HomeMy Public PortalAboutA 2017-04-04 LUAThis Agenda contains a brief general description of each item to be considered. Copies
of the staff reports or other written documentation relating to each item of business
referred to on the Agenda are on file in the Office of the City Clerk and are available for
public inspection. Any person who has a question concerning any of the agenda items
may call the City Manager at (310) 603 -0220, ext. 200.
Procedures for addressing the Members of the Authority
IN ORDER TO EXPEDITE LYNWOOD UTILITY AUTHORITY BUSINESS, WE ASK
THAT ALL PERSONS WISHING TO ADDRESS THE AUTHORITY FILL OUT A FORM
PROVIDED AT THE DOOR, AND TO TURN IT IN TO THE SECRETARY PRIOR TO
THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL
PROHIBIT YOU FROM ADDRESSING THE MEMBERS OF THE AUTHORITY IN THE
ABSENCE OF THE UNANIMOUS CONSENT OF THE AUTHORITY.
AGENDA ITEMS ON FILE FOR CONSIDERATION
AT THE REGULAR MEETING OF
THE LYNWOOD UTILITY AUTHORITY
TO BE HELD ON APRIL 4, 2017
6:00 P.M.
COUNCIL CHAMBERS
11330 BULLIS ROAD, LYNWOOD, CA 90262
JOSE LUIS SOLACHE
VICE PRESIDENT
AIDE CASTRO
MEMBER
EXECUTIVE DIRECTOR
ALMA K. MARTINEZ
SECRETARY
MARIA QUINONEZ
MARIA T. SANTILLAN -BEAS
PRESIDENT
3V&;(/29*d-
RECEIVED
LIAR 3 0 2017
CITY OF LYNWOOD
CITY CLERKS OFFICE
`7th
SALVADOR ALATORRE
MEMBER
EDWIN E. HERNANDEZ
MEMBER
INTERIM FINANCE DIRECTOR
TERRI MARSH
DAVID A. GARCIA '
AUTHORITY COUNSEL
TREASURER
GABRIELA CAMACHO
OPENING CEREMONIES
I
1. CALL TO ORDER
2. ROLL CALL OF MEMBERS
Salvador Alatorre
Aide Castro
Edwin Hernandez
Jose Luis Solache
Maria T. Santillan -Beas
3. CERTIFICATION OF AGENDA POSTING BY SECRETARY
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NON - AGENDA PUBLIC ORAL COMMUNICATIONS
THIS PORTION PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS
THE LYNWOOD UTILITY AUTHORITY ON ITEMS WITHIN THE JURISDICTION OF
THE LYNWOOD UTILITY AUTHORITY AND NOT LISTED ON THE AGENDA. IF AN
ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL
DISCUSSION OF THE ISSUE BY THE LYNWOOD UTILITY AUTHORITY, BUT
LYNWOOD UTILITY AUTHORITY MEMBERS MAY REFER THE MATTER TO THE
STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING.
(The Ralph M. Brown Act, Government Code Section 54954.2 (a).)
CONSENT CALENDAR
All matters listed under the Consent Calendar will be acted upon by one motion affirming
the action recommended on the agenda. There will be no separate discussion on these
items prior to voting unless members of the Authority or staff request specific items be
removed from the Consent Calendar for separate action.
4. MINUTES OF PREVIOUS MEETINGS:
Regular Meeting — September 20, 2016
5. REQUEST FOR AUTHORITY TO SOLICIT FUNDING OPTIONS TO IMPROVE
THE CONDITION OF CITY STREETS, INCREASE GENERAL FUND
REVENUES AND REFINANCING OF OUTSTANDING LYNWOOD UTILITY
AUTHORITY REVENUE BONDS
Comments:
One of the City Council's Strategic Plan goals is to Enhance City Facilities and
Infrastructure. A key objective under this goal is to identify and present to the City
Council funding options to improve the condition of the City's streets.
In November 2016, the voters in Los Angeles County approved Measure M
consisting of an additional 0.5 percent sales tax for transportation related projects
2
and the indefinite extension of the existing 0.5 percent sales tax ( "Measure R ")
also dedicated to transportation projects that was set to expire in 2039.
