HomeMy WebLinkAbout05.b. Report on 2009 Bond Refinancing Page 1 of 32
Item S.b.
� CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 25, 2018
TO: FINANCE COMMITTEE
FROM: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
ROGER S BAILEY, GENERAL MANAGER
SUBJECT: REPORT ON 2009 BOND REFINANCING
Per Board Policy 029 - Debt Management and Continuing Disclosure, "any refunding transaction
executed will be followed with a report on actual savings." This memorandum documents such savings
with regard to the recent 2009 bond refinancing.
The Board approved a resolution at the July 19, 2018 meeting allowing for the issuance of 2018 bonds to
refinance outstanding Series 2009A and Series 20096 certificates of participation. The refunding as of
that date was anticipated to save $2.428 million (present value) in interest costs through 2029 (FY 2029-
30).
Bond pricing took place the morning of August 14, 2018. On this date, the underwriter(Piper Jaffray)took
preliminary orders for the Series 2018A tax-exempt bonds based on an initial pricing scale reflecting yields
of between 10-20 basis points below the benchmark Municipal Market Data (MMD) index of tax-exempt
bonds. There was very significant investor demand based on these initial prices resulting in an
"oversubscription" of up to 14 times the amount of bonds Central San had to offer. Market demand was
closer to supply for the Series 20186 taxable bonds (which were only oversubscribed by a factor of about
3 times). In consultation with PFM and Central San staff, the proposed prices were adjusted to decrease
yields to investors by a further 12 basis points on average for the tax-exempt bonds, and about 2 basis
points on average for the taxable bonds. This resulted in the tax-exempt bonds being priced at the lowest
spreads to MMD of any comparable 2018 transactions that either PFM or Piper Jaffray was aware of.
Even with this, demand for Central San bonds was exceptionally high, with investors placing orders totaling
$98.1 million for the $15.1 million of the tax-exempt bonds that were available. See PFM's pricing analysis
in Attachment 1. This bodes well for future Central San issuances.
The final issuance amounts and yields were:
• Series 2018A (Final maturity: September 1, 2029) in the amount of$15.135 million of tax-exempt
Wastewater Revenue Refunding Bonds with proceeds used to refund $19.635 million outstanding
2009A Wastewater Revenue Certificates of Participation (Taxable Build America Bonds). Average
net interest cost of 2.34%. (See Attachment 2, page 3)
• Series 20186 (Final maturity: September 1, 2023) in the amount of$4.315 million in taxable
Wastewater Revenue Refunding Bonds with proceeds used to advance refund the outstanding
$6.980 million 20096 Wastewater Revenue Certificates of Participation. Average net interest cost
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 95 of 128
Page 2 of 32
of 3.08%. (See Attachment 2, page 3)
The difference in face values of new and old bonds was due primarily to the use of the existing $4.86
million debt service reserve to reduce the required issuance amount of the new bonds.
Based on yields set at the August 14 bond pricing (and the lower amount of new bonds versus old bonds),
Central San will see total gross interest savings through 2029 of$8.2 million compared to the interest
payments on the old bonds (including the expected reduction in the Build America Bond 35% interest
subsidy payments on the Series 2009A bonds that has existed since the Federal budget sequestration
took effect in 2013). The present value of the interest savings, net of the use of the debt service reserve
fund (cash on hand)to reduce the par value of the refunding bonds, was $2,603,896 (see Attachment 2,
page 3). This was above the previous estimate presented to the Board in July of$2,428,188, and more
than twice what was expected this spring (due to being able to execute an extraordinary redemption of the
Series 2009A bonds rather than using an escrow and calling those bonds on September 1, 2019).
A major difference between the gross interest savings of$8.2 million and the net present value of the
interest savings of$2.6 million is the fact that the debt service reserve on the old bonds of$4.86 million
has been applied to reduce the principal amount of the new debt. Because of the lower principal amount,
interest costs are reduced apart from any change in interest rates. The $8.2 million in gross interest
savings is reconciled to the $2.6 million net present value as follows:
Gross difference in interest savings $8.23 million
Discount the gross savings back to present value (0.77) million
Apply debt service reserve fund reducing principal of new bonds (4.86) million
Present value of savings $2.60 million
These savings, which now have been incorporated into the long-term financial plan for Central San, could
be reflected through lower future rate increases, or through reduced bond issuance amounts.
In addition to the refunding savings, more positive factors affecting the financial plan include the FY 2017-
18 favorable variance of$11.7 million as well as other factors, including a stronger forecast for ad valorem
tax collections. Cumulatively, these factors can facilitate a reduction in the required debt issuance, and
allow for the first issuance to be pushed back a year:
FY2019-20 FY2021-22 Total
Previous Plan $50 million $135 million $185 million
FY2020-21 FY2022-23 Total
Updated Plan $77 million $77 million $154 million
These items will be presented in further detail at an October 18, 2018 Board Financial Workshop.
