Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 1
SOURCES AND USES OF FUNDS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Sources:
Bond Proceeds:
Par Amount 7,715,000.00
Premium 704,741.75
8,419,741.75
Other Sources of Funds:
Lease Payment Fund 558,349.31
Prior Debt Service Reserve Fund 1,149,850.42
1,708,199.73
10,127,941.48
Uses:
Refunding Escrow Deposits:
Cash Deposit 0.93
SLGS Purchases 9,720,206.00
9,720,206.93
Delivery Date Expenses:
Cost of Issuance 260,000.00
Underwriter's Discount 77,150.00
Bond Insurance (0.65%) 69,608.34
406,758.34
Other Uses of Funds:
Contingency 976.21
10,127,941.48
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Attachment 2
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 2
BOND SUMMARY STATISTICS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
First Coupon 11/01/2023
Last Maturity 11/01/2035
Arbitrage Yield 3.694171%
True Interest Cost (TIC) 3.885265%
Net Interest Cost (NIC) 3.951909%
All-In TIC 4.391828%
Average Coupon 5.000000%
Average Life (years) 7.761
Duration of Issue (years) 6.465
Par Amount 7,715,000.00
Bond Proceeds 8,419,741.75
Total Interest 2,993,975.69
Net Interest 2,366,383.94
Total Debt Service 10,708,975.69
Maximum Annual Debt Service 997,500.00
Average Annual Debt Service 869,274.24
Average
Par Average Average Maturity PV of 1 bp
Bond Component Value Price Coupon Life Date change
Serial Bond 7,715,000.00 109.135 5.000% 7.761 04/09/2031 5,171.75 7,715,000.00 7.761 5,171.75
All-In Arbitrage
TIC TIC Yield
Par Value 7,715,000.00 7,715,000.00 7,715,000.00
+ Accrued Interest
+ Premium (Discount) 704,741.75 704,741.75 704,741.75
- Underwriter's Discount -77,150.00 -77,150.00
- Cost of Issuance Expense -260,000.00
- Other Amounts -69,608.34 -69,608.34 -69,608.34
Target Value 8,272,983.41 8,012,983.41 8,350,133.41
Target Date 07/06/2023 07/06/2023 07/06/2023
Yield 3.885265% 4.391828% 3.694171%
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 3
SUMMARY OF REFUNDING RESULTS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Arbitrage yield 3.694171%
Escrow yield 4.883619%
Value of Negative Arbitrage -26,762.16
Bond Par Amount 7,715,000.00
True Interest Cost 3.885265%
Net Interest Cost 3.951909%
All-In TIC 4.391828%
Average Coupon 5.000000%
Average Life 7.761
Par amount of refunded bonds 9,610,000.00
Average coupon of refunded bonds 4.816863%
Average life of refunded bonds 7.226
PV of prior debt to 07/06/2023 @ 3.694171% 10,376,709.44 Net PV Savings 295,397.36
Percentage savings of refunded bonds 3.073854%
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 4
SUMMARY OF BONDS REFUNDED
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, BOND:
10/01/2023 4.000% 460,000
10/01/2024 3.750% 500,000 10/01/2023 100.000
10/01/2025 4.000% 535,000 10/01/2023 100.000
10/01/2026 4.000% 575,000 10/01/2023 100.000
10/01/2027 4.250% 620,000 10/01/2023 100.000
10/01/2028 4.250% 665,000 10/01/2023 100.000
3,355,000
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, TERM31:
10/01/2029 4.750% 715,000 10/01/2023 100.000
10/01/2030 4.750% 765,000 10/01/2023 100.000
10/01/2031 4.750% 825,000 10/01/2023 100.000
2,305,000
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, TERM35:
10/01/2032 5.000% 885,000 10/01/2023 100.000
10/01/2033 5.000% 950,000 10/01/2023 100.000
10/01/2034 5.000% 1,020,000 10/01/2023 100.000
10/01/2035 5.000% 1,095,000 10/01/2023 100.000
3,950,000
9,610,000
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 5
BOND PRICING
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Serial Bond:
11/01/2024 390,000 5.000% 3.480% 101.938 7,558.20
11/01/2025 425,000 5.000% 3.630% 103.016 12,818.00
11/01/2026 465,000 5.000% 3.560% 104.465 20,762.25
11/01/2027 510,000 5.000% 3.500% 105.959 30,390.90
11/01/2028 555,000 5.000% 3.480% 107.318 40,614.90
11/01/2029 600,000 5.000% 3.440% 108.787 52,722.00
11/01/2030 650,000 5.000% 3.410% 110.217 66,410.50
11/01/2031 705,000 5.000% 3.430% 111.274 79,481.70
11/01/2032 760,000 5.000% 3.440% 112.343 93,806.80
11/01/2033 820,000 5.000% 3.520% 112.708 104,205.60
11/01/2034 885,000 5.000% 3.670% 111.334 C 3.761% 11/01/2033 100.000 100,305.90 11/01/2035 950,000 5.000% 3.810% 110.070 C 3.959% 11/01/2033 100.000 95,665.00 7,715,000 704,741.75
