5. Preliminary Refunding Summary
Level Savings – 100% EDC Sales Tax Supported
Refunded Bonds Projected Annual Savings
Interest FYE Existing Post-Ref
Issue Maturities Rates Amount Callable 9/30 D/S Net D/S Savings
2013 $ 1,560,788 $ 1,557,973 $ 2,815
Series 2005 2017 - 2020 5.00% $ 5,660,000 2/15/2015
2014 1,559,456 1,498,606 60,850
2015 1,563,125 1,501,275 61,850
2016 1,559,563 1,496,713 62,850
Preliminary Summary of Results 2017 1,560,250 1,499,400 60,850
Par Amount of Refunding Bonds $ 5,970,000 2018 1,563,000 1,503,225 59,775
Est. True Interest Cost (TIC) 1.483% 2019 1,562,250 1,500,775 61,475
Total Debt Service Savings $ 431,339 2020 1,558,000 1,497,125 60,875
Net Present Value Savings ($) $ 398,232 $ 12,486,431 $ 12,055,091 $ 431,340
Net Present Value Savings (%) 7.036%
Negative Arbitrage in Escrow $ (139,595)
Captured Benefit = NP V Savings / (NP V Savings + Negative A rbitrage) 74.045%
Note: All assumptions are as of October 31, 2012 for purposes of illustration only. Preliminary, subject to change.
4
6. Proposed Parameters
The City Manager and the Director of Finance are authorized
to act on behalf of the City to execute the pricing documents
so long as the following parameters are satisfied:
Aggregate Principal amount of the Bonds does note
exceed $8,000,000;
The refunding must produce a present value debt service
savings of at least 4.75% of refunded obligations;
The true interest cost of the bonds shall not exceed
1.85%; and
The final maturity of the Bonds shall not be later that
February 15, 2020.
5
7. Preliminary Sources and Uses
Sources Of Funds
Par Amount of Bonds $5,970,000.00
Reoffering Premium 522,115.95
Accrued Interest from 11/01/2012 to 12/12/2012 20,038.75
Total Sources $6,512,154.70
Uses Of Funds
T otal Underwriter's Discount (0.734%) 43,806.50
Costs of Issuance 110,000.00
Deposit to Debt Service Fund 20,038.75
Deposit to Net Cash Escrow Fund 6,336,378.35
Rounding Amount 1,931.10
Total Uses $6,512,154.70
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10. Ten-Year History of The Bond Buyer’s 20 Bond
G.O. Index
7.00
GO BBI Statistics
Date Value
Current 3.68
6.50
Min 2/2/12 3.60
Average 4.49
Max 10/16/08 6.01
52 wk MAVG 3.82
% of time > Current 97.7%
6.00
5.50
5.00
4.50
4.00
3.50
10/31/02 10/30/03 10/28/04 10/27/05 10/26/06 10/25/07 10/23/08 10/22/09 10/21/10 10/20/11 10/18/12
Bond Buyer G.O. Index Current Value 52 Week Moving Average
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12. Preliminary Timeline of Events
City of San Angelo, Texas
$5,970,000*
General Obligation Refunding Bonds, Series 2012 (the “Bonds”)
Timeline of Events – Negotiated Sale
Tuesday, October 16, 2012** The City Council considers and gives authorization to pursue the
Refunding issue.
Tuesday, October 23, 2012 The Financial Advisor makes application to the Rating Services in
order to obtain ratings on the Bonds.
POS is circulated for comments to financings team.
Monday, November 5, 2012 Rating Agency Conference Call with Standard & Poor’s.
Tuesday, November 6, 2012** The City Council considers a Parameter Order authorizing SPFI to
pursue the Refunding at a minimum Present Value Savings
agreeable to Council.
The Preliminary Official Statement is distributed to the
Underwriters.
Wednesday, November 7, 2012 Ratings are received and published by the Financial Advisor.
Tuesday, November 13, 2012 Pre-pricings call with Underwriter.
Wednesday, November 14, 2012 Pricing. Interest rates on the Bonds are negotiated between the
Underwriters and the Financial Advisor.
Designated Pricing Agents execute transaction documents.
Tuesday, December 4 or 18, 2012** Final refunding results presented to Council by SPFI.
Wednesday, December 5, 2012 Notice is sent to the Underwriters about the Closing Date.
Wednesday, December 12, 2012 Delivery Date. The City closes and funds are deposited to pay the
Refunded Obligations.
__________
* Preliminary, subject to change. 11
** Official City Council Meeting.