2. Two Bond Issues 3. Bond Anticipation Note followed by one Bond Issue 4. A Line of Credit followed by one Bond Issue There was a unanimous recommendation to proceed with two bond issues (option #2) which was the most cost effective alternative. This option, however, is contingent upon the City receiving an Engineering study. In the event that an Engineering study can not be completed by May 3, 1990, the only option available is option #4 - to proceed with a Line of Credit followed by one bond issue~ This option has the greatest present value cost but does not require an Engirleering report. Attached is a memorandum from Public Financial Management, Inc. , which gives a detailed explanation of the advantages and disadvantages of each option along with their recommendation to proceed with the issuance of two bonds (option 112). Bill Greenwood in his March 30. 1990 memorandum indicated that the total bond cost for each dwelling unit would average about $4.76 per month. This would be consistent- with the recommendation. This total increase could be phased in over two years with the two bond concept. The projected rate increase does not provide for operational or other comprehensive plan costs which will be addressed in the rate study. DMH/rso/slh Attachment cc: Becky O'Connor. Treasurer ~ PuBllC FlNANCJALMANAG~ INc. finandal and Investment Advisors Barnett Plaza. 201 South Oran~ Avenue, Suire 720 Orlando. fl. 32801 407-648-2208/09 (Fax) 407-648-1323 April 16, 1990 The Mayor and the Members of the City Commission Delray Beach, Florida: Public Financial Management, Inc. ("PFM") has worked with City staff to analyze financiQg alternatives to fully fund the City's upcoming water and sewer capital program. Four alternativ~s were chosen and analysis was conducted based upon the following criteria: (i) ability to meet the City's construction timetable. (ii) lowest over-all debt service cost to the City (including costs òf issuance) and (ill) limit of future interest rates increasing. The alternatives analyzed are as follows: 1) One (1) Water and Sewer Revenue Bond issue to fund the entire water and sewer capital program ($22 million). 2) Two (2) Water and Sewer Revenue Bond issues -- the rust issue would fund the immediate $6 million need, as well as the design and engineering costs of the later ($16 million) projects. The second bond issue would fund the remaining project costs. . 3) One (1) bond anticipation note issue and one (1) Water and Sewer Revenue Bond Issue -- the bond anticipation note would fund the immediate $6 million need, as well as the design and engineering costs of the later ($16 million) projects. The second bond issue would fund the remaining project costs and redeem the bond anticipation note. 4) Obtain a line of credit and sell one ( 1) Water and Sewer Revenue Bond -- the line of credit would fund the immediate $6 million need, as well as the design and engineering costs of the later ($16 million) projects. The second bond issue would fund the rest of the $16 million of project costs and redeem the line of credit. Based upon our analysis, current market interest rates and the consttuction estimates and timing available at this time, PFM recommends the City proceed with alternative #2, issue two separate bond issues. By issuing two bond issues the City can meet the construction time table, have the lowest overall debt service cost and have the least amount of interest rate risk of the feasible alternatives. Atlanta fort Myers Harrisburg Memphis New York Orlando Philadelphia San Francisco Stare CoU~ (i) An Affiliate 01 Marine Midland Bank, NA The advantages and disadvantages of each alternative listed as follows: One (1) Water and Sewer Revenue Bond Issue · This alternative is not feasible due to the fact that the consultants to the City will not have the rate study completed and/or implemented in time to issue the bonds, therefore, the City can not meet the additional bonds test required by the Water & Sewer Bond Resolution and thus preventing the sale of a single bond issue. Two (2) Water and Sewer Revenue Bond Issues Advantages: · lowest present value cost of debt service · able to meet construction timetable · provides the least amount of interest rate risk of all feasible alternatives · may increase the opportUnity to earn arbitrage on the second bond issue Disadvantages: · will not meet timetable if validation is required · engineer's report is required for both bond issues '" One (1) bond anticipation note issue and one (1) Water and Sewer Revenue Bond Issue Advantages: · second lowest present value cost of debt service · able to meet construction timetable · may increase the opportunity to earn arbitrage earning on bond issue Disadvantages: · will not meet timetable if validation is required · engineer's report is required for bond anticipation note I Obtain a line of credit and sell one (1) Water and Sewer Revenue Bond Issue Advantages: · quickest alternative for funding initial capital need · engineer's report is not required for letter of credit Disadvantages: · highest present value cost of debt service · may decrease the opportUnity to earn arbitrage earning on bond issue 2 . A summary of the results is listed below: Present Value of Will meet Financine Alternative Net Debt Service City Timetable 1) One Bond Issue not feasible no 2) Two Bond Issues $24,560,194 yes 3) A Bond Anticipation Note followed by one Bond Issue $24,912,466 yes 4) A Line of Credit followed by one Bond Issue $25,016,690 yes Two bond issues are the most cost effective way of financing the City water and sewer capital program due to the fact that the City can earn arbitrage on the construction fund and these earnings do JlQ1 have to be rebated if proceeds of the bonds or notes are spent within a specific timetable (ending in two years). Furthermore, principal is retired earlier when the City issues two bond issues and thus, the interest costs are less. It should be noted that the "Two Bond Issues" alternative has the least amount of interest rate risk associated with it because the City can lock i1;1 a portion of the financing in long term rates on day one whereas a bond anticipation note or line"of credit needs to be refunded at a future interest rate. Please note that if an updated engineer's report can not be obtained in the next 2 to 3 weeks, the bond issue (or a bond anticipation note) can not be issued and the City would most likely have to borrow from a line of credit in order to encumber funds by mid June. The following is a list of the assumptions used by PFM in the analysis: . 3 Assumptions: 1) No construction funds are spent until the September 10, 1990. 2) The bond anticipation note rate is 6.15% 3) The line of credit rate is 8.50% 4) The reinvestment rate for the fIrst of the two bond issues and the bond anticipation note is 7.82% which represent the 3 month T-Bill rate as of April 10, 1990. 5) The reinvestment rate for the second bond issue and the bond issues following the line of credit and the bond anticipation note is the arbitrage yield on the bonds. '6) Interest due on the bond anticipation note.is capitalized in the bond issue refunding the notes. 7) The term of the bond issues is approximately 20 years. 8) Debt service is discounted at the arbitrate yield. 9) Insurance premium for all bond issues is .40% times total principal and interest. 10) Underwriter's discount is 1.50% of the par amount of bonds for bonds over $7 million and 2.00% of the par amount of bonds or notes for issues under $7 million.. 11) Cost of issuance is 125,000 for par amount of bonds over $7 million and 75,000 for par amount of bonds under $7 million. 12) Debt Service reserve is funded out of bond proceeds and equal to the lesser of maximum annual debt service and 10% of the par amount of bonds issued. 13) Cost of issuance for the line of credit is $10,000. .. Sincerely, PUBLIC FINAN;J:- MANAGEMENT, mc.' /II¡, - Thomas F. Huestis Managing Consultant . 