HomeMy Public PortalAboutA 2018-08-21 LPFA
24933998.1
RESOLUTION NO. 2018-__
RESOLUTION OF THE LYNWOOD PUBLIC FINANCING AUTHORITY
DECLARING ITS INTENTION TO REIMBURSE CERTAIN EXPENDITURES
FROM THE PROCEEDS OF A TAX-EXEMPT BOND FINANCING, AS
REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY
REGULATIONS SECTION 1.150-2; APPROVING PROFESSIONALS; AND
AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the Lynwood Public Financing Authority (the “Authority”) expects to issue
tax-exempt revenue bonds or other obligations (the “Bonds”) to finance costs associated with
funding certain transportation projects (the “Projects”) eligible to be paid from sales tax receipts
allocated to the City of Lynwood (the “City”) pursuant to Los Angeles County Metropolitan
Transportation Authority Ordinance No. 16-01, known as the Los Angeles County Traffic
Improvement Plan; and
WHEREAS, certain expenditures with respect to the Projects are expected to be paid by
the City and/or the Authority prior to the date of issuance of the Bonds (the “Reimbursable
Expenditures”); and
WHEREAS, section 1.150-2 of the Treasury Regulations (the “Treasury Regulations”)
promulgated under the Internal Revenue Code of 1986, as amended, requires that for an
allocation of proceeds of the Bonds to a capital expenditure paid prior to the issuance of the
Bonds to be respected by the Internal Revenue Service, the Authority generally must, no later
than 60 days following such payment, have declared its reasonable official intent to reimburse
the City and/or the Authority for such payment out of proceeds of the Bonds; and
WHEREAS, the Authority desires to facilitate the allocation of proceeds of the Bonds to
the reimbursement for payment of the Reimbursable Expenditures for the Projects;
NOW, THEREFORE, BE IT RESOLVED by the Authority as follows:
1. This Resolution is adopted for purposes of establishing compliance with the
requirements of section 1.150-2 of the Treasury Regulations. This Resolution does not obligate
the Authority or the City to make any expenditure, to proceed with any particular Project, or
obligate the Authority to issue any Bonds.
2. The Authority hereby declares its reasonable official intention to issue Bonds or
incur other obligations in an aggregate principal amount not to exceed $11,000,000, and to
apply a portion of the proceeds thereof to the reimbursement for the prior payment of
Reimbursable Expenditures. The Authority recognizes that under section 1.150-2 of the
Treasury Regulations, the allocation of proceeds of the Bonds to a Reimbursable Expenditure
(other than to certain de minimis or preliminary expenditures described in section 1.150-2(f) of
the Treasury Regulations) will be recognized only if (i) the Reimbursable Expenditure was paid
not earlier than 60 days prior to the adoption of this Resolution and (ii) the allocation of
proceeds of the Bonds to such reimbursement is made not later than the later of (a) 18 months
after the date of payment of the Reimbursable Expenditure or (b) 18 months after the date upon
which the Project is placed in service or abandoned, but in no event more than three years after
the date of payment of the Reimbursable Expenditure.
24933998.1 2
3. The Authority and the City desire to retain the following professionals to further
the preparation of the Bond financing, including the potential refunding of the outstanding bond
anticipation obligations. The Authority hereby approves the appointment of (a) Norton Rose
Fulbright US LLP, to provide Bond and Disclosure Counsel services in connection with the
Bonds, (b) Stifel, Nicolaus & Company, Incorporated, as Underwriter in connection with the
Bonds, and (c) Wolf & Company Inc., as Municipal Advisor in connection with the Bonds. The
Executive Director of the Authority is hereby authorized and directed to execute services
agreements with these professionals. Financing documents relating to the Bonds will be
submitted to the Authority and the City Council at a future meeting for consideration and
approval.
4. This Resolution shall become effective immediately.
PASSED AND ADOPTED by the Lynwood Public Financing Authority, at a meeting held
on the 21 day of August 2018.
LYNWOOD PUBLIC FINANCING
AUTHORITY
Chair
ATTEST:
____________________________________
Secretary
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 1
SOURCES AND USES OF FUNDS
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax Revenues
Dated Date 10/10/2018
Delivery Date 10/10/2018
Sources:
Bond Proceeds:
Par Amount 10,935,000.00
Premium 1,300,416.95
12,235,416.95
Uses:
Project Fund Deposits:
BAN Prepayment 2,749,995.82
New Money 9,095,446.03
11,845,441.85
Delivery Date Expenses:
Cost of Issuance 320,986.25
Municipal Bond Insurance (20 bps) 46,790.61
Surety Reserve Fund (225 bps) 22,198.24
389,975.10
12,235,416.95
Notes:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 2
BOND SUMMARY STATISTICS
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax Revenues
Dated Date 10/10/2018
Delivery Date 10/10/2018
First Coupon 12/01/2018
Last Maturity 06/01/2048
Arbitrage Yield 3.542258%
True Interest Cost (TIC) 4.157740%
Net Interest Cost (NIC) 4.476640%
All-In TIC 4.395227%
Average Coupon 4.998285%
Average Life (years) 22.798
Duration of Issue (years) 14.028
Par Amount 10,935,000.00
Bond Proceeds 12,235,416.95
Total Interest 12,460,305.83
Net Interest 11,159,888.88
Total Debt Service 23,395,305.83
Maximum Annual Debt Service 1,203,750.00
Average Annual Debt Service 789,270.93
Average
Par Average Average Maturity PV of 1 bp
Bond Component Value Price Coupon Life Date change
Serial Bond 1,645,000.00 112.193 4.968% 8.177 12/13/2026 1,046.30
