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City of Roseville, Minnesota February 4, 2004 12. Attachments Assessment Income Schedule . Refunding Schedules • Terms of Proposal DISCUSSION The proceeds of the Bonds will be used on June 1, 2004 to redeem the March 1, 2005 through 2012 maturities of the City's General Obligation Improvement Bonds, Series 23, dated March 21, 1997 and currently outstanding in the aggregate principal amount of $1,885,000. Because the Series 23 Bonds will be redeemed within 90 days of the issuance of the Bonds, the transaction will be conducted as a current refunding. The objective of the transaction is to achieve interest cost savings. The Series 23 Bonds were used to finance 1995 street improvement projects. On March 1, 2004, the City will use funds on hand from assessments collected in 2003 to pay the scheduled principal of $170,000 and interest of $46,658.75 on the Series 23 Bonds. On June 1, 2004, the City will use proceeds of the Bonds and funds on hand to prepay the remaining �1,��,� of outstanding principal and $21,395.63 of accrued interest of the Series 23 Bonds. The City will need to investment the proceeds of the Bonds for the period between the closing date and the June 1, 2004 call date in order to achieve the savings estimated for this transaction. Based on current interest rate estimates, the refunding is projectedto result in the City realizing cash flow savings that will average approximately $22,400 annually. This results in future value savings of approximately $158,500, with a net present value benefit to the City of approximately $142,400. These estimates are net of all costs associated with the refunding. The City will begin to realize cash flow savings beginning with its 2004 levy and the September 1, 2004 interest payment. We have attached a set of schedules that summarizes the refunding statistics and the projected savings resulting from the sale of the Bonds. These schedules include the following information about the proposed refunding Bonds: • Preliminary Feasibility Summary: indicates the sizing of the refunding issue and bond data — Page 6 . Prior Original Debt Service: shows the existing debt service requirements on the Series 23 Bonds without a refunding — Page 7 Debt Service to Maturity and to Call: shows the Series 23 Bonds' remaining debt service to maturity and to the call date — Page 8 . Assessment Income: shows the projected assessment income that will be pledged to the repayment of the Bonds — Page 9 . Debt Service Schedule: shows the new debt service on the Bonds, including assessment income and net levy requirement, based on current estimated interest rates — Page 10 . Debt Service Companson: shows the projected annual cash flow savings of the Bonds in comparison to the Series 23 Bonds — Page 11 The success of a refunding transaction is dependent upon the performance of the interest rate market. We will continue to monitor the market during the period leading up to the day of the Bond sale. Page 4