Loading...
Item 16.1 - Update on Refunding of 1991 Certificates Poway Royal Mobilehome Park ~ TO: Honorable Mayor and Members of the City Council -- Chairman and Members of the Redevelopment Agency FROM: James L. Bowersox, City M~ INITIATED BY: John D. Fitch, Assistant City Manager Peggy A. Stewart, Director of Administrative Servi~ Warren Shafer, Director of Redevelopment Service~ DATE: July 11, 1995 SUBJECT: Update on Refunding of the 1991 Certificates of Participation (Poway Royal Mobilehome Park) ABSTRACT This report provides updated financial information on the Refunding of the 1991 Certificates of participation for Poway Royal Mobilehome Park. Under current market conditions, a net present value savings of between $190,000 and $500,000 can be achieved. ENVIRONMENTAL REVIEW -This agenda item is not subject to environmental review according to CEQA guidelines. FISCAL IMPACT Based upon current market conditions, it is estimated that a net present value savings of between $200,000 and $500,000 to the Redevelopment Agency and the City in debt service costs could be achieved. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Poway Royal Homeowners Association RECOMMENDATION It is recommended that staff be directed to proceed with the refunding of the 1991 Certificates of participation at such time as the identified savings levels can be achieved. ACTION - 1 of 11 JUL 11 1995 ITEM 16.1 AGENDA REPOR~ CITY OF POW A Y TO: Honorable Mayor and Members of the City Council Chairman and Members of the~lopment Agency FROM: James L. Bowersox, City Man INITIATED BY: John D. Fitch, Assistant City Manager Peggy A. Stewart, Director of Administrative Services Warren Shafer, Director of Redevelopment Service~ DATE: July 11, 1995 SUBJECT: Update on Refunding of 1991 Certificates of Participation (Poway Royal Mobilehome Park) BACKGROUND On June 20, 1995, the Poway City Council and Poway Redevelopment Agency authorized the refunding of the Certificates of Participation (COPS) in the amount of $28,300,000. The staff report identified that under existing market conditions the refunding could be achieved with a net present value savings from cash flow of approximately $954,000 at an interest rate of 6.0%. It was pointed out during the staff presentation, that the net present value savings would drop to approximately $370,500 if interest rates fell to 6.2%. Additional benefits in refunding the 1991 COPS are the extension of the debt service repayment by five years and a restructuring of the debt service to take advantage of the savings between January 1, 1996 and January 1, 2005. Staff proceeded to take steps to issue the bonds as approved by the City Council. A Preliminary Official Statement was issued and bonds were scheduled to be sold on Wednesday, June 28, 1995. Unfortunately, in the intervening eight days, the bond market