Term Bond 2042 3,190,000.00 112.181 5.000% 21.756 07/12/2040 2,775.30Term Bond 2048 6,100,000.00 111.660 5.000% 27.285 01/21/2046 5,246.00
10,935,000.00 22.798 9,067.60
All-In Arbitrage
TIC TIC Yield
Par Value 10,935,000.00 10,935,000.00 10,935,000.00
+ Accrued Interest
+ Premium (Discount) 1,300,416.95 1,300,416.95 1,300,416.95 - Underwriter's Discount
- Cost of Issuance Expense -320,986.25
- Other Amounts -68,988.85 -68,988.85
Target Value 12,235,416.95 11,845,441.85 12,166,428.10
Target Date 10/10/2018 10/10/2018 10/10/2018
Yield 4.157740% 4.395227% 3.542258%
Notes:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 3
BOND DEBT SERVICE
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax Revenues
Dated Date 10/10/2018
Delivery Date 10/10/2018
Period
Ending Principal Interest Debt Service
06/01/2019 250,000 347,205.83 597,205.83
06/01/2020 65,000 533,600.00 598,600.00
06/01/2021 70,000 531,000.00 601,000.00
06/01/2022 70,000 527,500.00 597,500.00
06/01/2023 75,000 524,000.00 599,000.00
06/01/2024 80,000 520,250.00 600,250.00
06/01/2025 85,000 516,250.00 601,250.00
06/01/2026 85,000 512,000.00 597,000.00
06/01/2027 90,000 507,750.00 597,750.00
06/01/2028 95,000 503,250.00 598,250.00
06/01/2029 100,000 498,500.00 598,500.00
06/01/2030 105,000 493,500.00 598,500.00
06/01/2031 110,000 488,250.00 598,250.00
06/01/2032 115,000 482,750.00 597,750.00
06/01/2033 120,000 477,000.00 597,000.00
06/01/2034 130,000 471,000.00 601,000.00
06/01/2035 135,000 464,500.00 599,500.00
06/01/2036 140,000 457,750.00 597,750.00
06/01/2037 150,000 450,750.00 600,750.00
06/01/2038 155,000 443,250.00 598,250.00
06/01/2039 165,000 435,500.00 600,500.00
06/01/2040 775,000 427,250.00 1,202,250.00
06/01/2041 815,000 388,500.00 1,203,500.00
06/01/2042 855,000 347,750.00 1,202,750.00
06/01/2043 895,000 305,000.00 1,200,000.00
06/01/2044 940,000 260,250.00 1,200,250.00
06/01/2045 990,000 213,250.00 1,203,250.00
06/01/2046 1,040,000 163,750.00 1,203,750.00
06/01/2047 1,090,000 111,750.00 1,201,750.00
06/01/2048 1,145,000 57,250.00 1,202,250.00
10,935,000 12,460,305.83 23,395,305.83
Notes:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 4
BOND SOLUTION
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax Revenues
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
06/01/2019 250,000 597,206 597,206 903,200 305,994 151.23764%
06/01/2020 65,000 598,600 598,600 903,200 304,600 150.88540%
06/01/2021 70,000 601,000 601,000 903,200 302,200 150.28286%
06/01/2022 70,000 597,500 597,500 903,200 305,700 151.16318%
06/01/2023 75,000 599,000 599,000 903,200 304,200 150.78464%
06/01/2024 80,000 600,250 600,250 903,200 302,950 150.47064%
06/01/2025 85,000 601,250 601,250 903,200 301,950 150.22037%
06/01/2026 85,000 597,000 597,000 903,200 306,200 151.28978%
06/01/2027 90,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2028 95,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2029 100,000 598,500 598,500 903,200 304,700 150.91061%
06/01/2030 105,000 598,500 598,500 903,200 304,700 150.91061%
06/01/2031 110,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2032 115,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2033 120,000 597,000 597,000 903,200 306,200 151.28978%
06/01/2034 130,000 601,000 601,000 903,200 302,200 150.28286%
06/01/2035 135,000 599,500 599,500 903,200 303,700 150.65888%
06/01/2036 140,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2037 150,000 600,750 600,750 903,200 302,450 150.34540%
06/01/2038 155,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2039 165,000 600,500 600,500 903,200 302,700 150.40799%
06/01/2040 775,000 1,202,250 1,202,250 1,806,400 604,150 150.25161%
06/01/2041 815,000 1,203,500 1,203,500 1,806,400 602,900 150.09555%
06/01/2042 855,000 1,202,750 1,202,750 1,806,400 603,650 150.18915%
06/01/2043 895,000 1,200,000 1,200,000 1,806,400 606,400 150.53333%
06/01/2044 940,000 1,200,250 1,200,250 1,806,400 606,150 150.50198%
06/01/2045 990,000 1,203,250 1,203,250 1,806,400 603,150 150.12674%
06/01/2046 1,040,000 1,203,750 1,203,750 1,806,400 602,650 150.06438%
06/01/2047 1,090,000 1,201,750 1,201,750 1,806,400 604,650 150.31413%
06/01/2048 1,145,000 1,202,250 1,202,250 1,806,400 604,150 150.25161%
10,935,000 23,395,306 23,395,306 35,224,800 11,829,494
Notes:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 5
COST OF ISSUANCE
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax Revenues
Cost of Issuance $/1000 Amount
Bond Counsel 5.50537 60,201.25
Validation 1.37174 15,000.00
Underwriter's Counsel 4.11523 45,000.00
Rating Agency 1.60037 17,500.00
CSCDA 1.50000 16,402.50
Municipal Advisor 3.88660 42,500.00
Trustee 0.73160 8,000.00
Printer 0.22862 2,500.00
Underwriter's Discount 9.50000 103,882.50
Contingency 0.91449 10,000.00
29.35402 320,986.25
Notes:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
Prepared by Stifel, Nicolaus & Company, Inc. (JKG) Page 6
GENERAL & FACTUAL DISCLOSURE
City of Lynwood, California
2018 TRIP Analysis
California Statewide Communities Development Authority
(TRIP – Total Road Improvement Program)
****************************************************************************************************
Leveraging the Local Return of Measure M Sales Tax 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 is 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:
1. Preliminary and subject to change. Interest rates as of 7/16/2018.
2. The use of the 'A+' rating is consistent with the rating of recently priced TRIP transactions.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. Issuers actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Municipal Bond Insurance and Surety Reserve Premiums Estimated at 20 and 225 bps, Respectively (Similar to Recent TRIP Transactions)