A full analysis of the new bond characteristics and refunding data is provided at Attachment 2. The official
closing date of the new bonds was September 13. On that date, the funds from the new Series 2018A
bonds were used to extinguish the Series 2009A bonds. Additionally, funds from the Series 20186
Bonds were used to fund an escrow account that will be used to redeem (call)the Series 20096 bonds
when they are callable in September 2019.
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 96 of 128
Page 3 of 32
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs
ATTACHMENTS:
1. Bond Order Details
2. Bond Details
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 97 of 128
Attachment 1
Central Costa Sanitary - Updated Order Monitor Analytics
Quick Statistics '
Top Ten Investors Maturity Overview (Including Stock)
rmw
• Series Overview • Account Overview • ' " Orders TotaOrders Par
- " • ' " • ' " -
• • - • • • •
Wells Fargo Asset Management 10 10 $15,135 100.0% 9/1/2020 4.00% 6 5 $6,875 $1,225 ��� 561.22%
Blackrock SMA 10 9 $14,660 96.9% 9/1/2021 5.00% 7 5 $6,635 $1,270001 522.44%
Nuveen Asset Management 9 9 $137910 91.9% 9/1/2022 5.00% 6 4 $67040 $11335 od 452.43%
7 ---1
# Maturities: 10 #Accounts: 15 US Trust Bank Of America 9 9 $131285 87.8% 9/1/2023 5.00% 8 6 $91060 $11395 00M 649.46%
Issuance Par: Total Orders: 152 JP MORGAN 7 7 $11,305 74.7% 9/1/2024 5.00% 5 5 $7,325 $1,465 0A 500.00%
$15,135M # Full Orders: 60 First Republic Bank 5 5 $8,135 53.7% 9/1/2025 5.00% 7 6 $9,510 $1,535 ���� 619.54%
Franklin Asse l�/lar°a 3ement 5 4 $6,820 45.1% 9/1/2026 5.00% 7 7 $11,270 $1,610 700.00%
g 000
Northern Trust 4 3 $41615 30.5% 9/1/2027 5.00% 8 8 $131490 $11685 od 800.59%
Credit Suisse Asset Management 2 2 $3,470 22.9% 9/1/2028 5.00% 12 8 $15,780 $1,765 �� � 894.05%
/o Subscription: Total Orders. ° 9/1/2029 5.00% 8 6 12 150 1 850 656.76%
648.4% McDonnell Investment Management, LLC 4 0 $2,500 16.5/o $ $ ���]� o
$98,135 M
• EL j
--------------------- --------------------------------- --------------------------------------------------------------------------------
Order OveryiewOrder Statistics
MaturityOverview
----------------- .--------------------------------------------- ------
18,000
Total Order Breakdown
16,000
14,000
o
■ JP MORGAN 121000
12%
10,000
Other Combined
Investors0
I I
US Trust Bank Of 30% 81000
E -
America Q
14%
6,000 -
4,000 -
2,000 - - -
o
Nuveen Asset 0
Management
14% OHO O`i'� O�� O00'� QIP 00O O�� 00� OHO
O O O O O O O O O O
■
Wells Fargo Asset "Underwriter Overview
Management MEN IN I
15%
Blackrock SMA
15%
Maturity
. • - ' . • • - •
Amount Offered Total Orders y o
Piper Jaffray & Co 648% 98,085 74 0 98085 98,135
8/14/2018 16:34 1 ICY Pf
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 98 of 128
• 1 1 MEMO 1 1 11 1 1 1 1 •
MINIM 1 1'l
Account
Wells Fargo Asset Management $1,225 $1,270 $1,335 $1,395 $1,465 $1,535 $1,610 $1,685 $1,765 $1,850 $15,135
Blackrock SMA $750 $1,270 $1,335 $1,395 $1,465 $1,535 $1,610 $1,685 $1,765 $1,850 $14,660
Nuveen Asset Management $1,270 $1,335 $1,395 $1,465 $1,535 $1,610 $1,685 $1,765 $1,850 $13,910
US Trust Bank Of America $1,225 $1,270 $1,335 $1,395 $1,465 $1,535 $1,610 $1,685 $1,765 $13,285
_ JP MORGAN $1,395 $1,465 $1,535 $1,610 $1,685 $1,765 $1,850 $11,305
First Republic Bank $1,225 $1,610 $1,685 $1,765 $1,850 $8,135
Franklin Asset Management $225 $1,535 $1,610 $1,685 $_1,765 $6,820
Northern Trust $1,270 $1,395 $100 $1,850 $4,615
Credit Suisse Asset Management $1,695 $1,775 $3,470
McDonnell Investment Management, LLC $500 _ $500 $500 $1,000 $2,500
Bank of America Capital Management $1,225 _ $1,225
Atlantic Trust Pell Rudman $1,225 $1,225
HIGHMARK CAPITAL $1,000 $1,000
Golub Group, Inc. $60 $200 $190 $300 $750
Riverbend Capital Advisors, LLC $50 $50
11 1 .1 1 1 • 1 1 1 • : 1 :
Note: Data listed in the table above does not include
Member or Stock Orders.