moved away from us. In fact, between Tuesday June 27 and Wednesday, June 28, interest rates in the municipal bond market increased from 5.98% to 6.20%. Long term municipal rates fell further than comparable treasury bond rates because of reaction in the municipal market over the failure of voters in Orange County to approve Measure R. To further exacerbate the problem, the amount of interest Poway would be earning on the escrow funds fell from 6.03% to 5.9%, further eroding any net present value savings. This was a result of the market anticipating a reduction in the Fed Funds rate by the Federal Reserve, which was cut Thursday, July 6 by 0.25%. ACTION: 2 of 11 )) JUL 11 1995 ITEM 16.1 - - -- Agenda Report July 11, 1995 Page 2 Staff and the financing team are monitoring these two markets (long-term tax exempt rates and short-term escrow reinvestment rates) on a daily basis. When the combination of the two rates results in the savings threshold identified in this report, staff would proceed to issue the bonds. FINDINGS With a minimum net present value savings of $190,000 under the revised debt service structure, the City and Redevelopment Agency can achieve the following: Maintain rent increases at CPI with a maximum of 5% for those tenants who have executed resale agreements. Maintain rent increases at 5% per year for those tenants who have not executed resale agreements. Provide for capital needs within the park. - Resolve the operating shortfall problem. A summary of the proposed refunding at that level is provided in Attachment A. This schedule was based upon market conditions on Tuesday, June 27, 1995. A cash flow ,. ',lysis of the park operations with this minimum net present value savings is ,;vided in Attachment B. If the City is unable to achieve the stated net present value savings and therefore does not refinance the bonds as proposed, the operation of the Poway Royal Mobilehome Park will still be facing substantial shortfalls. A restructuring of the bonds as proposed in this refunding would still be desirable and additional strategies for making up the remaining shortfall would need to be found. At that time, staff will return to the Council with a recommended course of action. ENVIRONMENTAL REVIEW This agenda item is not subject to environmental review according to CEQA guidelines. FISCAL IMPACT A net present value savings of $190,000 to $500,000 to the Redevelopment Agency and the City in debt service costs. _. ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE Poway Royal Homeowners Association 3 of 11 JUL 11 1995 ITEM 1M Staff Report July 11, 1995 Page 3 RECOMMENDATION It is recommended that staff be directed to proceed with the refunding of the 1991 Certifications of Participation at such time as the recommended levels of savings can be achieved. Attachment: A. Debt Service Schedule B. Cash Flow Analysis 4 of 11 . JUL 11 1995 ITEM 1601 - SQJlCE$ AlID USES 0' FLMlS Powwty R:edevetopnent ASJ'l!nCY Propoc.ed Ref4lldh1Q ~ Roya l "obH....