4 · USING TWO BOND ISSUES Annual PV Debt Annual PV Debt Date Debt Service Service Debt Service Service 237,629 6/1191 1,705.365 613,873 662,600 387,503 1,003,773 216,420 6/1192 1,707,865 558,572 666,975 369,092 947,781 196,501 6/1193 1,707,785 506,918 665,135 346,852 893,669 177 ,978 6/1194 1,710,285 458,812 662,460 325,609 845,345 160,767 6/1195 1,709,975 413,932 663,930 308,840 798,428 144,677 6/1196 1,706,785 372,112 664,190 292,440 753,001 129,655 6/1197 1,710,645 333,188 663,210 276,455 715,190 115,648 6/1198 1,705,795 296,803 665,960 263,743 675,124 102.547 6/1199 1,707,840 263,032 667,195 251,069 ~ 641,593 90,317 6/1/00 1,706,040 231,559 666,895 238.512 " 608,514 78,921 6Il¡Ql 1,705,345 202,285 665,040 226,137 578,311 68,325 6/1102 1,705.350 175,030 666,610 216,115 550,559 58,418 6/1103 1,710,643 149,638 666,228 206,013 526,861 49,179 6/1104 1,710,443 125,901 663,868 195,912 502,785 40,585 6/1105 1,709,680 103,772 664,505 187.588 480,254 32.586 6/1/06 1,708,480 83,230 662,968 179,132 459,137 25,131 6/1107 1,705,880 64,078 664,023 172,071 439,155 18,187 6/1¡U8 1,707,075 46,317 667,523 166,154 421,608 11,660 6/1/09 1,705,645 29,721 662,833 158,543 404,671 5,631 6/1/10 1,706,865 14,317 665,570 153,267 389,537 34,153,785 17,678.385 13,297,715 6,881,809 ----- ------ Total Present Value Debt Service 24,560,194 PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES SOURCES AND USES OF FUNDS Sources 0( Funds Par Amount of Bonds 17.815,000 Consuucûon Fund Earnings 1,050,434 ------------------- Total 18,865,434 ---- ---- Use or Funds Funds Available for Consuucûon 16,625,860 DSRF 1.710,645 Underwriter's Discount 1.s~ 2fJ7 :n.s Cost of Issuance 125.000 Bond J:nsuranc:e 0.40% 136.615 Contingency 89 --------- ~ Total 18,865,434 - . PFM_ '" CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES DEBT SERVICE SCHEDULE DSRF NetDebl Dale Principal Coup Interest Debt Service AMual Earnings SetViœ 6/1191 632,68250 632,68250 63,089.02 569.593.48 12M}1 440.000 6.25% 632,68250 1,072,68250 1,705.365.00 63.089.02 1,009 ,593.48 6/1192 618.93250 618,93250 63,089,02 555,843,48 1211192 470.000 6.40% 618,93250 i,088,93250 1,707,865.00 63,089.02 1.025,843.48 6/1193 603,89250 603,89250 63,089,02 540,803.48 1211193 50(',000 6.50% 603,89250 1.1C3,89250. 1,707,785.00 63,089.02 1,040,803.48 6/1194 587,64250 5B7,64250 63,089.02 524,553.4R 1211194 535,000 6.60% 587,64250 1,122,64250 1,710,285.00 63,089.02 1,059,553,48 6/1195 569.987.50 569,987.50 63,089.02 506,898,48 1211195 570,000 6.70% 569,987.50 1.139,987.50 1.709,975.00 63,089.02 1,076.898.48 6/1196 550,89250 550.89250 63.089.02 487,803.48 1211196 605,000 6.80% 550,89250 1.155,89250 1.706.785.00 63,089,02 1,092,803.48 6/1197 530.322.50 530,322.50 63,089.02 467,233.48 1211197 650,000 6.90% 530,322.50 1,180,322.50 1,710.645.00 63,089.02 1,117,233.48 6/1198 507,897.50 507.897.50 63,089.02 444,808.48 12/1/98 690,000 6.95% 507,897.50 1,197,897.50 1,705,795.00 63,089.02 '·1,134,808.48 611/99 483,920.00 483,920.00 63,089.02 : 420,830.98 1211/99 740,000 7.~ 483,920.00 1,223.920.00 1,707,840.00 63,089.02 c 1,160,830.98 611/00 458,020.00 458,020.00 63,089.02 394,930.98 1211 /00 790.000 7.05% 458,020.00 1,248,020.00 1,706,040.00 63,089.02 1,184,930.98 611 ,01 430,172.50 430,172.50 63.089.02 367,083.48 1211,01 845,000 7.10% 430,172.50 1,275,172.50 1.705.345.00 63.089.02 1,212,083.48 6/1/02 400,175.00 400,175.00 63.089,02 337,085.98 1211 /02 905,000 7,15% 400,175.00 1.30S,175.00 1,705,350.00 63,089.02 1,242,085.98 6/1,03 367,821.25 367,821.25 63,089.02 304,i3223 1211 ,u3 975,000 7.20% 367,821.25 1,342,821.25 1,710,64250 63,089.02 1,279.73223 6/1¡U4 332,721.25 332,721.25 63,089.02 269,63223 1211 ¡U4 1,045.000 7.25% 332,721.25 1.377.721.25 1.710.442.50 63.089.02 1,314,63223 6/1105 294,840.00 294.840.00 63,089.02 231,750.98 1211105 1,120,000 7.25% 294.840.00 1,414,840.00 1,709.680.00 63,089.02 1,351,750.98 6/1106 254,240.00 254,240.00 63.089_02 191.150.98 1211106 1,200.000 7.30% 254,240.00 1,454,240.00 1,708,480.00 63,089.02 1,391,150,98 6/1,u7 210.440.00 210.440.00 63,089.02 147,350.98 1211m 1,285,000 7.30% 210,440.00 1,495.440.00 1.705,880.00 63.089.02 1.432.350.98 6/1108 163,537.50 163,537.50 63,089.02 100,448.48 1211 ,u8 1,380.000 7.35% 163,537.50 1,543,537.50 1.707.075.00 63,089.02 1,480,448.48 6/1100 112.822.50 112,822.50 63,089.02 49.733.48 1211100 1.480,000 7.35% 112,822.50 1,592,822.50 1.705.645.00 63,089.02 1,529,733.48 6/1/10 58,43250 58.43250 63,089.02 -4,656,52 1211/10 1,590,000 7.35% 58,43250 1,648.43250 1.706.865.00 1.773,734.02 -125 ,301.52 17,815,000 16,338.785 34.153,785 34.153,785 4,234,206 29.919,579 = ====== ============= = - ========== ===- - ====== Average Amual Debt Service 1,708,000 Dated Da1e 1/1191 Delivery Date 1/1191 Tsue Intetest Cost 7.37605021 PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES Net Investment Consturction Remaining ConstlUction Construction ConstIuction R.a1e of Fund Construction Dr1wDa1e Fund Balance Dr1w Needed Fund Draw Funds Eanúngs Funds 111191 15,783,096.84 1,039.18200 1,039.18200 7.38% 0.00 14,743.914.84 211191 14.743,914.84 1,039.18200 946,817.41 7.38% 92,364.59 13,797,097.43 311191 13,797,097.43 1,039,18200 961,113,33 7.38% 78.068.67 12,835,984,10 411191 12,835,984.10 1,039,18200 958,769.81 7.38% 80,412.19 11,877,214,28 5fl191 11.877.214.28 1,039,18200 967,176,31 7.38% 72,005.69 10,910,037,98 611191 10,910,1):t7.98 1,039,182.00 970,835,08 7.38% 68,346.92 9,939,?()2.90 7fl191 9,939,202.90 1,039,182.00 978,925,51 7.38% 60,256.49 8.960,277..>a 8fll91 8.960.277.38 1,039,182.00 983,049.53 7.38% 56.132.47 7,977.227.85 911191 7.977.227.85 1,039.18200 989,207,93 7.38% 49,974.07 6,988.019.92 1011191 6,988,019.92 1,039,18200 996,817.08 7.38% 42,364.92 5,991.202.84 I1fl191 5,991,202.84 519,503.33 481,970.90 7,38% 37,53243 5,509.231.94 1211191 5,509,231.94 519,503.33 486.103.58 7.38% 33,399.76 5,023.128.36 111192 5,023,128.36 519,503.33 488,035.49 7.38% 31,467.84 4,535,09287 2/1192 4,535,09287 519,503.33 491,09283 7.38'1. 28,410.50 4,044,000.04 311192 4.044,000.04 519,503.33 495,803.78 7.38'1. 23,699.55 3,548,196.26 411192 3,548,196.26 519,503.33 497,275.34 7.38% 22,228.00 3,050,9211.92 ~ 511/92 3,050,9211.92 519,503.33 501,007.10 7.38'1. 18,496.23 2,549,913,82 611192 2,549,913.82 519,503.33 503,529.17 7.38'1. 15,974.17 2,046,384.65 711192 2,046,384.65 519,503.33 507,097.11 7.38'1. 12,406.22 1,539,287.54 811192 1,539,287.54 519,503.33 509,860.33 7.38'1. 9,643.01 1,029,427.21 911192 1,029,427.21 519,503.33 513,054.39 7.38'1> 6,448.94 516,372.82 1011/92 516,37282 519,503.33 516,372.82 7.38'1. 3.130.51 0.00 16,625,860.00 842,763.16 - I PFM_ · CITY OF DELRAY BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES SOURCES AND USES OF fUNDS Sources or Funds Par Amount of Bonds 6.935,000 ...-------------.. Total 6,935,000 ---- ---- Use or Funds Deposit in Construction fund 6,000,000 DSRF 667,523 Underwriter's Discount 2.00% 138.700 Cost of Issuance 75.000 Bond Insurance 0.40% 53,191 Contingency 587 ---------- Total 6,935,000 I PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES DEBT SERVICE SCHEDULE DSRF Net Debt Date Princi pal Coup Interest Debt Sernce Annual Earnings Service 1211190 246,300.00 246.300.00 24.358.38 221,941.62 611191 170,000 6,25% 246,300,00 416,300.00 662,600.00 24,358.38 391,941.62 1211191 240,987.50 240,987.50 24,358.38 216,629,12 611192. 185,000 6.40% 240,987.50 425.987.50 666.975.00 24,358.38 401,629,12 1211192. 235,067.50 235,067.50 24,358.38 210,709.12 611193 195,000 6,50% 235,067.50 430,067.50 665,~35,OO 24,358.38 405.709.12 1211193 128.730.00 228.730.00 24.358.38 204,371,62 611194 205.000 6,60% 228,730.00 433,730.00 662.460.00 24.358.38 409.371.62 1211194 221.965.00 221.965.00 24,358.38 197,606.62 611195 220,000 6.70% 221,965.00 441,965.00 663,930.00 24,358.38 417,606.62 1211195 214.595.00 214.595.00 24.358.38 190.236.62 611196 235,000 6.80% 214.595.00 449.595.00 664,190.00 24,358.38 425,236.62 1211196 206,605.00 206,605.00 24,358.38 182,246.62 611197 250,000 6.90% 206.605.00 456,605.00 663,210.00 24,358.38 432,246.62 1211197 197,980.00 197,980.00 24,358.38 173,621.62 611198 270,000 6.95% 197,980.00 467,980.00 665,960.00 24.358.38 4113,621.62 1211198 188.597.50 188,597 .sO 24,358.38 164.239.12 611199 290,000 7.00% 188,597.50 478,597.50 667,195,00 24,358.38 4~.239.12 1211199 178,447.50 178,447.50 24,358.38 154,089.12 611/00 310,000 7.05% 178,447.50 488,447.50 666,895.00 24,358.38 464,089.12 1211/00 167.520.00 167,520.00 24,358.38 143,161.62 6I1~1 330,000 7.10% 167.520.00 497,520.00 665,040.00 24,358.38 473,161.62 1211~1 155,805.00 155,80S.00 24,358.38 131,446.62 611/f12 355,000 7.15% 155,80S.00 510,80S.00 666,610.00 24,358.38 486,446.62 1211/f12 143,113.75 143,113.75 24,358.38 118,755.37 6I1m 380,000 7.20% 143,113.75 523,113.75 666,227.50 24,358.38 498,755.37 1211~3 129,433.75 129,433.75 24,358.38 105,075.37 611104 405,000 7.25% 129,433.75 534,433.75 663.867.50 24.358.38 510.075.37 1211104 114,752.50 114,752.50 24,358.38 90,394.12 611/05 435,000 7.25"4 114,752.50 549.752.50 664,505.00 24,358.38 525,394.12 1211/05 98.983.75 98,983.75 24,358.38 74,625.37 611106 465,000 7.30"4 98,983.75 563,983.75 661,967.so 24,358.38 539,625.37 1211106 82,011.25 82,011.25 24,358.38 57,65287 611107 500,000 7.30'1. 