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Crow Wing County HRA
<br />Refunding 2003A West Grove Townhomes
<br />3129/2012
<br />`, Page 2
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<br />Operating Reserve Fund are all at $0. All funds, with the exception of the Debt Service Reserve Fund, (see
<br />explanation below) will be transferretl over to the Trustee (US Bank) in equal amounts into identical funds related to
<br />the new bonds.
<br />The Refundin4 Oqportunitv
<br />The current favorable interest rate environment may allow the CWCHRA to restructure the debt through a refunding,
<br />to achieve eQUal annual qavments of principal and interest through the term of the bonds with future payments
<br />approximating the 2012 payment.
<br />The remaining average coupon interest rate on the 2003A bonds is 4.86%. The estimated refunding bond average
<br />coupon is 2.86%, a reduction of 2.00%. Taking advantage of this lower rate may allow a restructuring of the debt
<br />service by moving principal from the back end of the term to the front end, while at the same time not significantly
<br />impacting the annual payment amount. In order to accomplish this, the CWCHRA intends to use the $108,000 Debt
<br />Service Reserve Fund to "buy-down" the total amount of the refuntling bonds. After the refuntling, there will be no
<br />debt service reserve. Below is a comparison of the current 2003A debt service to the estimated refunding debt
<br />service.
<br />Date
<br />02/01 /2013
<br />02/01 /2014
<br />02/01 /2015
<br />02/01 /2016
<br />02/01 /2017
<br />02/01 /2018
<br />02/01 /2019
<br />02/01 /2020
<br />02/01 /2021
<br />02/01 /2022
<br />02/01/2023
<br />02/01 /2024
<br />02/01 /2025
<br />02/01/2026
<br />02/01 /2027
<br />02/01 /2028
<br />02/01 /2029
<br />02/01 /2030
<br />02/01/2031
<br />02/01 /2032
<br />02/01 /2033
<br />02/01 /2034
<br />Total
<br />Debt Service Comparison
<br />Total P+I
<br />81,664.00
<br />80,255.00
<br />79, 980.00
<br />79,605.00
<br />79,130.00
<br />78,505.00
<br />77,755.00
<br />76,880.00
<br />80,880.00
<br />79,697.50
<br />78,432.50
<br />77,112.50
<br />80, 737.50
<br />79,177.50
<br />77,527.50
<br />80,817.50
<br />78,900.00
<br />76,917.50
<br />79,870.00
<br />77,595.00
<br />80,250.00
<br />77,662.50
<br />$1,739,351.50
<br />Refunding
<br />81,664.00
<br />80,255.00
<br />79,980.00
<br />79,605.00
<br />79,130.00
<br />78,505.00
<br />77,755.00
<br />76,880.00
<br />80,880.00
<br />79,697.50
<br />78,432.50
<br />77,112.50
<br />80,737.50
<br />79,177.50
<br />77,527.50
<br />80,817.50
<br />78,900.00
<br />76,917.50
<br />79,870.00
<br />77,595.00
<br />80,250.00
<br />77,662.50
<br />Current 03A
<br />77,047.50
<br />76,247.50
<br />75,347.50
<br />79,447.50
<br />78,322.50
<br />82,197.50
<br />80,847.50
<br />79,422.50
<br />87,997.50
<br />91,097.50
<br />93,960.00
<br />96,585.00
<br />93,917.50
<br />101,250.00
<br />103,097.50
<br />104,702.50
<br />106,065.00
<br />107,145.00
<br />107,980.00
<br />108,570.00
<br />108,915.00
<br />11,015.00
<br />$1,739,351.50 $1,951,177.50
<br />Diffe re nce
<br />(4,616.50)
<br />(4,007.50)
<br />(4,632.50)
<br />(157.50)
<br />(807.50)
<br />3,692.50
<br />3,092.50
<br />2,542.50
<br />7,117.50
<br />11,400.00
<br />15,527.50
<br />19,472.50
<br />13,180.00
<br />22,072.50
<br />25,570.00
<br />23,885.00
<br />27,165.00
<br />30,227.50
<br />28,110.00
<br />30,975.00
<br />28,665.00
<br />(66,647.50)
<br />$211,826.00
<br />� In addition to the benefit of stabilizing debt service payments at current levels, the refunding/restructuring is
<br />estimated to produce present value interest cost savings of approximately $147,000.
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