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HomeMy WebLinkAbout5/8/2014 - RESOLUTIONS - 022 RESOLUTION NO. 022 A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY DIRECTING PREPARATION OF PROCEEDINGS FOR THE REFUNDING OF CERTAIN OUTSTANDING OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, APPROVING ISSUANCE OF REFUNDING BONDS, MAKING CERTAIN DETERMINATIONS WITH RESPECT TO THE REFUNDING BONDS AND PROVIDING OTHER MATTERS RELATING THERETO. WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Former Agency") was a public body, corporate and politic, duly established and authorized to transact business and exercise powers under and pursuant to the provisions of the Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of the Health and Safety Code of the State (the "Law"); and WHEREAS, pursuant to Section 34172(a) of the California Health and Safety Code (unless otherwise stated, all Section references hereinafter being to such Code), the Former Agency has been dissolved and no longer exists, and pursuant to Section 34173, the City of Palm Springs (the "City") has become the successor entity to the Former Agency (the "Successor Agency"); and WHEREAS, prior to the dissolution of the Former Agency, the Former Agency issued its Community Redevelopment Agency of the City of Palm Springs 2001 Housing Tax Allocation Bonds in the initial principal amount of $5,805,000 (the "2001 Housing Bonds"), its Community Redevelopment Agency of the City of Palm Springs Merged Project No. 1 Tax Allocation Refunding Bonds, 2004 Series A, in the initial principal amount of $14,240,000 (the "2004A Bonds") and its Community Redevelopment Agency of the City of Palm Springs Merged Project No. 2 Tax Allocation Refunding Bonds, 2004 Series B, in the initial principal amount of $9,075,000 (the "2004B Bonds" and, together with the 2001 Housing Bonds and the 2004A Bonds, the "Prior Bonds"); and WHEREAS, Section 34177.5 authorizes the Successor Agency to issue refunding bonds pursuant to Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code (the `Refunding Law") for the purpose of achieving debt service savings within the parameters set forth in Section 34177.5(a)(1) (the "Savings Parameters"); and WHEREAS, the Successor Agency has determined that, based on current conditions in the municipal bond market, it will achieve debt service savings in Resolution No. 022 Page 2 compliance with the Savings Parameters as evidenced by the analysis prepared by its Financial Advisor, Harrell & Company, Advisors, describing potential savings that will accrue to the Successor Agency and to applicable taxing entities as a result of the refunding of the Prior Bonds (the "Debt Service Savings Analysis"); and WHEREAS, the Successor Agency proposes to achieve the potential debt service savings evidenced by the Debt Service Savings Analysis by the issuance of its Successor Agency to the Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Refunding Bonds, (the 'Refunding Bonds") pursuant to the Law, the Refunding Law and the form of Indenture of Trust, dated as of May 1, 2014, by and between the Successor Agency and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Indenture') on file with the Secretary; and WHEREAS, pursuant to Section 34179, this Oversight Board has been established for the Successor Agency and the Successor Agency by its resolution adopted May 7, 2014, (the "Successor Agency Resolution") requested