Recommendation:
Staff requests that the City Council authorize and direct the City Manager to
solicit funding options for (i) the issuance of the Measures M and R bonds either
on a stand -alone basis or through a pool securitization program, (ii) the issuance
of lease revenue bonds, and (iii) the issuance of the Lynwood Utility Authority
Enterprise Refunding Revenue Bonds, Series 2017A to refinance the 2008
Bonds and 2009 Bonds.
Staff will solicit options from qualified firms, including Wolf & Company, as
municipal advisor, Stifel, Nicolaus & Company, Incorporated, as underwriter or
placement agent, and Nossaman LLP, as bond counsel and disclosure counsel,
in connection with proposed financing options. Staff will bring back to council
individual agreements with qualified firms for their respective services. Overall,
payment of fees and expenses with respect to such agreements shall be
contingent upon the closing of each financing.
ADJOURNMENT
The Lynwood Utility Authority meetings will be posted as needed. The next meeting will
be held in the Council Chambers of City Hall, 11330 Bullis Road, City of Lynwood,
California.
3
NL
AGENDA STAFF REPORT
DATE: April 4, 2017
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Alma K. Martinez, City Manager
PREPARED BY: Maria Quinonez, City Clerk
Lourdes Morales, Office Assistant II b '
SUBJECT: Lynwood Utility Authority Minutes
Recommendation:
Staff recommends the Lynwood City Council approve the following minutes:
• Regular Meeting — September 20, 2016
Background: N/A
Discussion & Analysis: N/A
Fiscal Impact: N/A
Coordinated With: N/A
AGENDA
ITEM
IT
LYNWOOD UTILITY AUTHORITY
REGULAR MEETING
September 20, 2016
The Lynwood Utility Authority of the City of Lynwood met in a regular meeting in the
Council Chambers, 11330 Bullis Road on the above date at 6:39 p.m.
President Hernandez presiding.
Members Alatorre, Santillan -Beas, Solache, Vice President Castro and President
Hernandez were present.
Also present were Executive Director J. Arnoldo Beltran, Authority Counsel Garcia,
Secretary Quihonez, Executive Assistant to City Clerk Betancur and City Treasurer
Camacho.
Secretary Quihonez announced that the Agenda had been duly posted in accordance
with the Brown Act.
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
NONE
NONE - AGENDA PUBLIC ORAL COMMUNICATIONS
NONE
PUBLIC HEARING
Item # 4. LYNWOOD UTILITY AUTHORITY ENTERPRISE REFUNDING
REVENUE BONDS, SERIES 2016A
Item heard in conjunction with item No. 8 on the regular City Council agenda.
MOTION: It was moved by Vice President Castro, seconded by Member Santillan -Beas
to open the public hearing. Motion carried by unanimous consent.
Finance Director Hall presented the staff report.
Member Alatorre requested that these resolutions be amended to reflect current staff's
titles.
MOTION: It was moved by Vice President Castro, seconded by Member Santillan -Beas
to close the public hearing. Motion carried by unanimous vote.
1
u,;
I
MOTION: It was moved by Member Alatorre, seconded by President Hernandez to
approve subject to staff making the changes to the resolutions with respect to staff's
titles.
ROLL CALL:
AYES: MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE, VICE
PRESIDENT CASTRO AND PRESIDENT HERNANDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
RESOLUTION NO. 2016.202 ENTITLED:
A RESOLUTION OF THE CITY COUNCIL OF LYNWOOD APPROVING THE
ISSUANCE AND SALE BY THE LYNWOOD UTILITY AUTHORITY OF NOT TO
EXCEED $16,000,000 PRINCIPAL AMOUNT OF ITS LYNWOOD UTILITY
AUTHORITY ENTERPRISE REVENUE BONDS, 2016 SERIES A, AND AUTHORIZING
AND DIRECTING THE EXECUTION THEREOF AND AUTHORIZING ACTIONS
RELATED THERETO
RESOLUTION NO. 2016.006 ENTITLED:
A RESOLUTION OF THE LYNWOOD UTILITY AUTHORITY APPROVING THE
ISSUANCE AND SALE BY THE LYNWOOD UTILITY AUTHORITY OF NOT TO
EXCEED $16,000,000 PRINCIPAL AMOUNT OF ITS LYNWOOD UTILITY
AUTHORITY ENTERPRISE REVENUE BONDS, 2016 SERIES A, APPROVING AN
INDENTURE OF TRUST, REFUNDING ESCROW AGREEMENTS, A BOND
PURCHASE AGREEMENT, A CONTINUING DISCLOSURE AGREEMENT AND A
PRELIMINARY OFFICIAL STATEMENT, AUTHORIZING AND DIRECTING THE
EXECUTION THEREOF AND AUTHORIZING ACTIONS RELATED THERETO
CONSENT CALENDAR
Item # 5. MINUTES OF PREVIOUS MEETINGS:
Regular Meeting — July 5, 2016
Regular Meeting — August 2, 2016
Regular Meeting — August 16, 2016
MOTION: It was moved by Vice President Castro, seconded by Member Solache to
approve the consent calendar. Motion carried by the following roll call vote:
0J
ROLL CALL:
AYES: MEMBERS ALATORRE, SANTILLAN -BEAS, SOLACHE, VICE
PRESIDENT CASTRO AND PRESIDENT HERNANDEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
Approved by Minute Order No. 2016 -7
ADJOURNMENT
Having no further discussion, it was moved by Vice President Castro, seconded by
Member Alatorre to adjourn the Lynwood Utility Authority meeting at 6:47 p.m. and
reconvene to the regular City Council meeting. Motion carried by unanimous consent.
