Page 12 - Moreno Valley City 2022 Bonded Debt Summary

streetlight refunding Lease
refinancing (taxable) 2021 2021 revenue bonds (taxable)

description description
The 2021 Amended Purchase Agreement served to refinance The 2021 Refunding Lease Revenue Bonds were issued
the remaining balance of the 2018 Streetlight Financing in October 2021 to refund the outstanding portion of both
agreement. The original agreement funded the purchase of the 2015 Lease Revenue Bonds and the 2016 Refunding
Lease Revenue Bonds. The 2015 lease revenue bonds
approximately 9,411 streetlights from Southern California Original Issue Original Issue
Edison (SCE) and the retrofit of those lights, as well as the had financed the Kitching Substation, serving the south
industrial area of the City. The 2016 Lease Revenue bonds
approximately 2,000 additional streetlights already owned AMOUNT AMOUNT had financed the City-owned 115kV to 12kV substation
by the City, with LED fixtures. This refinancing agreement
(Moreno Beach substation), an 115kV to 12kV switchyard,
was entered into on a taxable basis with Banc of America and other infrastructure improvements to support planned
Capital Leasing. $7,402,587 $30,985,000 growth of the City-owned electrical distribution system.

repayment source repayment source
The repayment source for these bonds is Issuance Issuance The repayment source for these bonds is
the Electric Utility Fund. the Electric Utility Fund.
DATE DATE
prepayment provisions prepayment provisions
Optional prepayment continuously after 6/1/26 with a 08/10/2021 10/12/2021 Optional prepayment continuously after 5/1/26 with no
prepayment premium (102%). prepayment premium.
security
security Maturity Maturity These bonds are secured with bond insurance purchased
The security for this agreement consists of the City’s DATE DATE from Assured Guaranty Municipal Corporation as well as
streetlights. City-owned property. This asset pool consists of the Moreno
Beach substation, the Kitching substation, the Conference
& Recreation Center and the Corporate Yard. This asset
debt service schedule 06/01/2034 05/01/2045 pool is shared between the 2015 Lease Revenue Bonds,
The annual debt service requirements for the 2021 Streetlight the 2016 Refunding Lease Revenue Bonds and the 2019
Lease Revenue Bonds.
Refinancing outstanding at June 30, 2022, are as follows:
Interest Interest debt service schedule
RATES RATES The annual debt service requirements for the 2021 Refunding
Lease Revenue Bonds outstanding at June 30, 2022,
are as follows:
3.47% .183%-3.1%

2021 STREETLIGHT 2021 REFUNDING LEASE
REFINANCING (taxable) REVENUE BONDS (taxable)

YEAR ENDING PRINCIPAL INTEREST INTEREST RATE YEAR ENDING PRINCIPAL INTEREST INTEREST RATE
JUNE 30, JUNE 30,
2023 472,405 235,269 3.47% 2023 1,445,000 632,318 0.333%
2024 488,940 218,733 3.47% 2024 1,450,000 627,506 0.651%
2025 506,055 201,618 3.47% 2025 1,460,000 618,066 0.910%
2026 523,769 183,904 3.47% 2026 1,470,000 604,780 1.14%
2027 1,490,000 588,022 1.415%
2027 542,103 165,570 3.47% 2028-2032* 7,815,000 2,553,901 1.615-2.354%
2028-2032* 3,008,785 529,581 3.47% 2033-2037* 8,780,000 1,596,367 2.504-3.1%
2033-2034* 1,356,120 59,226 3.47% 2038-2042* 3,785,000 506,850 3.1%
2043-2045* 1,560,000 97,650 3.1%
$6,898,177 $1,593,901
$29,255,000 $7,825,460
*Represents the total amount due during the specified period.
The 2021 Streetlight Refinancing Agreement reduced the rate from the former 2018 agreement at 5.42% to 3.47%, *Represents the total amount due during the specified period.
resulting in savings of $855,000 with no extension of the maturity date.
This refunding transaction resulted in an economic gain of $5.9 million and a net savings in debt service costs of $4.6 million.