that the Oversight Board pursuant to §34177.5(f) direct the Successor Agency to undertake such refunding proceedings by the issuance of the Refunding Bonds, it being understood that such direction by the Oversight Board will enable the Successor Agency to recover its related costs in connection with the refunding proceedings, as authorized by Section 34177.5(t); and WHEREAS, in the Successor Agency Resolution, the Successor Agency approved the issuance of the Refunding Bonds and authorized the execution and delivery of the Indenture, subject to the conditions set forth in the Successor Agency Resolution; and WHEREAS, in the Successor Agency Resolution, the Successor Agency also requested that this Oversight Board approve the issuance of the Refunding Bonds pursuant to the Successor Agency Resolution and the Indenture and that this Oversight Board make certain determinations described below on which the Successor Agency will rely in undertaking the refunding proceedings and the issuance of the Refunding Bonds; and WHEREAS, following approval by the Oversight Board of the issuance of the Refunding Bonds by the Successor Agency and upon approval by the California Department of Finance of such approval by the Oversight Board, the Successor Agency will, with the assistance of its Disclosure Counsel and its Financial Advisor, cause to be prepared a form of Official Statement describing the Refunding Bonds and containing material information relating to the Refunding Bonds, the preliminary form of which will be submitted to the Successor Agency for approval for distribution by the underwriter of the Refunding Bonds to persons and institutions interested in purchasing the Refunding Bonds; and WHEREAS, the Successor Agency will select an underwriter to sell the Refunding Bonds, will approve a purchase contract with such underwriter and will Resolution No. 022 Page 3 authorize and direct its officers and staff to implement the sale and delivery of the Refunding Bonds to such underwriter; and WHEREAS, this Oversight Board has completed its review of the refunding proceedings and the Debt Service Savings Analysis and wishes at this time to give its approval to the issuance of the Refunding Bonds by the Successor Agency. NOW, THEREFORE, BE IT RESOLVED by the Oversight Board for the Successor Agency to the Palm Springs Community Redevelopment Agency, as follows: SECTION 1. Determination of Savings. This Oversight Board has determined that there are significant potential savings available to the Successor Agency and to applicable taxing entities in compliance with the Savings Parameters by the issuance by the Successor Agency of the Refunding Bonds to provide funds to refund and defease the Prior Bonds, all as evidenced by the Debt Service Savings Analysis on file with the Secretary of the Oversight Board, which Debt Service Savings Analysis is hereby approved. SECTION 2. Direction to Refund. The Oversight Board hereby directs the Successor Agency to undertake the refunding proceedings pursuant to Section 34177.5(a)(1) for the issuance, sale and delivery of the Refunding Bonds, as requested in the Successor Agency Resolution on file with the Secretary of the Oversight Board. SECTION 3. Approval of Issuance of the Refunding Bonds. As authorized by Section 34177.5(f) and Section 34180, this Oversight Board hereby approves the issuance by the Successor Agency of the Refunding Bonds pursuant to Section 