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For Discussion Only
<br />City of Orono rg"EHLERS
<br />Refundinq Savings Analysis - City Prepays Orachard Lake portion / Refinances MSA
<br />Public Offering Option - Estimate
<br />Notes:
<br />Assumes G.O. Refunding Bonds issued at current estimates of public offering tax-exempt rates; Redemption of $1,425,000 plus $16,598 accrued interest to 6/1/2020
<br />Assumes City utilizes $678,802 to redeem balance of Orchard Road; $755,000 MSA portion refinanced
<br />Includes estimated costs for legal, advisory, credit rating and 1.2% underwriting allowance (subject to bid) 2010A Cash Flow (Future Value) Savings: 90,167
<br />Direct Placement O tion - Estimate
<br />PRIOR TO THE REFUNDING
<br />FOLLOWING THE REFUNDING
<br />Existing Debt Service (to be refunded)
<br />Estimated New Debt Service
<br />$1,425,000
<br />$805,000
<br />NET DEBT
<br />General Obligation Bonds, Series 2010A
<br />General Obligation Refunding Bonds, Series 2020A
<br />SERVICE
<br />Existing Balance after 2/1/2020 payment
<br />Dated: 6/1/2020
<br />SAVINGS
<br />Plus:
<br />CASHFLOW
<br />Bond
<br />Year
<br />Principal
<br />Rate Interest
<br />Net Debt
<br />Principal
<br />Rate Interest Cash
<br />Net Debt
<br />2/1
<br />8/1 & 2/1
<br />Service
<br />2/1
<br />2/1 & 8/1 Transfer
<br />Service
<br />2021
<br />220,000
<br />3.000% 49,794
<br />269,794
<br />135,000
<br />1.20% 7,303 678,802
<br />821,105
<br />(551,312)
<br />2022
<br />225,000
<br />3.125% 43,194
<br />268,194
<br />130,000
<br />1.25% 9,335
<br />139,335
<br />128,859
<br />2023
<br />235,000
<br />3.500% 36,163
<br />271,163
<br />130,000
<br />1.30% 7,710
<br />137,710
<br />133,453
<br />2024
<br />240,000
<br />3.750% 27,938
<br />267,938
<br />135,000
<br />1.35% 6,020
<br />141,020
<br />126,918
<br />2025
<br />245,000
<br />3.750% 18,938
<br />263,938
<br />135,000
<br />1.45% 4,198
<br />139,198
<br />124,740
<br />2026
<br />260,000
<br />3.750% 9,750
<br />269,750
<br />140,000
<br />1.60% 2,240
<br />142,240
<br />127,510
<br />2027
<br />-
<br />-
<br />-
<br />Total
<br />1,425,000
<br />185,775
<br />1,610,775
<br />805,000
<br />36,806 678,802
<br />1,520,608
<br />90,167
<br />Notes:
<br />Assumes G.O. Refunding Bonds issued at current estimates of public offering tax-exempt rates; Redemption of $1,425,000 plus $16,598 accrued interest to 6/1/2020
<br />Assumes City utilizes $678,802 to redeem balance of Orchard Road; $755,000 MSA portion refinanced
<br />Includes estimated costs for legal, advisory, credit rating and 1.2% underwriting allowance (subject to bid) 2010A Cash Flow (Future Value) Savings: 90,167
<br />Direct Placement O tion - Estimate
<br />Notes:
<br />Assumes G.O. Refunding Bonds issued at current estimates of tax-exempt bank placement rates; Redemption of $1,425,000 plus $16,598 accrued interest to 6/1/2020
<br />Assumes City utilizes $678,802 to redeem balance of Orchard Road; $755,000 MSA portion refinanced
<br />Includes estimated costs for legal and advisory fees
<br />2010B Cash Flow (Future Value) Savings: 106,257
<br />Prepared by Ehlers 3/18/2020
<br />PRIOR TO THE REFUNDING
<br />FOLLOWING THE REFUNDING
<br />Existing Debt Service (to be refunded)
<br />Estimated New Debt Service
<br />$1,425,000
<br />$785,000
<br />NET DEBT
<br />General Obligation Bonds, Series 2010A
<br />General Obligation Refunding Bonds, Series 2020A
<br />SERVICE
<br />Existing Balance after 2/1/2020 payment
<br />Dated: 6/1/2020
<br />SAVINGS
<br />Plus:
<br />CASHFLOW
<br />Bond
<br />Year
<br />Principal
<br />Rate Interest
<br />Net Debt
<br />Principal
<br />Rate Interest Cash
<br />Net Debt
<br />2/1
<br />8/1 & 2/1
<br />Service
<br />2/1
<br />2/1 & 8/1 Transfer
<br />Service
<br />2021
<br />220,000
<br />3.000% 49,794
<br />269,794
<br />129,000
<br />1.62% 8,478 678,802
<br />816,280
<br />(546,486)
<br />2022
<br />225,000
<br />3.125% 43,194
<br />268,194
<br />127,000
<br />1.62% 10,627
<br />137,627
<br />130,567
<br />2023
<br />235,000
<br />3.500% 36,163
<br />271,163
<br />129,000
<br />1.62% 8,570
<br />137,570
<br />133,593
<br />2024
<br />240,000
<br />3.750% 27,938
<br />267,938
<br />131,000
<br />1.62% 6,480
<br />137,480
<br />130,458
<br />2025
<br />245,000
<br />3.750% 18,938
<br />263,938
<br />133,000
<br />1.62% 4,358
<br />137,358
<br />126,580
<br />2026
<br />260,000
<br />3.750% 9,750
<br />269,750
<br />136,000
<br />1.62% 2,203
<br />138,203
<br />131,547
<br />2027
<br />-
<br />-
<br />-
<br />Total
<br />1,425,000
<br />185,775 -
<br />1,610,775
<br />785,000
<br />40,716 678,802
<br />1,504,518
<br />106,257
<br />Notes:
<br />Assumes G.O. Refunding Bonds issued at current estimates of tax-exempt bank placement rates; Redemption of $1,425,000 plus $16,598 accrued interest to 6/1/2020
<br />Assumes City utilizes $678,802 to redeem balance of Orchard Road; $755,000 MSA portion refinanced
<br />Includes estimated costs for legal and advisory fees
<br />2010B Cash Flow (Future Value) Savings: 106,257
<br />Prepared by Ehlers 3/18/2020
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