82,011.25 582,011.25 664.022.50 24,358.38 557,65287 1211~7 63,761.25 63,761.25 24,358.38 39,402.87 611~8 540,000 7.35% 63,761.25 603,761.25 667.52250 24,358.38 579,402.87 1211~8 43,916.25 43,916.25 24,358.38 19.557.87 611109 575.000 7.35"4 43,916.25 618,916,25 662,83250 24,358.38 594.557.87 1211109 22.785.00 22, 785.00 24,358.38 -1.573.38 611/10 620,000 7.35% 22,785,00 642,785.00 665,570.00 691.880.88 -49,095,88 6.935,000 6,362.715 13,297,715 13,297,715 1,641,858 11,655,857 ----- ===== ===== === ====== ----- Average Annual Debt Service 665.000 Dared Date 6(1 !90 Delivery Date 6(1190 True InteIeSt Cost 7.29814610 PFM_ - CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING TWO BOND ISSUES Net Investment Consturaion Remaining Consuuction ConslIUction Consuuction Rate of Fund Construction Draw Dale Fund Balance Draw Needed Fund Draw Funds Earnings Funds 6/1/90 5,792,329.26 0,00 0,00 7.82l{, 0.00 5,792,329.26 711 /90 5,792,329.26 0.00 0.00 7.82l{, 37,229.60 5.792,329.26 811 /90 5,792,329.26 0,00 0.00 7.82l{, 38,470.59 5.792,329.26 911 /90 5,792,329.26 0.00 0.00 7.82l{, 38,470.59 5,792,329.26 1011/90 5,792,329,26 1,500,000.00 1,462,770,40 7.82l{, 37,229.60 4,329.558,86 1111 /90 4,329,558.86 1,5CO.OOO,OO 1,471,244,61 7.82l{, 28,755.39 2,858,314.25 1211 /90 :l,858,314.25 1,500,000.00 1,481,628.48 7.82l{, 18,371.52 1.376,685.n 111191 1.376,685.77 1,500.000.00 1,490,856.54 7.82l{, 9,143.46 0,00 6,000.000.00 207,670.74 ======= . PFM_ USING A LINE OF CREDIT PV Debt Date Annual Service 868,675 6/1,91 2.381,485 1.422.627 790,353 6/1,92 2,383,048 1,341,042 717,267 6/1,93 2,386,128 1,266,544 649,134 6/1,94 2,385,628 1,194,558 585,684 6/1,95 2,381,458 1,128.661 526,546 6/1,96 2,383,528 1,068.062 471,384 6/1,97 2,386,068 1,009,043 420,001 6/1198 2.383,623 957,382 ~ 372,144 6/1199 2,386,555 906.710 - 327,651 611100 2.384,105 862,092 286,192 6/l,{)1 2,386,203 820,233 247.563 611/00 2.382,068 780,808 211,576 611,1)3 2,386.620 743,539 178,062 6/1!J4 2,383,700 710,016 146,802 6Il'{)5 2,383,213 677,898 117.795 6/1/06 2,385,113 648,758 90,726 6/1,{)7 2,382,838 621,968 65,572 6/1108 2,381,803 597,239 42,064 6/1/09 2,385,315 572,825 20.260 6/1/10 2,383,170 551,235 47,681,663 25,016,690 ------ -------- Total Present Value Debt Service 25,016,690 IPFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING A LINE OF CREDIT SOURCES AND USES OF FUNDS Sources or Fuods Par Amount of Bonds 25,210,000 ConstIUctÍon Fund Earnings 842.760 __...__________.........4__. Total 26,052,760 - Use or Fuods Deposit in ConstIUction Fund 16.625,860 Payment on the Une of Credit 6,307,996 DSRF 2,419,045 Underwriter's Discount 1.50% 378,150 Cost of Issuance 125,000 Bond Insurance 0.40% 193.310 Contingency 3.399 - ------- Total 26,052,760 - . PFM_ . CITY OF DELRAY BEACH WATER & SEWER FINANCING USING A LINE OF CREDIT DEBT SERVICE SCHEDULE DSRF Net Debt Dale Principal Coup Interest Debt SerIiœ Annual Earnings Se¡vice 611191 895.291.25 895,291.25 89,214,62 806,076,63 1011191 625,000 6,25% 895,291.25 1,520,291.25 2,415,582.50 89,214,62 1,431,076.63 411192 875,760.00 875.760,00 89,214.62 786,545.38 lQ11192 665,000 6.40% 875,760.00 1,540,760.00 2,416,520.00 89,214,62 1,451,545.38 411193 854,480.00 854,480,00 89,214,62 765,265.38 1011193 7!O,OOO 6,SO% 854,480.00 1,564.480,00 2,418,960,00 89,214.61 1,475,265,38 411194 831,405.00 831,405.00 89,214,62 742,190.38 1011/94 755,000 6,60% 831,405.00 1,586,405.00 2,417,810.00 89,214.62 1,497,190,38 411195 806,490.00 806,490.00 89,214.62 717,275.38 1011195 805,000 6.70% 806,490.00 1,611.490.00 2,417.980.00 89,214.62 1,522,275.38 411196 779,522.50 779,522.50 89,214.62 690,307.88 1011/96 860,000 6.80% 779,522.50 1,639,522.50 2,419,045.00 89,214,62 1,550,307.88 411197 750,282.50 750,282.50 89,214.62 661,067.88 1011/91 915,000 6.9(Y , 750,282.50 1,66S,282.