Preliminary Refunding Summary Level Savings – 100% EDC Sales Tax Supported Refunded Bonds Projected Annual Savings Interest FYE Existing Post-RefIssue Maturities Rates Amount Callable 9/30 D/S Net D/S Savings 2013 $ 1,560,788 $ 1,557,973 $ 2,815Series 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 60,850Par Amount of Refunding Bonds $ 5,970,000 2018 1,563,000 1,503,225 59,775Est. True Interest Cost (TIC) 1.483% 2019 1,562,250 1,500,775 61,475Total Debt Service Savings $ 431,339 2020 1,558,000 1,497,125 60,875Net Present Value Savings ($) $ 398,232 $ 12,486,431 $ 12,055,091 $ 431,340Net 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
Proposed ParametersThe City Manager and the Director of Finance are authorizedto act on behalf of the City to execute the pricing documentsso 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
Preliminary Sources and UsesSources Of FundsPar Amount of Bonds $5,970,000.00Reoffering Premium 522,115.95Accrued Interest from 11/01/2012 to 12/12/2012 20,038.75Total Sources $6,512,154.70Uses Of FundsT otal Underwriters Discount (0.734%) 43,806.50Costs of Issuance 110,000.00Deposit to Debt Service Fund 20,038.75Deposit to Net Cash Escrow Fund 6,336,378.35Rounding Amount 1,931.10Total Uses $6,512,154.70 6
Ten-Year History of The Bond Buyer’s 20 BondG.O. Index7.00 GO BBI Statistics Date Value Current 3.686.50 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%6.005.505.004.504.003.50 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 9
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.