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 99 of 128 2 wpfm
Page 6 of 32
Attachment 2
TABLE OF CONTENTS
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Report Page
Sources and Uses of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary of Bonds Refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Summary of Refunding Results . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Prior Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Bond Summary Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Bond Debt Service Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Escrow Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Escrow Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Escrow Cost Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Escrow Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Escrow Sufficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Escrow Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Cost of Issuance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Underwriter's Discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Form 8038 Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Aug 14,2018 12:21 pm
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 100 of 128
Page 7 of 32
SOURCES AND USES OF FUNDS
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Dated Date 09/13/2018
Delivery Date 09/13/2018
Tax-Exempt
Extraordinary Taxable
Optional Advanced
Redemption of Refunding of
Sources: 2009A BABs 2009B Total
Bond Proceeds:
Par Amount 1511351000.00 413151000.00 1914501000.00
Premium 217771190.35 217771190.35
1719121190.35 413151000.00 2212271190.35
Other Sources of Funds:
2009A Reserve Fund 119631500.01 119631500.01
2009B Reserve Fund 218921950.02 218921950.02
119631500.01 218921950.02 418561450.03
1918751690.36 712071950.02 2710831640.38
Tax-Exempt
Extraordinary Taxable
Optional Advanced
Redemption of Refunding of
Uses: 2009A BABs 2009B Total
Refunding Escrow Deposits:
Cash Deposit 1916741694.67 0.25 1916741694.92
SLGS Purchases 711461625.00 711461625.00
1916741694.67 711461625.25 2618211319.92
Cost of Issuance:
Bond/Disclosure Counsel 801149.36 221850.64 1031000.00
Financial Advisor 371740.23 101759.77 481500.00
Rating Agency S&P 171508.35 41991.65 221500.00
Trustee 61225.19 11774.81 81000.00
Verification Agent 778.15 221.85 11000.00
Printer 11743.05 496.95 21240.00
Contingency 71781.49 21218.51 101000.00
1511925.82 431314.18 1951240.00
Delivery Date Expenses:
Underwriter's Discount 481280.65 131764.85 621045.50
Other Uses of Funds:
Additional Proceeds 789.22 41245.74 51034.96
1918751690.36 712071950.02 2710831640.38
Aug 14,2018 12:21 pm Page 1
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Page 8 of 32
SUMMARY OF BONDS REFUNDED
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
2009 Wastewater Revenue COPs Series A:Build America Bonds:
2009ASB 09/01/2020 5.200% 116601000.00 09/13/2018 100.000
09/01/2021 5.350% 117151000.00 09/13/2018 100.000
09/01/2022 5.500% 117751000.00 09/13/2018 100.000
09/01/2023 5.600% 118351000.00 09/13/2018 100.000
09/01/2024 5.700% 119051000.00 09/13/2018 100.000
2009ATB 09/01/2029 6.550% 1017451000.00 09/13/2018 100.000
1916351000.00
2009 Wastewater Revenue COPs Series B:
SER 23 09/01/2019 4.000% 215801000.00
09/01/2020 4.000% 110251000.00 09/01/2019 100.000
09/01/2021 5.000% 110701000.00 09/01/2019 100.000
09/01/2022 5.000% 111251000.00 09/01/2019 100.000
09/01/2023 5.000% 111801000.00 09/01/2019 100.000
619801000.00
2616151000.00
Aug 14,2018 12:21 pm Page 2
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 102 of 128
Page 9 of 32
SUMMARY OF REFUNDING RESULTS
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Tax-Exempt
Extraordinary
Optional Taxable Advanced
Redemption of Refunding of
2009A BABs 2009B Total
Dated Date 09/13/2018 09/13/2018 09/13/2018
Delivery Date 09/13/2018 09/13/2018 09/13/2018
Arbitrage Yield 2.014200% 2.933742% 2.014200%
Escrow Yield 2.387833%
