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1200N County-City Building � `Nh '1/ Phone 574/235-9216 <br /> 227 W.Jefferson Blvd. :• �\ �j 2\`: TTY 574/235-5567 <br /> "\ " d Fax 574/235-9928 <br /> South Bend,Indiana 46601-1530 :se �.� ce% - l; <br /> 1\111 417$ <br /> 1865 R <br /> CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR <br /> DEPARTMENT OF ADMINISTRATION AND FINANCE <br /> November 4, 2015 <br /> Mr.Tim Scott <br /> President, South Bend Common Council <br /> 4d'Floor County-City Building <br /> 227 W.Jefferson Blvd. <br /> South Bend, IN 46601 <br /> Re: 2015 Sewage Works Refunding Bond Ordinance <br /> Dear Council President Scott: <br /> The attached Bond Ordinance approves the refunding of all of the City's outstanding 2006,2007 and 2007B <br /> Sewage Works Bonds. Piper Jaffray, the City's placement agent,anticipates a reduction in the current 4.45% <br /> average interest rate to approximately 2.25%. Per their preliminary analysis,this should create a gross interest <br /> cost savings of approximately$3 million and a net present value savings of approximately$1.7 million. Piper <br /> Jaffray also expects that the refunding bonds will be sold to a bank and that no debt service reserve for the bonds <br /> will be required.As such, funds in the City's existing common debt service reserve will be freed up to be used on <br /> the refunding. By applying the excess funds in the existing debt service reserve to the refunding,the Refunding <br /> Bonds may be structured with a final payment of December 1,2025; a pay-off one year earlier than the <br /> December 1,2026 final maturity of the 2006 Bonds and two years earlier than the existing December 1, 2027 <br /> final maturity of the 2007 bonds being refunded. <br /> This bill is submitted for 1st read filing with the Common Council for the council meeting on November 9,2015; <br /> 2"d reading,public hearing and 3rd reading at the council meeting on November 23, 2015. <br /> I will be available to discuss this bill at the appropriate sessions of the Personnel and Finance Committee and <br /> other meetings of the South Bend Common Council. The City's bond counsel and financial advisor will also be <br /> available to answer questions regarding this ordinance. <br /> Respectively submitted, <br /> Fired <br /> Jo Murphy <br /> City Controller <br /> vl�re, LI Vv <br />