Edwin Hernandez, President Maria Quinonez, Secretary
3
4�4 n AGENDA STAFF REPORT
DATE: April 4, 2017
TO: Honorable Mayor and Members of the City Council
Honorable President and Members of the Lynwood Utility Authority
APPROVED BY: Alma K. Martinez, City Manager
PREPARED BY: Terri Marsh, Interim Finance Director
SUBJECT: REQUEST FOR AUTHORITY TO SOLICIT FUNDING OPTIONS TO
IMPROVE THE CONDITION OF CITY STREETS, INCREASE
GENERAL FUND REVENUES AND REFINANCING OF
OUTSTANDING LYNWOOD UTILITY AUTHORITY REVENUE BONDS
Recommendation:
Staff requests that the City Council authorize and direct the City Manager to solicit funding
options for (i) the issuance of the Measures M and R bonds either on a stand -alone basis or
through a pool securitization program, (ii) the issuance of lease revenue bonds, and (iii) the
issuance of the Lynwood Utility Authority Enterprise Refunding Revenue Bonds, Series 2017A
to refinance the 2008 Bonds and 2009 Bonds.
Staff will solicit options from qualified firms, including Wolf & Company, as municipal advisor,
Stifel, Nicolaus & Company, Incorporated, as underwriter or placement agent, and Nossaman
LLP, as bond counsel and disclosure counsel, in connection with proposed financing options.
Staff will bring back to council individual agreements with qualified firms for their respective
services. Overall, payment of fees and expenses with respect to such agreements shall be
contingent upon the closing of each financing.
Measures M and R Financings
One of the City Council's Strategic Plan, goals is to Enhance City Facilities and Infrastructure.
A key objective under this goal is to identify and present to the City Council funding options to
improve the condition of the City's streets.
In November 2016, the voters in Los Angeles County approved Measure M consisting of an
additional 0.5 percent sales tax for transportation related projects and the indefinite extension
of the existing 0.5 percent sales tax ( "Measure R ") also dedicated to transportation projects
that was set to expire in 2039 (Attachment "A "). A percentage of the revenues collected from
Measure M would be returned to the 88 cities of Los Angeles County for local transportation
projects, including repairs to streets and sidewalks. Lynwood's share of these "local return
funds" from Measures M and R is anticipated to be approximately $1.9 million beginning in
Fiscal Year 2017 -18.
One of the uses of Measures M and R local return funds is to repave and resurface local
streets including the repair and replacement of curbs, gutters, sidewalks and ADA ramps.
With the new revenue stream of Measure M and R funds, the City has an opportunity to
realize substantial savings in street repair costs by funding major street improvements much
sooner than anticipated. A means to achieve this is through the issuance of bonds or other
obligations secured by the receipt of Measure M and R local return funds.
The bonds could be issued by the City on a stand -alone basis or the City could participate in a
pool securitization program with other local agencies. Both approaches would not require a
pledge of any general fund dollars. If the City elects to issue the bonds on a stand -alone
basis, based on the estimated initial annual revenue of $1.9 million with a pledge of 66% of
these funds with a debt ratio coverage of 150 %, it is estimated that approximately $15.5
million could be raised to put into needed major street repairs (Attachment "B ").