Dated Date 07/06/2023
Delivery Date 07/06/2023
First Coupon 11/01/2023
Par Amount 7,715,000.00
Premium 704,741.75
Production 8,419,741.75 109.134695%
Underwriter's Discount -77,150.00 -1.000000%
Purchase Price 8,342,591.75 108.134695%
Accrued Interest
Net Proceeds 8,342,591.75
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 6
BOND DEBT SERVICE
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Period
Ending Principal Interest Debt Service
11/01/2023 123,225.69 123,225.69
11/01/2024 390,000 385,750.00 775,750.00
11/01/2025 425,000 366,250.00 791,250.00
11/01/2026 465,000 345,000.00 810,000.00
11/01/2027 510,000 321,750.00 831,750.00
11/01/2028 555,000 296,250.00 851,250.00
11/01/2029 600,000 268,500.00 868,500.00
11/01/2030 650,000 238,500.00 888,500.00
11/01/2031 705,000 206,000.00 911,000.00
11/01/2032 760,000 170,750.00 930,750.00
11/01/2033 820,000 132,750.00 952,750.00
11/01/2034 885,000 91,750.00 976,750.00
11/01/2035 950,000 47,500.00 997,500.00
7,715,000 2,993,975.69 10,708,975.69
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 7
SAVINGS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Present Value
Prior Prior Prior Refunding to 07/06/2023
Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.6941708% 11/01/2023 681,575.00 558,349.31 123,225.69 123,225.69 -4,432.81 11/01/2024 924,750.00 924,750.00 775,750.00 149,000.00 145,021.21 11/01/2025 941,000.00 941,000.00 791,250.00 149,750.00 140,549.17 11/01/2026 959,600.00 959,600.00 810,000.00 149,600.00 135,413.16 11/01/2027 981,600.00 981,600.00 831,750.00 149,850.00 130,818.26 11/01/2028 1,000,250.00 1,000,250.00 851,250.00 149,000.00 125,456.50 11/01/2029 1,021,987.50 1,021,987.50 868,500.00 153,487.50 124,556.31 11/01/2030 1,038,025.00 1,038,025.00 888,500.00 149,525.00 117,056.98 11/01/2031 1,061,687.50 1,061,687.50 911,000.00 150,687.50 113,733.35 11/01/2032 1,082,500.00 1,082,500.00 930,750.00 151,750.00 110,419.41 11/01/2033 1,103,250.00 1,103,250.00 952,750.00 150,500.00 105,596.90 11/01/2034 1,125,750.00 1,125,750.00 976,750.00 149,000.00 100,815.16 11/01/2035 1,149,750.00 1,149,750.00 997,500.00 152,250.00 99,267.98 13,071,725.00 558,349.31 12,513,375.69 10,708,975.69 1,804,400.00 1,444,271.57 Savings Summary
Dated Date 07/06/2023
Delivery Date 07/06/2023
PV of savings from cash flow 1,444,271.57
Less: Prior funds on hand -1,149,850.42
Plus: Refunding funds on hand 976.21
Net PV Savings 295,397.36
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 8
BOND SOLUTION
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Period Proposed Proposed Total Adj Revenue Unused Debt Service Ending Principal Debt Service Debt Service Constraints Revenues Coverage 11/01/2023 123,226 123,226 123,226 100.00%
11/01/2024 390,000 775,750 775,750 924,750 149,000 119.21% 11/01/2025 425,000 791,250 791,250 941,000 149,750 118.93% 11/01/2026 465,000 810,000 810,000 959,600 149,600 118.47% 11/01/2027 510,000 831,750 831,750 981,600 149,850 118.02% 11/01/2028 555,000 851,250 851,250 1,000,250 149,000 117.50% 11/01/2029 600,000 868,500 868,500 1,021,988 153,488 117.67% 11/01/2030 650,000 888,500 888,500 1,038,025 149,525 116.83% 11/01/2031 705,000 911,000 911,000 1,061,688 150,688 116.54% 11/01/2032 760,000 930,750 930,750 1,082,500 151,750 116.30% 11/01/2033 820,000 952,750 952,750 1,103,250 150,500 115.80% 11/01/2034 885,000 976,750 976,750 1,125,750 149,000 115.25% 11/01/2035 950,000 997,500 997,500 1,149,750 152,250 115.26% 7,715,000 10,708,976 10,708,976 12,513,376 1,804,400
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 9
UNDERWRITER EXCLUSION DISCLOSURE
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Stifel, Nicolaus & Company, Incorporated ('Stifel') has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC's Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement.
Stifel is providing information and is declaring to the proposed municipal issuer and any obligated person that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm's- length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its' own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate.
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021