7. Local Return of Measure M Revenue Stream Estimated at $903,200 (increasing to $1,806,400 in 2040).
8. Local Return of Measure M Revenue Stream based on budgeted FY2018 estimates.
ICFA M Local Express Street Improvement Finance Program
20 Year Scenario
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 1
SOURCES AND USES OF FUNDS
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Dated Date 10/01/2018
Delivery Date 10/01/2018
Sources:
Bond Proceeds:
Par Amount 9,245,000.00
Net Premium 428,437.30
9,673,437.30
Other Sources of Funds:
2018 BAN CAPI Release 104,805.00
9,778,242.30
Uses:
Project Fund Deposits:
Measure M Bond Funding 6,576,008.24
2018 BAN Takeout 2,844,805.00
9,420,813.24
Delivery Date Expenses:
Cost of Issuance 175,612.50
Underwriter's Discount 115,562.50
Bond Insurance (35 bps) 46,388.06
Surety Bond Policy (300 bps) 19,866.00
357,429.06
9,778,242.30
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 2
BOND SUMMARY STATISTICS
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Dated Date 10/01/2018
Delivery Date 10/01/2018
First Coupon 12/01/2018
Last Maturity 12/01/2038
Arbitrage Yield 3.238011%
True Interest Cost (TIC) 3.374939%
Net Interest Cost (NIC) 3.344642%
All-In TIC 3.577516%
Average Coupon 3.627785%
Average Life (years) 11.952
Duration of Issue (years) 9.412
Par Amount 9,245,000.00
Bond Proceeds 9,673,437.30
Total Interest 4,008,732.44
Net Interest 3,695,857.64
Total Debt Service 13,253,732.44
Maximum Annual Debt Service 662,200.00
Average Annual Debt Service 657,209.87
Underwriter's Fees (per $1000)
Average Takedown
Other Fee 12.500000
Total Underwriter's Discount 12.500000
Bid Price 103.384260
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds 9,245,000.00 104.634 3.628% 11.952
9,245,000.00 11.952
All-In Arbitrage
TIC TIC Yield
Par Value 9,245,000.00 9,245,000.00 9,245,000.00
+ Accrued Interest
+ Premium (Discount) 428,437.30 428,437.30 428,437.30
- Underwriter's Discount -115,562.50 -115,562.50
- Cost of Issuance Expense -175,612.50
- Other Amounts -66,254.06 -66,254.06 -66,254.06
Target Value 9,491,620.74 9,316,008.24 9,607,183.24
Target Date 10/01/2018 10/01/2018 10/01/2018
Yield 3.374939% 3.577516% 3.238011%
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 3
BOND PRICING
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Maturity Yield to Call Call
Bond Component Date Amount Rate Yield Price Maturity Date Price
Serial Bonds:
12/01/2019 315,000 2.000% 1.390% 100.702
12/01/2020 320,000 3.000% 1.630% 102.903
12/01/2021 330,000 4.000% 1.820% 106.676
12/01/2022 340,000 4.000% 1.980% 108.038
12/01/2023 355,000 4.000% 2.110% 109.203
12/01/2024 370,000 5.000% 2.250% 115.748
12/01/2025 390,000 5.000% 2.380% 117.165
12/01/2026 410,000 5.000% 2.530% 118.117
12/01/2027 430,000 5.000% 2.650% 119.010
12/01/2028 450,000 5.000% 2.740% 119.932
12/01/2029 470,000 5.000% 2.830% 119.051 C 2.981% 12/01/2028 100.000
12/01/2030 495,000 3.000% 3.130% 98.690
12/01/2031 510,000 3.000% 3.230% 97.546
12/01/2032 525,000 3.125% 3.320% 97.807
12/01/2033 545,000 3.250% 3.420% 97.998
12/01/2034 560,000 3.250% 3.460% 97.413
12/01/2035 580,000 3.250% 3.500% 96.791
12/01/2036 595,000 3.375% 3.540% 97.799
12/01/2037 615,000 3.375% 3.580% 97.171
12/01/2038 640,000 3.375% 3.600% 96.790
9,245,000
Dated Date 10/01/2018
Delivery Date 10/01/2018
First Coupon 12/01/2018
Par Amount 9,245,000.00
Premium 428,437.30
Production 9,673,437.30 104.634260%
Underwriter's Discount -115,562.50 -1.250000%
Purchase Price 9,557,874.80 103.384260%
Accrued Interest
Net Proceeds 9,557,874.80
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 4
BOND DEBT SERVICE
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Period
Ending Principal Coupon Interest Debt Service
12/01/2018 57,776.04 57,776.04
12/01/2019 315,000 2.000%346,656.26 661,656.26
12/01/2020 320,000 3.000%340,356.26 660,356.26
12/01/2021 330,000 4.000%330,756.26 660,756.26
12/01/2022 340,000 4.000%317,556.26 657,556.26
12/01/2023 355,000 4.000%303,956.26 658,956.26
12/01/2024 370,000 5.000%289,756.26 659,756.26
12/01/2025 390,000 5.000%271,256.26 661,256.26
12/01/2026 410,000 5.000%251,756.26 661,756.26
12/01/2027 430,000 5.000%231,256.26 661,256.26
12/01/2028 450,000 5.000%209,756.26 659,756.26
12/01/2029 470,000 5.000%187,256.26 657,256.26
12/01/2030 495,000 3.000%163,756.26 658,756.26
12/01/2031 510,000 3.000%148,906.26 658,906.26
12/01/2032 525,000 3.125%133,606.26 658,606.26
12/01/2033 545,000 3.250%117,200.00 662,200.00
12/01/2034 560,000 3.250%99,487.50 659,487.50
12/01/2035 580,000 3.250%81,287.50 661,287.50
12/01/2036 595,000 3.375%62,437.50 657,437.50
12/01/2037 615,000 3.375%42,356.26 657,356.26
12/01/2038 640,000 3.375%21,600.00 661,600.00
9,245,000 4,008,732.44 13,253,732.44
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 5
FORMULA VERIFICATION
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Component Formula Value
INS 0.350% of Total adjusted Debt Service 46,388.06
SUR 10% of Par Amount * 3% 27,735.00
SUR Maximum annual Debt Service * 3% 19,866.00
SUR 125% of average annual adjusted Debt Service * 3% 24,645.37
SUR Surety Bond Policy (300 bps) 19,866.00
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 6
COST OF ISSUANCE
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Cost of Issuance $/1000 Amount
Municipal Advisor 2.16333 20,000.00
Bond Counsel 5.40833 50,000.00
Disclosure Counsel 2.70416 25,000.00
Issuer's Counsel 1.08167 10,000.00
Trustee 0.70308 6,500.00
Issuer Fee 2.50000 23,112.50
Oversight Agent 0.54083 5,000.00
Printing 0.32450 3,000.00
Verification Agent 0.27042 2,500.00
S&P Rating Fees 2.21741 20,500.00
Contingency 1.08167 10,000.00
18.99540 175,612.50
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 7
BOND SOLUTION
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
12/01/2018 57,776 57,776 -57,776
12/01/2019 315,000 661,656 661,656 662,364 708 100.10693%
12/01/2020 320,000 660,356 660,356 662,364 2,008 100.30401%
12/01/2021 330,000 660,756 660,756 662,364 1,608 100.24329%
12/01/2022 340,000 657,556 657,556 662,364 4,808 100.73112%
12/01/2023 355,000 658,956 658,956 662,364 3,408 100.51711%
12/01/2024 370,000 659,756 659,756 662,364 2,608 100.39523%
12/01/2025 390,000 661,256 661,256 662,364 1,108 100.16749%
12/01/2026 410,000 661,756 661,756 662,364 608 100.09181%
12/01/2027 430,000 661,256 661,256 662,364 1,108 100.16749%
12/01/2028 450,000 659,756 659,756 662,364 2,608 100.39523%
12/01/2029 470,000 657,256 657,256 662,364 5,108 100.77710%
12/01/2030 495,000 658,756 658,756 662,364 3,608 100.54763%
12/01/2031 510,000 658,906 658,906 662,364 3,458 100.52474%
12/01/2032 525,000 658,606 658,606 662,364 3,758 100.57053%
12/01/2033 545,000 662,200 662,200 662,364 164 100.02473%
12/01/2034 560,000 659,488 659,488 662,364 2,876 100.43614%
12/01/2035 580,000 661,288 661,288 662,364 1,076 100.16276%
12/01/2036 595,000 657,438 657,438 662,364 4,926 100.74932%
12/01/2037 615,000 657,356 657,356 662,364 5,008 100.76177%
12/01/2038 640,000 661,600 661,600 662,364 764 100.11545%
9,245,000 13,253,732 13,253,732 13,247,276 -6,457
Jul 27, 2018 1:31 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_20) Page 8
DISCLAIMER
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
20-year Scenario
Measure M
We are providing this material to provide you with certain regulatory disclosures as required by the Municipal Securities Rulemaking Board.