In order for a city to reduce its involvement in issuing bonds, a City may wish to consider
utilizing Independent Cities Financing Authority (ICFA) or the California Statewide
Communities Development Authority ( "CSCDA "). The City of Lynwood is an ICFA Board
member. Both ICFA and CSCDA offer a pool securitization program to assist local agencies
like Lynwood to obtain financing for these types of street projects. The pooled program
provides cities reduced bond issuance costs and depending upon issuance size could provide
more favorable interest rates as compared to stand alone bond issues. The CSCDA program
is endorsed by the League of California Cities, while ICFA program is offered to its member
cities such as Lynwood. The downside to a pool financing is timing and the issuance of city
debt is controlled by others.
Measure PS Financing.
In November 2016, Measure PS was approved by over 75% of the voters of the City. Measure
PS increased the total combined sales tax rate in the City from 9% to 10 %. Collection of this
1 % increase began on or about April 1, 2017 and will automatically expire after 10 years. It is
currently expected that the 1% increase will generate an additional $3.5 million in sales tax
revenue per year. The tax revenues will be deposited in the City's general fund and may be
used for any municipal purpose.
In order for the City to take advantage of this additional increase in revenue the City can issue
lease revenue bonds that are payable from its general fund to finance certain City projects
such as repairing and reconstructing the City's streets and sidewalks.
As mentioned above the expected increase in revenue to the general fund, the lease revenue
bonds would generate annually approximately $3.5 for City projects. 10% of Measure PS tax
collected must be transferred into a Budget Stabilization Fund. The other 90% can be used for
public safety, infrastructure and community programs. Lynwood Citizens' Transactions and
Use Tax Committee to review the expenditure of the revenues raised by the financing.
Lynwood Utility Authority Refinancing
The City is required by State law and City policy to collect revenues sufficient to cover the
costs of operating the water and sewer systems. These revenues allow the City to protect
public health; and safely and reliably treat and convey water and sewer. Costs that must be
recovered through rate revenue include purchased water, electricity, equipment, supplies,
treatment chemicals, debt service, along with salaries and benefits. Additionally, revenues
generated from the water and sewer rate increases would be used to finance the repair and
renovation of the City's aging water and sewer infrastructure, and restore depleting reserve
funds that have been drawn down to compensate for lower levels of water consumption.
Currently, the City water system relies on five water wells to provide water; 4 out of the 5 wells
are older than 66 years, with the oldest being in service for 85 years. Water and Sewer
pipeline infrastructure is equally aged, resulting in increased water main breaks and sewer
backups, and debt service payments, while maintaining adequate reserves. However, water
and sewer rates were last increased in 2012, and revenues have dropped due to the State
mandated water conservation goals, causing non - payment default of the City's debt
covenant. The City's non - compliance with its debt covenants could cause a downgrade of the
City's bond rating and may prove to be a significant obstacle to the issuance of additional debt
necessary to maintain and rebuild the City's water and sewer systems, or such additional debt
would be issued with significant increases in interest costs to the City. The proposed rate
increases are essential to restoring compliance with the debt covenants. In order to provide
additional information to the City Council and public at the April 18 Utility Water Pubic Hearing,
staff will be reviewing the Authority's outstanding water debt financings to see if there are
additional savings in refinancing these bonds that can be included with the various rate
increases proposed.
The Authority currently has outstanding its $8,300,000 Lynwood Utility Authority Enterprise
Revenue Bonds, 2008 Series A (the "2008 Bonds ") and its $5,350,000 Lynwood Utility
Authority Enterprise Refunding Revenue Bonds, 2009 Series A (the "2009 Bonds "). The 2008
Bonds and the 2009 Bonds are currently eligible for refinancing which would allow the
Authority to reduce the annual debt service payments.
To carry out the refinancing, the Authority proposes to issue its Lynwood Utility Authority
Enterprise Refunding Revenue Bonds, Series 2017A via public sale. At present, considering
current market rates and all fees and costs, the Authority and the City can expect to save
approximately $73,000 per year from the proposed refinancing. If a surety was secured the
saving would increase to $145,000.
Fiscal Impact:
There is no fiscal impact at this time.
