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Springsted <br />r• <br />L" <br />--. <br />Refunding Feasibility Analysis <br />For the <br />City of Pequot Lakes, Minnesota <br />F <br />From: Paul Steinman, Vice President <br />Dated: January 17, 2012 <br />y <br />Introduction <br />As part of Springsted's ongoing services, we routinely identify opportunities and subsequent updates for public <br />entities to refund outstanding bonds for interest cost savings. While other reasons exist to refund outstanding issues, <br />our initial focus is on interest cost savings. We recently reviewed the following debt issue on your behalf and have <br />9: <br />summarized this issue's potential for interest cost savings in the current market. For the debt issue that offers the <br />best opportunity for interest cost savings, we have provided more detailed financial summaries, We look forward to <br />discussing this information with you, and possibly refining our analysis to ensure that any refunding is structured in <br />your best long -term interest. <br />F <br />Summary of Outstanding Issues Reviewed <br />issue Rdfu ,9dlmg* #Est fldt Future Present Value PV Savirngs/PV of <br />} <br />� <br />vw <br />£flue Refunded Debtsennce <br />... <br />2000AB GO Bonds Current $123,592.19 $84,472.21 5.412% <br />Summary Information on Potential Candidate Issues <br />(Shaded Issues Indicate Potential Refunding Candidates) <br />The table above indicates one issue with potential savings that merits further review. For this candidate, we have <br />prepared a profile of significant financial statistics and estimates from the refunding feasibility analysis. This <br />information should be viewed as preliminary and as a general indicator of the individual issue's refunding feasibility. <br />We recommend additional discussion take place as to the decision to proceed with the refunding. In the concluding <br />section to this analysis, "Next Steps ", we have listed several topics which would facilitate the decision on the <br />appropriateness of moving ahead at this time. <br />Issue 1 <br />Original Issue Size $1,625,000 <br />IF <br />Type GO <br />9: <br />Refunded Issue 2000AB <br />Refunding Issue 2012 <br />Type of Refunding Current <br />Refunded Issue Call Date and Terms 6/01/2012 @100.000% <br />Net Future Value of Savings $123,592.19 <br />Net Present Value of Savings $84,472.21 <br />Net PV Savings to PV of Refunded Debt 5.412% I <br />9: <br />Service <br />Average Rate on Refunded Bonds 4.500% <br />Average Rate on Refunding Bonds 3.720% <br />More detailed financial summaries are attached for each issue. <br />Public Sector Advisors <br />