HomeMy WebLinkAbout04- 03- Redevelopment Agency DEVELOPMENT DEPARTMENT OF THE
CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: SOUTHEAST INDUSTRIAL
Executive Director PARK BOND REFUNDING
Date: February 5, 1993
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Synopsis of Previous Commission/Council/Committee Action:
On February 4, 1993, the Redevelopment Committee recommended approval of
refunding the Southeast Industrial Park Bonds, Issues of 1981 and 1985.
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Recommended Motion:
(Community Development Commission)
MOTION: That the Community Development Commission approve the
proposed refunding of the Southeast Industrial Park Tax
Increment Bonds of 1981 and 1985, and direct staff to work
with bond counsel to prepare the necessary documents to be
brought back before the Commission for approval.
Admini trator KENNET J. HENDERSON
Executive Director
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Contact Person: Ken Henderson/Barbara Lindseth Phone: 5065: 5081
Project Area: Southeast Industrial Park (SEIP) Ward(s) : One, Three
Supporting Data Attached: Staff Report: Proposal
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:BJL:1799a COMMISSION MEETING
Meeting Date: 2/15/1993
Agenda Item No: 4—
DEMOPHENT DEPARTMENT
STAFF REPORT
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Southeast Industrial Park Bond Issue
An analysis has been received from Miller and Schroeder Financial,
Inc. whereby, at current interest rates, the Southeast Industrial
Park Tax Increment Bonds, Issue of 1981 and 1985, can be refunded at
an approximate debt service savings of $200,000 per year.
The proposed new issue would be for a principal amount of $7,250,000
with coupon rates ranging from 3.5% to 6.25%. The 1981 bond issue
is currently outstanding in the amount of $4,590,000 with coupon
rates ranging from 9.5% to 10.0%, and the 1985 bond issue is
currently outstanding in the amount of $1,875,000 with coupon rates
ranging from 8.25% to 8.3%. -
The proposed new issue would mature March 1, 2015 (which is the
current maturity date of the 1981 and 1985 issues), and the
estimated costs associated with issuance would be: underwriter's
discount - $141,375; costs of issuance - $80,000; and, bond
insurance - $85,850.37. No funds would be remitted to the Agency,
and the increase in bond debt would be used to fund the escrow and
debt service accounts.
Based upon the attached debt service analysis, the Redevelopment
Committee recommended to the Community Development commission
approval of this item.
Staff recommends adoption of the form motion.
KENNE �RDERSON, Executive Director
Development Department
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KJH:BJL:1799a COMMISSION MEETING
Meeting Date: 2/15/1993
Agenda Item No:
Toll Free(800)542-6288
Miller &Schroeder Financial, Inc.
505 Lomas Santa Fe Drive•Suite 100•P.O.Box 946•Solana Beach,California 92075-0814•(619)481.5894
January 26, 1993 A2 8
ECONOir1iC Oc'uOPM T
AGEWCY
Mr. Tim Steinhaus
Economic Development Agency
CITY OF SAN BERNARDINO
201 North "E" Street, Third Floor
San Bernardino, California 92401-1507
Dear Tim,
The Redevelopment Agency of the City of San Bernardino, Southeast Industrial Park
Redevelopment Project Area has outstanding a tax allocation issue of 1981 and 1985.
Assuming today's "AAA" rates, a refunding of these issues to the 2015 maturity date
produces savings of nearly $200,000 per year.
Enclosed are schedules that show the sources and uses and debt service on the refunding
issues. Upon approval, this refunding can be completed in 45 to 60 days. Please let me
know if you need any further information.
Sincerely,
MILLER & SCHROEDER FINANCIAL, INC.
