CITY OF MANTECA
REFINANCING OF OUTSTANDING WATER
AND SEWER REVENUE BONDS
CITY COUNCIL MEETING – NOVEMBER 1, 2022
NOTICE:
• Savings to be updated at the City
Council meeting on 11/1/2022
based on the market.
• Interest rate locks on 11/2/2022.
ATTACHMENT 4
TABLE OF CONTENTS
Section ❶ Financing Team
Section ❷ Outstanding Bonds
Section ❸ Refinancing Plan
Section ❹ Savings Results
Section ❺ Legal Documents
Section ❻ Next Steps
Section ❼ Questions
ATTACHMENT 4
WHO IS ON THE CITY’S TEAM?
Municipal Advisor
Urban Futures Inc.
Placement Agent
Oppenheimer &
Co. Inc.
Bond Council
Jones Hall
❶Team ② ③④⑤ ⑥⑦
ATTACHMENT 4
①❷Outstanding Bonds ③④ ⑤⑥⑦
Refunded
2003A WQCF
Original Par
$35.8M
Current Balance
$23.1M
Interest Rate
5.000%
Callable:
Any Date
Phase III
Expansion
WQCF
Original Par
$19.0M
Current Balance
$19.0M
Interest Rate
4.875 – 5.750%
Callable:
12/1 or 6/1
Refunded
2003A & 2003B
WQCF
Original Par
$22.7M
Current Balance
$11.2M
Interest Rate
2.625 – 5.000%
Callable:
12/1 or after
WHAT ARE WE REFUNDING (REFINANCING)?
Water Revenue Refunding Bonds, Series 2012
Sewer Revenue Refunding Bonds, Series 2009
Sewer Revenue Refunding Bonds, Series 2012
ATTACHMENT 4
HOW ARE WE REFINANCING THE BONDS?
①②❸ Refinancing Plan ④⑤ ⑥⑦
Private Placement
Loan Agreement
Advantages
Lower Cost
Streamlined
Lock Rate Early
No Debt Service
Reserve Fund
RFP Results
Sent to 14 Banks
Six Banks Responded
1st: J.P. Morgan Chase
2nd: California Bank &
Trust
ATTACHMENT 4
HOW MUCH IS THE CITY EXPECTING TO SAVE?
①②③ ❹Savings Results ⑤⑥⑦
Average Annual Savings
$244,813
Total Savings
$2,448,129
Net Present Value
$1,985,677 | 8.57%
Average Annual Savings
$325,722
Total Savings
$4,885,830
Net Present Value
$3,515,067 | 11.61%
Average Annual Savings
$570,535
Total Savings
$7,333,959
Net Present Value
$5,467,744
Water Revenue Refunding Bonds, Series 2012
Sewer Revenue Refunding Bonds, Series 2009 & 2012
Combined Total
Interest rates to be locked on November 2, 2022.
ATTACHMENT 4
WHAT ACTION IS CITY COUNCIL CONSIDERING?
①②③ ④❺Legal Documents ⑥⑦
Resolution
Authorize Refinancing
Approved Related
Documents
Authorize City
Manager to Sign
Loan
Agreement
Water 2012 Refunding
Sewer 2009 Refunding
Sewer 2012 Refunding
Irrevocable
Refunding
Instructions
Dictates Process
ATTACHMENT 4
WHAT HAPPENS NEXT?
①②③ ④⑤❻ Next Steps ⑦
❶ November 1, 2022 Council Adopts Resolution
❷ November 2, 2022 Finalize Financing Numbers
❸ November 2-4, 2022 Finalize Loan Agreement
❹ November 17, 2022 Close Loan Agreement
❺ December 1, 2022 Call Prior Obligations
ATTACHMENT 4
QUESTIONS?
①②③ ④⑤⑥ ❼Questions
Municipal Advisor
Urban Futures Inc.
Placement Agent
Oppenheimer &
Co. Inc.
Bond Council
Jones Hall
ATTACHMENT 4