Attachments:
Attachment "A ": Measure M- Information Guide
Attachment "B ": Debt Service Schedule for Measure M and R Bonds
3
The Metro Board of Directors has approved
placing a sales tax ballot measure, titled the
Los Angeles County Traffic Improvement Plan,
on the November 8, 2oi6, ballot. Voters will
be asked:
"To improve freeway traffic flow /safety; repair potholes)
sidewalks; repave local streets; earthquake - retrofit bridges,
synchronize signals; keep senior /disabled /student fares
affordable; expand rail /subway /bus systems, improve job/
school /airport connections; and create jobs; shall voters
authorize a Los Angeles County Traffic Improvement Plan
through a %2 d sales tax and continue the existing r/2 s traffic
relief tax until voters decide to end it,, with independent
audits /oversight and funds controlled locally ?"
Why is Metro proposing Measure M?
Angelenos spend an average of 8i hours a year stuck
in traffic. Currently, there are 10.2 million people living
in LA County, and we are projected to grow by 2.3 million
people in the next 40 years. Traffic congestion and air
pollution are expected to get worse with more growth,
and the measure is intended to raise money to meet
those needs.
( Accountability Provisions of the Measure
Measure M includes provisions establishing an
independent oversight process including a Taxpayer
Oversight Committee and annual audits.
Ease traf c. congestion, im.prove,ieeeway Traffic flow,
and reduce bottlenecks:
• Expand rail and rapid transit system; accelerate rail
construction and build new rail, llnes; enhance.local,
regional, and express.bus.service ;.and improve
system connectivity .
+ itepave local streets, repair potholes; and synchronize
.signals; improve. neighborhood,streets and iritersections,
and enhance bike and pedestrian connections.
• Make public transportation more accessible, convenient,
and affordable'forseniors, students, and the disabled; and
provide better mobility options for our aging population.
Earthquake- retrofit bridges; 2nd'keep the transit and
highway, system: safe and in good.workin'g.contlition.
• Embeace technology and innovations; incorporate modern
technology new advancement, and emerging.innovations
into,the local transportation system.
• Create jobs; reduce pollution; and generate. local economic
benefitswl increase personal quality.time, and overall quality
of fife. .
Provide accountability and .transpare'ncy; protect and
monitor the. public's investments through independent
audits and oversight.'
SOURCES AND USES OF FUNDS
City of Lynwood
Local Sales Tax Certificates of Participation
Scenario: Measure R & Measure M Revenues
Dated Date 06/01/2017
Delivery Date 06/01/2017
Sources:
Bond Proceeds:
Par Amount 14,355,000.00
Premium 1,176,021.30
15,531,021.30
Uses:
Project Fund Deposits:
Project Fund
13,939,847.97
Other Fund Deposits:
Debt Service Reserve Fund
1,225,002.08
Delivery Date Expenses:
Cost of Issuance
366,171.25
15,53 1,02 1.30
Notes:
The financing was evaluated at interest rate spreads to the generic'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 1
BOND SUMMARY STATISTICS
City of Lynwood
Price
Local Sales Tax Certificates of
Participation
PV of I by
change
Scenario: Measure R & Measure
M Revenues
Dated Date
06/01/2017
Delivery Date
06/01/2017
Last Maturity
06/01/2047
Arbitrage Yield
3.910389
True Interest Cost (TIC)
4.352631%
Net Interest Cost (NIC)
4.596351%
All -In TIC
4.539769%
Average Coupon
4.986097%
Average Life (years)
21.020
Weighted Average Maturity (years)
20.947
Duration of Issue (years)
13.104
Par Amount
14,355,000.00
Bond Proceeds
15,531,021.30
Total Interest
15,045,050.00
Net Interest
13,869,028.70
Total Debt Service
29,400,050.00
Maximum Annual Debt Service
1,272,500.00
Average Annual Debt Service