34177.5(a)(1) and under applicable provisions of the Law and the Refunding Law and as provided in the Successor Agency Resolution and the Indenture in the aggregate principal amount of not to exceed $20,000,000, provided that the principal and interest payable with respect to the Refunding Bonds complies in all respects with the requirements of the Savings Parameters, as shall be certified to by the Financial Advisor upon delivery of the Refunding Bonds. SECTION 4. Issuance in Separate Series. The Refunding Bonds may be issued as a single issue, or from time to time in separate series, as the Successor Agency shall determine. The approval of the issuance of the Refunding Bonds by the Oversight Board shall constitute the approval of each and every separate series of Refunding Bonds, without the need for any further approval from the Oversight Board, provided that each such separate series of Refunding Bonds complies in all respects with the Saving Parameters required to be met by Section 34177.5(a)(1). SECTION 5. Determinations by the Oversight Board. As requested by the Successor Agency in the Successor Agency Resolution, the Oversight Board makes the following determinations upon which the Successor Agency shall rely in undertaking the refunding proceedings and the issuance of the Refunding Bonds: Resolution No. 022 Page 4 (a) The Successor Agency is authorized, as provided in Section 34177.5(f), to recover its costs related to the issuance of the Refunding Bonds from the proceeds of the Refunding Bonds, including the cost of reimbursing the City of Palm Springs for administrative staff time spent with respect to the authorization, issuance, sale and delivery of the Refunding Bonds; (b) The application of proceeds of the Refunding Bonds by the Successor Agency to the refunding and defeasance of the Prior Bonds, as well as to the payment by the Successor Agency of all costs of issuance of the Refunding Bonds, as provided in Section 34177.5(a), shall be implemented by the Successor Agency promptly upon sale and delivery of the Refunding Bonds, and, notwithstanding Section 34177.3 or any other provision of law to the contrary, no further approval of the Oversight Board, the California Department of Finance, the Riverside County Auditor-Controller or any other person or entity other than the Successor Agency shall be required; (c) The Successor Agency shall be entitled to receive its full Administrative Cost Allowance under Section 34181(a)(3) without any deductions with respect to continuing costs related to the Refunding Bonds, such as trustee's fees, auditing and fiscal consultant fees and continuing disclosure and rating agency costs (collectively, "Continuing Costs of Issuance"), and such Continuing Costs of Issuance shall be payable from property tax revenues pursuant to Section 34183. In addition and as provided by Section 34177.5(f), if the Successor Agency is unable to complete the issuance of the Refunding Bonds for any reason, the Successor Agency shall, nevertheless, be entitled to recover its costs incurred with respect to the refunding proceedings from such property tax revenues pursuant to Section 34183 without reduction in its Administrative Cost Allowance. SECTION 6. Effective Date. Pursuant to Section 34179(h), all actions taken by this Oversight Board may be reviewed by the California Department of Finance and, therefore, this Resolution shall be effective five (5) business