GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the 2022 Bonds in accordance with California Government Code Section 5852.1. Such good faith estimates have been provided to the Agency by Urban Futures, Inc. as municipal advisor to the Agency (the “Municipal Advisor”), each with respect to the 2022 Bonds, and are based on market conditions as of December 21, 2021.
Principal Amount. The Municipal Advisor has informed the Agency that, based on the Agency’s financing plan and current market conditions, its good faith estimate of the aggregate principal amount of the 2022 Bonds to be sold is $78,910,000. (the “Estimated Principal Amount”).
True Interest Cost of the Bonds. The Municipal Advisor has informed the Agency that, assuming that the Estimated Principal Amount of the 2022 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the 2022 Bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the 2022 Bonds, is 2.55%.
Finance Charge of the Bonds. The Municipal Advisor has informed the Agency that, assuming that the Estimated Principal Amount of the 2022 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the 2022 Bonds, which means the sum of all fees and charges paid to third parties (or costs associated with the 2022 Bonds), is $920,463.
Amount of Proceeds to be Received . The Municipal Advisor has informed the Agency that, assuming that the Estimated Principal Amount of the 2022 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the Agency for sale of the 2022 Bonds, less the finance charge of the 2022 Bonds, as estimated above, and any reserve fund funded with proceeds of the 2022 Bonds, is $82,010,974.
Total Payment Amount. The Municipal Advisor has informed the Agency that, assuming that the Estimated Principal Amount of the 2022 Bonds is sold, and based on market interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the t otal payment amount, which means the sum total of all payments the Agency will make to pay debt service on the 2022 Bonds, plus the finance charge for the 2022 Bonds, as described above, not paid with the proceeds of the 2022 Bonds, calculated to the final maturity of the 2022 Bonds, is $109,391,088.
The foregoing estimates constitute good faith estimates only. The actual principal amount of the 2022 Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates due to (a) the actual date of the sale of the 2022 Bonds being different than the date assumed for purposes of such estimates, (b) the actual principa l amount of 2022 Bonds sold being different from the Estimated Principal Amount, (c) the actual amortization of the 2022 Bonds being different than the amortization assumed for purposes of such estimates,
(d) the actual market interest rates at the time of sale of the 2022 Bonds being different than those estimated for purposes of such estimates, (e) other market conditions, or (f) alterations in the Agency’s financing plan, or a combination of such factors. The actual date of sale of the 2022 Bonds and the actual principal amount of 2022 Bonds sold will be determined by the Agency based on the timing of the need for proceeds of the 2022 Bonds and other factors. The actual interest rates borne by the 2022 Bonds will depend on market interest rates at the time of sale thereof. The actual amortization of the 2022 Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market interest rates are affected by economic and other factors beyond the control of the Agency.