As part of our services, Piper Jaffray may provide advice concerning the structure, timing, terms, and other similar matters concerning an
issue of municipal securities that Piper Jaffray is underwriting or placing. However, Piper Jaffray intends to serve as an underwriter or
placement agent and not as a financial advisor to you in this transaction; and the primary role of Piper Jaffray is to purchase securities for
resale to investors or arrange for the placement of securities in an arm's-length commercial transaction between you and Piper Jaffray.
Piper Jaffray has financial and other interests that differ from your interests.
ICFA M Local Express Street Improvement Finance Program
30 Year Scenario
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 1
SOURCES AND USES OF FUNDS
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Dated Date 10/01/2018
Delivery Date 10/01/2018
Sources:
Bond Proceeds:
Par Amount 14,225,000.00
Net Original Issue Discount -117,548.00
14,107,452.00
Other Sources of Funds:
2018 BAN CAPI Release 104,805.00
14,212,257.00
Uses:
Project Fund Deposits:
Measure M Bond Funding 10,882,391.97
2018 BAN Takeout 2,844,805.00
13,727,196.97
Delivery Date Expenses:
Cost of Issuance 188,062.50
Underwriter's Discount 177,812.50
Bond Insurance (35 bps) 87,948.42
Surety Bond Policy (300 bps) 31,236.61
485,060.03
14,212,257.00
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 2
BOND SUMMARY STATISTICS
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Dated Date 10/01/2018
Delivery Date 10/01/2018
First Coupon 12/01/2018
Last Maturity 12/01/2048
Arbitrage Yield 3.646546%
True Interest Cost (TIC) 3.736499%
Net Interest Cost (NIC) 3.616954%
All-In TIC 3.832360%
Average Coupon 3.521556%
Average Life (years) 21.765
Duration of Issue (years) 14.613
Par Amount 14,225,000.00
Bond Proceeds 14,107,452.00
Total Interest 10,903,119.94
Net Interest 11,198,480.44
Total Debt Service 25,128,119.94
Maximum Annual Debt Service 1,246,525.00
Average Annual Debt Service 832,976.35
Underwriter's Fees (per $1000)
Average Takedown
Other Fee 12.500000
Total Underwriter's Discount 12.500000
Bid Price 97.923652
Par Average Average
Bond Component Value Price Coupon Life
Serial Bonds 4,445,000.00 104.608 3.626% 11.954
2043 Term Bond 4,165,000.00 97.379 3.500% 23.516
2048 Term Bond 5,615,000.00 96.203 3.500% 28.233
14,225,000.00 21.765
All-In Arbitrage
TIC TIC Yield
Par Value 14,225,000.00 14,225,000.00 14,225,000.00
+ Accrued Interest
+ Premium (Discount) -117,548.00 -117,548.00 -117,548.00
- Underwriter's Discount -177,812.50 -177,812.50
- Cost of Issuance Expense -188,062.50
- Other Amounts -119,185.03 -119,185.03 -119,185.03
Target Value 13,810,454.47 13,622,391.97 13,988,266.97
Target Date 10/01/2018 10/01/2018 10/01/2018
Yield 3.736499% 3.832360% 3.646546%
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 3
BOND PRICING
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Maturity Yield to Call Call
Bond Component Date Amount Rate Yield Price Maturity Date Price
Serial Bonds:
12/01/2019 150,000 2.000% 1.390% 100.702
12/01/2020 155,000 3.000% 1.630% 102.903
12/01/2021 160,000 4.000% 1.820% 106.676
12/01/2022 165,000 4.000% 1.980% 108.038
12/01/2023 170,000 4.000% 2.110% 109.203
12/01/2024 180,000 5.000% 2.250% 115.748
12/01/2025 185,000 5.000% 2.380% 117.165
12/01/2026 195,000 5.000% 2.530% 118.117
12/01/2027 205,000 5.000% 2.650% 119.010
12/01/2028 215,000 5.000% 2.740% 119.932
12/01/2029 225,000 5.000% 2.830% 119.051 C 2.981% 12/01/2028 100.000
12/01/2030 240,000 3.000% 3.130% 98.690
12/01/2031 245,000 3.000% 3.230% 97.546
12/01/2032 255,000 3.125% 3.320% 97.807
12/01/2033 260,000 3.250% 3.420% 97.998
12/01/2034 270,000 3.250% 3.460% 97.413
12/01/2035 280,000 3.250% 3.500% 96.791
12/01/2036 290,000 3.375% 3.540% 97.799
12/01/2037 295,000 3.375% 3.580% 97.171
12/01/2038 305,000 3.375% 3.600% 96.790
4,445,000
2043 Term Bond:
12/01/2039 315,000 3.500% 3.660% 97.379
12/01/2040 915,000 3.500% 3.660% 97.379
12/01/2041 945,000 3.500% 3.660% 97.379
12/01/2042 980,000 3.500% 3.660% 97.379
12/01/2043 1,010,000 3.500% 3.660% 97.379
4,165,000
2048 Term Bond:
12/01/2044 1,050,000 3.500% 3.710% 96.203
12/01/2045 1,085,000 3.500% 3.710% 96.203
12/01/2046 1,120,000 3.500% 3.710% 96.203
12/01/2047 1,160,000 3.500% 3.710% 96.203
12/01/2048 1,200,000 3.500% 3.710% 96.203
5,615,000
14,225,000
Dated Date 10/01/2018
Delivery Date 10/01/2018
First Coupon 12/01/2018
Par Amount 14,225,000.00
Original Issue Discount -117,548.00
Production 14,107,452.00 99.173652%
Underwriter's Discount -177,812.50 -1.250000%
Purchase Price 13,929,639.50 97.923652%
Accrued Interest
Net Proceeds 13,929,639.50
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 4
BOND DEBT SERVICE
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Period
Ending Principal Coupon Interest Debt Service
12/01/2018 84,813.54 84,813.54
12/01/2019 150,000 2.000%508,881.26 658,881.26
12/01/2020 155,000 3.000%505,881.26 660,881.26
12/01/2021 160,000 4.000%501,231.26 661,231.26
12/01/2022 165,000 4.000%494,831.26 659,831.26
12/01/2023 170,000 4.000%488,231.26 658,231.26
12/01/2024 180,000 5.000%481,431.26 661,431.26
12/01/2025 185,000 5.000%472,431.26 657,431.26
12/01/2026 195,000 5.000%463,181.26 658,181.26
