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recommended it to the Council favorably. We anticipate closing on the bond issue before the end of the year. Committeemember Oliver Davis asked what the projected amount of savings was. Mr. Faccenda responded that gross savings would be an anticipated $250,000. Committeemember Davis asked what that would do for the City, to which Mr. Murphy responded that that would be money the City no longer had to pay. Committeemember Davis asked for more details. John Julien, Umbaugh & Associates, 112 Ironworks Ave, Mishawaka, IN, continued the presentation. He stated, The purpose of this is to do a recap of the financial aspects of the refunding. The first schedule gives details on the two (2) bonds that Phil mentioned that are going to be refunded. There's about $3,800,000 of debt that pays off with interest rates that range from two- point -nine percent (2.9 %) to around four- and -a -half percent (4.5 %). Those bonds pay off in probably the next ten (10) years, with final payment in January of 2027. With those interest rates, we see an opportunity for the water utility to reduce total interest cost and generate some savings. The second schedule is a recap of the budget for the project to get the refunding completed. We anticipate selling bonds here, and the week after Thanksgiving, with the principal amount of around $355,000. That may move a little bit, based upon how the market reacts with the bidding —I don't want to get too far in the weeds —but it won't go up. It may come down, if the winning bidder is bidding a premium, which means we'll pay more than a dollar for every dollar of bond. With that par amount of $3,300,000, with today's market, we've updated the analysis. We estimate that the yields on those bonds are going to be from around one- point - three- five percent (1.35 %) in the early years up to just under three percent (3 %) in the latter years. An average coupon would be about two - and -a -half percent (2.5 %). With that sort of result, we've had payments on these bonds of just under $3,800,000. As Phil mentioned, we're going to keep the payment schedule the same, we're not extending the payments, we're not shortening them up. So, they will be paid off in a little over ten (10) years. At the very first payment that we're showing there, there's a January one in 2027, where we're saving around $466,000 —don't get too excited about that. All that really is is a payment that we're going to sell and close by mid - December. Bond people don't like to get paid -off within a couple of weeks, so we're basically taking that payment and eliminating it, but you've already set aside that payment, so you're going to see down below that I'm going to net that out. When we get into the real heart of things, we're going to be saving about $40,000 to $45,000 a year as a result of this. If you add all the savings up, we're almost $900,000, but, again, some of that is false savings because we're eliminating that first payment and we're applying cash. Really, we're at a savings of about $250,000 to $260,000 of net. The present value of that in today's dollars are a little over $200,000. On a percentage basis —and we're looking at about six (6 %) or seven percent (7 %) of the par amount of the bonds we're refunding— general threshold is, if you can get two percent (2 %) or above, it's worth pursuing. We're definitely in the right neighborhood, in terms of taking advantage of this opportunity. We're in the midst of evaluating the financial strength of the water utility and we need to improve the financial position, primarily, to help with capital improvements. That $45,000 that's freed up from this refunding are dollars that will be available to help fund that $4,000,000 -plus annual capital improvement thing. So, the ordinance that is under consideration this evening is the legal step to put us in position to move forward with the refunding. The plan today is to sell probably around the 30th, right after Thanksgiving. If you've N