Loading...
Combination Tax Revenue Handout 04-30-18 Town of Westlake, Texas Combination Tax and Revenue Certificates of Obligation, Series 2018 (State Water Implementation Fund for Texas – TWDB) April 30, 2018  Sample Payment Schedule  Estimated Impact on I&S Tax Rate (unless other repayment sources used)  Sample Schedule of Events Registered Municipal Advisor and Texas Securities Dealer (512) 375-3424 (Phone) (512) 582-8259 (Fax) tlawrence@lfctexas.com (email) www.lfctexas.com (website) Town of Westlake, Texas Combination Tax and Revenue Certificates of Obligation, Series 2018 (Texas Water Development Board - SWIFT Program) Preliminary; subject to change Debt Service Schedule Date Principal Coupon Interest Total P+I 09/30/2019 5,000.00 1.080%31,056.38 36,056.38 09/30/2020 95,000.00 1.130%43,120.25 138,120.25 09/30/2021 100,000.00 1.200%41,983.50 141,983.50 09/30/2022 100,000.00 1.280%40,743.50 140,743.50 09/30/2023 100,000.00 1.400%39,403.50 139,403.50 09/30/2024 100,000.00 1.510%37,948.50 137,948.50 09/30/2025 100,000.00 1.600%36,393.50 136,393.50 09/30/2026 105,000.00 1.710%34,695.75 139,695.75 09/30/2027 105,000.00 1.790%32,858.25 137,858.25 09/30/2028 105,000.00 1.870%30,936.75 135,936.75 09/30/2029 110,000.00 2.010%28,849.50 138,849.50 09/30/2030 110,000.00 2.180%26,545.00 136,545.00 09/30/2031 110,000.00 2.330%24,064.50 134,064.50 09/30/2032 115,000.00 2.480%21,357.00 136,357.00 09/30/2033 115,000.00 2.560%18,459.00 133,459.00 09/30/2034 120,000.00 2.630%15,409.00 135,409.00 09/30/2035 120,000.00 2.680%12,223.00 132,223.00 09/30/2036 125,000.00 2.720%8,915.00 133,915.00 09/30/2037 130,000.00 2.760%5,421.00 135,421.00 09/30/2038 130,000.00 2.790%1,813.50 131,813.50 Total $2,100,000.00 -$532,196.38 $2,632,196.38 Yield Statistics Bond Year Dollars $22,448.33 Average Life 10.690 Years Average Coupon 2.3707612% Net Interest Cost (NIC)2.3707612% True Interest Cost (TIC)2.3482077% Bond Yield for Arbitrage Purposes 2.3482077% All Inclusive Cost (AIC)2.5843672% IRS Form 8038 Net Interest Cost 2.3707612% Weighted Average Maturity 10.690 Years 2018 CO | SINGLE PURPOSE | 4/26/2018 | 1:44 PM Lawrence Financial Consulting LLC Registered Municipal Advisor & Texas Securities Dealer Page 1 TOWN OF WESTLAKE, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2018 ESTIMATED I&S TAX RATE IMPACT (Excerpt from TWDB SWIFT Application) Total outstanding Ad Valorem Tax GO Debt as of 9/30/17 : 2017-18 Taxable Assessed Valuation Used for All Years: Annual I&S Tax Collection Ratio based on historical figures: Outstanding $2,100,000 CO, Series 2018 Gross Net Pro Forma FYE GO Debt (Proposed TWDB Financing)* Annual GO Annual GO I&S 9/30 (Bonds, COs)Principal Interest Total Debt Service(1)Debt Service(2)Tax Rate 2018 2,743,182$ -$ -$ -$ 2,743,182$ 277,700$ $0.02482 (actual rate) 2019 2,745,115 5,000 31,056 36,056 2,781,172 286,819 0.02594 2020 2,749,844 95,000 43,120 138,120 2,887,964 428,461 0.03875 2021 2,743,925 100,000 41,984 141,984 2,885,908 435,626 0.03940 2022 2,747,188 100,000 40,744 140,744 2,887,932 433,517 0.03921 2023 2,743,659 100,000 39,404 139,404 2,883,063 436,351 0.03946 2024 2,747,246 100,000 37,949 137,949 2,885,195 429,167 0.03881 2025 2,491,063 100,000 36,394 136,394 2,627,456 436,708 0.03950 2026 2,491,829 105,000 34,696 139,696 2,631,525 449,506 0.04065 2027 2,484,557 105,000 32,858 137,858 2,622,415 441,726 0.03995 2028 2,489,165 105,000 30,937 135,937 2,625,102 438,781 0.03968 2029 2,495,983 