12/01/2027 205,000 5.000%453,431.26 658,431.26
12/01/2028 215,000 5.000%443,181.26 658,181.26
12/01/2029 225,000 5.000%432,431.26 657,431.26
12/01/2030 240,000 3.000%421,181.26 661,181.26
12/01/2031 245,000 3.000%413,981.26 658,981.26
12/01/2032 255,000 3.125%406,631.26 661,631.26
12/01/2033 260,000 3.250%398,662.50 658,662.50
12/01/2034 270,000 3.250%390,212.50 660,212.50
12/01/2035 280,000 3.250%381,437.50 661,437.50
12/01/2036 290,000 3.375%372,337.50 662,337.50
12/01/2037 295,000 3.375%362,550.00 657,550.00
12/01/2038 305,000 3.375%352,593.76 657,593.76
12/01/2039 315,000 3.500%342,300.00 657,300.00
12/01/2040 915,000 3.500%331,275.00 1,246,275.00
12/01/2041 945,000 3.500%299,250.00 1,244,250.00
12/01/2042 980,000 3.500%266,175.00 1,246,175.00
12/01/2043 1,010,000 3.500%231,875.00 1,241,875.00
12/01/2044 1,050,000 3.500%196,525.00 1,246,525.00
12/01/2045 1,085,000 3.500%159,775.00 1,244,775.00
12/01/2046 1,120,000 3.500%121,800.00 1,241,800.00
12/01/2047 1,160,000 3.500%82,600.00 1,242,600.00
12/01/2048 1,200,000 3.500%42,000.00 1,242,000.00
14,225,000 10,903,119.94 25,128,119.94
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 5
COST OF ISSUANCE
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Cost of Issuance $/1000 Amount
Municipal Advisor 1.40598 20,000.00
Bond Counsel 3.51494 50,000.00
Disclosure Counsel 1.75747 25,000.00
Issuer's Counsel 0.70299 10,000.00
Trustee 0.45694 6,500.00
Issuer Fee 2.50000 35,562.50
Oversight Agent 0.35149 5,000.00
Printing 0.21090 3,000.00
Verification Agent 0.17575 2,500.00
S&P Rating Fees 1.44112 20,500.00
Contingency 0.70299 10,000.00
13.22056 188,062.50
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 6
FORMULA VERIFICATION
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Component Formula Value
INS 0.350% of Total adjusted Debt Service 87,948.42
SUR 10% of Par Amount * 3% 42,675.00
SUR Maximum annual Debt Service * 3% 37,395.75
SUR 125% of average annual adjusted Debt Service * 3% 31,236.61
SUR Surety Bond Policy (300 bps) 31,236.61
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 7
BOND SOLUTION
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
12/01/2018 84,814 84,814 -84,814
12/01/2019 150,000 658,881 658,881 662,364 3,483 100.52855%
12/01/2020 155,000 660,881 660,881 662,364 1,483 100.22433%
12/01/2021 160,000 661,231 661,231 662,364 1,133 100.17128%
12/01/2022 165,000 659,831 659,831 662,364 2,533 100.38381%
12/01/2023 170,000 658,231 658,231 662,364 4,133 100.62782%
12/01/2024 180,000 661,431 661,431 662,364 933 100.14099%
12/01/2025 185,000 657,431 657,431 662,364 4,933 100.75027%
12/01/2026 195,000 658,181 658,181 662,364 4,183 100.63547%
12/01/2027 205,000 658,431 658,431 662,364 3,933 100.59726%
12/01/2028 215,000 658,181 658,181 662,364 4,183 100.63547%
12/01/2029 225,000 657,431 657,431 662,364 4,933 100.75027%
12/01/2030 240,000 661,181 661,181 662,364 1,183 100.17885%
12/01/2031 245,000 658,981 658,981 662,364 3,383 100.51330%
12/01/2032 255,000 661,631 661,631 662,364 733 100.11072%
12/01/2033 260,000 658,663 658,663 662,364 3,701 100.56194%
12/01/2034 270,000 660,213 660,213 662,364 2,151 100.32585%
12/01/2035 280,000 661,438 661,438 662,364 926 100.14004%
12/01/2036 290,000 662,338 662,338 662,364 26 100.00397%
12/01/2037 295,000 657,550 657,550 662,364 4,814 100.73208%
12/01/2038 305,000 657,594 657,594 662,364 4,770 100.72538%
12/01/2039 315,000 657,300 657,300 662,364 5,064 100.77039%
12/01/2040 915,000 1,246,275 1,246,275 1,246,803 528 100.04235%
12/01/2041 945,000 1,244,250 1,244,250 1,246,803 2,553 100.20517%
12/01/2042 980,000 1,246,175 1,246,175 1,246,803 628 100.05038%
12/01/2043 1,010,000 1,241,875 1,241,875 1,246,803 4,928 100.39680%
12/01/2044 1,050,000 1,246,525 1,246,525 1,246,803 278 100.02229%
12/01/2045 1,085,000 1,244,775 1,244,775 1,246,803 2,028 100.16290%
12/01/2046 1,120,000 1,241,800 1,241,800 1,246,803 5,003 100.40287%
12/01/2047 1,160,000 1,242,600 1,242,600 1,246,803 4,203 100.33823%
12/01/2048 1,200,000 1,242,000 1,242,000 1,246,803 4,803 100.38670%
14,225,000 25,128,120 25,128,120 25,130,865 2,745
Jul 27, 2018 1:32 pm Prepared by Piper Jaffray & Co. (Finance 8.000 q:\...\lynwood, city of\Lynwood ICFA:170723-18NM_30) Page 8
DISCLAIMER
Lynwood Public Financing Authority
Series 2018
Market Conditions as of July 23, 2018
***Preliminary; Subject to Change***
Assumes A+ Underlying Ratings
2018 BAN Takeout & ICFA M Local Express Funding
30-year Scenario
Measure M
We are providing this material to provide you with certain regulatory disclosures as required by the Municipal Securities Rulemaking Board.
As part of our services, Piper Jaffray may provide advice concerning the structure, timing, terms, and other similar matters concerning an
issue of municipal securities that Piper Jaffray is underwriting or placing. However, Piper Jaffray intends to serve as an underwriter or
placement agent and not as a financial advisor to you in this transaction; and the primary role of Piper Jaffray is to purchase securities for
resale to investors or arrange for the placement of securities in an arm's-length commercial transaction between you and Piper Jaffray.
Piper Jaffray has financial and other interests that differ from your interests.