980,001.67
Underwriters Fees (per $1000)
Average Takedown
Other Fee
Total Underwriters Discount
Bid Price
108.192416
Bond Component
Par
Value
Price
Average
Coupon
Average
Life
PV of I by
change
Serial Bond
3,460,000.00
110.579
4.863%
8.831
2,406.40
Tenn Bond (2037)
1,820,000.00
108.004
5.000%
18.093
1,565.20
Tenn Bond (2042)
3,580,000.00
107.577
5.000%
23.425
3,043.00
Tenn Bond (2047)
5,495,000.00
107.153
5.000%
28.097
4,670.75
- Other Amounts
14,355,000.00 21.020
11,685.35
All -In
Arbitrage
15,164,850.05
TIC TIC
Yield
Par Value
14,355,000.00 14,355,000.00
14,355,000.00
• Accrued Interest
4.352631%
4.539769%
• Premium (Discount)
1,176,021.30 1,176,021.30
1,176,021.30
- Underwriters Discount
Cost of Issuance Expense
- 366,171.25
- Other Amounts
Target Value
15,531,021.30
15,164,850.05
15,531,021.30
Target Date
06/01/2017
06/01/2017
06/01/2017
Yield
4.352631%
4.539769%
3.910389%
Notes:
The financing was evaluated at interest rate spreads to the generic 'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 2
BOND DEBT SERVICE
City of Lynwood
Local Sales Tax Certificates of Participation
Scenario: Measure R & Measure M Revenues
Period
Ending
Principal
Coupon
Interest
Debt
Service
06/01/2018
170,000
3.000%
704,900
874,900
06/01/2019
175,000
4.000%
699,800
874,800
06/01/2020
180,000
4.000%
692,800
872,800
06/01/2021
190,000
4.000%
685,600
875,600
06/01/2022
195,000
4.000%
678,000
873,000
06/01/2023
205,000
4.000%
670,200
875,200
06/01/2024
215,000
5.000%
662,000
877,000
06/01/2025
225,000
5.000%
651,250
876,250
06/01/2026
235,000
5.000%
640,000
875,000
06/01/2027
245,000
5.000%
628,250
873,250
06/01/2028
255,000
5.000%
616,000
871,000
06/01/2029
275,000
5.000%
603,250
878,250
06/01/2030
285,000
5.000%
589,500
874,500
06/01/2031
300,000
5.000%
575,250
875,250
06/01/2032
310,000
5.000%
560,250
870,250
06/01/2033
330,000
5.000%
544,750
874,750
06/01/2034
350,000
5.000%
528,250
878,250
06/01/2035
360,000
5.000%
510,750
870,750
06/01/2036
380,000
5.000%
492,750
872,750
06/01/2037
400,000
5.000%
473,750
873,750
06/01/2038
420,000
5.000%
453,750
873,750
06/01/2039
445,000
5.000%
432,750
877,750
06/01/2040
860,000
5.000%
410,500
1,270,500
06/01/2041
905,000
5.000%
367,500
1,272,500
06/01/2042
950,000
5.000%
322,250
1,272,250
06/01/2043
995,000
5.000%
274,750
1,269,750
06/01/2044
1,045,000
5.000%
225,000
1,270,000
06/01/2045
1,095,000
5.000%
172,750
1,267,750
06/01/2046
1,150,000
5.000%
118,000
1,268,000
06/01/2047
1,210,000
5.000%
60,500
1,270,500
14,355,000
15,045,050
29,400,050
Notes:
The financing was evaluated at interest rate spreads to the generic 'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 3
BOND PRICING
City of Lynwood
Local Sales Tax Certificates of Participation
Scenario: Measure R & Measure M Revenues
Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (- Discount)
Serial Bond:
06/01/2018
170,000
3.000%
1.310%
101.673
2,844.10
06/01/2019
175,000
4.000%
1.590%
104.725
8,268.75
06/01/2020
180,000
4.000%
1.870%
106.185
11,133.00
06/01/2021
190,000
4.000%
2.090%
107.292
13,854.80
06/01/2022
195,000
4.000%
2.340%
107.789
15,188.55
06/01/2023
205,000
4.000%
2.510%
108.251
16,914.55
06/01/2024
215,000
5.000%
2.760%
114.169
30,463.35
06/01/2025
225,000
5.000%
2.930%
114.667
33,000.75
06/01/2026
235,000
5.000%
3.120%
114.653
34,434.55
06/01/2027
245,000
5.000%
3.270%
114.655
35,904.75
06/01/2028
255,000
5.000%
3.410%
113.377
C
3.523%
06/01/2027
100.000
34,111.35
06/01/2029
275,000
5.000%
3.540%
112.205
C
3.729%
06/01/2027
100.000
33,563.75
06/01/2030
285,000
5.000%
3.620%
111.492
C
3.867%
06/01/2027
100.000
32,752.20
06/01/2031
300,000
5.000%
3.700%
110.783
C
3.987%
06/01/2027
100.000
32,349.00
06/01/2032
310,000
5.000%
3.780%
110.081
C
4.094%
06/01/2027
100.000
31,251.10
3,460,000
366,034.55
