HomeMy Public PortalAbout2015.04.28 IBBA Sewer Revenue Refunding Bonds; Series 2015B Summary Letter
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DATE: April 28, 2015
TO: Idaho Bond Bank Authority (IBBA), Executive Director Jace Perry
FROM: Zions Public Finance, Inc. on behalf of the City of McCall
RE: IBBA Application Loan Summary – IBBA Sewer Revenue Refunding Bonds; Series 2015B
Background
The City of McCall is seeking to refund one outstanding debt obligation of its sewer system totaling $5,465,000 in refundable par.
The City’s 2008B Sewer Revenue Bonds are callable 09/15/2018, have a final maturity of 09/15/2029, and were originally issued
within the IBBA’s 2008B issuance.
Section II.C Security
See attached Historical Debt Service Coverage – Sewer.
Section II.D Proposed Loan and Use of Funds
The City seeks a maximum loan amount of $5,465,000 with a final maturity date of 09/15/2029. The net proceeds of the Series
2015B IBBA Sewer Revenue Refunding Bonds will be used to establish an irrevocable trust escrow to refund all of the City’s
outstanding 2008B Sewer Bonds.
Section II.F Proposed Structure
See attached McCall Proposed Structure. The City expects to transfer approximately $617,824 from the debt service reserve fund
of the refunded bonds, to be applied to the new bonds as a cash contribution. The City expects a waiver of the DSRF requirement
for the 2015B refunding bonds given superior coverage. The refunding bonds will follow the structure of the original 2008E bonds,
which wrap around the 2004A sewer bonds to provide level parity debt service.
Section III.B Debt to be Refunded
See attached Series 2008E Debt Service Schedule.
Section III.D Outstanding Debt
The City of McCall’s sewer system has only two outstanding debt obligations, the Series 2004A and Series 2008B Sewer Revenue
Bonds. While the City intends to refund only one of these obligation through the Authority, it does plan to refund its 2004A bonds
through a direct purchase bid prior to the IBBA 2015B sale. The 2004A bonds will be refunded for savings, and the refunding will
have a neutral or positive impact on the City’s ability to repay its IBBA obligations. A brief description of the City’s parity sewer debt
is given below.
The Series 2004A Sewer Revenue Bonds were issued on December 1, 2004 in the aggregate par amount of $2,780,000
with an 18-year term. As of 09/01/2014 (date of last payment), the principal balance was $1,505,000. The bonds are
secured by sewer revenues. The City has never defaulted or been delinquent on payments associated with this obligation.
See attached Series 2004A Debt Service Schedule (Parity Debt).
The original Series 2008B IBBA Sewer Revenue Bonds were issued on May 15, 2008 in the aggregate par amount of
$7,095,000 with a 20-year term. Callable maturities have annual interest rates ranging from 4.00% to 5.00%. As of
09/15/2014 (date of last payment), the principal balance was $6,340,000. The bonds are secured by sewer revenues. The
new IBBA bonds will wrap around the non-callable 2015-2018 maturities to maintain level debt service. The City has never
defaulted or been delinquent on payments associated with this obligation.
Section III.H Audited Financial Statements
See attached 2012 Audit, 2013 Audit, and 2014 Audit.
Section III.I 2015 Fiscal Budget
See attached 2015 Budget.
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Section III.K Purpose for Loan
The City’s purpose in obtaining this loan is to achieve interest savings through the refunding of its outstanding sewer debt
obligations. See the attached McCall MiniOS for additional financial, economic, and demographic information.
Electronic copies of the signed application and application fee check are also included.
On behalf of the City, thank you for your consideration of this application and your work to prepare the application for the Board.
Please let us know if you have any questions or need any additional information.
Sincerely,
Cameron Arial | Vice President
ZIONS PUBLIC FINANCE, INC
800 W Main St, Suite 700 | Boise, ID 83702
w 208.501.7481 | f 855.855.9702 | m 208.559.4353
cameron.arial@zionsbank.com | zionsbankpf.com