CITY COUNCIL: Bartle Wells Associates Report Regarding Refunding of 2001 Sunset Center Lease Certificates

Meeting Date: 13 July 2010
Prepared by: Rich Guillen

City Council
Agenda Item Summary

Name: Receive report from Bartle Wells Associates regarding the refunding of the 2001 Sunset Center Lease Certificates.

Description: As requested by Council at its June 8, 2010 meeting, Bartle Wells Associates principal Tom Gaffney has prepared a more detailed analysis of the refinancing options available to the City.

Important Considerations: None

Decision Record: At its June 8, 2010 meeting, Council approved Resolution 2010-41, entering into an agreement with Bartle Wells Associates for financial advising services on the refinancing of the 2001 Sunset Center Lease Certificates.

Reviewed by:

__________________________ _____________________
Rich Guillen, City Administrator Date

Date: July 1, 2010
To: Rich Guillen, City Administrator
Dewey Evans, City Treasurer
From: Alex Handlers & Tom Gaffney
Re: Refinancing of 2001 Lease Revenue Certificates

A) Change in interest rates that would offset the $75,000 prepayment premium

All other things held equal, an increase in interest rates of approximately 0.12% (12 basis points) would offset the 1%, $75,000 prepayment premium on the outstanding 2001 Certificates. The 1% prepayment premium is in effect through October 2011. If the City waited until October 2011, it would also forego one year of savings, estimated at roughly $27,000.

Accounting for these unrealized savings in the next year, interest rates would only need to rise by a little less than 1/10th of 1 percent to negate the savings from avoiding the prepayment premium.

B) Front‐Loaded and Back‐Loaded Savings
To supplement the original numbers, which were based on roughly level annual savings, we added tables showing versions with front‐loaded and back‐loaded savings. All three versions of tables are attached. In reality, there is no correct answer regarding which approach is best from a financial perspective. For example, use of different discount factors in the present value analysis could result in different outcomes as which option yields the most present value savings. Hence, we generally maintain that the choice is a policy decision. While all options are equally valid, in general, most agencies opt for roughly level annual savings.

C) Debt Service with Reduced Reserve Fund Requirement at ½ Max Annual Debt Service
Tables showing projected debt service with a reduced reserve fund are attached. Since any change in the reserve fund is typically accounted for as a change in cash on the closing date, it will only have a small impact on any savings calculations.

1889 Alcatraz Avenue
Berkeley, CA 94703
510 653 3399 fax: 510 653 3769
www.bartlewells.com
BARTLE WELLS ASSOCIATES
INDEPENDENT PUBLIC FINANCE ADVISORS