DV,k M, &-,,,
Rhonda M. Connolly
Financial Consultant
RMC:kks
ID02
Headquarters:Minneapolis,Minnesota
Branch Offices:San Diego Area•San Francisco Area•St.Paul•Columbus
Member of the Securities Protection Corporation
RDA OF THE CITY OF SAN BERNARDINO
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA
REFUNDING 1981 A AND 1985 TA BONDS
ISSUE OF 1993
SOURCES AND USES
Dated 4/01/1993 Delivery 4/01/1993
Par Amount of Bonds............................... $7,250,000.00
Transfers from Prior Issue DSR Funds.............. 825,000.00
Total Sources $8,075,000.00
Total Underwriter's Discount (1.950X)............. $141,375.00
Costs of Issuance....... ....................... 80,000.00
Gross Bond Insurance Premium...................... 85,850.37
Deposit to Debt Service Reserve Fund (DSRF)....... 602,477.50
Deposit to Escrow Fund............................ 7,160,786.32
Contingency....................................... 4,510.81
Total Uses $8,075,000.00
Miller 8 Schroeder Financial FILE = SBSECOMR
Public Finance 1/25/1993 11:11 PM
wa-
RDA OF THE CITY OF SAN BERNARDINO
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA
REFUNDING 1981 A AND 1985 TA BONDS
ISSUE OF 1993
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST DEBT SERVICE
3/01/1994 215,000.00 3.50000% 384,571.46 599,571.46
3/01/1995 190,000.00 4.00000% 412,007.50 602,007.50
3/01/1996 195,000.00 4.50000% 404,407.50 599,407.50
3/01/1997 205,000.00 4.75000% 395,632.50 600,632.50
3/0111998 215,000.00 5.OD000% 385,895.00 600,895.00
3/01/1999 225,000.00 5.15000% 375,145.00 600,145.00
3/01/2000 235,000.00 5.30000% 363,557.50 598,557.50
3/01/2001 250,000.00 5.45000% 351,102.50 601,102.50
3/01/2002 265,000.00 5.60000% 337,477.50 602,477.50
3101/2003 275,000.00 5.75000% 322,637.50 597,637.50
3/01/2004 295,000.00 5.90000% 306,825.00 601,825.00
3/01/2005 310,000.00 6.00000% 289,420.00 599,420.00
3/01/2006 330,000.00 6.05000% 270,820.00 600,820.00
3/01/2007 350,000.00 6.10000% 250,855.00 600,855.00 -
3/01/2008 370,000.00 6.15000% 229,505.00 599,505.00
3/01/2009 395,000.00 6.15000% 206,750.00 601,750.00
3/01/2010 420,000.00 6.20000% 182,457.50 602,457.50
3/01/2011 445,000.00 6.20000% 156,417.50 601,417.50
3/01/2012 470,000.00 6.20000% 128,827.50 598,827.50
3/0112013 500,000.00 6.25000% 99,687.50 599,687.50
3/01/2014 530,000.00 6.25000% 68,437.50 598,437.50
3/01/2015 565,000.00 6.25000% 35,312.50 600,312.50
TOTAL 7,250,000.00 - 5,957,748.96 13,207,748.96
Miller & Schroeder Financial FILE = SBSECOMR
Public Finance 1/25/1993 11:11 PM
YIELD STATISTICS
Accrued Interest from 04/01/1993 to 04/01/1993... -
Average Life...................................... 13.554 YEARS
Bond Years........................................ 98,265.83
Average Coupon.................................... 6.0628896%
Net Interest Cost (N1C)........................... 6.2067595%
Bond Yield for Arbitrage Purposes................. 6.1596613%
True Interest Cost (TIC).......................... 6.2499756%
Effective Interest Cost (EIC)..................... 6.5263026%
4
pr;
REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA
TA BONDS, ISSUE OF 1985
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST DEBT SERVICE
3/01/1993 25,000.00 8.25000% 77,741.25 102,741.25
3/01/1994 25,000.00 8.25000% 153,420.00 178,420.00
3/01/1995 30,000.00 8.25000% 151,357.50 181,357.50