110,000 28,850 138,850 2,634,832 283,514 0.02564 2030 2,489,122 110,000 26,545 136,545 2,625,667 284,861 0.02576 2031 2,494,731 110,000 24,065 134,065 2,628,796 285,865 0.02585 2032 2,481,444 115,000 21,357 136,357 2,617,801 136,357 0.01233 2033 983,619 115,000 18,459 133,459 1,117,078 133,459 0.01207 Ad Valorem I&S Tax Supported GO Debt $36,207,000 $1,105,675,661 100% 2033 983,619 115,000 18,459 133,459 1,117,078 133,459 0.01207 2034 986,269 120,000 15,409 135,409 1,121,678 135,409 0.01225 2035 988,019 120,000 12,223 132,223 1,120,242 132,223 0.01196 2036 988,869 125,000 8,915 133,915 1,122,784 133,915 0.01211 2037 984,613 130,000 5,421 135,421 1,120,034 135,421 0.01225 2038 983,478 130,000 1,814 131,814 1,115,292 131,814 0.01192 2039 984,550 - - - 984,550 - 0.00000 2040 983,700 - - - 983,700 - 0.00000 2041 985,800 - - - 985,800 - 0.00000 2042 986,500 - - - 986,500 - 0.00000 2043 985,800 - - - 985,800 - 0.00000 2044 508,400 - - - 508,400 - 0.00000 2045 509,600 - - - 509,600 - 0.00000 2046 510,000 - - - 510,000 - 0.00000 Totals 51,507,269$ 2,100,000$ 532,196$ 2,632,196$ 54,139,466$ 6,287,197$ Source: the Town's audited financial statements and number runs prepared by its financial advisor. (1) Although all of the debt reflected in the above table is secured by a pledge of I&S ad valorem taxes, the Town has historically paid most of such debt from other sources (primarily sales tax revenues). The only financings currently being paid from ad valorem tax revenues are the Town's 2011 Certificate of Obligation and 2013 Refunding Bonds which had a combined outstanding principal balance of $3,177,000 as of 09/30/2017, the debt service for which is included under "Net Annual GO Debt Service." (2) Includes debt service on the Town's 2011 Certificates of Obligation and 2013 Refunding Bonds, the only Town financings currently being paid from I&S ad valorem tax revenues. Beginning in fiscal year ending 9/30/2019, also includes debt service on the 2018 CO to be sold to TWDB thereby showing the maximum possible impact such debt service may have on the Town's I&S tax rate. * Preliminary (based on assumed net interest cost rate of 2.37%); subject to change. Page 2 TOWN OF WESTLAKE, TEXAS CERTIFICATES OF OBLIGATION, SERIES 2018 State Water Implementation Fund for Texas (TWDB) SAMPLE SCHEDULE OF EVENTS(1) Council Meeting Dates Highlighted Action Option 1 Option 2 Council Approves Reimbursement Resolution 04/30/18 04/30/18 Council Approves Resolution Authorizing Publication of Notice of Intent to Issue COs 08/27/18 09/24/18 First Publication of Notice of Intent to Issue COs (2)08/29/18 09/26/18 Bond Council submits CO documents (including PPM) to TWDB 08/29/18 09/26/18 Second Publication of Notice of Intent to Issue COs 09/05/18 10/03/18 Interest Rate Established and Final Numbers Distributed 09/17/18 10/22/18 Council Adopts Ordinance Approving Sale of COs & PPM 09/24/18 10/29/18 Bond Counsel Submits Transcript to AG for Review 09/27/18 11/01/18 Closing Memorandum Distributed to Working Group 10/01/18 11/05/18 Attorney General Approval of COs 10/29/18 11/26/18 Closing (45 days after TWDB sets interest rates and within 30 days of TWDB's closing of SWIRFT bonds)(1)11/01/18 11/29/18 (1) Final schedule will depend on the closing date for the SWIRFT bonds issued by the Texas Water Development Board, which date is currently unknown. (2) At least 31 days before sale. Page 3 Lawrence Financial Consulting LLC 4/26/2018