Page 13 - Moreno Valley City 2022 Bonded Debt Summary
P. 13

streetlight                                                                refunding Lease
 refinancing (taxable)  2021 2021                                revenue bonds (taxable)






 description                                                                                    description
 The 2021 Amended Purchase Agreement served to refinance     The 2021 Refunding Lease Revenue Bonds were issued
 the remaining  balance  of  the  2018  Streetlight  Financing   in October 2021 to refund the outstanding portion of both
 agreement. The original agreement funded the purchase of    the 2015 Lease Revenue Bonds and the 2016 Refunding
                                                             Lease Revenue Bonds. The 2015 lease revenue bonds
 approximately  9,411  streetlights  from  Southern  California   Original Issue   Original Issue
 Edison (SCE) and the retrofit of those lights, as well as the   had  financed  the  Kitching  Substation,  serving  the  south
                                                             industrial area of the City. The 2016 Lease Revenue bonds
 approximately 2,000 additional streetlights already owned   AMOUNT  AMOUNT  had  financed  the  City-owned  115kV  to  12kV  substation
 by the City, with LED fixtures. This refinancing agreement
                                                             (Moreno Beach substation), an 115kV to 12kV switchyard,
 was entered into on a taxable basis with Banc of America    and other infrastructure improvements to support planned
 Capital Leasing.  $7,402,587  $30,985,000                      growth of the City-owned electrical distribution system.

 repayment source                                                                      repayment source
 The repayment source for these bonds is  Issuance  Issuance                The repayment source for these bonds is
 the Electric Utility Fund.                                                                the Electric Utility Fund.
 DATE         DATE
 prepayment provisions                                                          prepayment provisions
 Optional prepayment continuously after 6/1/26 with a   08/10/2021  10/12/2021  Optional prepayment continuously after 5/1/26 with no
 prepayment premium (102%).                                                                  prepayment premium.
                                                                                                     security
 security  Maturity  Maturity                                These bonds are secured with bond insurance purchased
 The security for this agreement consists of the City’s   DATE  DATE  from Assured Guaranty Municipal Corporation as well as
 streetlights.                                               City-owned property. This asset pool consists of the Moreno
                                                             Beach substation, the Kitching substation, the Conference
                                                             & Recreation Center and the Corporate Yard. This asset
 debt service schedule  06/01/2034  05/01/2045               pool is shared between the 2015 Lease Revenue Bonds,
 The annual debt service requirements for the 2021 Streetlight   the 2016 Refunding Lease Revenue Bonds and the 2019
                                                                                            Lease Revenue Bonds.
 Refinancing outstanding at June 30, 2022, are as follows:
 Interest     Interest                                                           debt service schedule
 RATES        RATES                                          The annual debt service requirements for the 2021 Refunding
                                                             Lease Revenue Bonds outstanding at June 30, 2022,
                                                                                                    are as follows:
 3.47%        .183%-3.1%





 2021 STREETLIGHT                                                                      2021 REFUNDING LEASE
 REFINANCING (taxable)                                                        REVENUE BONDS (taxable)

 YEAR ENDING    PRINCIPAL   INTEREST   INTEREST RATE  YEAR ENDING    PRINCIPAL   INTEREST      INTEREST RATE
 JUNE 30,                   JUNE 30,
 2023  472,405  235,269  3.47%  2023                   1,445,000               632,318                0.333%
 2024  488,940  218,733  3.47%  2024                   1,450,000               627,506                0.651%
 2025  506,055  201,618  3.47%  2025                   1,460,000               618,066                0.910%
 2026  523,769  183,904  3.47%  2026                   1,470,000               604,780                 1.14%
                            2027                       1,490,000               588,022                1.415%
 2027  542,103  165,570  3.47%  2028-2032*             7,815,000             2,553,901          1.615-2.354%
 2028-2032*  3,008,785  529,581  3.47%  2033-2037*     8,780,000             1,596,367            2.504-3.1%
 2033-2034*  1,356,120  59,226  3.47%  2038-2042*      3,785,000               506,850                  3.1%
                            2043-2045*                 1,560,000                97,650                  3.1%
    $6,898,177  $1,593,901
                                                     $29,255,000            $7,825,460
 *Represents the total amount due during the specified period.
 The 2021 Streetlight Refinancing Agreement reduced the rate from the former 2018 agreement at 5.42% to 3.47%,   *Represents the total amount due during the specified period.
 resulting in savings of $855,000 with no extension of the maturity date.
                                                   This refunding transaction resulted in an economic gain of $5.9 million and a net savings in debt service costs of $4.6 million.
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