Roughly Level Annual Savings
City of Carmel-by-the-Sea
Outstanding 2001 Lease Certificates Dated Date: 08/21/10
Maturity Period Annual Fiscal Year Payment PV at AYL
Date Principal Rate Interest Debt Svc Debt Svc Debt Svc Period 3.95%
10/01/10 210,000 3.700% 179,361 389,361
04/01/11 175,476 175,476 564,838 1.222 171,331
10/01/11 215,000 3.700% 175,476 390,476 565,953 2.222 373,867
04/01/12 171,499 171,499 561,975 3.222 161,023
10/01/12 225,000 3.900% 171,499 396,499 567,998 4.222 365,069
04/01/13 167,111 167,111 563,610 5.222 150,884
10/01/13 235,000 4.100% 167,111 402,111 569,223 6.222 356,033
04/01/14 162,294 162,294 564,405 7.222 140,913
10/01/14 245,000 4.200% 162,294 407,294 569,588 8.222 346,786
04/01/15 157,149 157,149 564,443 9.222 131,211
10/01/15 260,000 4.300% 157,149 417,149 574,298 10.222 341,551
04/01/16 151,559 151,559 568,708 11.222 121,689
10/01/16 270,000 4.400% 151,559 421,559 573,118 12.222 331,920
04/01/17 145,619 145,619 567,178 13.222 112,434
10/01/17 285,000 4.500% 145,619 430,619 576,238 14.222 326,045
04/01/18 139,206 139,206 569,825 15.222 103,359
10/01/18 300,000 4.500% 139,206 439,206 578,413 16.222 319,789
04/01/19 132,456 132,456 571,663 17.222 94,574
10/01/19 305,000 4.600% 132,456 437,456 569,913 18.222 306,296
04/01/20 125,441 125,441 562,898 19.222 86,129
10/01/20 320,000 4.625% 125,441 445,441 570,883 20.222 299,921
04/01/21 118,041 118,041 563,483 21.222 77,939
10/01/21 335,000 4.700% 118,041 453,041 571,083 22.222 293,335
04/01/22 110,169 110,169 563,210 23.222 69,950
10/01/22 355,000 4.750% 110,169 465,169 575,338 24.222 289,633
04/01/23 101,738 101,738 566,906 25.222 62,119
10/01/23 375,000 4.750% 101,738 476,738 578,475 26.222 285,448
04/01/24 92,831 92,831 569,569 27.222 54,506
10/01/24 390,000 4.750% 92,831 482,831 575,663 28.222 278,006
04/01/25 83,569 83,569 566,400 29.222 47,185
10/01/25 410,000 4.750% 83,569 493,569 577,138 30.222 273,285
04/01/26 73,831 73,831 567,400 31.222 40,088
10/01/26 435,000 4.750% 73,831 508,831 582,663 32.222 270,927
04/01/27 63,500 63,500 572,331 33.222 33,156
10/01/27 460,000 5.000% 63,500 523,500 587,000 34.222 268,044
04/01/28 52,000 52,000 575,500 35.222 26,109
10/01/28 480,000 5.000% 52,000 532,000 584,000 36.222 261,946
04/01/29 40,000 40,000 572,000 37.222 19,314
10/01/29 505,000 5.000% 40,000 545,000 585,000 38.222 258,052
04/01/30 27,375 27,375 572,375 39.222 12,711
10/01/30 530,000 5.000% 27,375 557,375 584,750 40.222 253,786
04/01/31 14,125 14,125 571,500 41.222 6,307
10/01/31 565,000 5.000% 14,125 579,125 593,250 593,250 42.222 253,573
Total 7,500,000 4,609,978 12,109,978 12,109,978 12,513,464 8,076,244
Not included in 2010 principal refunding
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
Refunding Requirements
Lease Certificates (Series 2001)
Closing date for Series 2010 Bonds 08/21/10
Refunding date for Series 2001 Bonds 10/01/10
Refunding Requirement on Call Date
Accrued interest due on 2001 Bonds* $0
Outstanding principal 2001 Bonds 7,500,000
Prepayment premium (1.0%) 75,000
Refunding requirement 7,575,000
Arbitrage Yield Limit Target
Face value of bonds 7,710,000
-OID or + OIP 0
Accrued interest 0
AYL Target 7,710,000
Arbitrage Yield Limit
*BWA assumes that the City will pay the issuance due Oct 2010 independent of the 2010 refinancing
Carmel-by-the-Sea
2010 Refunding Lease Certificates
Dates
Competitive Sale Date 08/01/10
Dated Date/Closing Date 08/21/10
Sources
City Contribution (10/1/10 P&I) $389,361.25
Par Amount of Refunding Bonds 7,710,000.00
Existing Reserve 593,402.00
Total Sources 8,692,763.25
Uses
10/01/2010 Payment (10/1/10 P&I) 389,361.25
Purchase Price of SLGS 7,573,979.07
Accrued Interest 0.00
Underwriter's discount (0.75%) 57,800.00
Issuance cost 125,000.00
New Reserve Fund 545,610.00
Miscellaneous 1,012.93
Total Uses 8,692,763.25
Net Sources and Uses 0.00
City of Carmel-by-the-Sea
Sources and Uses of Funds
2010 Refunding Lease Certificates
Carmel-by-the-Sea