~ Parle 8<lncS Sources ; Bond Proc:~: P.r~'t 3Vl60.000.00 .Accrued Interest '4;5.__93 Original Issue Discount -1 .04l. 7'3_1lO 31.161,247.13 Othe-r Sources of Fl.nS; Iteser-ve '\rid 2,302.1080.00 33,4&3.727.13 Uses: Refundi~ Escrow Deposits: SL.G Purchases. 29,_. '00_00 other ~und OepcGits: Reserve F\rId 2,382 ,737. 'iO ~ral Fl.rd 143._.93 2,52.6,698.43 D~tivery Date Expenses: Cost 01 If;t/ll.8'Oe 190,000.00 Underwriter's Discount 291,104.80 9on::i Insur.-.:e- 565.717.9'2 1,D'6,8Z2.72 Oth.r U&es of Funds: Additional Prcceeds 2,105_98 -- 33,463,727.13 IIote: General Fl.n:t irclu::les dep:)s'it of '43,960.93 of bond aceTUed interest. - -- 27-......-95 10:47 .. Prepared by Pa;~r Incorporated (Finance 2.300 PQ.IAY:2nH_SC2,PCI.IA.Y-27TH_SCt') JUL 11 1995 ITEM 16,1 5 of 11 ATTACHMENT A ~T OF RHIMDING RESll.TS POW8Y Redevelopnent ~ Proposed Refll'di~ ~ .oyal Nobi leh~ Perk Bonds: Dated 03te 6(15/1995 o-e.li~r-y Dstft 1/13/1995 Arlbitra~ yt@ld 6.2373'73t. Escrow yield 5.903165:1: Bond Par MlOUnt 3<'.060,000.00 True Interest Cost 6.161",7Ot. ..t Int@rest CO$t 6. txl69llS:t Averape CfX4JO"1 5.82ma Average Life 23.134 Par -.:d"lt of r.f~ bor.de 27,985,000.00 "verB'9€" c~ of refl.l"ded bonds 1. 09384lt. "'wrage life of refc.n:ted bonds 18.815 PV of prior debt to 7/1311995 .. 6_237373'1. 30,520.624.49 Met PV S"'....ings 151,419.69 Perceratepe say;,.s. Q'f refU"lded ~ 0.541014:1: Percentage sa....ings of refunding bond$ 0.41230,:1: 27-....,-95 10:47 ta Prepared by P8i~etlbe-1'" Incor-porat:ed (Finanee 2.300 POw4Y:27T"_SC2,P"OoiAY-ZnH_SC2) 6 of 11 JUL 11 1995 ITH~ 16.1 - SAVINGS _ Rodovelol'''"'''' A""",,y p"""",ed Refuw:ling - .0)'1l1 _Hen.... Perk Bends Prnent vol'Jil! Prior Re1'-Rting ."....,;ng Reft.n:ling -"'1 to 7/13/1995 """" ~ SP1vlC'E" Oebt Service lecei~t$ Net Cash flow Savings Savirws a 6.2373727X ....1 13, 1995 . 143,960.93 '145,960.95 143,960.93 143,960.93 .... 1" 1995 . . . . . 145,960.93 . .- 1,_ 1..150,867-50 . - . 1,150,867.50 1,118.348.38 Fob 1. 1996 ',161 ,97D~37 . 1..'6',970~37 .1,161,970.37 ",123.312.91 .M " 1996 1,150,835_00 . - 1,150,835.00 , ,084,494.81 .... 1. 1996 925.463.13 925,463.13 '92S,463,13 214,269.00 '867.662.13 :!on 1, 1997 1,150,650.00 ',150,650.00 1,051,526.65 F<l:.1". '997 925 ,463. 13 925.463. '3 .925,463. '3 -8' ~ ."-20.35 Jul '. 1997 ','50.~.OO . 1,150,225.00 . 1,019,348.00 .... .1.1997 925,463,13 925,463.13 .925,463.13 449,9"8.74 -815,973.20 - '. 1998 1,'4.9,645.00 1,1<9,61.5.00 - 988,OZO.n Fe I, 1998 - 93S .463. 13 . 935,463.13 -935.463.13 .799,8/.5.45 Jut 1, 1998 1,1-'J!.,817.':iO . '.148,817.50 - 957,449.n .... I. 1998 - 935, 23Il. 13 - 935,Z5ll.13 ,935 , Z5ll, 13 427.761.24. -m..'-68.b' - 1. 1999 "147,R32.50 - . - 1,147,832.50 927,696.83 Fcb 1, 1999 96S, 013. 