Value of Negative Arbitrage 531902.53 531902.53
Bond Par Amount 1511351000.00 413151000.00 1914501000.00
True Interest Cost 2.101376% 3.083927% 2.180697%
Net Interest Cost 2.343957% 3.079630% 2.406831%
Average Coupon 4.976757% 2.937521% 4.802476%
Average Life 6.848 2.245 5.827
Par amount of refunded bonds 1916351000.00 619801000.00 2616151000.00
Average coupon of refunded bonds 6.277846% 4.749556% 6.095727%
Average life of refunded bonds 6.779 2.580 5.678
PV of prior debt 2213501021.18 714621968.32 2918121989.49
Net PV Savings 214301558.30 1731338.52 216031896.82
Percentage savings of refunded bonds 12.378703% 2.483360% 9.783569%
Percentage savings of refunding bonds 16.059189% 4.017115% 13.387644%
Aug 14,2018 12:21 pm Page 3
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 103 of 128
Page 10 of 32
PRIOR BOND DEBT SERVICE
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
2009 Wastewater Revenue COPs Series A: Build America Bonds
Period Other
Ending Principal Coupon Interest Debt Service Cash Flow Total
09/01/2019 111901840.00 111901840.00 -3901952.78 7991887.22
09/01/2020 116601000 5.200% 111901840.00 218501840.00 -3901952.78 214591887.22
09/01/2021 117151000 5.350% 111041520.00 218191520.00 -3621613.92 214561906.08
09/01/2022 117751000 5.500% 110121767.50 217871767.50 -3321491.58 214551275.92
09/01/2023 118351000 5.600% 9151142.50 217501142.50 -3001441.28 214491701.22
09/01/2024 119051000 5.700% 8121382.50 217171382.50 -2661705.18 214501677.32
09/01/2025 119751000 6.550% 7031797.50 216781797.50 -2311056.72 214471740.78
09/01/2026 210601000 6.550% 5741435.00 216341435.00 -1881587.02 214451847.98
09/01/2027 211451000 6.550% 4391505.00 215841505.00 -1441289.50 214401215.50
09/01/2028 212351000 6.550% 2991007.50 215341007.50 -981164.16 214351843.34
09/01/2029 213301000 6.550% 1521615.00 214821615.00 -501103.50 214321511.50
1916351000 813951852.50 2810301852.50 -217561358.42 2512741494.08
Aug 14,2018 12:21 pm Page 4
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 104 of 128
Page 11 of 32
PRIOR BOND DEBT SERVICE
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
2009 Wastewater Revenue COPs Series B
Period Debt
Ending Principal Coupon Interest Service
09/01/2019 215801000 4.000% 3121950 218921950
09/01/2020 110251000 4.000% 2091750 112341750
09/01/2021 110701000 5.000% 1681750 112381750
09/01/2022 111251000 5.000% 1151250 112401250
09/01/2023 111801000 5.000% 591000 112391000
619801000 8651700 718451700
Aug 14,2018 12:21 pm Page 5
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 105 of 128
Page 12 of 32
SAVINGS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Present Value
Prior Refunding to 09/13/2018
Date Debt Service Debt Service Savings @ 2.0142004%
09/01/2019 7991887.22 7191683.33 801203.89 791183.72
09/01/2020 214591887.22 119691500.00 4901387.22 4711702.95
09/01/2021 214561906.08 119651500.00 4911406.08 4631260.96
09/01/2022 214551275.92 119671000.00 4881275.92 4511186.79
09/01/2023 214491701.22 119601250.00 4891451.22 4431303.75
09/01/2024 214501677.32 119601500.00 4901177.32 4351155.33
09/01/2025 214471740.78 119571250.00 4901490.78 4261795.07
09/01/2026 214451847.98 119551500.00 4901347.98 4181161.43
09/01/2027 214401215.50 119501000.00 4901215.50 4091711.05
09/01/2028 214351843.34 119451750.00 4901093.34 4011439.88
09/01/2029 214321511.50 119421500.00 4901011.50 3931368.16
2512741494.08 2012931433.33 419811060.75 413931269.09
Savings Summar
Dated Date 09/13/2018
Delivery Date 09/13/2018
PV of savings from cash flow 413931269.09
Less:Prior funds on hand -119631500.01
Plus:Refunding funds on hand 789.22
Net PV Savings 214301558.30
Aug 14,2018 12:21 pm Page 6
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 106 of 128
Page 13 of 32
SAVINGS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Present Value
Prior Refunding to 09/13/2018
Date Debt Service Debt Service Savings @ 2.0142004%
09/01/2019 218921950.00 212611980.20 6301969.80 6191851.33
09/01/2020 112341750.00 5791815.00 6541935.00 6301324.80