2010 Refunding Lease Certificates Debt Service Estimates Dated Date: 08/21/10
Payment Period Annual Fiscal Year Payment PV at AYL
Date Total Rate* Interest Debt Svc Debt Svc Debt Svc Period 3.951%
04/01/11 164,629 164,629 164,629 1.222 160,740
10/01/11 275,000 0.650% 134,696 409,696 574,325 2.222 392,270
04/01/12 133,803 133,803 543,499 3.222 125,630
10/01/12 275,000 1.000% 133,803 408,803 542,605 4.222 376,397
04/01/13 132,428 132,428 541,230 5.222 119,568
10/01/13 280,000 1.400% 132,428 412,428 544,855 6.222 365,167
04/01/14 130,468 130,468 542,895 7.222 113,279
10/01/14 280,000 1.750% 130,468 410,468 540,935 8.222 349,488
04/01/15 128,018 128,018 538,485 9.222 106,888
10/01/15 285,000 2.100% 128,018 413,018 541,035 10.222 338,168
04/01/16 125,025 125,025 538,043 11.222 100,384
10/01/16 295,000 2.550% 125,025 420,025 545,050 12.222 330,712
04/01/17 121,264 121,264 541,289 13.222 93,629
10/01/17 305,000 2.950% 121,264 426,264 547,528 14.222 322,748
04/01/18 116,765 116,765 543,029 15.222 86,697
10/01/18 315,000 3.150% 116,765 431,765 548,530 16.222 314,371
04/01/19 111,804 111,804 543,569 17.222 79,828
10/01/19 325,000 3.400% 111,804 436,804 548,608 18.222 305,839
04/01/20 106,279 106,279 543,083 19.222 72,972
10/01/20 335,000 3.550% 106,279 441,279 547,558 20.222 297,118
04/01/21 100,333 100,333 541,611 21.222 66,247
10/01/21 345,000 3.750% 100,333 445,333 545,665 22.222 288,344
04/01/22 93,864 93,864 539,196 23.222 59,598
10/01/22 365,000 3.900% 93,864 458,864 552,728 24.222 285,707
04/01/23 86,746 86,746 545,610 25.222 52,966
10/01/23 375,000 4.100% 86,746 461,746 548,493 26.222 276,472
04/01/24 79,059 79,059 540,805 27.222 46,420
10/01/24 395,000 4.100% 79,059 474,059 553,118 28.222 272,955
04/01/25 70,961 70,961 545,020 29.222 40,067
10/01/25 410,000 4.150% 70,961 480,961 551,923 30.222 266,305
04/01/26 62,454 62,454 543,415 31.222 33,910
10/01/26 425,000 4.200% 62,454 487,454 549,908 32.222 259,545
04/01/27 53,529 53,529 540,983 33.222 27,949
10/01/27 445,000 4.300% 53,529 498,529 552,058 34.222 255,258
04/01/28 43,961 43,961 542,490 35.222 22,073
10/01/28 465,000 4.350% 43,961 508,961 552,923 36.222 250,602
04/01/29 33,848 33,848 542,809 37.222 16,343
10/01/29 485,000 4.400% 33,848 518,848 552,695 38.222 245,669
04/01/30 23,178 23,178 542,025 39.222 10,762
10/01/30 510,000 4.450% 23,178 533,178 556,355 40.222 242,769
04/01/31 11,830 11,830 545,008 41.222 5,282
10/01/31 520,000 4.550% 11,830 531,830 543,660 543,660 42.222 232,865
Total 7,710,000 3,830,550 11,540,550 11,540,550 11,552,380 7,710,000
* Rates from a compilation of Diablo Water District (S&P: AA-) sale of Water Revenue Certificates of Participation, sale date: 04/27/2010 and West
Valley Sanitation District (S&P:AA+) sale of Sewer Revenue Refunding Bonds, Series 2010 (taken from OS 04/07/2010).
Carmel-by-the-Sea
2010 Refunding Lease Certificates

08/01/10
08/21/10
08/21/10
08/21/10
10/01/10
SLGS Payment Refunding SLGS SLGS Interest Total Funds Cash
Date Requirement Purchases Coupon* Earnings Available Balance
10/1/2010 7,575,000.00 7,573,979.07 0.12% 1,020.93 7,575,000.00 0.00
* SLGS Daily Rate Table Effective May 6, 2010
Refunding/call date:
City of Carmel-by-the-Sea
SLGS Purchase Calculation
Lease Certificates (Series 2001)
Sale date:
Closing date/escrow purchase date:
Notify bond holders of refunding:
SLGS Purchase Date:
Date Description Principal Interest Amount Cash Balance
8/21/2010 Cash deposit from District $0.00 $0.00
8/21/2010 Cash deposit from Underwriter (1) 7,573,979.07 7,573,979.07
8/21/2010 SLGS Purchase (7,573,979.07) (7,573,979.07) 0.00
10/1/2010 SLGS Maturity 7,573,979.07 1,020.93 7,575,000.00 7,575,000.00
10/1/2010 Refund Outstanding 2001 Bonds (7,575,000.00) 0.00
City of Carmel-by-the-Sea
Projected Escrow Account Cash Flow
Lease Certificates (Series 2001)