days after notice to the Department of Finance unless the Department of Finance requests a review of the actions taken in this Resolution, in which case this Resolution will be effective upon approval by the Department of Finance after such review. PASSED, APPROVED AND ADOPTED BY THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS THIS 8t' DAY OF MA 2014. OMAS FLA CHAIRMAN ATTEST: e�AMES THOMPSON, CLERK/SECRETARY Resolution No. 022 Page 5 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Secretary of the Oversight Board of the Successor Agency of the Palm Springs Community Redevelopment Agency hereby certify that Resolution No. 022 was adopted by the Oversight Board at a Special Meeting held on the 8t' day of May, 2014, by the following vote: AYES: Board Members Arthur, Marshall, Ready, Van Hom, and Chairman Flavin. NOES: None. ABSENT: Board Member Foat and Vice Chair Howell. ABSTAIN: None. /). MES THOMPSON OVERSIGHT CLERKISECRETARY City of Palm Springs, California SOURCES AND USES OF FUNDS Successor Agency to Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Bonds Refund 2001 Refund 2004 Refund 2004 Sources: Bonds Series A Bonds Series B Bonds Total Bond Proceeds: Par Amount 2,255,000.00 8,650,000.00 6,880,000.00 17,785,000.00 Premium 202,401.35 730,979.35 507,862.40 1,441,243.10 2,457,401.35 9,380,979.35 7,387,862.40 19,226,243.10 Other Sources of Funds: Debt Service Reserve Fund 468,08L00 1,037,200.00 614,256,00 2,119,537.00 Debt Service Fund 773,589.00 407,128.00 1,180,717.00 468,081.00 1,810,789.00 1,021,384.00 3,300,254.00 2,925,482.35 11,191,768.35 8,409,246.40 22,526,497.10 Refund 2001 Refund 2004 Refund 2004 Uses: Bonds Series A Bonds Series B Bonds Total Refunding Escrow Deposits: Cash Deposit 2,657,372.27 0.75 0.13 2,657,373.15 SLGS Purchases 10,168,589.00 7,592,128.00 17,760,716.00 2,657,372.27 10,168,588.75 7,592,128.13 20,418,089.15 Other Fund Deposits: Debt Service Reserve Fund 206,992.84 794,007.99 631,534,68 1,632,535.51 Delivery Date Expenses: Cost of Issuance 25,358.45 97,272.98 77,368.57 200,000.00 Underwriter's Discount 15,785.00 60,550.00 48,160.00 124,495.00 Bond Insurance 18,276.09 70,105.61 55,760.30 144,142.00 59,419.54 227,928.59 181,288.87 468,637.00 Other Uses of Funds: Additional Proceeds 1,697.70 1,243.02 4,294.72 7,235.44 2,925,482.35 11,191,768.35 8,409,246.40 22,526,497.10 Note: Debt Services Savings Anlaysis for Successor Agency Board Report of May 7,2014 Prepared by Harrell&Company Advisors Page I SUMMARY OF REFUNDING RESULTS Successor Agency to Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Bonds Refund 2001 Refund 2004 Refund 2004 Bonds Series A Bonds Series B Bonds Total Dated Date 08/07/2014 08/07/2014 08/07/2014 08/07/2014 Delivery Date 08/07/2014 08/07/2014 08/07/2014 08/07/2014 Arbitrage Yield 3.732903% 3.732903% 3.732903% 3.732903% Escrow Yield Value of Negative Arbitrage 25,041.43 18,696.56 43,737.99 Bond Par Amount 2,255,000.00 8,650,000.00 6,880,000.00 17,785,000.00 True Interest Cost 2.396455% 3.798119% 4.2047360/ 3.898857% Net Interest Cost 2.539908% 4.038006% 4.405544% 4.133357% Average Coupon 4.491894% 4.888949% 4.955633% 4.899284% Average Life 4.240 9.108 12.147 9.666 Par amount of refunded bonds 2,655,000.00 9,905,000.00 7,385,000.00 19,945,000.00 Average coupon of refunded bonds 5.429348% 5.4372370/. 