ICFA M Local Express Street Improvement Finance Program
Coverage Table
Maturity MeasureMDollars20yearScenarioDebtServiceExcessDollarsfromMeasureMRevenuesAssuminga20YearFinancingCoverageTotalMeasureMRevenues30yearScenarioDebtServiceExcessDollarsfromTotalMeasureMRevenuesCoverageTotalMeasureMRevenues2018993,546$57,776$935,770$1720% 84,814$908,732$1171%2019 993,546$661,656$331,889$150% 658,881$334,664$151%2020 993,546$660,356$333,189$150% 660,881$332,664$150%2021 993,546$660,756$332,789$150% 661,231$332,314$150%2022 993,546$657,556$335,989$151% 659,831$333,714$151%2023 993,546$658,956$334,589$151% 658,231$335,314$151%2024 993,546$659,756$333,789$151% 661,431$332,114$150%2025 993,546$661,256$332,289$150% 657,431$336,114$151%2026 993,546$661,756$331,789$150% 658,181$335,364$151%2027 993,546$661,256$332,289$150% 658,431$335,114$151%2028 993,546$659,756$333,789$151% 658,181$335,364$151%2029 993,546$657,256$336,289$151% 657,431$336,114$151%2030 993,546$658,756$334,789$151% 661,181$332,364$150%2031 993,546$658,906$334,639$151% 658,981$334,564$151%2032 993,546$658,606$334,939$151% 661,631$331,914$150%2033 993,546$662,200$331,346$150% 658,663$334,883$151%2034 993,546$659,488$334,058$151% 660,213$333,333$150%2035 993,546$661,288$332,258$150% 661,438$332,108$150%2036 993,546$657,438$336,108$151% 662,338$331,208$150%2037 993,546$657,356$336,189$151% 657,550$335,996$151%2038 993,546$661,600$331,946$150% 657,594$335,952$151%2039 993,546$993,546$657,300$336,246$151%2040 1,870,204$1,870,204$1,246,275$623,929$150%2041 1,870,204$1,870,204$1,244,250$625,954$150%2042 1,870,204$1,870,204$1,246,175$624,029$150%2043 1,870,204$1,870,204$1,241,875$628,329$151%2044 1,870,204$1,870,204$1,246,525$623,679$150%2045 1,870,204$1,870,204$1,244,775$625,429$150%2046 1,870,204$1,870,204$1,241,800$628,404$151%2047 1,870,204$1,870,204$1,242,600$627,604$151%2048 1,870,204$1,870,204$1,242,000$628,204$151%IndependentCitiesFinancingAuthorityMeasureMExpressFinancingProgramCityofLynwoodDebtServiceCoverageComparison
Aug 14, 2018 3:10 pm Page 1
SOURCES AND USES OF FUNDS
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Dated Date 12/01/2018
Delivery Date 12/01/2018
Sources:
Bond Proceeds:
Par Amount 11,015,000.00
Premium 1,082,608.65
12,097,608.65
Uses:
Project Fund Deposits:
Project Fund 8,957,325.28
BAN Prepayment 2,749,995.82
11,707,321.10
Delivery Date Expenses:
Cost of Issuance 258,142.50
Bond Insurance (35 bps) 81,899.48
Reserve Surety (3%) 29,745.57
Rating Agency 20,500.00
390,287.55
12,097,608.65
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
Aug 14, 2018 3:10 pm Page 2
BOND SUMMARY STATISTICS
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Dated Date 12/01/2018
Delivery Date 12/01/2018
Last Maturity 06/01/2048
Arbitrage Yield 3.785258%
True Interest Cost (TIC) 4.286110%
Net Interest Cost (NIC) 4.561356%
All-In TIC 4.531087%
Average Coupon 4.998275%
Average Life (years) 22.495
Duration of Issue (years) 13.781
Par Amount 11,015,000.00
Bond Proceeds 12,097,608.65
Total Interest 12,384,850.00
Net Interest 11,302,241.35
Total Debt Service 23,399,850.00
Maximum Annual Debt Service 1,203,750.00
Average Annual Debt Service 793,215.25
Underwriter's Fees (per $1000)
Average Takedown
Other Fee
Total Underwriter's Discount
Bid Price 109.828494
Par Average Average
Bond Component Value Price Coupon Life
Serial Bond 1,595,000.00 109.981 4.962% 7.049
Term Bond (2038) 710,000.00 110.502 5.000% 17.592
Term Bond (2043) 3,505,000.00 109.996 5.000% 22.939
Term Bond (2048) 5,205,000.00 109.577 5.000% 27.598
11,015,000.00 22.495
All-In Arbitrage
TIC TIC Yield
Par Value 11,015,000.00 11,015,000.00 11,015,000.00
+ Accrued Interest
+ Premium (Discount) 1,082,608.65 1,082,608.65 1,082,608.65
- Underwriter's Discount
- Cost of Issuance Expense -258,142.50
- Other Amounts -132,145.05 -81,899.48
Target Value 12,097,608.65 11,707,321.10 12,015,709.17
Target Date 12/01/2018 12/01/2018 12/01/2018
Yield 4.286110% 4.531087% 3.785258%
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds. 3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
Aug 14, 2018 3:10 pm Page 3
BOND PRICING
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Maturity
Bond Component Date Amount Rate Yield Price
Serial Bond:
06/01/2019 330,000 3.000% 1.760% 100.614
06/01/2020 65,000 4.000% 2.020% 102.911
06/01/2021 70,000 5.000% 2.210% 106.749
06/01/2022 70,000 5.000% 2.370% 108.783
06/01/2023 75,000 5.000% 2.470% 110.712
06/01/2024 80,000 5.000% 2.590% 112.280
06/01/2025 85,000 5.000% 2.700% 113.627
06/01/2026 85,000 5.000% 2.830% 114.571
06/01/2027 90,000 5.000% 2.960% 115.231
06/01/2028 95,000 5.000% 3.030% 116.156
06/01/2029 100,000 5.000% 3.140% 115.176 C
06/01/2030 105,000 5.000% 3.250% 114.205 C
06/01/2031 110,000 5.000% 3.350% 113.330 C
06/01/2032 115,000 5.000% 3.450% 112.464 C
06/01/2033 120,000 5.000% 3.500% 112.034 C
1,595,000
Term Bond (2038):
06/01/2038 710,000 5.000% 3.680% 110.502 C
Term Bond (2043):
06/01/2043 3,505,000 5.000% 3.740% 109.996 C
Term Bond (2048):
06/01/2048 5,205,000 5.000% 3.790% 109.577 C
11,015,000
Dated Date 12/01/2018
Delivery Date 12/01/2018
First Coupon 06/01/2019
Par Amount 11,015,000.00
Premium 1,082,608.65
Production 12,097,608.65 109.828494%
Underwriter's Discount
Purchase Price 12,097,608.65 109.828494%
Accrued Interest
Net Proceeds 12,097,608.65
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
Aug 14, 2018 3:10 pm Page 4
BOND DEBT SERVICE
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Period Debt
Ending Principal Coupon Interest Service
06/01/2019 330,000 3.000% 271,750 601,750
06/01/2020 65,000 4.000% 533,600 598,600
06/01/2021 70,000 5.000% 531,000 601,000
06/01/2022 70,000 5.000% 527,500 597,500
06/01/2023 75,000 5.000% 524,000 599,000
06/01/2024 80,000 5.000% 520,250 600,250