City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
2001 Lease
Certificates
2010 Lease
Certificates Savings
Gross Savings
Total debt service 4/1/11 through 10/1/31 $12,109,978 $11,540,550 $569,428
Less reserve fund (on closing date) ($593,402) ($545,610) ($47,792)
Total gross savings $11,516,576 $10,994,940 $521,636
Gross savings as % of outstanding principal 7.0%
Present Value Savings (at AYL of 2010 Lease Certificates)
Total debt service 4/1/11 through 10/1/31 $8,076,244 $7,710,000 $366,244
Less reserve fund (on closing date) ($593,402) ($545,610) ($47,792)
Total present value savings $7,482,842 $7,164,390 $318,452
Present value savings as a % of outstanding principal 4.2%
Carmel-by-the-Sea
2010 Refunding Lease Certificates

Front-Loaded Savings
Dates
Competitive Sale Date 08/01/10
Dated Date/Closing Date 08/21/10
Sources
City Contribution (10/1/10 P&I) $389,361.25
Par Amount of Refunding Bonds 7,735,000.00
Existing Reserve 593,402.00
Total Sources 8,717,763.25
Uses
10/01/2010 Payment (10/1/10 P&I) 389,361.25
Purchase Price of SLGS 7,573,979.07
Accrued Interest 0.00
Underwriter's discount (0.75%) 58,000.00
Issuance cost 125,000.00
New Reserve Fund 569,797.50
Miscellaneous 1,625.43
Total Uses 8,717,763.25
Net Sources and Uses 0.00
City of Carmel-by-the-Sea
Sources and Uses of Funds
2010 Refunding Lease Certificates
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Lease Certificates Debt Service Estimates Dated Date: 08/21/10
Payment Period Annual Fiscal Year Payment PV at AYL
Date Total Rate* Interest Debt Svc Debt Svc Debt Svc Period 3.960%
04/01/11 169,744 169,744 169,744 1.222 165,724
10/01/11 0 0.650% 138,881 138,881 308,625 2.222 132,960
04/01/12 138,881 138,881 277,763 3.222 130,378
10/01/12 290,000 1.000% 138,881 428,881 567,763 4.222 394,806
04/01/13 137,431 137,431 566,313 5.222 124,056
10/01/13 295,000 1.400% 137,431 432,431 569,863 6.222 382,766
04/01/14 135,366 135,366 567,798 7.222 117,493
10/01/14 300,000 1.750% 135,366 435,366 570,733 8.222 370,545
04/01/15 132,741 132,741 568,108 9.222 110,784
10/01/15 305,000 2.100% 132,741 437,741 570,483 10.222 358,239
04/01/16 129,539 129,539 567,280 11.222 103,954
10/01/16 310,000 2.550% 129,539 439,539 569,078 12.222 345,878
04/01/17 125,586 125,586 565,125 13.222 96,906
10/01/17 315,000 2.950% 125,586 440,586 566,173 14.222 333,369
04/01/18 120,940 120,940 561,526 15.222 89,732
10/01/18 325,000 3.150% 120,940 445,940 566,880 16.222 324,445