5.708595% 5.566111% Average life of refunded bonds 4.187 8.712 12.013 9.332 PV of prior debt 2,827,289.30 11,297,149.23 8,900,050.68 23,024,48921 Net PV Savings 248,592.38 917,579.93 857,262.51 2,023,434.82 Percentage savings of refunded bonds 9363178% 9263805% 11.608159°/n 10.145073% Percentage savings of refunding bonds 11.024052% 10.607860% 12.460211% 1 L377199% Note: Debt Services Savings Anlaysis for Successor Agency Board Report of May 7,2014 Prepared by Harrell&Company Advisors Page 2 BOND PRICING Successor Agency to Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Bonds Maturity Premium Bond Component Date Amount Rate Yield Price (-Discount) Serial Bonds for 2001 Refunding: 09/01/2015 965,000 4.000% 0.630% 103.576 34,508.40 09/O1/2016 1,060,000 4.000% 0.930°/a 106.269 66,451.40 09/01/2017 1,110,000 4.000% 1.360% 107.902 87,712.20 09/01/2018 1,140,000 4.000% 1.770% 108.711 99,305.40 09/01/2019 1,195,000 4,000% 2.190% 108.634 103,176.30 09/01/2020 1,245,000 5.000% 2.620% 113.267 165,174.15 09/O1/2021 1,300,000 5,000% 3.000% 112,648 164,424.00 09/01/2022 985,000 5,000% 3.270% 112.177 119,943.45 09/01/2023 1,035,000 5.000% 3.470% 111.812 122,254.20 09/01/2024 545,000 5.000% 3.650% 111.285 61,503.25 09/01/2025 575,000 5.000% 3.850°/u 109.519 C 54,734.25 09/01/2026 600,000 5.000% 3.850% 109.519 C 57,114.00 09/01/2027 630,000 5.000% 4.000% 108.217 C 51,767.10 09/01/2028 665,000 5.000% 4.100% 107.359 C 48,93735 09/O1/2029 695,000 5.000% 4.200% 106.509 C 45,237.55 09/O1/2030 730,000 5.000% 4.300% 105.668 C 41,376.40 09/01/2031 770,000 5.000% 4.400% 104.834 C 37,221.80 09/01/2032 805,000 5.000% 4.500"/a 104.008 C 32,264.40 09/01/2033 845,000 5.000% 4.600% 103,190 C 26,955.50 09/01/2034 890,000 5.000% 4.700% 102.380 C 21,182.00 17,785,000 1,441,243.10 Dated Date 08/07/2014 Delivery Date 08/07/2014 First Coupon 03/O1/2015 Par Amount 17,785,000.00 Premium 1,441,243.10 Production 19,226,243.10 108.103700% Underwriter's Discount (124,495.00) (0.700000%) Purchase Price 19,101,748.10 107.403700% Accrued Interest Net Proceeds 19,101,748.10 Note: Debt Services Savings Anlaysis for Successor Agency Board Report of May 7,2014 Prepared by Harrell&Company Advisors Page 3 BOND DEBT SERVICE BREAKDOWN Successor Agency to Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Bonds Period Refund 2001 Refund 2004 Refund 2004 Ending Bonds Series A Bonds Series B Bonds Total 09/01/2015 383,840 921,840 549,506.67 1,855,186.67 09/01/2016 381,150 920,250 554,550.00 1,855,950.00 09/01/2017 384,350 923,850 555,350.00 1,863,550.00 09/01/2018 381,950 916,450 550,750.00 1,849,150.00 09/01/2019 384,150 923,450 550,950.00 1,858,550.00 09/01/2020 385,750 924,250 550,750.00 1,860,750.00 09/01/2021 383,250 922,750 547,500.00 1,853,500.00 09/01/2022 924,750 548,750.00 1,473,500.00 09/01/2023 920,000 554,250.00 1,474,250.00 09/01/2024 383,750 548,750.00 932,500.00 09/01/2025 382,500 552,750.00 935,250.00 09/01/2026 380,750 550,750.00 931,500.00 09/01/2027 383,500 548,000.00 931,500.00 09/O1/2028 380,500 554,500.00 935,000.00 09/01/2029 382,000 549,750.00 931,750.00 09/01/2030 382,750 549,250.00 932,000.00 09/01/2031 382,750 552,750.00 935,500.00 09/01/2032 382,000 550,000.00 932,000.00 09/01/2033 380,500 551,250.00 931,750.00 09/01/2034 383,250 551,250.00 934,500.00 2,684,440 12,501,840 11,021,356.67 26,207,636.67 Note: Debt Services Savings Anlaysis for Successor Agency Board Report of May 7,2014 Prepared by Harrell&Company Advisors Page 4 DETAILED BOND DEBT SERVICE Successor Agency to Palm Springs Community Redevelopment Agency