Page 13 - Moreno Valley Citizen's Guide to the Budget

Refunding Lease
revenue bond (taxable)

description
The 2021 Refunding Lease Revenue Bonds were issued
Original Issue in October 2021 to refund the outstanding portion of both
the 2015 Lease Revenue Bonds and the 2016 Refunding
AMOUNT Lease Revenue Bonds. The 2015 lease revenue bonds
had financed the Kitching Substation, serving the south
industrial area of the City. The 2016 Lease Revenue bonds
$30,985,000 2021 had financed the City-owned 115kV to 12kV substation
(Moreno Beach substation), an 115kV to 12kV switchyard,
and other infrastructure improvements to support planned
growth of the City-owned electrical distribution system.
Issuance
DATE repayment source
The repayment source for these bonds is
the Electric Utility Fund.
10/12/2021
prepayment provisions
Optional prepayment continuously after 5/1/26 with no
Maturity prepayment premium.
DATE security
These bonds are secured with bond insurance purchased
from Assured Guaranty Municipal Corporation as well as
05/01/2045 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
pool is shared between the 2015 Lease Revenue Bonds,
Interest the 2016 Refunding Lease Revenue Bonds and the 2019
RATES Lease Revenue Bonds.
debt service schedulE
0.183%-3.1% The annual debt service requirements for the 2021 Refunding
Lease Revenue Bonds outstanding at June 30, 2023,
are as follows:

2021 REFUNDING LEASE
REVENUE BONDS (taxable)

YEAR ENDING PRINCIPAL INTEREST INTEREST RATE
JUNE 30,
2024 1,450,000 627,506 0.651%
2025 1,460,000 618,066 0.910%
2026 1,470,000 604,780 1.14%
2027 1,490,000 588,022 1.415%
2028 1,505,000 566,939 1.615%
2029-2033* 7,975,000 2,396,266 1.854-2.504%
2034-2038* 9,020,000 1,352,759 2.654-3.1%
2039-2043* 2,385,000 389,515 3.1%
2044-2045* 1,055,000 49,290 3.1%
$27,810,000 $7,193,143

*Represents the total amount due during the specified period.
*Represents the total amount due during the specified period.
This refunding transaction resulted in an economic gain of $5.9 million and a net savings in debt service costs of $4.6 million.