Agenda - 11-16-15 Reg. Meeting - Laserfiche WebLink

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DAVENPORT & COMPANY 3 0 Potential Certificates of Participation Refunding Transaction November 16, 2015 Estimated Debt Service Savings The County has the option to advance refund all or a portion of the 2006 COPs to achieve debt service savings. In order to accomplish this refunding, the County would issue new Certificates of Participation and use the proceeds to purchase securities for an escrow that would fund the debt service requirements of the 2006 COPS through the call date of April 1, 2017. Based on current municipal market interest rates, the County could refund all or a portion of the $21,600,000 of outstanding 2006 COPs and realize the following levels of estimated debt service savings: ■ Gross Savings: $1,485,003 ■ Net Present Value Savings: $1,246,712 ■ NPV % Savings of Refunded COPs: 6.57% ■ Average Annual Savings: $114,231 ■ Negative Arbitrage: $458,791 Please note, the estimated savings figures shown above are preliminary and subject to change based on market conditions. A detailed summary of the refunding opportunity is included as an attachment to this memorandum. Potential Refunding Options The County could consider two potential options for implementing the potential refinancing: A public sale or a direct bank loan for Refunding Certificates of Participation ("2016 Refunding COPs"). Public Sale Option Under a public sale approach, the County would engage an Underwriting firm to market and sell the 2016 Refunding COPs to potential retail and institutional investors such as insurance companies, municipal bond funds and other broker/dealers. In order to effect the public sale refunding, the County would have to prepare formal offering documents (e.g. Official Statement) and obtain credit ratings. The process to complete a public sale would take approximately 60-90 days. During this time period, the County would be subject to daily interest rate changes until rates could be "locked -in" around day 60 of the process. Direct Bank Loan Option Under a direct bank loan approach, the County could distribute a Request for Proposals ("RFP") to local, regional and national banking institutions for a bid to purchase the 2016 Refunding COPs. Upon receipt of the proposals, the interest rates received would be held firm through the closing date. The direct bank loan approach would typically take approximately 45-60 days with interest rates being "locked -in" around day 30 of the process. Member NYSE I FINRA I SIPC Page 2