Refund 2001 Bonds Serial Bonds for 2001 Refunding Period Debt Ending Principal Coupon Interest Service 09/01/2015 280,000 4.000% 103,840 383,840 09/01/2016 295,000 4.000% 86,150 381,150 09/01/2017 310,000 4,000% 74,350 384,350 09/01/2018 320,000 4.000% 61,950 38I,950 09/01/2019 335,000 4.000% 49,150 384,150 09/01/2020 350,000 5.000% 35,750 385,750 09/01/2021 365,000 5.000% 18,250 393.250 2,255,000 429,440 2,684,440 Prepared by Harrell&Company Advisors Page 5 DETAILED BOND DEBT SERVICE Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series A Bonds Serial Bonds for 2004A Refundine Period Debt Ending Principal Coupon Interest Service 09/01/2015 490,000 4.000% 431,840 921,840 09/01/2016 535,000 4.000% 385,250 920,250 09/01/2017 560,000 4.000% 363,850 923,850 09/01/2018 575,000 4.000% 341,450 916,450 09/01/2019 605,000 4.000% 318,450 923,450 09/01/2020 630,000 5.000% 294,250 924,250 09/01/2021 660,000 5.000% 262,750 922,750 09/01/2022 695,000 5.000% 229,750 924,750 09/01/2023 725,000 5.000% 195,000 920,000 09/01/2024 225,000 5.000% 158,750 383,750 09/01/2025 235,000 5.000% I47,500 382,500 09/01/2026 245,000 5,000% 135,750 380,750 09/01/2027 260,000 5.000% 123,500 383,500 09/01/2028 270,000 5.000% 110,500 380,500 09/01/2029 285,000 5.000% 97,000 382,000 09/01/2030 300,000 5.000% 82,750 382,750 09/01/2031 315,000 5.000% 67,750 382,750 09/01/2032 330,000 5,000% 52,000 382,000 09/01/2033 345,000 5.000% 35,500 380,500 09/01/2034 365,000 5.000% 18,250 383,250 8,650:000 3,851,840 12,501,840 Prepared by Harrell&Company Advisors Page 6 DETAILED BOND DEBT SERVICE Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series B Bonds Serial Bonds for 2004B Refandinz Period Ending Principal Coupon Interest Debt Service 09/O1/2015 195,000 4.0000% 354,506.67 549,506.67 09/O1/2016 230,000 4.000% 324,550.00 554,550.00 09/01/2017 240,000 4.000% 315,350.00 555,350.00 09/01/2018 245,000 4.000% 305,750.00 550,750.00 09/01/2019 255,000 4.0000% 295,950.00 550,950.00 09/01/2020 265,000 5.000% 285,750.00 550,750.00 09/01/2021 275,000 5.000% 272,500.00 547,500.00 09/01/2022 290,000 5.000% 258,750.00 548,750.00 09/01/2023 310,000 5.000% 244,250.00 554,250.00 09/01/2024 320,000 5.000°/a 228,750.00 548,750.00 09/01/2025 340,000 5.00001. 212,750.00 552,750.00 09/01/2026 355,000 5.000°/a 195,750.00 550,750.00 09/01/2027 370,000 5.00001. 178,000.00 548,000.00 09/01/2028 395,000 5.00001. 159,500.00 554,500.00 09/01/2029 410,000 5.00001. 139,750.00 549,750.00 09/01/2030 430,000 5.000°/a 119,250.00 549,250.00 09/01/2031 455,000 5.00001. 97,750.00 552,750.00 09/01/2032 475,000 5.000% 75,000.00 550,000.00 09/01/2033 500,000 5.000% 51,250.00 551,250.00 09/01/2034 525,000 5.000% 26,250.00 551,250.00 6,880,000 4,141,356.67 11,021,356.67 Prepared by Harrell&Company Advisors Page 7 SAVINGS Successor Agency to Palm Springs Community Redevelopment Agency 2014 Subordinate Tax Allocation Bonds Present Value Prior Prior Prior Refunding to 08/07/2014 Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.7329028% 09/01/2014 1,180,716.88 1,180,717.00 � (0.12) (0.12) (2,907.78) 09/01/2015 2,113,270.02 2,113,270.02 1,855,186.67 258,083.35 250,409.83 09/01/2016 2,114,695.02 2,114,695.02 1,855,950.00 258,745.02 242,758.19 09/01/2017 2,118,015.02 2,118,015.02 1,863,550.00 254,465.02 230,009.69 09/01/2018 2,107,655.02 2,107,655.02 1,849,150.00 258,505.02 224,995.06 09/01/2019 2,112,618.76 2,112,618.76 1,858,550.00 254,068.76 212,996.18 09/01/2020 