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Preliminary -
<br /> City of Centerville, Minnesota
<br /> Debt Service Comparison - Tax Exempt Bonds vs. Build America Bonds (BABs) `
<br /> BABs Scenario -$3,530,000.00 Taxab/e Genera/ Obligation /mprovement Bonds, Series 2009A
<br /> City Interest Federal Interes
<br /> (65°� of interest (35% of interes
<br /> Date Principal Coupon Irrterest Total P+I cost) cost Effective Yield
<br /> 02/01/2010 - - 105,383.33 105,383.33 68,499.16 36,884.17 0.00%
<br /> 02/01/2011 190,000.00 2.250% 158,075.00 348,075.00 102,748.75 55,326.25 1.46%
<br /> 02/01/2012 195,000.00 2.750% 153,800.00 348,800.00 99,970.00 53,830.00 1.79%
<br /> 02/01/2013 200,000.00 3.000% 148,437.50 348,437.50 96,484.38 51,953.13 1.95%
<br /> 02/01/2014 205,000.00 3.400% 142,437.50 347,437.50 92,584.38 49,853.13 2.21%
<br /> 02/01/2015 215,000.00 3.750% 135,467.50 350,467.50 88,053.88 47,413.63 2.44%
<br /> 02/01/2016 215,000.00 4.000% 127,405.00 342,405.00 82,813.25 44,591.75 2.60%
<br /> 02/01/2017 225,000.00 4.250% 118,805.00 343,805.00 77,223.25 41,581.75 2.76%
<br /> 02/01/2018 230,000.00 4.500°h 109,242.50 339,242.50 71,007.63 38,234.88 2.93%
<br /> 02/01/2019 235,000.00 4.750� 98,892.50 333,892.50 64,280.13 34,612.38 3.09%
<br /> 02/01/2020 245,000.00 5.000% 87,730.00 332,730.00 57,024.50 30,705.50 3.25%
<br /> 02/Ot/2021 255,000.00 5.200% 75,480.00 330,480.00 49,062.00 26,418.00 3.38%
<br /> 02/01/2022 265,000.00 5.400� 62,220.00 327,220.00 40,443.00 21,777.00 3.51%
<br /> 02/01/2023 270,000.00 5.500°h 47,910.00 317,910.00 31,141.50 16,768.50 3.58%
<br /> 02/01/2024 285,000.00 5.600°k 33,060.00 318,060.00 21,489.00 11,571.00 3.64%
<br /> 02l01/2025 300,000.00 5.700% 17,100.00 317,100.00 11,115.00 5,985.00 3.71% Approx. True Interest Cost o
<br /> Total $3,530,000.00 - $1,621,445.83 $5,151,445.83 $1,053,939.79 $567,506.04 -
<br /> Tax-Exempt Bond Scenarfo -$3,530,000.00 Genera/ Obligation /mprovement Bonds, Series 2009A
<br /> Date Principal Coupon Interest Effective Yield
<br /> 02/01/2010 - - 73,966.67 0.00%
<br /> 02/01/2011 190,000.00 1.400% 110,950.00 1.40%
<br /> 02/Ot/2012 195,000.00 1.700% 108,290.00 1.70%
<br /> 02/Ot/2013 200,000.00 1.950°k 104,975.00 1.95%
<br /> 02/01/2014 205,000.00 2.250% 101,075.00 2.25%
<br /> 02/01/2015 215,000.00 2.500°k 96,462.50 2.50%
<br /> 02/01/2016 215,000.00 2.750% 91,087.50 2.75%
<br /> 02/01/2017 225,000.00 2.950% 85,175.00 2.95%
<br /> 02/01/2018 230,000.00 3.150% 78,537.50 *. 3.15%
<br /> 02/01/2019 235,000.00 3.350% 71,292.50 3.35%
<br /> 02/01/2020 245,000.00 3.550% 63,420.00 3.55%
<br /> 02/01/2021 255,000.00 3.700% 54,722.50 '.�,1"�: 3J0%
<br /> 02I01/2022 265,000.00 3.850% 45,287.50 340,'�87.� 3.85%
<br /> 02/01/2023 270,000.00 4.000% 35,085.00 305,065.00 4.00%
<br /> 02/01/2024 285,000.00 4.100% 24,285.00 309,285.00 4.10%
<br /> 02/01/2025 300,000.00 4.200% 12,600.00 312,600.� 4.20°/a Approx. True Interest Cost o
<br /> Total $3,530,000.00 $1,157,211.67 7 211 .67 - - - -
<br /> Based on the current market, the overall savings through the issuance of Build America Bonds is approximately $103,000.
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