04/01/19 115,821 115,821 561,761 17.222 82,630
10/01/19 335,000 3.400% 115,821 450,821 566,643 18.222 315,383
04/01/20 110,126 110,126 560,948 19.222 75,546
10/01/20 350,000 3.550% 110,126 460,126 570,253 20.222 309,514
04/01/21 103,914 103,914 564,040 21.222 68,543
10/01/21 365,000 3.750% 103,914 468,914 572,828 22.222 303,296
04/01/22 97,070 97,070 565,984 23.222 61,566
10/01/22 375,000 3.900% 97,070 472,070 569,140 24.222 293,595
04/01/23 89,758 89,758 561,828 25.222 54,739
10/01/23 390,000 4.100% 89,758 479,758 569,515 26.222 286,902
04/01/24 81,763 81,763 561,520 27.222 47,946
10/01/24 410,000 4.100% 81,763 491,763 573,525 28.222 282,773
04/01/25 73,358 73,358 565,120 29.222 41,363
10/01/25 425,000 4.150% 73,358 498,358 571,715 30.222 275,545
04/01/26 64,539 64,539 562,896 31.222 34,991
10/01/26 440,000 4.200% 64,539 504,539 569,078 32.222 268,235
04/01/27 55,299 55,299 559,838 33.222 28,828
10/01/27 460,000 4.300% 55,299 515,299 570,598 34.222 263,421
04/01/28 45,409 45,409 560,708 35.222 22,762
10/01/28 480,000 4.350% 45,409 525,409 570,818 36.222 258,260
04/01/29 34,969 34,969 560,378 37.222 16,855
10/01/29 500,000 4.400% 34,969 534,969 569,938 38.222 252,847
04/01/30 23,969 23,969 558,938 39.222 11,109
10/01/30 520,000 4.450% 23,969 543,969 567,938 40.222 247,214
04/01/31 12,399 12,399 556,368 41.222 5,525
10/01/31 545,000 4.550% 12,399 557,399 569,798 569,798 42.222 243,576
Total 7,735,000 3,966,378 11,701,378 11,701,378 11,713,776 7,735,000
* Rates from a compilation of Diablo Water District (S&P: AA-) sale of Water Revenue Certificates of Participation, sale date: 04/27/2010 and West
Valley Sanitation District (S&P:AA+) sale of Sewer Revenue Refunding Bonds, Series 2010 (taken from OS 04/07/2010).
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
2001 Lease Certificates
2010 Lease Certificates Savings
Gross Savings
Total debt service 4/1/11 through 10/1/31 $12,109,978 $11,701,378 $408,600
Less reserve fund (on closing date) ($593,402) ($569,798) ($23,605)
Total gross savings $11,516,576 $11,131,580 $384,996
Gross savings as % of outstanding principal 5.1%
Present Value Savings (at AYL of 2010 Lease Certificates)
Total debt service 4/1/11 through 10/1/31 $8,068,930 $7,735,000 $333,930
Less reserve fund (on closing date) ($593,402) ($569,798) ($23,605)
Total present value savings $7,475,528 $7,165,202 $310,325
Present value savings as a % of outstanding principal 4.1%
Carmel-by-the-Sea
2010 Refunding Lease Certificates

