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Refunding Feasibility Analysis <br />January 17, 2012 <br />Page 2 <br />Current Municipal Market <br />BBI 25 -bond (Revenue) and 20 -bond (G.O.) Rates for 5 Years <br />Ending 1/12/2012 <br />6.5% - - - BBI 25 Bond <br />1/12/2012 r —BBI 20 Bond <br />r •' 25 bond: 4.74% <br />6.0% - - - - -- _____. -.. -- - -- -- -- - - - - -- - -- <br />+• • 20 bond: 3.62% — -- — - - <br />CD <br />v <br />4.5% .� — - -- - - - -- - - - - - -- — - - -.. <br />4.0% - - -.. - -- - <br />3.5% <br />1 ^L�1, `� \z'l, ` 1�11�`f tb � , �O�`L�1 414 1 \ `P 41� 1 �` ��0 '�e��L�o ^`� ^o�`LO�L ^o�`L ^N o L^ `L1 , `l\^^'�`L0 <br />Dates Prepared by Springsted Incorporated <br />`- Next Steps <br />Before a final decision is made on whether to proceed, we recommend you consider the unique characteristics of this <br />issue and your additional borrowing plans this year. We will be in touch to schedule an opportunity to discuss the <br />following considerations and determine the true viability of the refunding for interest cost savings as well as any other <br />related potential objectives from debt restructuring. <br />Among an issue's particular characteristics, we recommend you consider the following: <br />• Review the current cash balance in the debt service fund and apply any build -up of excess funds to the <br />refunding. This will help to establish a more accurate present value benefit of the refunding. <br />• Examine the current revenue stream(s) in order to better match the debt service of the new refunding issue <br />to future revenue expectations. This may result in a refunding structure other than level savings or impact <br />the term of the new refunding obligations. <br />• Consider if you are undertaking other tax - exempt financings in the current calendar year to determine if the <br />refunding will affect your bank qualification status for all such issues. Obligations that are bank - qualified <br />generally have slightly lower interest rates. <br />• Consider if the refunding can be sold in conjunction with other debt to save costs of issuance. <br />• Consider the impact of this refunding on existing bond covenants in anticipation of future user rate and /or <br />financing objectives. <br />• Verify that the debt service reserve on the existing obligations was funded from bond proceeds. If so, <br />excess debt service reserve funds not required for the new refunding will be used to reduce the principal <br />amount of the refunding as shown. <br />• Discuss your desired minimum threshold for savings. <br />Springsted Public Sector Advisors <br />