~O 2,415,565.00 89,214.62 1,576,067.88 411198 718.715.00 718,715.00 89,214,62 629.soo.38 1011198 980,000 6.95% 718,715.00 1,698,715.00 2,417,430.00 89,214.62 ~ ,609.soo.38 411199 684,660.00 684,660.00 89,214.62 . 595,445.38 1011199 1,045,000 7. ()()'I, 684,660.00 1,729,660.00 2,414,320.00 89,214.62 1,640,445.38 411,00 648,085.00 648,085.00 89,214.62 558,870.38 1011,00 1,120,000 7.05% 648,085.00 1,768,085.00 2,416,170.00 89,214.62 1,678,870.38 411m 608,605.00 608,605.00 89,214.62 519,390.38 10l1m 1,200,000 7.10% 608,605.00 1,808,605.00 2.417,210.00 89,214.62 1,719,390.38 411102 566,005.00 566,005.00 89,214.62 476,790.38 1011 102 1,285,000 7.15% 566,005.00 1,851,005.00 2,417,010.00 89,214.62 1,761,790.38 411~3 520,066.25 520,066.25 89,214.62 430,851.63 1 011~3 1,375,000 7.2()'1, 520,066.25 1,895,066.25 2,415,13250 89,214.62 1,805,851.63 411¡04 470,566.25 470,566.25 89,214.62 38] ,351.63 1011 ¡04 1,475,000 7.25% 470,566.25 1,945,566.25 2,416,13250 89,214.62 1,856,351.63 411105 4]7,091.50 4]7,097.50 89,2]4.62 327.882.88 1011105 ],580.000 7.25" 417,097.50 1,997,097.50 2,414,195.00 89,214.62 1,907,882.88 411/06 359,822.50 359,822.50 89,214.62 270,607.88 1011 /06 1,695,000 7.3011. 359,822.50 2,054,822.50 2,414,645.00 89,2]4,62 1,965,607,88 411~7 297,955.00 297,955.00 89,214.62 208.740.38 ]Ol1m 1,820,000 7.3011. 297,955.00 2,] 17.955.00 2.4]5.910.00 89,2]4,62 2,028.740.38 411 ,œ 231,525.00 231,525.00 89,214.62 142,310.38 ]011~8 1.955.000 7.35" 231,525.00 2,]86,525.00 2,418.050.00 89,214.62 2,097,3]0.38 411 !fJ9 159,678.75 ]59,678.75 89,214.62 70,464.13 1011 !fJ9 2,095,000 7.35" ]59,678.75 2,254,678.75 2,414,357.50 89,2]4,62 2.165,464,] 3 411110 82,687.50 82,687.50 89,214,62 ~,527.12 ]011110 2,250,000 7.35% 82,687.50 2,332,687.50 2,415,375.00 2,508,259.62 -175,572. 12 25,2]0,000 23,]17,400 48,327,400 48,327.400 5,987,630 42,339,770 = === ========== === = ====== ==== = ===== Average Annual'Debt Service 2,4]6.soo Dated Date II1J'91 Delivery Date 1/1J'91 Tme Interesl Cost 7,37601951 PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING A LINE OF CREDIT Net Investmenl Consturctíon Remaining Consuucûon Construcûon Consttuctioø R.1.1e of Fund Construction Draw Date Fund Balance Draw Needed Fund Draw Funds Earnings Funds 111 191 15.783.100.2D 1,039,18200 1.039,18200 7,38% 0,00 14,743,918,20 2/1191 14,743,918,20 1,039,18200 946,817.71 7,38% 92,364.23 13,797,100.43 311191 13,797,100.43 1,039,18200 961,113.64 7.38% 78.068.36 12,835,986,79 411 191 12,835,986.79 1,039,18200 958.770.13 7,3&% 80,411,87 11,877,216,65 511 191 11,877.216.65 1,039,18200 967.176.59 7.38% 72.005.41 10,910,040.06 611191 10,910,040,06 1,039,18200 970,835.35 7,38% 68,346.65 9,939,204.71 711 191 9,939.204.71 1,039.18200 978,925.75 7,38% 60,256.25 8,960,278.96 811191 8.960,278.96 1,039,18200 983,049.75 7.38% 56,13225 7,977,229.20 911 191 7317,229.2D 1,039,18200 989,208.13 1.38% 49.913,87 6,988,021.07 1011191 6.988.021.07 1,039,18200 996,817.25 7.38% 42.364.15 S,991,2D3.82 1111 191 S,991,2D3.82 519,503.33 481.971.05 7 3g% 31,53228 5,509,23277 12/1 191 5,509,232.77 519,503.33 486,103.71 7.t8% 33,399.62 5,023,129.06 111 192 5,023.129.06 519,503.33 488,035.62 7.38% 31,467.72 4,535,093.44 2/1192 4,535,093.44 519,503,33 491,092.95 7.38% 28,410.39 4,044.000.50 311192 4.044,000.50 519,503.33 495,803.81 7.38% 23,699.46 3,548.196.62 411192 3,548,196.62 519,503.33 497,275.43 7.38% 22,227.91 3.050,921.19 "; 5/1192 3,050,921.19 519,503.33 501,007,18 7.38% 18,496.15 2,549,914.01 : 6{1/CJ2 2,549,914,01 519.503.33 503,529.23 7.38% 15,914.10 2,046,384. 78 ~ 7/1192 2,046,384.78 519,503.33 507,097.16 7.38% 12.406.17 1,539,287.62 8/1192 1,539,287.62 519.503.33 509,860.37 7.38% 9,642.91 1.029,427.25 9/1192 1,029,427.25 519,503.33 513,054.42 7.38% 6,448.91 516,372.83 10/1 192 516,372.83 519,503.33 516,372.83 7.38% 3,130.50 0.00 16,625,860.00 842,759.80 - ~ = == , PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING A LINE OF CREDIT SOURCES AND USES OF RlNDS Sources of Fuods Principal Amount of the Une of Credit 6,010,000 -----.....---------...- Total 6,010,000 ---- ---- Use of Fuods Deposit in Construction Fund 6,000,000 Bank Fee 0.00% 0 Cost of Issuance 10,000 Contingency 0 --..