Tenn Bond (2037):
06/01/2033
330,000
5.000%
4.020%
108.004
C
4.394%
06/01/2027
100.000
26,413.20
06/01/2034
350,000
5.000%
4.020%
108.004
C
4.394%
06/01/2027
100.000
28,014.00
06/01/2035
360,000
5.000%
4.020%
108.004
C
4.394%
06/01/2027
100.000
28,814.40
06/01/2036
380,000
5.000%
4.020%
108.004
C
4.394%
06/01/2027
100.000
30,415.20
06/01/2037
400,000
5.000%
4.020%
108.004
C
4.394%
06/01/2027
100.000
32,016.00
1,820,000
145,672.80
Tenn Bond (2042):
06/01/2038
420,000
5.000%
4.070%
107.577
C
4.492%
06/01/2027
100.000
31,823.40
06/01/2039
445,000
5.000%
4.070%
107.577
C
4.492%
06/01/2027
100.000
33,717.65
06/01/2040
860,000
5.000%
4.070%
107.577
C
4.492%
06/01/2027
100.000
65,162.20
06/01/2041
905,000
5.000%
4.070%
107.577
C
4.492%
06/01/2027
100.000
68,571.85
06/01/2042
950,000
5.000%
4.070%
107.577
C
4.492%
06/01/2027
100.000
71,981.50
3,580,000
271,256.60
Tenn Bond (2047):
06/01/2043
995,000
5.000%
4.120%
107.153
C
4.560%
06/01/2027
100.000
71,172.35
06/01/2044
1,045,000
5.000%
4.120%
107.153
C
4.560%
06/01/2027
100.000
74,748.85
06/01/2045
1,095,000
5.000%
4.120%
107.153
C
4.560%
06/01/2027
100.000
78,325.35
06/01/2046
1,150,000
5.000%
4.120%
107.153
C
4.560%
06/01/2027
100.000
82,259.50
06/01/2047
1,210,000
5.000%
4.120%
107.153
C
4.560%
06/01/2027
100.000
86,551.30
5,495,000
393,057.35
14,3 55,000
1,176,021.30
Dated Date
Delivery Date
First Coupon
Par Amount
Premium
Production
Underwriters Discount
Purchase Price
Accrued Interest
06/01/2017
06/01/2017
12/01/2017
14,355,000.00
1,176,021.30
15,531,021.30 108.192416%
15,531,021.30 108.192416%
Net Proceeds 15,53 1,02 1.30
Notes:
The financing was evaluated at interest rate spreads to the generic 'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 4
BOND SOLUTION
City of Lynwood
Local Sales Tax Certificates of Participation
Scenario: Measure R & Measure M Revenues
Period
Ending
Proposed
Principal
Proposed
Debt Service
2012 Bonds
Debt Service
Total Adj
Debt Service
Revenue
Constraints
Unused
Revenues
Debt Sery
Coverage
06/01/2018
170,000
874,900
393,427
1,268,327
1,908,872
640,545
150.50320%
06/01/2019
175,000
874,800
395,597
1,270,397
1,908,872
638,475
150.25788%
06/01/2020
180,000
872,800
396,979
1,269,779
1,908,872
639,093
150.33104%
06/01/2021
190,000
875,600
393,548
1,269,148
1,908,872
639,724
150.40584%
06/01/2022
195,000
873,000
394,915
1,267,915
1,908,872
640,957
150.55202%
06/01/2023
205,000
875,200
395,882
1,271,082
1,908,872
637,790
150.17699%
06/01/2024
215,000
877,000
394,971
1,271,971
1,908,872
636,901
150.07194%
06/01/2025
225,000
876,250
393,635
1,269,885
1,908,872
638,987
150.31846%
06/01/2026
235,000
875,000
396,861
1,271,861
1,908,872
637,011
150.08495%
06/01/2027
245,000
873,250
394,810
1,268,060
1,908,872
640,812
150.53480%
06/01/2028
255,000
871,000
396,971
1,267,971
1,908,872
640,901
150.54537%
06/01/2029
275,000
878,250
393,831
1,272,081
1,908,872
636,791
150.05903%
06/01/2030
285,000
874,500
395,540
1,270,040
1,908,872
638,832
150.30020%
06/01/2031
300,000
875,250
396,591
1,271,841
1,908,872
637,032
150.08737%
06/01/2032
310,000
870,250
397,328
1,267,578
1,908,872
641,294
150.59213%
06/01/2033
330,000
874,750
397,751
1,272,501
1,908,872
636,372
150.00953%
06/01/2034
350,000
878,250
392,860
1,271,110
1,908,872
637,762
150.17368%
06/01/2035
360,000
870,750
397,012
1,267,762
1,908,872
641,110
150.57027%
06/01/2036
380,000
872,750
395,655
1,268,405
1,908,872
640,467
150.49389%
06/01/2037
400,000
873,750
393,960
1,267,710
1,908,872
641,162
150.57645%
06/01/2038
420,000
873,750
396,925
1,270,675
1,908,872
638,197
150.22504%
06/01/2039
445,000
877,750
394,382
1,272,132
1,908,872
636,740
150.05298%
06/01/2040
860,000
1,270,500
1,270,500
1,908,872
638,372
150.24573%
06/01/2041
905,000
1,272,500
1,272,500
1,908,872
636,372
150.00959%
