CITY OF LOS ANGELES HER-DEPARTMENTAL CORRESPONDENC. Councilmember Tony Cardenas, Chair Ad Hoc Committee on Public Debt, Bonds & Financing

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1 CITY OF LOS ANGELES HER-DEPARTMENTAL CORRESPONDENC Date: March 19, To: Attn: Councilmember Tony Cardenas, Chair Ad Hoc Committee on Public Debt, Bonds & Financing Donna Estacio From: Karen L. Sisson, City Administrative Officer~l? Subject: REQUEST FROM GARDNER, UNDERWOOD & BACON OF SAVINGS FROM REPRICING THE MICLA 2006-A FINANCING At the City Council meeting on February 27, 2007, you requested that Gardner, Underwood & Bacon LLC (Gardner) calculate the debt service savings the City realized from the repricing and restructuring by the senior manager of the Municipal Improvement Corporation of Los Angeles (MICLA) Lease Revenue Bonds, Series 2006-A (Police Headquarters Facility and Public Works Building) financing. Gardner requested that the senior manager, De La Rosa & Co., provide a financing schedule with the initial interest rates presented to the City on Wednesday, November 29, 2006, during the retail order period. These rates were then applied to the retail period maturities and to those sold during the Institutional Sales period the next day to be able to attain a debt service amount and overall True Interest Cost (TIC). Then, Gardner computed the total debt service amount from the final pricing scenario and subtracted that number from the approximate initial total debt service amount, as follows: $850,769,749 (845,668,685) $ 5,101,064 Initial debt service Final debt service Savings % % Initial TIC Final TIC Based on this methodology, Gardner calculated that the City achieved approximately $5 million in savings. In addition, Gardner calculated that the 0.034% change in TIC generated about $1.5 million in savings, for total savings of approximately $6.6 million. Attached are Gardner's memo and the debt service schedules. Please feel free to call Natalie Brill at with any questions. KLS:NRB: doc Attachment cc: Councilmember Bernard Parks, Chair, Budget and Finance Committee Marcus Allen, Deputy Chief of Staff

2 fl fl~, MEMORANDUM To: Natalie Brill, Debt Administration, From: Lisa A. Smith, Principal, Gardner, Underwood & Bacon LLC Date: March 13,2007 Re: S448,595,000 Municipal Lease Revenue Bonds, Series 2006A (Police Headquarters Facilty and Public Works Building) Per the request made by Councilmember Cardenas during the February 27, 2007 City Council meeting, wc havc calculated the debt service savings the City realized as a result of the successful repricing and restructuring by the senior manager, De La Rosa & Co., of the abovereferenced financing. We utilized financing scenarios prepared by Dc La Rosa to prepare this analysis. To determine the amount of savings generated from repricing, we asked the senior manager to provide us with a financing schedule that incorporated the interest rates initially presented to the City at the start of the pricing. Specifically, De La Rosa modeled cash flows utilizing the initial interest rates presented on Wcdncsday, l\ovember 29, 2006 during the retail order period for the maturities and the maturities. In addition, this scenario assumed only two term bonds as none of the maturities at that time had been bifurcated or trifurcated. Technically, the institutional bonds wcrc not available during the retail order period, but the scnior manager had used these assumptions in structuring the financing. This initial scenario resulted in total debt service of $850,769,749 with a True Interest Cost ("TIC") of %. Next, we computed the total debt service generated from the final pricing scenario of $845,668,685 and subtracted that number from the approximatc initial total debt service amount. Based on these figures, the City achieved $5,101,064 in total debt service savings. In addition, the TIC declined to %. Assuming a.034% change in TIC, we calculated that the approximate total debt savings generated from a change in yield of one basis point (.01 %) was $1,500,313. Please note that the calculation of the value of a one basis point change in yicld is an approximate calculation as the pricing occurred over a two day period and that the restructuring included bifurcating and trifurcating various maturities. We have attached the two debt service schedules for your review. If you have any questions or comments, or if we can be of further assistance, please do not hesitate to contact me at (310) ext Wilshire Blvd., Suite 207' Los Angeles, CA' Phone: (310) Fax: (310) Broadway' Suite 800. Oakland, CA Phone: (510) Fax: (510) S. Michigan Ave.. Suite Chicago, IL Phone: (312) Fax: (312)

3 80:\D SU.\MARY STATISTICS Initial Institutional and Retail Scale Police IIcadquarters Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) Net Interest Cost (NIC) All-In TIC Average Coupon Average Life (years) Duration ofissue (years) Par Amount Bond Proceeds Total Interest I\et Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service 12/14/ /14/ /01/ % % % % % ,970, ,008, ,037, ,945, ,007, ,880, ,231, UndenvrItcr's Fees (per $1000) Average Takcdown Other Fcc Total Cndcnvriter's Discount Bid Price Par Average Average Bond Component Value Price Coupon Life Serial Bond 188,995, % Term Bond 31,860, % Term Bond 116,115, % ,970, Mar 12, i :53 am Prepared by DBC Finance Page 5