-------- Total 6,010,000 . ¡ PFM_ CITY OF DELRAY BEACH WATER & SEWER FINANCING USING A LINE OF CREDIT DEBT SERVICE SCHEDULE DSRF Net Dale ?rind pal Coup Interest Debt Service Annual Earnings Debt SeIVice 111191 6,010,000 8,50% 297,995,83 6,307,995,83 6.307,995.83 0,00 6,307.995,83 6,010,000 297,995,83 6,307,995,83 6,307,995,83 0.00 6,307,995.83 ----- ==:z:::==== ===== ==== ===== ----- Dated Dale 6/119'J Delivery Date 6I119'J True Interest Cost 8.47044982 . PFM_ - USING BOND ANTICIPATION NOTES Date Annual Present Value 6/1/91 2,408,173 865,080 1,419,159 6/1/92 2,404,110 787,008 1,333,462 6/1/93 2,409,870 714,289 1,259,622 6/1/94 2,406,045 646,491 1,188,241 6/1/95 2,406,545 583,345 1,122,900 6/1/96 2,407,945 524,482 1,062,811 6/1/97 2,404,805 469,572 1,004,261 611/98 2,407,015 418,415 953,030 6/1/99 2,404,253 370,764 902,752 6/1/00 2,406,453 326,455 . 858,495 6Il~1 2,407,845 285,163 816,966 6/1102 2,408,000 246,683 777 ,843 6/1~3 2,406,480 210,830 740,850 6/1/04 2,407,840 177~437 707,580 6/1~5 2,406,265 146,284 675,693 6/1/06 2,407,078 117,372 646,762 6/1~7 2,408,708 90,389 620,164 6/1¡Q8 2,406,213 65,311 594,245 6/1/(1) 2,408,255 41,918 571 ,402 6/1/10 2,404,640 20,170 548,773 48,133,535 24,912,466 ------- ----- -------- ----- Total Present Value Debt Service 24,912,466 PFM_ CITY OF DELRAY BEACH WATER & SEWER FINANCING USING BOND ANTICIPATION NOTES SOURCES AND USES OF FUNDS Sources or Fuods Par Amount of Bonds 25,105.000 ConstJUcûon Fund Earnings 1,050.443 --- ------------------- Total 26.155,443 ---- ---- Use of Fuods Deposit in Construction Fund 16,625,860 Payment of BANs 6,422.425 DSRF 2,408,708 Underwriter's Discount 1.50'1. 376,s75 Cost of Issuance 125,000 Bond Insurance 0.40% 192,534 Contingency 4,341 ------ Total 26,155,443 - . PFM_ - CITY OF DELRA Y BEACH WATER & SEWER F1NANCING USING BOND ANTICIPATION NOTES DEBT SERVICE SCHEDULE DSRF NelDebt Dale Princi pal Coup Interest Debt Service Annual Earnings Semce 6/1 /91 891,586.25 891,586.25 88,834.74 802,751.51 1211 /91 625,000 6.25% 891.586.25 1,516,586.25 2,408,172.50 88.834,74 1,427,751.51 611192 872,055,00 872,055,00 88,834,74 783,220.26 1211192 660,000 6.40% 872,055.00 1,532,055.00 2,404.110.00 88,834.74 1,443,220.26 611193 850,935.00 850,935.00 88,834.74 762,100.26 1211193 705,000 6.50% 850,935.00 1,555.935,00 2,406,870,00 88,834,74 1,467,100.26 611194 828.02250 828,02250 88.834,74 739,187.76 1211194 750,000 6.60% 828,022.50 1,578,022.50 2,406,045,00 88,834.74 1,489,187.76 611195 803,272.50 803,272.50 88,834.74 714,437,76 1211195 800,000 6.70% 803.272.50 1,603,272.50 2,406,545.00 88,834.74 1,514,437.76 611196 776,47250 776,472.50 88,834.74 687,637,76 1211196 855.000 6.80% 776,472.50 1.631,472.50 2,407,945.00 88,834.74 1,542,637,76 611197 747,402.50 747,402.50 88,834.74 658,567.76 1211197 910.000 6.90% 747.402.50 1,657,402.50 2,404,805.00 88,834.74 1,568,567,76 M198 716,007.50 716,007.50 88,834.74 627,172.76 1211198 975,000 6.95% 716.001.50 1,691,007.50 2.407,015.00 88,834.74 1,fn2,172.16 MI99 682,126.25 682,126.25 88,834.74 ' 593,291.51 1211199 1,040,000 7.00% 682,126.25 1,722,126.25 2,404.252.50 88,834.74 t,633,291.51 MIOO 645,726,25 645,726.25 88,834.74 556,891.51 1211100 1,115.000 7.05% 645,726.25 1,760,726.25 2,406,452.50 88,834.74 1,671,891.51 611 tU1 606,422.50 606,422.50 88,834.74 517,587.76 1211,(11 1,195,000 7.10% 606,422.50 1,801,422.50 2,407,845.00 88,834.74 1,712,587.76 611fJ2 564,000.00 564,000.00 88,834.74 475,165.26 1211 fJ2 1,280,000 7.15% 564.000.00 1,844,000.00 2.408,000.00 88,834.74 1,755,165.26 611 ,(13 518.240.00 518,240.00 88,834.74 429,405.26 1211m 1,370,000 7.20% 518,240.00 1,888,240.00 2,406,480.00 88,834.74 1,799,405.26 611/04 468.920.00 468,920.00 88.834.74 380,085.26 1211 /04 1,470,000 7,25% 468,920.00 1,938,920.00 2,407,840.00 88,834.74 1.850.085.26 M,(I5 415,632.50 415,632.50 88,834.74 326,797.76 1211 ,(15 1,575,000 7.25% 415,63250 1,990,632.50 2,406,265.00 88,834.74 1.901,197,76 M/06 358,538.75 358,538.75 88,834.74 269,704,0) 1211 /06 1.690,000 7.30% 358,538.7S 2,048,538.75 2.407,077.50 88,834.74 1,959,704.01 611 ,(17 296,853.75 296.853.75 88,834.74 208.019,01 1211 ,(17 1,815,000 7.30% 296.853.75 