06/01/2042
950,000
1,272,250
1,272,250
1,908,872
636,622
150.03906%
06/01/2043
995,000
1,269,750
1,269,750
1,908,872
639,122
150.33448%
06/01/2044
1,045,000
1,270,000
1,270,000
1,908,872
638,872
150.30488%
06/01/2045
1,095,000
1,267,750
1,267,750
1,908,872
641,122
150.57164%
06/01/2046
1,150,000
1,268,000
1,268,000
1,908,872
640,872
150.54196%
06/01/2047
1,210,000
1,270,500
1,270,500
1,908,872
638,372
150.24573%
14,355,000
29,400,050
8,699,428
38,099,478
57,266,160
19,166,682
Notes:
The financing was evaluated at interest rate spreads to the generic'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 5
DISCLOSURE
City of Lynwood
Local Sales Tax Certificates of Participation
Scenario: Measure R & Measure M Revenues
Stifel, Nicolaus & Company, Incorporated ('Stifel') has prepared the attached materials. Such material consists of factual or general information (as
defined in the SEC's Municipal Advisor Rule with current effective date of implementation of July 1, 2014). Stifel is not hereby providing a
municipal entity or obligated person with any advice or making any recommendation as to action concerning the structure, timing or terms of any
issuance of municipal securities or municipal financial products. To the extent that Stifel provides any alternatives, options, calculations or
examples in the attached information, such information is not intended to express any view that the borrower could achieve particular results in any
municipal securities transaction, and those alternatives, options, calculations or examples do not constitute a recommendation that any municipal
issuer or obligated person should effect any municipal securities transaction. Stifel is not acting as your municipal advisor and does not owe a
fiduciary duty pursuant to Section 15B of the Exchange Act to the municipal entity or obligated party with respect to the information and materials
contained in this communication.
Stifel is providing information and is declaring to the proposed municipal issuer and any obligated person that it has done so within the regulatory
framework of MSRB Rule G -23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as
defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase
securities for resale to investors in an arm's- length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests
that differ from those of the issuer. The issuer should consult with its own financial and /or municipal, legal, accounting, tax and other advisors, as
applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for
discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether
financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not
constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any
transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the
future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be
accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel
or its sources and are subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that
any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or
counsel as you deem appropriate.
Notes:
The financing was evaluated at interest rate spreads to the generic'AAA' municipal yield index ('MMD') of +60 basis points beginning in 2018,
increasing to +125 in 2047, the final maturity of the bonds.
The use of the'A' rating is consistent with the S &P rating of similar LA County Measure R sales tax revenue bonds.
The interest rate and rating assumptions assumed in this presentation are based on current market conditions and similar credits.
The City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
The final maturity of 2047 allowable as Measure M does not have a sunset provision.
Measure R & M revenue constraint provided by LACMTA.
Prepared by Stifel Page 6