Back-Loaded Savings
Dates
Competitive Sale Date 08/01/10
Dated Date/Closing Date 08/21/10
Sources
City Contribution (10/1/10 P&I) $389,361.25
Par Amount of Refunding Bonds 7,730,000.00
Existing Reserve 593,402.00
Total Sources 8,712,763.25
Uses
10/01/2010 Payment (10/1/10 P&I) 389,361.25
Purchase Price of SLGS 7,573,979.07
Accrued Interest 0.00
Underwriter's discount (0.75%) 58,000.00
Issuance cost 125,000.00
New Reserve Fund 562,997.50
Miscellaneous 0.00
Total Uses 8,709,337.82
Net Sources and Uses 3,425.43
City of Carmel-by-the-Sea
Sources and Uses of Funds
2010 Refunding Lease Certificates
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Lease Certificates Debt Service Estimates Dated Date: 08/21/10
Payment Period Annual Fiscal Year Payment PV at AYL
Date Total Rate* Interest Debt Svc Debt Svc Debt Svc Period 3.880%
04/01/11 161,310 161,310 161,310 1.222 157,567
10/01/11 295,000 0.650% 131,981 426,981 588,292 2.222 409,135
04/01/12 131,023 131,023 558,004 3.222 123,157
10/01/12 295,000 1.000% 131,023 426,023 557,045 4.222 392,827
04/01/13 129,548 129,548 555,570 5.222 117,180
10/01/13 300,000 1.400% 129,548 429,548 559,095 6.222 381,146
04/01/14 127,448 127,448 556,995 7.222 110,935
10/01/14 305,000 1.750% 127,448 432,448 559,895 8.222 369,254
04/01/15 124,779 124,779 557,226 9.222 104,517
10/01/15 310,000 2.100% 124,779 434,779 559,558 10.222 357,250
04/01/16 121,524 121,524 556,303 11.222 97,954
10/01/16 320,000 2.550% 121,524 441,524 563,048 12.222 349,116
04/01/17 117,444 117,444 558,968 13.222 91,096
10/01/17 330,000 2.950% 117,444 447,444 564,888 14.222 340,460
04/01/18 112,576 112,576 560,020 15.222 84,029
10/01/18 340,000 3.150% 112,576 452,576 565,153 16.222 331,383
04/01/19 107,221 107,221 559,798 17.222 77,015
10/01/19 350,000 3.400% 107,221 457,221 564,443 18.222 322,164
04/01/20 101,271 101,271 558,493 19.222 69,999
10/01/20 360,000 3.550% 101,271 461,271 562,543 20.222 312,765
04/01/21 94,881 94,881 556,153 21.222 63,110
10/01/21 375,000 3.750% 94,881 469,881 564,763 22.222 306,593
04/01/22 87,850 87,850 557,731 23.222 56,230
10/01/22 395,000 3.900% 87,850 482,850 570,700 24.222 303,178
04/01/23 80,148 80,148 562,998 25.222 49,366
10/01/23 405,000 4.100% 80,148 485,148 565,295 26.222 293,137
04/01/24 71,845 71,845 556,993 27.222 42,584
10/01/24 420,000 4.100% 71,845 491,845 563,690 28.222 285,981
04/01/25 63,235 63,235 555,080 29.222 36,068
10/01/25 435,000 4.150% 63,235 498,235 561,470 30.222 278,776
04/01/26 54,209 54,209 552,444 31.222 29,754
10/01/26 455,000 4.200% 54,209 509,209 563,418 32.222 274,175
04/01/27 44,654 44,654 553,863 33.222 23,586
10/01/27 475,000 4.300% 44,654 519,654 564,308 34.222 269,251
04/01/28 34,441 34,441 554,095 35.222 17,506
10/01/28 500,000 4.350% 34,441 534,441 568,883 36.222 266,474
04/01/29 23,566 23,566 558,008 37.222 11,527
10/01/29 520,000 4.400% 23,566 543,566 567,133 38.222 260,807
04/01/30 12,126 12,126 555,693 39.222 5,708
10/01/30 545,000 4.450% 12,126 557,126 569,253 40.222 257,237
04/01/31 0 0 557,126 41.222 0
10/01/31 0 4.550% 0 0 0 0 42.222 0
Total 7,730,000 3,572,867 11,302,867 11,302,867 11,302,867 7,730,000
* Rates from a compilation of Diablo Water District (S&P: AA-) sale of Water Revenue Certificates of Participation, sale date: 04/27/2010 and West Valley Sanitation District (S&P:AA+) sale of Sewer Revenue Refunding Bonds, Series 2010 (taken from OS 04/07/2010).
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
2001 Lease Certificates
2010 Lease Certificates Savings
Gross Savings
Total debt service 4/1/11 through 10/1/31 $12,109,978 $11,302,867 $807,111
Less reserve fund (on closing date) ($593,402) ($562,998) ($30,405)
Total gross savings $11,516,576 $10,739,869 $776,706
Gross savings as % of outstanding principal 10.4%
Present Value Savings (at AYL of 2010 Lease Certificates)
Total debt service 4/1/11 through 10/1/31 $8,130,483 $7,730,000 $400,483
Less reserve fund (on closing date) ($593,402) ($562,998) ($30,405)
Total present value savings $7,537,081 $7,167,002 $370,079
Present value savings as a % of outstanding principal 4.9%
Carmel-by-the-Sea
2010 Refunding Lease Certificates