3/01/1996 35,000.00 8.25000% 148,882.50 183,882.50
3/01/1997 35,000.00 8.25000% 145,995.00 180,995.00
3/01/1998 40,000.00 8.25000% 143,107.50 183,107.50
3/01/1999 45,000.00 8.25000% 139,807.50 184,807.50
3/01/2000 50,000.00 8.25000% 136,095.00 186,095.00
3/01/2001 50,000.00 8.30000% 131,970.00 181,970.00
3/01/2002 55,000.00.:::1: .8.30000% 127,820.00 182,820.00
3/01/2003 60,000.00 8.30000% 123,255.00 183,255.00
3/01/2004 70,000.00 8.30000% 118,275.00 188,275.00
3/01/2005 75,000.00 8.30000% 112,465.00 187,465.00
3/01/2006 80,000.00 8.30000% 106,240.00 186,240.00
3/01/2007 90,000.00 8.30000% 99,600.00 189,600.00
3/01/2008 100,000.00 8.30000% 92,130.00 192,130.00
3/01/2009 110,000.00 8.30000% 83,830.00 193,830.00
3/01/2010 120,000.00 8.30000% 74,700.00 194,700.00
3/01/2011 130,000.00 8.30000% 64,740.00 194,740.00
3101/2012 140,000.00 8.30000% 53,950.00 193,950.00
3/01/2013 155,000.00 8.30000% 42,330.00 197,330.00
3/01/2014 170,000.00 8.30000% 29,465.00 199,465.00
3/01/2015 185,000.00 8.30000% 15,355.00 200,355.00
TOTAL 1,875,000.00 - 2,372,531.25 4,247,531.25
Miller & Schroeder Financial FILE = SBSE85
Public Finance 1/24/1993 10:50 PM
YIELD STATISTICS
Accrued Interest from 09/01/1992 to 09/01/1992... -
Average life...................................... 15.249 YEARS
Bond Years........................................ 28,592.50
Average Coupon.................................... 8.2977398%
Net Interest Cost (NIC)........................... 8.2977398%
Bond Yield for Arbitrage Purposes................. 8.2966399%
True Interest Cost (TIC).......................... 8.2966399%
Effective Interest Cost (EIC)..................... 8.2966399%
• O✓lv Ot� I be b T SC✓✓i ,.�
o REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO, CALIFORNIA
SOUTHEAST INDUSTRIAL PARK REDEVELOPMENT PROJECT AREA
TA REFUNDING BONDS, ISSUE OF 1981 SERIES A
DEBT SERVICE SCHEDULE
DATE PRINCIPAL COUPON INTEREST DEBT SERVICE
3/01/1993 165,000.00 9.50000% 228,152.50 393,152.50
3/01/1994 180,000.00 9.60000% 440,630.00 620,630.00
3/01/1995 200,000.00 9.70000% 423,350.00 623,350.00
3/01/1996 220,000.00 9.75000% 403,950.00 623,950.00
3/01/1997 240,000.00 10.00000% 382,500.00 622,500.00
3/01/1998 265,000.00 10.00000% 358,500.00 623,500.00
3/01/1999 290,000.00 10.00000% 332,000.00 622,000.00
3/01/2000 320,000.00 10.00000% 303,000.00 623,000.00
3/01/2001 350,000.00 10.00000% 271,000.00 621,000.00
3/01/2002 385,000.00 10.00000% 236,000.00 621,000.00
3/01/2003 425,000.00 10.00000% 197,500.00 622,500.00
3/01/2004 470,000.00 10.00000% 155,000.00 625,000.00
3/01/2005 515,000.00 10.00000% 108,000.00 623,000.00
3/01/2006 565,000.00 10.00000% 56,500.00 621,500.00 _.
TOTAL 4,590,000.00 - 3,896,082.50 8,486,082.50
Miller & Schroeder Financial FILE = SBSE81
Public Finance 1/24/1993 10:50 PM
YIELD STATISTICS
Accrued Interest from 09/01/1992 to 09/01/1992... -
Average Life...................................... 8.499 YEARS
Bond Years........................................ 39,010.00
Average Coupon.................................... 9.9873943%
Net Interest Cost (NIC)........................... 9.9873943%
Bond Yield for Arbitrage Purposes................. 9.9824849%
True Interest Cost (TIC).......................... 9.9824849%
Effective Interest Cost (EIC)..................... 9.9824849%