4 BOI\D DEBT SERVICE Initial Institutional and Retail Scale Period Ending Principal Coupon Interest Debt ServIce /01/2008 1,300, % 22,088, ,388, I ,565, % 21,040, ,605, /01/2010 1,630, % 20,977, ,607, I 8,055,000 20,912, ,967, ,410,000 20,559, ,969, ,785,000 20,181, ,966, /01/2014 9,210,000 19,756, ,966, /2015 9,650,000 19,320, ,970, / ,080,000 " 18,891, ,971, / ,515,000 ** 18,451, ,966, I ,970, % 17,998, ,968, /01/ ,515, % 17,450, ,965, I ,095, % 16,874, ,969, /01/ ,700, % 16,269, ,969, /01/ ,335, % 15,634, ,969, / ,000, % 14,968, ,968, I ,700, % 14,268, ,968, I ,435, % 13,533, I ,968, I ,210, % 12,761, ,971, / ,020, % 11,950, ,970, ,870, % 11,099, ,969, / ,765, % 10,206, ,971, ,705, % 9,268, ,973, / ,640, % 8,332, ,972, / ,615, % 7,351, ,966, I ,700, % 6.271, ,971, ,830, % 5, I 36, ,966, /01/ ,025, % 3,944, ,969, /01/ ,275, % 2,693, ,968, ,590, % 1,379, ,969, ,195, ,574, ,769, Mar 12, :53 am Prepared by DEe Finance Page 7

5 BOKD SUMMARY ST A TlSTlCS Final Numbers Dated Date Delivery Date Last Maturity Arbitrage Yield True Interest Cost (TIC) 1\'ct Interest Cost (~IC) All-In TIC Average Coupon Average Life (years) Duration of Issue (years) Par Amount Bond Proceeds Total Interest Net Interest Total Debt Service Maximum Annual Debt Service Average Annual Debt Service 12/14/ / % % % % % ,595, ,659, ,073, ,268, ,668, , , Underwriter's Fees (per $1000) Average T akedown Other Fee Total Underwriter's Discount Bid Price Par Average Average Rond Component Value Price Coupon Life Serial Bond 255,970, g76% Term Bond 42,175, % Term Bond % Term Bond 25,000, % Term Bond 60,000, % ,595, Dee 5, :39 pm Prepared by DBC Finance Page 2

6 n ~~ _.._--- BOND DEBT SERVICE Final Numbers Period Ending Principal Coupon Interest Debt Service / /01/2008 1,380, % 21,529, ,909, /0 1/2009 1, % 20,503, , I 53, /01/2010 1,715, % 20,437, , /01/201 I 8,460,000 20,368, ,828, /01/2012 8,835,000 19,999, ,834, /01/2013 9,225,000 19,604, ,829, /01/2014 9,675,000 19,157, ,832, /0 1/20 I 5 10,130,000 18,698, ,828, I /01/ ,580,000 18,249, ,829, /01/2017 I " 17,790, ,830, / ,515, % 17,316, ,83 I, / ,090, % 16,740, ,830, ,700, % , ,836, / ,330, % 15,501, ,83 I, /0 I / ,995, % 14,834, ,829, /0 i / ,700, % 14, I ,834, I / ,435, % 13,399, ,834, /0 1/ ,200, % 12,628, ,828, /0 1/ ,0 I 0, % I 1,818, ,828, /01/ ,865,000 10,967, ,832, /0 1/ , ,077, ,832, I /01/ ,685,000 " 9.146, ,831, /01/ ,595, % 8, ,829, /01/203 I 2 I,580, % 7, ,836, / ,600,000 6,23 I, ,83 I, / ,000 5,295, ,830, / ,5 I 5,000 4,319, ,834, ,530,000 3,303, ,833, / ,585,000 2, ,83 I, /01/ ,685,000 " 1,145, ,830, ,595, ,073, ,668, Dee 5, :39 pm Prepared by DBe Finance Page 8

TABLE OF CONTENTS. Douglas County School District, Number RE Tax Exempt General Obligation Refunding Bonds (Refunding of 2004B Bonds)

TABLE OF CONTENTS. Douglas County School District, Number RE Tax Exempt General Obligation Refunding Bonds (Refunding of 2004B Bonds) May 12, 2014 11:18 am Prepared by Stifel, Nicolaus & Company TABLE OF CONTENTS Report Page Sources and Uses of Funds 1 Bond Pricing 2 Bond Debt Service 3 Bond Summary Statistics 4 Summary of Refunding