06/01/2025 85,000 5.000% 516,250 601,250
06/01/2026 85,000 5.000% 512,000 597,000
06/01/2027 90,000 5.000% 507,750 597,750
06/01/2028 95,000 5.000% 503,250 598,250
06/01/2029 100,000 5.000% 498,500 598,500
06/01/2030 105,000 5.000% 493,500 598,500
06/01/2031 110,000 5.000% 488,250 598,250
06/01/2032 115,000 5.000% 482,750 597,750
06/01/2033 120,000 5.000% 477,000 597,000
06/01/2034 130,000 5.000% 471,000 601,000
06/01/2035 135,000 5.000% 464,500 599,500
06/01/2036 140,000 5.000% 457,750 597,750
06/01/2037 150,000 5.000% 450,750 600,750
06/01/2038 155,000 5.000% 443,250 598,250
06/01/2039 165,000 5.000% 435,500 600,500
06/01/2040 775,000 5.000% 427,250 1,202,250
06/01/2041 815,000 5.000% 388,500 1,203,500
06/01/2042 855,000 5.000% 347,750 1,202,750
06/01/2043 895,000 5.000% 305,000 1,200,000
06/01/2044 940,000 5.000% 260,250 1,200,250
06/01/2045 990,000 5.000% 213,250 1,203,250
06/01/2046 1,040,000 5.000% 163,750 1,203,750
06/01/2047 1,090,000 5.000% 111,750 1,201,750
06/01/2048 1,145,000 5.000% 57,250 1,202,250
11,015,000 12,384,850 23,399,850
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
Aug 14, 2018 3:10 pm Page 5
BOND SOLUTION
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Period Proposed Proposed Total Adj Revenue Unused Debt Serv
Ending Principal Debt Service Debt Service Constraints Revenues Coverage
06/01/2019 330,000 601,750 601,750 903,200 301,450 150.09555%
06/01/2020 65,000 598,600 598,600 903,200 304,600 150.88540%
06/01/2021 70,000 601,000 601,000 903,200 302,200 150.28286%
06/01/2022 70,000 597,500 597,500 903,200 305,700 151.16318%
06/01/2023 75,000 599,000 599,000 903,200 304,200 150.78464%
06/01/2024 80,000 600,250 600,250 903,200 302,950 150.47064%
06/01/2025 85,000 601,250 601,250 903,200 301,950 150.22037%
06/01/2026 85,000 597,000 597,000 903,200 306,200 151.28978%
06/01/2027 90,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2028 95,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2029 100,000 598,500 598,500 903,200 304,700 150.91061%
06/01/2030 105,000 598,500 598,500 903,200 304,700 150.91061%
06/01/2031 110,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2032 115,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2033 120,000 597,000 597,000 903,200 306,200 151.28978%
06/01/2034 130,000 601,000 601,000 903,200 302,200 150.28286%
06/01/2035 135,000 599,500 599,500 903,200 303,700 150.65888%
06/01/2036 140,000 597,750 597,750 903,200 305,450 151.09996%
06/01/2037 150,000 600,750 600,750 903,200 302,450 150.34540%
06/01/2038 155,000 598,250 598,250 903,200 304,950 150.97367%
06/01/2039 165,000 600,500 600,500 903,200 302,700 150.40799%
06/01/2040 775,000 1,202,250 1,202,250 1,806,400 604,150 150.25161%
06/01/2041 815,000 1,203,500 1,203,500 1,806,400 602,900 150.09555%
06/01/2042 855,000 1,202,750 1,202,750 1,806,400 603,650 150.18915%
06/01/2043 895,000 1,200,000 1,200,000 1,806,400 606,400 150.53333%
06/01/2044 940,000 1,200,250 1,200,250 1,806,400 606,150 150.50198%
06/01/2045 990,000 1,203,250 1,203,250 1,806,400 603,150 150.12674%
06/01/2046 1,040,000 1,203,750 1,203,750 1,806,400 602,650 150.06438%
06/01/2047 1,090,000 1,201,750 1,201,750 1,806,400 604,650 150.31413%
06/01/2048 1,145,000 1,202,250 1,202,250 1,806,400 604,150 150.25161%
11,015,000 23,399,850 23,399,850 35,224,800 11,824,950
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
Aug 14, 2018 3:10 pm Page 6
COST OF ISSUANCE
Lynwood Public Financing Authority
2018 Sales Tax Revenue Bonds
30-Year Scenario
Cost of Issuance $/1000 Amount
Underwriter's Discount 9.50000 104,642.50
Bond Counsel 6.99047 77,000.00
City Attorney 0.45393 5,000.00
Financial Advisor 3.17749 35,000.00
Underwriter's Counsel 1.36178 15,000.00
Verification Agent 0.22696 2,500.00
Trustee 0.59010 6,500.00
Printer 0.22696 2,500.00
Contingency 0.90785 10,000.00
23.43554 258,142.50
Notes:
Notes:
1. Preliminary and subject to change.
2. The use of the 'A+' rating is consistent with the rating of recently priced Bonds.
3. Interest rate assumptions are based on current market conditions and similar credits.
4. City's actual results may differ, and Stifel makes no commitment to underwrite at these levels.
5. Costs of issuance and underwriter's discount are estimates for discussion purposes.
6. Revenue assumption based on County estimates.
7. Interest rates as of 8/6/2018.
City of Lynwood
Investment Report Summary Notes
For the Month of
July 2018
The Investment activity for July 2018 – 1 Purchase(s); 1 Maturity(ies).
Purchaser/Issuer Rating Par Value Term Stated Rate Structure
Goldman Sachs Bank N/A 248,000 5 yrs. 3.300 CD-FDIC
Redemption/Issuer
Maturity
Rating Par Value Interest
Earned
Stated Rate Days/ Maturity Structure
AXP N/A 245,000 2,040 1.650 1,097 CD-FDIC
The City’s Local Agency Investment Fund (LAIF) account was credited $42,327.94 for the quarterly interest earned on deposits
for June 31, 2018. The quarter ending performance for June 30, 2018 reflects a daily rate of 1.92%. The quarter end principal
balance as of July 31, 2018 was $12,209,194.98. The City is within the desired average range of $9-$15 million in liquid assets.
Liquidity of the Portfolio
• The current goal is to keep the investment portfolio at an average maturity of 2 years based on current economic
conditions. The portfolio’s current average maturity is 231 days.
• The goal is to keep an average of $9 - $15 million in liquid assets in order to meet operational needs and for unexpected
expenditures that may arise. The City complies with California Government Code Section 53646, which requires local
agency to report its ability to meet pooled expenditure requirements for the next six (6) months.
• The City’s portfolio will stay the course based on the current economic trends. Covering cash flow needs ranked as the
top priority.