09/01/2021 112381750.00 5851395.00 6531355.00 6161203.13
09/01/2022 112401250.00 5841559.00 6551691.00 6051958.90
09/01/2023 112391000.00 5871784.00 6511216.00 5891704.64
718451700.00 415991533.20 312461166.80 310621042.80
Savings Summar
Dated Date 09/13/2018
Delivery Date 09/13/2018
PV of savings from cash flow 310621042.80
Less:Prior funds on hand -218921950.02
Plus:Refunding funds on hand 41245.74
Net PV Savings 1731338.52
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Page 14 of 32
BOND PRICING
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Maturity Call Call
Bond Component Date Amount Rate Yield Price Date Price
Refunding Serial Bonds;Final Maturity 9/1/2029:
09/01/2020 112251000 4.000% 1.390% 105.045
09/01/2021 112701000 5.000% 1.450% 110.271
09/01/2022 113351000 5.000% 1.560% 113.181
09/01/2023 113951000 5.000% 1.670% 115.807
09/01/2024 114651000 5.000% 1.790% 118.088
09/01/2025 115351000 5.000% 1.890% 120.210
09/01/2026 116101000 5.000% 2.040% 121.662
09/01/2027 116851000 5.000% 2.130% 123.312
09/01/2028 117651000 5.000% 2.220% 124.732
09/01/2029 118501000 5.000% 2.340% 123.523 C 09/01/2028 100.000
15,135,000
Taxable Refunding Serial Bonds;Maturing 9/1/2023:
09/01/2019 211451000 2.620% 2.620% 100.000
09/01/2020 5151000 2.800% 2.800% 100.000
09/01/2021 5351000 2.960% 2.960% 100.000
09/01/2022 5501000 3.050% 3.050% 100.000
09/01/2023 5701000 3.120% 3.120% 100.000
4,315,000
19,450,000
Dated Date 09/13/2018
Delivery Date 09/13/2018
First Coupon 03/01/2019
Par Amount 1914501000.00
Premium 217771190.35
Production 2212271190.35 114.278614%
Underwriter's Discount -621045.50 -0.319000%
Purchase Price 2211651144.85 113.959614%
Accrued Interest
Net Proceeds 2211651144.85
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Page 15 of 32
BOND SUMMARY STATISTICS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
Last Maturity 09/01/2029
Arbitrage Yield 2.014200%
True Interest Cost(TIC) 2.101376%
Net Interest Cost(NIC) 2.343957%
All-In TIC 2.245346%
Average Coupon 4.976757%
Average Life(years) 6.848
Weighted Average Maturity(years) 6.985
Duration of Issue(years) 6.004
Par Amount 1511351000.00
Bond Proceeds 1719121190.35
Total Interest 511581433.33
Net Interest 214291523.63
Total Debt Service 2012931433.33
Maximum Annual Debt Service 119691500.00
Average Annual Debt Service 118501465.05
Underwriter's Fees(per$1000)
Average Takedown
Other Fee 3.190000
Total Underwriter's Discount 3.190000
Bid Price 118.030457
Par Average Average
Bond Component Value Price Coupon Life
Refunding Serial Bonds;Final Maturity 9/1/2029 1511351000.00 118.349 4.977% 6.848
1511351000.00 6.848
All-In Arbitrage
TIC TIC Yield
Par Value 1511351000.00 1511351000.00 1511351000.00
+Accrued Interest
+Premium(Discount) 217771190.35 217771190.35 217771190.35
-Underwriter's Discount -481280.65 -481280.65
-Cost of Issuance Expense -1511925.82
-Other Amounts
Target Value 1718631909.70 1717111983.88 1719121190.35
Target Date 09/13/2018 09/13/2018 09/13/2018
Yield 2.101376% 2.245346% 2.014200%
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Page 16 of 32
BOND SUMMARY STATISTICS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
Last Maturity 09/01/2023
Arbitrage Yield 2.933742%
True Interest Cost(TIC) 3.083927%
Net Interest Cost(NIC) 3.079630%
All-In TIC 3.561870%
Average Coupon 2.937521%
Average Life(years) 2.245
Weighted Average Maturity(years) 2.245
Duration of Issue(years) 2.158
Par Amount 413151000.00
Bond Proceeds 413151000.00
Total Interest 2841533.20
Net Interest 2981298.05
Total Debt Service 415991533.20
Maximum Annual Debt Service 212611980.20
Average Annual Debt Service 9261080.51
Underwriter's Fees(per$1000)
Average Takedown
Other Fee 3.190000
Total Underwriter's Discount 3.190000
Bid Price 99.681000
Par Average Average
Bond Component Value Price Coupon Life
Taxable Refunding Serial Bonds;Maturing 9/1/2023 413151000.00 100.000 2.938% 2.245
413151000.00 2.245
All-In Arbitrage
TIC TIC Yield