2,111,853.75 2,408.707.50 88,834.74 2,023,019,01 611 ,(18 230,606.25 230,606.25 88,834.74 141,771.51 1211 ,u8 1.945,000 7.35% 230,606,25 2,175.606.25 2,406,21250 88.834.74 2,086,771.51 611¡œ 159,127.50 159,127.50 88,834,74 70,292..76 1211 ¡œ 2.090,000 7.35% 159,127.50 2,249,127.50 2,408,255.00 88,834,74 2,160,292.76 61111 0 82,320.00 82,320.00 88,834.74 ~,514,74 1211110 2,240,000 7.35% 82.320,00 2,322.320,00 2,404,640,00 2,497.54224 -175,222.24 25,105.000 23,028,535 48,133,535 48,133,535 5,962,097 42,171.438 ===== ---- - == ===== ==== == == ---- Average Annual Debt SeJVice 2,406,200 Dated Date 111191 Delivery Dale 111191 TIlle Interest Cost 7,37613374 /PFM_ CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING BOND ANTICIPATION NOTES Net Investment Consturction Remaining ConstIUction Construction ConstIUctioo RaJe of Fund ConSUUdion Draw Dale Fund Balance Draw Needed Fund Draw Funds Earnings Funds 111 f)I 15,783,087.70 1,039,18200 1.039,18200 7.38% 0.00 14,743,905,70 2I1f)I 14,743,905.70 1,039,18200 946,816.42 7.38% 92,365.58 13,797,089,27 3{1 f)I 13,797,089,27 1,039,18200 961,112.50 7.38% 78,069,50 12,835,976.78 4{1191 12.835,976.78 1.039,18200 958,768.95 7,38% 80,413.05 11.877,207.83 511 f)I 11.877,207.83 1,039,18200 967,175.53 7.38% 72,006.47 10,910,03230 611 191 10,910.032.30 1,039,18200 970,834.34 7.38% 68,347,66 9,939,197.96 711 f)I 9,939,197.96 1,039,18200 978,924.86 7.38% 60,257,14 8,960,273.10 8{1 f)I 8,960,273.10 1,039.18200 983,048,92 7.38% 56.133.08 7,977 ,224,18 9{1f)I 7,977,224.18 1,039.18200 989,207.39 7.38% 49,974,61 6.988,016.79 1 011 f)I 6.988.016.79 1.039.18200 996,816.62 7.38% 42.365.38 5,991,200,17 1111 f)I 5,991,200.17 519,503.33 481,970.49 7.38% 37,53284 5,509,229.68 1211191 5,509,229.68 519,503.33 486,103.21 7.38% 33,400.12 5,023,126.46 1{l192 5,023.126.46 519,503.33 488,035.15 1.'Stf. 31,468.19 4,535,091.32 211192 4,535,091.32 519,503.33 491.092.52 7.l8% 28,410.81 4,043,998.80 3{l192 4,043,998.80 519,503.33 495.803.52 7.38% 23,699.81 3,548,195.28 4{l192 3,548,195.28 519,503.33 497;rT5.oo 7.38% 22,228.24 3,050,920.19 ~ 511192 3,050,920.19 519,503.33 501,006.90 7.38% 18,496.43 2,549,913.29 : 6{l192 2,549.913.29 519,503.33 503,528.99 738% 15,974.34 2,046,384.30 7 {l192 2,046,384.30 519.so3.33 507 ,fYJ6.fJ7 7.38% 12,406.36 1,539,287.32 8!1192 1,539,287.32 519,503.33 500,860.22 7.38% 9,643.11 1,029,427.11 9!1192 1,029,427.11 519,503.33 513,054.32 7.38% 6.449.01 516,37278 1 0!1 192 516,372 78 519,503.33 516,372.78 7.38% 3,130.55 0,00 16,625,860.00 842,77230 I - ======-- I PFM_ . . CITY OF DELRA Y BEACH . WATER & SEWER FINANCING USING BOND ANTICIPATION NOTES SOURCES AND USES OF FUNDS Sources or Fuods Par Amount of BANs 6,200,000 ----- -- - --- -... ...-- ------- Total 6,200.000 ---- ----- Use or Funds Deposit in Construction Fund 6.000,000 Underwriter's Discount 200% 124.000 Cost of Issuance 75,000 Contingency 1.000 ----------.....- Total 6,200,000 ---- ---- . PFM_ - , CITY OF DELRA Y BEACH . WATER & SEWER FINANCING USING BOND ANTICIPATION NOTES DEBT SERVICE SCHEDULE DSRF Net Dale Principal Coup Interest Debt Service Annual Earnings Debt Service 1(1191 6,200.000 6.15% 222,425.00 6,422,425,00 6,422,425.00 0,00 6.422,425.00 6,200,000 222.425,00 6,422,425.00 6,422.425.00 0.00 6.422,425,00 ==== ---- -= ====== === == == ---- Dated Dale 6/1/90 Delivery Date 6{1/90 True Interest Cost 6,13445195 . IPFM_ - . CITY OF DELRA Y BEACH WATER & SEWER FINANCING USING BOND ANTICIPATION NOTES Net lnvestment Consturction Remaining Construdion ConstmctiOl1 Consb'UClioo Rate of Fund Consb'UClion Draw Dale Fund Balance Draw Needed Fund Draw Funds Earnings Funds 6{l/90 5.792.329,26 0,00 0.00 7.82% 0,00 5,792,329.26 7/1/90 5,792,329.26 0,00 0,00 7.82% 37.229.60 5,792,329,26 8/1 /90 5,792.329,26 0.00 0,00 7.82% 38,470.59 5,792,329.26 9/1/90 5,792,329.26 0,00 0,00 7,82% 38,470.59 5,792,329.26 10/1/90 5.792,329.26 1,500.000.00 1.462,770.40 7.82% 37,229,60 4,329,558.86 ~ 1/1/90 4,329,558.86 1.500,000,00 1,47) .244,61 7,82% 28,755.39 2,858,314.25 12/1 /90 2,858,314,2.) 1,500,000,00 1.481,628.48 7,82% i8.371.52 1,376,685,77 1/1191 1.376,685:77 1,500,000.00 1,490,856.54 7.82% 9,143,46 0,00 6,000,000.00 W7,670.74 =========== ====== ., . PFM_