13 965,013.13 '965.013.13 . -775,957.41 - I. 1999 1.151,5"9'2_50 1,151,592.50 . 9Oi!.586.87 .... I, 1999 969,093.13 969,093.13 -969,093.13 365,318.74 '755,67UJI! .J"" '.2000 1,150,032.50 1,150,032.50 . 'lY4,103.64 'Fcb 1. 2000 . 998.058. '3 . 998,058. '3 -998,058.13 -7'5'.,719.82 .....1 I. 2000 1.'48.207.50 1,148,207.50 . 8oIo6,3U.37 ..... '. 2000 - 996,239.38 . 996,239.38 -996,239.38 3ll3,\l42.49 '730.560.61 J.., '. 200l 1,151,220.00 . . '.151,220.00 822.879.79 -~eb 1,200' . 1,034,"20.63 1,034,420.63 .',034,420.63 '735.618.00 ,1 ',2001 1,1"8,7'95.00 '. '48, 795.00 - 796,511.95 .... '. z001 , ,026,603.13 . , ,026.6113. 13 .1,026.603.13 Z5ll, 991. 24 '707.979.02 Jon " 2002 1,'51.295.00 - . . 1,151,295.00 m,848.59 Fob I, 2002 1,063,908.13 1,063.908.13 .1.063.908.13 .711.51S.82 Jut '. 2002 '.1L7,565.00 '.'47,565.00 748.071. 74 .... " 2002 , ,060, 158.13 1,060,158.13 -1,060,1$8.13 174,7'03.74 -687,S6L.91 Jen 1.2003 1,148.745.00 ',148.745.00 726.193.26 .., 1. 2003 , .096,_.13 , ,096,408. 13 -1,096,408.13 -689.569.33 Jut 1.2003 1,'49,565.00 - - . ',149,S65.oo . 704.733. Z2 MAg 1.2'OlI3 1,09',563.13 ',091.563. '3 -1,09',563.13 "O,338.7L '665,759.20 J"" '.20D4 1. '50.~..OO 1,'50.025.00 683,692.98 Fob 1, 200< - ',13',718.13 . 1,131,718.13 -',t31,718.13 . -669,374058 Jul " 2004 1,150,125.00 1. ISO. 125.00 . 663.073.25 Aug 1.2D04 ',120.608. '3 1.120,608.13 -','20,608.13 4.7,1123.74 '64l.757.78 Jon 1, 2005 1.149,86S.00 1,'49,865.00 642.874..13 - 1, 2005 . 1,164,628.13 . 1,161..628.13 -t,164,628.13 . '647,805.78 Jul I. zoos '.'L9,245.00 . . 1,149,245.00 623,095.12 .Au!l " 2005 1,152,208.13 . 1,152,208.13 -',152,208.13 '17,726.26 -621,512.35 ..., " 2006 ',14/!,2h5 00 . . . 1,14.8,265.00 . 603,735.17 - 1,2J'):)6 1,189,920.63 . t,189,92O.63- -',189,920.63 - -6Z2?442.8C ..,1 1.2006 1.146,925 00 . . . 1,146,925.00 . 584.792.18 MAg 1,2006 '.'91,280.63 1,191.280.63 -1. '91 ,280.63 '86,011.26 -6010,307.75 - '., 2J1lJ7 1,150,225.00 1,150,225.00 568,738.22 Fob 1,2007 1.192.370.63 . 1,192.370.63 '1,192,370.63 -586,S67.48 ..,1 1, ZDtr7 1,'47,98'5.00 I. '4.7.985.00 S50,<.63.40 ALoll 1,2007 ',188,020_63 . 1,188,02'0.63 -',188,020.63 -82,18' .26 -566,752.34 .- I, 2llQ8 1,lS0,3!lS.00 . . . 1,150,385.00 S34.931.38 Fe!> I, 200ll - 1,198.S33.13 '.198,531.13 -1,198.S33.13 -S54..475.06 Jul I, 200ll 1,147,245.00 . t, ''''7,245.00 . 517,337. 'S 27.........95 10~"7 _ Prepared by PSlne4.letlber Incorporated (f;neoce 2.300 PGJAY:27TH_SC2,PCIlAY'27TH_SC2l 7 of 11 JUL 11 1995 ITEM 16.1 , SAVINGS poway R-.elopnen' A9Ol"CY Propo$ed R:efW'ding .. Roya l Mob; lena. Par-Ie Bonds Present Va l u@ Prior RefU"ding R.fLl'ICn rc lI:anl..cf;ng Amual to 7/'311_ Dete Debt; Service Debt Service- Receipts Net Cash flow Savings Slivings ; 6.1373727'f. -.- _ " 2llOB '.183,3'3.13 '. '83.313. 