Par Value 413151000.00 413151000.00 413151000.00
+Accrued Interest
+Premium(Discount)
-Underwriter's Discount -131764.85 -131764.85
-Cost of Issuance Expense -431314.18
-Other Amounts
Target Value 413011235.15 412571920.97 413151000.00
Target Date 09/13/2018 09/13/2018 09/13/2018
Yield 3.083927% 3.561870% 2.933742%
Aug 14,2018 12:21 pm Page 10
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Page 17 of 32
BOND DEBT SERVICE BREAKDOWN
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Tax-Exempt
Extraordinary
Optional Taxable Advanced
Period Redemption of Refunding of Annual
Ending 2009A BABs 2009B Total Total
03/01/2019 3471433.33 561473.20 4031906.53
09/01/2019 3721250.00 212051507.00 215771757.00 219811663.53
03/01/2020 3721250.00 321407.50 4041657.50
09/01/2020 115971250.00 5471407.50 211441657.50 215491315.00
03/01/2021 3471750.00 251197.50 3721947.50
09/01/2021 116171750.00 5601197.50 211771947.50 215501895.00
03/01/2022 3161000.00 171279.50 3331279.50
09/01/2022 116511000.00 5671279.50 212181279.50 215511559.00
03/01/2023 2821625.00 81892.00 2911517.00
09/01/2023 116771625.00 5781892.00 212561517.00 215481034.00
03/01/2024 2471750.00 2471750.00
09/01/2024 117121750.00 117121750.00 119601500.00
03/01/2025 2111125.00 2111125.00
09/01/2025 117461125.00 117461125.00 119571250.00
03/01/2026 1721750.00 1721750.00
09/01/2026 117821750.00 117821750.00 119551500.00
03/01/2027 1321500.00 1321500.00
09/01/2027 118171500.00 118171500.00 119501000.00
03/01/2028 901375.00 901375.00
09/01/2028 118551375.00 118551375.00 119451750.00
03/01/2029 461250.00 461250.00
09/01/2029 118961250.00 118961250.00 119421500.00
2012931433.33 415991533.20 2418921966.53 2418921966.53
Aug 14,2018 12:21 pm Page 11
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Page 18 of 32
ESCROW REQUIREMENTS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
2009 Wastewater Revenue COPs Series A: Build America Bonds
Period Principal
Ending Interest Redeemed Total
09/13/2018 391694.67 1916351000.00 1916741694.67
391694.67 1916351000.00 1916741694.67
Aug 14,2018 12:21 pm Page 12
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Page 19 of 32
ESCROW REQUIREMENTS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
2009 Wastewater Revenue COPs Series B
Period Principal
Ending Principal Interest Redeemed Total
03/01/2019 1561475.00 1561475.00
09/01/2019 215801000.00 1561475.00 414001000.00 711361475.00
215801000.00 3121950.00 414001000.00 712921950.00
Aug 14,2018 12:21 pm Page 13
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Page 20 of 32
ESCROW DESCRIPTIONS
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Type of Type of Maturity First Int Par Max Total
Security SLGS Date Pmt Date Amount Rate Rate Cost
Sep 13,2018:
SLGS Certificate 03/01/2019 1551218 1.750% 1551218.00
SLGS Certificate 09/01/2019 09/01/2019 412531675 2.400% 2.400% 412531675.00
SLGS Certificate 09/01/2019 217371732 1.750% 217371732.00
711461625 711461625.00
SLGS Summary
SLGS Rates File 14AUG18
Total Certificates of Indebtedness 711461625.00
Aug 14,2018 12:21 pm Page 14
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Page 21 of 32
ESCROW COST DETAIL
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Type of Maturity Par Total
Security Date Amount Rate Cost
Taxable Advanced Refunding of 200913,DSRF:
SLGS 03/01/2019 1551218 1.750% 1551218.00
SLGS 09/01/2019 217371732 1.750% 217371732.00
218921950 218921950.00
Taxable Advanced Refunding of 200913,BP:
SLGS 09/01/2019 412531675 2.400% 412531675.00
711461625 711461625.00
Purchase Cost of Cash Total
Escrow Date Securities Deposit Escrow Cost Yield
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs:
DSRF 09/13/2018 119631500.01 119631500.01
BP 09/13/2018 17,711,194.66 17,711,194.66
1916741694.67 1916741694.67
Taxable Advanced Refunding of 200913:
DSRF 09/13/2018 218921950 0.02 218921950.02 1.743549%
BP 09/13/2018 412531675 0.23 412531675.23 2.387833%
711461625 0.25 711461625.25
711461625 1916741694.92 2618211319.92