2,113,062.50 2,113,062.50 1,860,750.00 252,312.50 203,704.50 09/01/2021 2,109,425.00 2,109,425.00 1,853,500.00 255,925.00 199,000.05 09/01/2022 1,646,665.00 1,646,665.00 1,473,500.00 173,165.00 129,210.66 09/01/2023 1,648,640.00 1,648,640.00 1,474,250.00 174,390.00 125,336.55 09/01/2024 1,042,000.00 1,042,000.00 932,500,00 109,500.00 76,003.95 09/01/2025 1,039,825.00 1,039,825.00 935,250.00 104,575.00 69,943.00 09/01/2026 1,040,950.00 1,040,950.00 931,500.00 109,450.00 70,492.82 09/01/2027 1,040,100.00 1,040,100.00 931,500.00 108,600.00 67,375.35 09/01/2028 1,042,275.00 1,042,275.00 935,000.00 107,275.00 64,106.37 09/01/2029 1,037,187.50 1,037,187.50 931,750.00 105,437.50 60,689.66 09/01/2030 1,040,125.00 1,040,125.00 932,000.00 108,125.00 59,931.87 09/01/2031 1,045,525.00 1,045,525.00 935500.00 110,025.00 58,726.27 09/01/2032 1,038,100.00 1,038,100.00 932,000.00 106,100.00 54,539.17 09/01/2033 1,038,412.50 1,038,412.50 931,750.00 106,662.50 52,793.27 09/01/2034 1,045,900.00 1,045,900.00 934,500.00 111,400.00 53,086.22 30,715,163.22 1,180,717.00 29,534,446.22 26,207,636.67 3,326,809.55 2,503,200.87 Savings Summary PV of savings from cash flow 2,503,200.87 Less:Prior funds on hand (2,119,537.00) Plus:Refunding funds on hand 1,639,770.95 Net PV Savings 2,023,434.82 Note: Debt Services Savings Anlaysis for Successor Agency Board Report of May 7,2014 Prepared by Harrell&Company Advisors Page 8 SAVINGS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2001 Bonds Present Value Prior Refunding to 08/07/2014 Date Debt Service Debt Service Savings Q 3.7329028% 09/01/2015 467,336.26 383,840.00 83,496.26 81,944.27 09/01/2016 465,761.26 381,150.00 84,611.26 80.062.68 09/01/2017 468,081.26 384,350.00 83,731.26 76,326.97 09/01/2018 464,181.26 381,950.00 82,231.26 72,202.03 09/01/2019 464,025.00 384,150.00 79,875.00 67,569.00 09/01/2020 467,300.00 385,750.00 81,550.00 66,399.46 09/01/2021 464,200.00 383,250.00 80,950.00 63,478.42 3,260,885.04 2,684,440.00 576,445.04 507,982.84 Savings Summary PV of savings from cash Flow 507,982.84 Less:Prior funds on hand (468,081.00) Plus:Refunding funds on hand 208,690.54 Net PV Savings 248,592.38 Prepared by Harrell&Company Advisors Page 9 SAVINGS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series A Bonds Present Value Prior Prior Prior Refunding to 08/07/2014 Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.7329028% 09/01/2014 773,588.75 773,589.00 (0.25) (0.25) (1,905.31) 09/01/2015 1,036,677.50 1,036,677,50 921,840.00 114,837.50 110,779.69 09/01/2016 1,034,927.50 1,034,927.50 920,250.00 114,677.50 107,013.99 09/01/2017 1,036,927.50 1,036,927.50 923,850.00 113,077.50 101,644.96 09/01/2018 1,032,427.50 1,032,427.50 916,450.00 115,977.50 100,392.33 09/01/2019 1,035,447.50 1,035,447.50 923,450.00 111,997.50 93,377.77 09/01/2020 1,036,322.50 1,036,322.50 924,250.00 112,072.50 89,973.20 09/01/2021 1,035,360.00 1,035,360.00 922,750.00 112,610.00 87,088.14 09/01/2022 1,037,200.00 1,037,200.00 924,750.00 112,450.00 83,771.57 09/01/2023 1,035,400.00 1,035,400.00 920,000.00 115,400.00 82,792.38 09/01/2024 431,400.00 431,400.00 383,750.00 47,650.00 33,047.36 09/01/2025 428,200.00 428,200.00 382,500.00 45,700.00 30,540.32 09/01/2026 429,450.00 429,450.00 380,750.00 48,700.00 31,339.48 09/01/2027 429,875.00 429,875.00 383,500.00 46,375.00 28,754.21 09/01/2028 429,475.00 429,475.00 380,500.00 48,975.00 29,242.21 09/01/2029 428,250.00 428,250.00 382,000.00 