13 -1.183.313.13 -&<,216.26 .530.877.45 Jon I. <llll9 1,11.8, "':.5.00 - - 1, '''-8J45.00 5U2. 3<6.93 . Fob '. 2llO9 " '93.133.'3 '.193,233.13 -1,193.2:53.13 .519.137.65 .....1 1. <llll9 '.'49.705.00 '.1'9.70S.00 1087. S61. 24 ....... '. 2llO9 1,187,403.13 - 1,187,403.13 ", '87,403.'3 -Q.186.26 -500.977.3ll Jon 1, 2010 ',15-1,10.00 " 'SO,'2'5.00 - 472,988.~ ,., 1, 2010 " '9' ,430.63 ',19' ,430.63 -',191,"30.63 - -4l!7,473.76 .....t ", 2(r1u 1,150,00$.00 . 1. ':;0.005.00 "58,635.57 ....... 1, 2010 - 1,189,830.63 - 1,189,&50.63 -1,189,830.63 -81. 131.~6 .472.095.93 Jon I. lOll 1.'49.=.00 1.149.345.00 - 444.509.S0 Fob 1. lOll 1.192.\>1.0.63 '.192.940.63 '1.192.\>1.0.63 - .459,014.67 Jut 1, 2011 1,1'-8,145.00 . - . 1,1108,145.00 430.6'5.8L .- I. 2011 1.185.721.88 ',185,721.88 '1.185,721.88 '81,172.S1 "442,438.80 Jon 1, 2012 1, '51,~f1'"j_OO '. '5',405.00 418,778.1'- Fob 1.. 2012 I, '93,359.38 " '93,359.38 ",193.359.38 .43' ,821.49 .jul '. 2012 1.149,4.-.0.00 - - - 1,149,430.00 405,416.15 - 1. 2012 '. '85,421.88 '. '85,421.88 .1,18S,4Z1.88 .77.946.26 .415.976.28 Jon '. 2013 1.1<6.oVl.00 - 1,1t.6,930.oo 39<,299.78 ,., '.,. 2013 '. '92 .340.63 1,192,340.63 -',19Z,34tL63 '405.750.06 Jut to 2013 1.148.905.0l'l 1,11.8,90S.00 . 38' ,090.30 ,... 1,. 2013 1,188,684.38 '.188,684.38 -'. '88,_.lIl -85,190.0' '392,<72.'2 Jon 1, 2011. '.150.'''''.00 . 1, ISO, ,80.00 369,974.86 Fob I. 20\4 '.194,740.63 1,194,740.63 "'.194.740..63 .lIlZ,3<6.52 Jut '. <:0" 1,'50,75S.00 . - - '.150,75S.00 358.964.83 ....... ,,. 2014 . 1,185,221.88 . '.185,22'.88 "'.1SS,2Z1.8S '79,OZ7.51 ."567.828_86 ..... s. 2015 .." '50,6"\0 00 i, 1~..630.00 348.070.61 Fob '. ZltI5 ',195.559.38 - ',195,559.38 ",'95,559.38 -359,815.S4 Jul " 2015 '.149.8lr-.00 1.149,805.00 337,301.66 ....... I. 20'5 " '85,178.'3 ',185,'78.'3 ".'85.'78.13 '80,302.5' '345,903.5S ...... '. 2016 ',148.2l!O.00 - . . 1,.14&,280.00 . 326,666.59 Fob '. 2016 ',199 ,653_ 13 1.'99,653.13 -1,199,653.13 '339,539.00'0 Jut " 2016 1,151,055.00 . - 1,151.055.00 . 317.552.56 Au9 '... 2016 - 1.182.909.38 '.182.909.38 -1, '82.909.38 -83.227.S1 .324,674.46 Jon " 2017 1.''''7,955.0n . . 1,147,95S.00 307,'19.25 Fob 1,. 2017 '.196, '65.63 . " '96, '6S.63 -1,196,165.63 '3'8,383.53 Jut " <lO17 1,149, l~'o.;.OO . ','49,155.00 298,142.17 Au9 1, 2017 " '113.540.63 '.183,540.63 .1.183,540.63 .82,596.26 '305.495.68 Jon 1. lO18 1,1.49..480.00 . . - ',149,480.00 - 289 .~7 .03 - 1, ZltI8 1,200,768.75 . 1.Z00,768.75 -1.200,768.75 - -300,568.81 Jul 1, 20'8 ,. , <.8:BO no '.148.930.00 280.326.16 AlAIl I, 2018 '.181,9058.75 - 1.181.968.75 "1,181,96835 '84,327.50 .286,914.94 ..... I, 2019 ',147,505.00 1,147,505.00 - 27',S10.9O Fob I. 2019 , .203, '68. 75 . 1.203,168.75 -1,2113.168.75 - '283,228.10 Jut I, 2Il19 1. 150.~.OO 1.150,205.00 263,9'8.95 ,... '... 2019 - 1.17l!.193.75 ',178.193.75 -'.1711.193.75 -83.652.50 '268,960.89 - 1,2020 1.'51,855.00 1.151,855.00 256,304.22 Fob " 2ll2O ','98,365.63 - '.'98,365.63 -',198,365.63 '265,~2. '5 ,jut " 2ll2O '... 