Aug 14,2018 12:21 pm Page 15
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Page 22 of 32
ESCROW CASH FLOW
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Net Escrow
Date Principal Interest Receipts
09/01/2019 711461625.00 1461324.75 712921949.75
711461625.00 1461324.75 712921949.75
Escrow Cost Summary
Purchase date 09/13/2018
Purchase cost of securities 711461625.00
Aug 14,2018 12:21 pm Page 16
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Page 23 of 32
ESCROW SUFFICIENCY
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
09/01/2019 1916741694.67 1916741694.67
1916741694.67 1916741694.67 0.00
Aug 14,2018 12:21 pm Page 17
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Page 24 of 32
ESCROW SUFFICIENCY
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Escrow Net Escrow Excess Excess
Date Requirement Receipts Receipts Balance
09/01/2019 712921950.00 712921950.00
712921950.00 712921950.00 0.00
Aug 14,2018 12:21 pm Page 18
September 25, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 118 of 128
Page 25 of 32
ESCROW STATISTICS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
DSRF 119631500.01 119631500.01
BP 17,711,194.66 17,711,194.66
1916741694.67 1916741694.67 0.00 0.00
Delivery date 09/13/2018
Arbitrage yield 2.014200%
Aug 14,2018 12:21 pm Page 19
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Page 26 of 32
ESCROW STATISTICS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Modified Yield to Yield to Perfect Value of
Total Duration Receipt Disbursement Escrow Negative Cost of
Escrow Escrow Cost (years) Date Date Cost Arbitrage Dead Time
DSRF 218921950.02 0.932 1.743549% 1.743548% 218611142.34 311807.67 0.01
BP 412531675.23 0.955 2.387833% 2.387833% 412311580.37 221094.86
711461625.25 710921722.71 531902.53 0.01
Delivery date 09/13/2018
Arbitrage yield 2.933742%
Aug 14,2018 12:21 pm Page 20
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Page 27 of 32
COST OF ISSUANCE
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Tax-Exempt
Extraordinary Taxable
Optional Advanced
Redemption of Refunding of
2009A BABs 2009B Total
Bond/Disclosure Counsel 801149.36 221850.64 1031000.00
Financial Advisor 371740.23 101759.77 481500.00
Rating Agency S&P 171508.35 41991.65 221500.00
Trustee 61225.19 11774.81 81000.00
Verification Agent 778.15 221.85 11000.00
Printer 11743.05 496.95 21240.00
Contingency 71781.49 21218.51 101000.00
1511925.82 431314.18 1951240.00
Aug 14,2018 12:21 pm Page 21
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Page 28 of 32
UNDERWRITER'S DISCOUNT
Central Contra Costa Sanitary District
Combined Refunding of 2009A and 2009B
Final and Verified Numbers
Tax-Exempt
Extraordinary Taxable
Optional Advanced
Redemption of Refunding of
2009A BABs 2009B Total
Other Underwriter's Discount 481280.65 131764.85 621045.50
481280.65 131764.85 621045.50
Aug 14,2018 12:21 pm Page 22
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Page 29 of 32
FORM 8038 STATISTICS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
Refunding Serial Bonds;Final Maturity 9/1/2029:
09/01/2020 112251000.00 4.000% 105.045 112861801.25 112251000.00
09/01/2021 112701000.00 5.000% 110.271 114001441.70 112701000.00
09/01/2022 113351000.00 5.000% 113.181 115101966.35 113351000.00
09/01/2023 113951000.00 5.000% 115.807 116151507.65 113951000.00
09/01/2024 114651000.00 5.000% 118.088 117291989.20 114651000.00
09/01/2025 115351000.00 5.000% 120.210 118451223.50 115351000.00
09/01/2026 116101000.00 5.000% 121.662 119581758.20 116101000.00
09/01/2027 116851000.00 5.000% 123.312 210771807.20 116851000.00
09/01/2028 117651000.00 5.000% 124.732 212011519.80 117651000.00
09/01/2029 118501000.00 5.000% 123.523 212851175.50 118501000.00
1511351000.00 1719121190.35 1511351000.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 09/01/2029 5.000% 212851175.50 118501000.00
Entire Issue 1719121190.35 1511351000.00 6.9851 2.0142%
Proceeds used for accrued interest 0.00