46,250.00 26,605.03 09/01/2030 431,200.00 431,200.00 382,750.00 48,450.00 26,838.97 09/01/2031 433,050.00 433,050.00 392,750.00 50,300.00 26,832.94 09/01/2032 428,800.00 428,800.00 382,000.00 46,800.00 24,047.69 09/01/2033 428,725.00 428,725.00 380,500.00 48,225.00 23,862.03 09/01/2034 432,550.00 432,550.00 383,250.00 49,300.00 23,489.96 14,825,253.75 773,589.00 14,051,664.75 12,501,840.00 1,549,824.75 1,159,528.92 Savings Summary PV of savings from cash flow 1,159,528,92 Less:Prior fords on hand (1,037,200.00) Plus:Refunding funds on hand 795,251.01 Net PV Savings 917,579.93 Prepared by Hanel[&Company Advisors Page 10 SAVINGS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series B Bonds Present Value Prior Prior Prior Refunding to 09/07/2014 Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.7329028% 09/01/2014 407,128.13 407,128.00 0.13 0.13 (1,002.47) 09/01/2015 609,256.26 609,256.26 549,506.67 59,749.59 57,685.87 09/01/2016 614,006.26 614,006.26 554,550.00 59,456.26 55,681.52 09/0t/2017 613,006.26 613,006.26 555,350,00 57,656.26 52,037.76 09/01/2018 611,046.26 611,046.26 550,750.00 60,296.26 52,400.71 09/01/2019 613,146.26 613,146.26 550,950.00 62,196.26 52,049,41 09/01/2020 609,440.00 609,440.00 550,750.00 58,690.00 47,331.83 09/01/2021 609,865.00 609,865.00 547,500.00 62,365.00 48,433.48 09/01/2022 609,465.00 609,465.00 548,750.00 60,715.00 45,439.10 09/01/2023 613,240.00 613,240.00 554,250.00 58,990,00 42,544.17 09/01/2024 610,600.00 610,600.00 548,750.00 61,850.00 42,956.59 09/01/2025 611,625.00 611,625.00 552,750.00 58,875.00 39,402,68 09/01/2026 611,500.00 611,500.00 550,750.00 60,750.00 39,153.33 09/01/2027 610,225.00 610,225.00 548,000.00 62,225.00 38,621.14 09/01/2028 612,800.00 612,800.00 554,500.00 58,300.00 34,864.16 09/01/2029 608,937.50 608,937.50 549,750.00 59,187.50 34,084,63 09/01/2030 608,925.00 608,925.00 549,250.00 59,675.00 33,092.89 09/01/2031 612,475.00 612.475.00 552,750.00 59,725.00 31,893.33 09/01/2032 609,300.00 609,300.00 550,000.00 59,300.00 30,491.49 09/01/2033 609,687.50 609,687.50 551,250.00 58,437,50 28,931.24 09/01/2034 613,350.00 613,350.00 551,250.00 62,100.00 29,596.26 12,629,024.43 407,128.00 12,221,896.43 11,021,356.67 1,200,539.76 835,689.11 Savings Summary PV of savings from cash flow 835,689.11 Less:Prior funds on hand (614,256.00) Plus:Refunding funds on hand 635,829.40 Net PV Savings 857,262.51 Prepared by Harrell&Company Advisors Page I 1 ESCROW REQUIREMENTS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2001 Bonds 2001 Housing Tax Allocation Bonds Period Principal Ending Interest Redeemed Total 08/07/2014 2,372.27 2,655,000,00 2,657,372.27 2,372.27 2,655,000.00 2,657,372.27 Prepared by Harrell&Company Advisors Page 12 ESCROW REQUIREMENTS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series A Bonds Merged No. I Tax Allocation Refunding Bonds.2004A Period Principal Ending Principat Interest Redeemed Total 09/01/2014 510,000.00 263,588.75 9,395,000.00 10,168,588.75 510,000.00 263,588.75 9,395,000.00 10,168,588.75 Prepared by Harrell&Company Advisors Page 13 ESCROW REQUIREMENTS Successor Agency to Palm Springs Community Redevelopment Agency Refund 2004 Series B Bonds Merced No 2 Tax Allocation Refunding Bonds,2004B Period Principal Ending Principal Interest Redeemed Total 09/01/2014 200,000.00 207,128.13 7,185,000.00 7,592,128.13 200,000.00 207,128.13 7,185,000.00 7,592,128.13 Prepared by Harrell&Company Advisors Page 14