147,45~.00 . - 1,147,455.00 - 247,6/)3. ,9 Au; " 2ll2O 1.182,362.50 ',182,362.50 -','82,362.50 -8' ,418. '3 '253,833.14 ...... I, 2021 1..147,180.00 - 1.147, lao_DO - 240,OS7.22 - I. 2021 - 1.20',2'2.50 1.201.212.S0 ., ,20' .2'2.50 '250. 08ll.68 ".,1 1, 202' 1,149,9l\lJ.OO - . - 1,149,960.00 . 233,361. IS ....... 1,2021 '. '78.887.50 '.1711,887.50 '1.'78.887.50 '82.960.00 '238,010.05 ---------- 27........9'5 10:1.7 _ ~repared by PaineUebber Incorporated (Finance 2.300 ~AY:27TH_SC2.POw.T.271H_SC2) 8 of 11 - 3UL 11 1995 tTE~" 1 0.1 -..- SAVINGS - poway R~topTll!mt Agency P....aposed lteflFding . RO)'8l Mobi lef1~ Park. Iklnds P....es~t ValU!! Pri or Rl!'fW1di~ Ref\.n:ling Refwocino ........1 to 7/13/1995 Dort-e o..bf' ~n.r'Cf.' o~ $@ot"'vlce Receipts Net Cash flow Sevi,.-. Savings .. 6~Z373n7%. .-, " ZOZZ '.. 151,"&LOO 1.15'.480.00 226.602.58 Fob I, 20lZ 1.201,562.S0 - 1,201,56i!.50 "1,201,562.50 . -235,251.24 All I, 20lZ 1,151.740.00 - . 1.151,740.00 - 219.798.91 - '. 20lZ 1.177.915.63 1,1n,915.63 "'.177,915.63 -76,258.13 .223,6'6~64 - 1.= '.150,740.00 - - - 1,150,740.00 212.966.32 Fob 1.= - 1,199 ,268.75 1,199,268.75 -1,199,268.15 - -220,814.37 Jul " 2IIZ3 1,1'1l,480.00 - 1,1108.480.00 - 206. 119.E3 l.l.oQ I, a:lZ3 ~, 179 ,3OC.JC . i,l79,3OD.t.C ~1,179,300.G:) .79.34S.75 .2'0.5'ro.61 - 1,2lI2to 1,"9,960.00 1.149,960.00 - ZOO,143.60 - I, 2024 1,204.184.38 - 1.204.184.38 -1.204,184.38 .208,511.04 - 1,202' 1,177,600.00 ',177,600.00 '1.177.600.00 -1.Z3'.824.38 .197.740.90 Fob '. 2llZ5 ',201,0'5.63 . 1,lO1..0'5~63 '1,201.015.63 -195.573.49 """ " 2llZ5 - '. '77,962.50 - 1,177,962.50 -'.1",962.50 -2.378.978.13 -186.018.19 . Fob " 2!026 , ,204.762.50 1,204.762.50 -1.204.762.S0 - -184.496.46 Ate I, 2D26 , ,174,946.88 1.174.946.88 -1.174,946.88 -2.379,709.38 -174,488.76 Fob I, 2OZ7 - 1 ,2OS, 131.25 - 1,205,131.25 "',205, 131~ZS -173,S58.62 ...... '. 2JTZT - 1,173.553.13 1,173.553.13 -1.173.553.13 '2.3711. 684. 38 '163,89\1.35 Fob " <028 1,206.975.00 1,206,975.00 al,206,975aOO - .163,468.99 "'-'II '. 2028 1,173.1087.50 . 1.173,1087_50 '1,173.1087.50 -2.380.462.50 '154,126.81 .- - 6S,~':!.' .f~l 75,429.056.24 143, 960 a93 75,285,095.31 '9,763.1080.31 -9.763.1080.31 69,056.21 S.vinlS ~rv PV of s8...1ng5 fr~ eash flow 69.056.21 Phs: Refc.n:lirs fW"ds on hand 82,363.48 Net PV Savi"'iJS lS1.419.69 27-Jln-95 10:47 _ Prepared by Painewel:tJer lrw:orporated (Finonce 2.300 POWAY:27TH_SC2,PDwAT'27TH.SC2l 9 of 11 JUL 11 1995 ITEM 16.1 POWAY ROYAL ~ JMMARY OF FINANCIAL FORECI-.. j" Operating/Debt Service Cash Flow Analysis Year Total Expenses Surplus, Reserve Ending Revenue! (with capital (Deficit, Fund June 30 reserve: Balance $0 $0 $0 $910,434 91 $1,122,567 $1,397,264 ($274,69T, $635,737 92 $2,335,250 $2,813,509 ($478,259 $157,478 