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Home My WebLink AboutPresentation - Agenda Item 5D - Lease Revenue Bonds Refinancing 09-30-21 (003)Lease Revenue Bonds RefinancingAgenda Item #5D September 30, 2021 FINANCE DEPARTMENT BACKGROUND •Convention Center has financed improvements over the past 30 years using Lease Revenue Bonds •Currently Outstanding Bonds total $49.9 Million FINANCE DEPARTMENT 2012 Series A Lease Revenue Bonds 2014 Series A Lease Revenue Bonds $10.8 Million Outstanding $39.1 Million Outstanding 4.07% Interest Rate 4.69% Interest Rate Matures November 2025 Matures November 2035 REFINANCING OPPORTUNITY FINANCE DEPARTMENT •Same maturity at interest rate of 2.17% •Estimated debt service reduction is $4.1 million •Costs of issuance are paid from bond proceeds and have been taken into account in the savings estimate Existing FY Payments Debt Service Savings FY 2022 1,131,022$ 471,000$ 660,022$ FY 2023 4,763,231 4,606,000 157,231 FY 2024 4,766,438 4,607,000 159,438 FY 2025 4,772,219 4,607,000 165,219 FY 2026 4,779,356 4,606,000 173,356 FY 2027 4,886,231 4,610,000 276,231 FY 2028 4,883,356 4,609,000 274,356 FY 2029 4,886,356 4,608,000 278,356 FY 2030 4,885,731 4,609,000 276,731 FY 2031 4,886,106 4,605,000 281,106 FY 2032 4,886,981 4,608,000 278,981 FY 2033 4,887,856 4,609,000 278,856 FY 2034 4,884,116 4,607,000 277,116 FY 2035 4,885,625 4,610,000 275,625 FY 2036 4,885,313 4,608,000 277,313 69,069,938$ 64,980,000$ 4,089,938$ Reduction 5.92% Present Value Savings 7.10% RECOMMENDATIONS •City Council Adopts Resolution −Approves financing documents −Authorizes bonds issued in an amount not-to-exceed $60M with savings of at least 4% −Authorizes execution of related documents by City Manager and Finance Director •City Council approves professional services FINANCE DEPARTMENT RECOMMENDATIONS •City of Palm Springs Financing Authority Board Adopts Resolution −Approves financing documents −Authorizes bonds issued in an amount not-to-exceed $60M with savings of at least 4% FINANCE DEPARTMENT Lease Revenue Bonds RefinancingAgenda Item #5D September 30, 2021 FINANCE DEPARTMENT