Proceeds used for bond issuance costs(including underwriters'discount) 2001206.47
Proceeds used for credit enhancement 0.00
Proceeds allocated to reasonably required reserve or replacement fund 0.00
Proceeds used to currently refund prior issues 17,711,194.66
Proceeds used to advance refund prior issues 0.00
Remaining weighted average maturity of the bonds to be currently refunded 6.7698
Remaining weighted average maturity of the bonds to be advance refunded 0.0000
Aug 14,2018 12:21 pm Page 23
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Page 30 of 32
FORM 8038 STATISTICS
Central Contra Costa Sanitary District
Tax-Exempt Extraordinary Optional Redemption of 2009A BABs
***Preliminary and Subject to Change***
Uniform Savings
Refunded Bonds
Bond
Component Date Principal Coupon Price Issue Price
2009 Wastewater Revenue COPs Series A:Build America Bonds:
2009ASB 09/01/2020 116601000.00 5.200% 99.104 116451126.40
2009ASB 09/01/2021 117151000.00 5.350% 99.052 116981741.80
2009ASB 09/01/2022 117751000.00 5.500% 99.004 117571321.00
2009ASB 09/01/2023 118351000.00 5.600% 98.959 118151897.65
2009ASB 09/01/2024 119051000.00 5.700% 98.917 118841368.85
2009ATB 09/01/2025 119751000.00 6.550% 98.312 119411662.00
2009ATB 09/01/2026 210601000.00 6.550% 98.312 210251227.20
2009ATB 09/01/2027 211451000.00 6.550% 98.312 211081792.40
2009ATB 09/01/2028 212351000.00 6.550% 98.312 211971273.20
2009ATB 09/01/2029 213301000.00 6.550% 98.312 212901669.60
1916351000.00 1913651080.10
Remaining
Last Weighted
Call Issue Average
Date Date Maturity
2009 Wastewater Revenue COPs Series A:Build America Bonds 09/13/2018 11/12/2009 6.7698
All Refunded Issues 09/13/2018 6.7698
Aug 14,2018 12:21 pm Page 24
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Page 31 of 32
FORM 8038 STATISTICS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Dated Date 09/13/2018
Delivery Date 09/13/2018
Redemption
Bond Component Date Principal Coupon Price Issue Price at Maturity
Taxable Refunding Serial Bonds;Maturing 9/1/2023:
09/01/2019 211451000.00 2.620% 100.000 211451000.00 211451000.00
09/01/2020 5151000.00 2.800% 100.000 5151000.00 5151000.00
09/01/2021 5351000.00 2.960% 100.000 5351000.00 5351000.00
09/01/2022 5501000.00 3.050% 100.000 5501000.00 5501000.00
09/01/2023 5701000.00 3.120% 100.000 5701000.00 5701000.00
413151000.00 413151000.00 413151000.00
Stated Weighted
Maturity Interest Issue Redemption Average
Date Rate Price at Maturity Maturity Yield
Final Maturity 09/01/2023 3.120% 5701000.00 5701000.00
Entire Issue 413151000.00 413151000.00 2.2448 2.9337%
Proceeds used for accrued interest 0.00
Proceeds used for bond issuance costs(including underwriters'discount) 571079.03
Proceeds used for credit enhancement 0.00
Proceeds allocated to reasonably required reserve or replacement fund 0.00
Proceeds used to currently refund prior issues 0.00
Proceeds used to advance refund prior issues 412531675.23
Remaining weighted average maturity of the bonds to be currently refunded 0.0000
Remaining weighted average maturity of the bonds to be advance refunded 2.6121
Aug 14,2018 12:21 pm Page 25
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Page 32 of 32
FORM 8038 STATISTICS
Central Contra Costa Sanitary District
Taxable Advanced Refunding of 2009B
***Preliminary and Subject to Change***
Uniform Savings
Refunded Bonds
Bond
Component Date Principal Coupon Price Issue Price
2009 Wastewater Revenue COPs Series B:
SER 23 09/01/2019 215801000.00 4.000% 105.191 217131927.80
SER 23 09/01/2020 110251000.00 4.000% 103.926 110651241.50
SER 23 09/01/2021 110701000.00 5.000% 110.981 111871496.70
SER 23 09/01/2022 111251000.00 5.000% 110.376 112411730.00
SER 23 09/01/2023 111801000.00 5.000% 109.776 112951356.80
619801000.00 715031752.80
Remaining
Last Weighted
Call Issue Average
Date Date Maturity
2009 Wastewater Revenue COPs Series B 09/01/2019 12/03/2009 2.6121
All Refunded Issues 09/01/2019 2.6121
Aug 14,2018 12:21 pm Page 26
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