93 $2,642,840 $2,841,273 ($198,433 ($40,955 94 $2,725,473 $2,690,099 $35,374 $2,094,419 95 $2,629,843 $3,116,193 ($486,350 $1,608,069 96 $2,885,331 $2,255,549 $629,782 $2,237,851 97 $3,030,985 $3,077,930 ($46,945 $2,190,906 98 $3,093,533 $3,144,378 ($50,845 $2,140,062 99 $3,201,247 $3,242,932 ($41,685 $2,098,377 2000 $3,313,135 $3,371,981 ($58,846 $2,039,531 1 $3,434,901 $3,500,702 ($65,802 $1,973,730 2 $3,555,010 $3,628,985 ($73,975 $1,899,754 3 $3,679,474 $3,766,848 ($87,374 $1,812,380 4 $3,678,838 $3,908,916 ($230,078 $1,582,302 5 $3,793,391 $4,049,945 ($256,555 $1,325,747 6 $3,911,493 $4,189,818 ($278,325 $1,047,422 7 $4,033,961 $4,268,423 ($234,462 $812,960 8 $4,165,790 $4,362,712 ($196,922 $616,038 9 $4,306,018 $4,448,612 ($142,594 $473,444 10 $4,455,139 $4,581,550 ($126,411 $347,033 11 $4,611,367 $4,691,119 ($79,752 $267,281 12 $4,777,131 $4,798,289 ($21,158 $246,123 13 $4,953,126 $4,933,319 $19,808 $265,931 14 $5,138,399 $5,061,092 $77,307 $343,238 15 $5,334,736 $5,186,609 $148,127 $491,365 16 $5,542,800 $5,325,169 $217 ,630 $708,995 17 $5,763,339 $5,460,590 $302,748 $1,011,744 18 $5,997,005 $5,664,002 $333,003 $1,344,747 19 $6,166,558 $5,820,355 $346,203 $1,690,950 20 $6,268,871 $5,975,016 $293,856 $1,984,805 21 $6,371,486 $6,153,368 $218,117 $2,202,923 22 $6,473,950 $6,330,083 $143,868 $2,346,790 23 $6,576,260 $6,515,583 $60,676 $2,407,467 24 $6,677,782 $6,770,020 ($92,238 $2,315,228 25 $6,775,078 $6,973,126 ($198,048 $2,117,181 26 $6,870,683 $7,195,538 ($324,856 $1,792,325 27 $6,964,041 $7,422,039 ($457,998 $1,334,327 28 $7,054,724 $7,663,021 ($608,296 $726,030 29 $7,250,878 $4,697,210 $2,553,668 $3,279,698 30 $7,500,430 $6,242,974 $1,257,456 $4,537,154 10 of 11 ATTACHMENT B 3Ull1 1995 ITEM 16.1 -- Assumptions: (l.LUtilities costs include billing, meter repair, utility line repairs. ( let Debt service includes reserve earnings and payments to bond trustee. Bonds refinanced in Fiscal Year 95/96. (3) Monthly rent escalates 2.8% on May 1, 1994 and annually thereafter beginning Jan. 1, 1995. (4) Operation and Maintenance expenses escalate @ 5% annually. Possessory Interest escalates @ 2% annually. (5) Deposit interest earnings calculated at 5.5% to 6% (6) Capijal Needs are estimates of cost to repair gas lines and streets for 94/95 and 95/96, other cost are estimates pending current study. (7) Annual rent is a combination of rents with 6 months from each year. (8) Vacancy Factor of 2 to 4 % is included (9) Rental mix as follows: 60% of Unijs at CPI Rent Increases, with 40% at 5% Thru FY 97 80% of Units at CPI Rent Increases, with 20% at 5% FY 98 thru 2003 90% of Units at CPI Rent Increases, with 10% at 5% FY 2004 and after (10) $2,100,000 From Housing Covenants sale deposited into Poway Royal (11) Bonds refinanced at $190,000 net present value savings. Powayroy9f - .- JUL 11 1995 ITEM 16.1 11 of 11 --