Portfolio Performance:
Portfolio Interest Earning Summary July, 2018 Fiscal YTD
CD/Coupon/Discount Investments:
Interest Collected 9,800.37 9,800.37
Plus Accrued Interest @ End of Period 49,547.00 49,547.00
Less Accrued Interest @ Beginning of Period ( 43,191.48) ( 43,191.48)
Less Accrued Interest @ Purchase During Period 0.00 0.00
Interest Earned during this Period 16,155.89 16,155.89
Adjusted by Premiums and Discounts 1,875.11 1,875.11
Adjusted by Capital Gains or Losses 0.00 0.00
18,031.00 18,031.00
Pass Through Securities
Interest Collected 0.00 0.00
Plus Accrued Interest @ End of Period 0.00 0.00
Less Accrued Interest @ Beginning of Period (0.00) (0.00)
Less Accrued Interest at Purchase During Period (0.00) (0.00)
Interest Earned during this Period 0.00 0.00
Investment Report July 2018
Page Two
Adjusted by Premiums and Discounts 0.00 0.00
Adjusted by Capital Gains or Losses 0.00 0.00
Earnings during Periods 0.00 0.00
Cash/Checking Accounts:
Interest Collected 54,156.37 54,156.37
Plus Accrued Interest at End of Period 48,213.92 48,213.92
Less Interest at Beginning of Period ( 79,855.38) ( 79,855.38)
Interest Earned this Period 22,514.91 22,514.91
Total Interest Earned 38,670.80 38,670.80
Total Adjustments from Premium and Discounts 1,875.11 1,875.11
Total Capital Gains or Loss 0.00 0.00
Total Earnings this Period 40,545.91 40,545.91
Notes:
Adjusted by Premium/Discounts represents the premium or discount cost involved to secure higher or lower yield securities. The
cost of the premium or discount is amortized down or up respectively to par over the life of the bond until reaching maturity. By
amortizing, the amount of taxable interest is reduced for each year the city owns the bond. This is because the amortized
premiums or discounts offset the ordinary income of the coupon payment. As long as a bond is held to maturity, there will be no
capital loss or gain to report.
Month
End &
Year
# of
Securities
Interest
Average
Balance
YTM
360%
YTM
365
Effective
Rate of
Return
Days to
Maturity
Jul-18 39 40,545.91 22,950,574.99 1.962 1.989 2.08% 348
Investment Activity
Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18
38 39 39 40 38 39 39 39 39 39 40 39
Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18
4 1 1 2 0 1 1 1 1 1 2 1
3 1 1 2 0 1 1 1 1 1 2 1
3 7 2 2 4 0 2 2 2 2 2 4
City of Lynwood7/31/2018
Purchases
Total Transactions
Positions
Redemptions
32
34
36
38
40
42
Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18PositionsNumber of Positions at Month End
0
1
2
3
4
5
6
Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18Number of TransactionsPurchases and Redemptions* (Excluding LAIF & MMF)Purchases
Redemptions
*Redemptions include maturities, calls, and sells (excluding paydowns)
15
8-7-18
16
Page 1
July 31, 2018
Interest Earnings Summary
Month EndingJuly 31 Fiscal Year To Date
Portfolio Management
Lynwood - Portfolio Management
CD/Coupon/Discount Investments:
9,800.37Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
49,547.00
( 43,191.48)
9,800.37
49,547.00
( 43,191.48)
Less Accrued Interest at Purchase During Period ( 0.00)( 0.00)
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
16,155.89
1,875.11
0.00
16,155.89
1,875.11
0.00
18,031.00 18,031.00
Pass Through Securities:
0.00Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
0.00
( 0.00)
0.00
0.00
( 0.00)
Less Accrued Interest at Purchase During Period ( 0.00)( 0.00)
Interest Earned during Period
Adjusted by Premiums and Discounts
Adjusted by Capital Gains or Losses
Earnings during Periods
0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00
Cash/Checking Accounts:
54,156.37Interest Collected
Plus Accrued Interest at End of Period
Less Accrued Interest at Beginning of Period
48,213.92
( 79,855.38)
54,156.37
48,213.92
( 79,855.38)
Interest Earned during Period 22,514.91 22,514.91
Total Interest Earned during Period
Total Adjustments from Premiums and Discounts
Total Capital Gains or Losses
Total Earnings during Period
38,670.80
1,875.11
0.00
38,670.80
1,875.11
0.00
40,545.91 40,545.91
Portfolio LYNW
APData Updated: SET_PMM: 08/06/2018 14:39
Run Date: 08/06/2018 - 14:40 PM (PRF_PM6) 7.3.0
Report Ver. 7.3.6.1
26
City of Lynwood
Cash Reconciliation Report
For the Period July 1, 2018 - July 31, 2018
Par Value Cash
Trans.TypeInvestment # Fund Security ID
Trans.Date Security Description MaturityDate Interest RedemptionsPurchases
07/02/20181009007/02/2018 InterestLYN 02587DZM3 248,000.00 AXP 0.2M 1.65% Mat. 07/02/2018 0.00 11.12 0.00 11.12
07/02/20181009007/02/2018 InterestLYN 02587DZM3 248,000.00 AXP 0.2M 1.65% Mat. 07/02/2018 0.00 2,028.88 0.00 2,028.88
07/02/20181009007/02/2018 MaturityLYN 02587DZM3 248,000.00 AXP 0.2M 1.65% Mat. 07/02/2018 0.00 0.00 248,000.00 248,000.00
1001107/02/2018 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-250,040.40 0.00 0.00 -250,040.40
1001107/03/2018 InterestLYN 9000 38,355.32 GSGF 0.0M 0.01%0.00 230.93 0.00 230.93
1001107/03/2018 InterestLYN 9000 38,355.32 GSGF 0.0M 0.01%-230.93 0.00 0.00 -230.93
07/08/20201011607/09/2018 InterestLYN 40434AZ44 248,000.00 HSBC 0.2M 1.40% Mat. 07/08/2020 0.00 1,721.73 0.00 1,721.73
07/06/20231014407/09/2018 PurchaseLYN 38148PR33 248,000.00 GOLD 0.2M 3.30% Mat. 07/06/2023 -247,432.08 -67.27 0.00 -247,499.35
1001107/09/2018 WithdrawalLYN 9000 38,355.32 GSGF 0.0M 1.81%0.00 0.00 245,777.62 245,777.62
01/11/20231013707/11/2018 InterestLYN 61747MF63 248,000.00 MSB 0.2M 2.65% Mat. 01/11/2023 0.00 3,258.99 0.00 3,258.99
1001107/11/2018 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-3,258.99 0.00 0.00 -3,258.99
1000007/13/2018 InterestLYNL 9001 12,155,269.54 LAIF 12.2M 0.57%0.00 53,925.44 0.00 53,925.44
1000007/13/2018 InterestLYNL 9001 12,155,269.54 LAIF 12.2M 0.57%-53,925.44 0.00 0.00 -53,925.44
01/15/20201012507/16/2018 InterestLYN 24422ERY7 250,000.00 DE 0.3M 1.70% Mat. 01/15/2020 0.00 2,125.00 0.00 2,125.00
1001107/16/2018 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-2,125.00 0.00 0.00 -2,125.00
06/29/20231014307/30/2018 InterestLYN 20033AZK5 248,000.00 ADS 0.2M 3.30% Mat. 06/29/2023 0.00 672.66 0.00 672.66
1001107/30/2018 DepositLYN 9000 38,355.32 GSGF 0.0M 1.81%-672.66 0.00 0.00 -672.66
Subtotal -557,685.50 63,907.48 493,777.62 -0.40
Total -557,685.50 63,907.48 493,777.62 -0.40
Portfolio LYNW
AP
Run Date: 08/06/2018 - 14:56 AC (PRF_AC) 7.2.0
Report Ver. 7.3.6.1 32