Reduced Reserve Fund Requirement
Dates
Competitive Sale Date 08/01/10
Dated Date/Closing Date 08/21/10
Sources
City Contribution (10/1/10 P&I) $389,361.25
Par Amount of Refunding Bonds 7,425,000.00
Existing Reserve 593,402.00
Total Sources 8,407,763.25
Uses
10/01/2010 Payment (10/1/10 P&I) 389,361.25
Purchase Price of SLGS 7,573,979.07
Accrued Interest 0.00
Underwriter's discount (0.75%) 55,700.00
Issuance cost 125,000.00
New Reserve Fund (50% MADS) 261,850.63
Miscellaneous 1,872.30
Total Uses 8,407,763.25
Net Sources and Uses 0.00
City of Carmel-by-the-Sea
Sources and Uses of Funds
2010 Refunding Lease Certificates
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Lease Certificates Debt Service Estimates Dated Date: 08/21/10
Payment Period Annual Fiscal Year Payment PV at AYL
Date Total Rate* Interest Debt Svc Debt Svc Debt Svc Period 3.949%
04/01/11 158,379 158,379 158,379 1.222 154,639
10/01/11 265,000 0.650% 129,583 394,583 552,961 2.222 377,807
04/01/12 128,721 128,721 523,304 3.222 120,862
10/01/12 265,000 1.000% 128,721 393,721 522,443 4.222 362,526
04/01/13 127,396 127,396 521,118 5.222 115,031
10/01/13 270,000 1.400% 127,396 397,396 524,793 6.222 351,879
04/01/14 125,506 125,506 522,903 7.222 108,979
10/01/14 275,000 1.750% 125,506 400,506 526,013 8.222 341,033
04/01/15 123,100 123,100 523,606 9.222 102,791
10/01/15 280,000 2.100% 123,100 403,100 526,200 10.222 330,080
04/01/16 120,160 120,160 523,260 11.222 96,488
10/01/16 285,000 2.550% 120,160 405,160 525,320 12.222 319,045
04/01/17 116,526 116,526 521,686 13.222 89,982
10/01/17 295,000 2.950% 116,526 411,526 528,053 14.222 311,631
04/01/18 112,175 112,175 523,701 15.222 83,301
10/01/18 300,000 3.150% 112,175 412,175 524,350 16.222 300,154
04/01/19 107,450 107,450 519,625 17.222 76,732
10/01/19 310,000 3.400% 107,450 417,450 524,900 18.222 292,338
04/01/20 102,180 102,180 519,630 19.222 70,171
10/01/20 325,000 3.550% 102,180 427,180 529,360 20.222 287,680
04/01/21 96,411 96,411 523,591 21.222 63,670
10/01/21 335,000 3.750% 96,411 431,411 527,823 22.222 279,389
04/01/22 90,130 90,130 521,541 23.222 57,240
10/01/22 350,000 3.900% 90,130 440,130 530,260 24.222 274,105
04/01/23 83,305 83,305 523,435 25.222 50,876
10/01/23 360,000 4.100% 83,305 443,305 526,610 26.222 265,496
04/01/24 75,925 75,925 519,230 27.222 44,591
10/01/24 375,000 4.100% 75,925 450,925 526,850 28.222 259,704
04/01/25 68,238 68,238 519,163 29.222 38,540
10/01/25 395,000 4.150% 68,238 463,238 531,475 30.222 256,564
04/01/26 60,041 60,041 523,279 31.222 32,610
10/01/26 410,000 4.200% 60,041 470,041 530,083 32.222 250,350
04/01/27 51,431 51,431 521,473 33.222 26,863
10/01/27 430,000 4.300% 51,431 481,431 532,863 34.222 246,583
04/01/28 42,186 42,186 523,618 35.222 21,189
10/01/28 445,000 4.350% 42,186 487,186 529,373 36.222 239,962
04/01/29 32,508 32,508 519,694 37.222 15,701
10/01/29 465,000 4.400% 32,508 497,508 530,015 38.222 235,649
04/01/30 22,278 22,278 519,785 39.222 10,348
10/01/30 490,000 4.450% 22,278 512,278 534,555 40.222 233,341
04/01/31 11,375 11,375 523,653 41.222 5,081
10/01/31 500,000 4.550% 11,375 511,375 522,750 522,750 42.222 223,998
Total 7,425,000 3,682,046 11,107,046 11,107,046 11,118,421 7,425,000
* Rates from a compilation of Diablo Water District (S&P: AA-) sale of Water Revenue Certificates of Participation, sale date: 04/27/2010 and West
Valley Sanitation District (S&P:AA+) sale of Sewer Revenue Refunding Bonds, Series 2010 (taken from OS 04/07/2010).
Carmel-by-the-Sea
2010 Refunding Lease Certificates

City of Carmel-by-the-Sea
2010 Refunding Savings Estimate
2001 Lease
Certificates
2010 Lease
Certificates Savings
Gross Savings
Total debt service 4/1/11 through 10/1/31 $12,109,978 $11,107,046 $1,002,931
Less reserve fund (on closing date) ($593,402) ($261,851) ($331,551)
Total gross savings $11,516,576 $10,845,195 $671,380
Gross savings as % of outstanding principal 9.0%
Present Value Savings (at AYL of 2010 Lease Certificates)
Total debt service 4/1/11 through 10/1/31 $8,077,713 $7,425,000 $652,713
Less reserve fund (on closing date) ($593,402) ($261,851) ($331,551)
Total present value savings $7,484,311 $7,163,149 $321,162
Present value savings as a % of outstanding principal 4.3%
Carmel-by-the-Sea
2010 Refunding Lease Certificates