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SOUTH BEND (INDIANA) REDEVELOPMENT AUTHORITY
<br />(Cont'd)
<br />GENERAL COMMENTS
<br />Estimated Sources and Uses of Funds for the Taxable Lease Rental
<br />Acquisition and Refunding Revenue Bonds of 1993 -Paae B-8 '
<br />The anticipated costs of refunding the outstanding Taxable 1991 Bonds and funding the Improvements
<br />are listed in this schedule as estimated by the Underwriter and other professionals involved in the '
<br />refunding. The total expected costs of the refunding program amount to $5,089,039 and include
<br />$4,347,541 for the purchase of federal securities, $198,900 cash deposit to the escrow account, $171,559
<br />in issuance and underwriting costs, and $311,516 for costs associated with the Improvements. The ,
<br />accrued interest, estimated at $24,523, together with approximately $35,000 of funds on hand in the Bond
<br />Interest Account of the Construction Fund for the Taxable 1991 Bonds, will be deposited in the Sinking
<br />Fund of the Taxable 1993 Bonds at the time of closing. The expected costs of the refunding will be
<br />financed from the proceeds of $4,905,000 of Taxable 1993 Bonds and $124,516 of funds on hand '
<br />currently remaining in the Construction Account for the Taxable 1991 Bonds which will be transferred
<br />into the Construction Fund for the Taxable 1993 Bonds to provide additional funds for Improvement
<br />costs. ~,
<br />As a separate transaction, apart from the Taxable 1993 Bonds and the Lease with the Authority, the
<br />Commission intends to use approximately $100,000 of Tax Increment surplus, currently held in its ~'
<br />Principal and Interest Account, to pay for public improvements and additional land acquisition costs in
<br />the EDA in conjunction with the Improvements by the Authority. _
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<br />The federal securities to be purchased and depos o
<br />will be scheduled to mature at such times and in such amounts so as to provide for the scheduled principal
<br />and interest payments and redemption premium due on the outstanding Taxable 1991 Bonds to and
<br />including September 1, 1993, when the Taxable 1991 Bonds are expected to be redeemed. On September
<br />1, 1993, the remaining principal of the Taxable 1991 Bonds will be redeemed by the Trustee at a o
<br />redemption price equal to 103 percent of the principal amount, plus accrued interest.
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<br />Schedule of Amortization of $4.905.000 of Taxable Lease Rental
<br />Acquisition and Refunding_Revenue Bonds of 1993 -Page B-9
<br />D ,
<br />The amortization, as provided by the Underwriter, of the $4,905,000 of Taxable 1993 Bonds is presented
<br />in this schedule. The Taxable 1993 Bonds will mature serially over a,period of approximately nineteen
<br />years and one month ending August 1, 2012, at interest rates resulting from the negotiated sale to the
<br />Underwriter. A net effective interest rate of 7.252139 percent is shown. The interest and principal are
<br />scheduled to be payable semi-annually, with the first interest payment on February 1, 1994 and principal
<br />1994
<br />inning August 1
<br />ayments be ,
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<br />Analysis of Lease Payments on the Taxable 1993 Bonds and Existing Bonds and
<br />Estimated Tax Increment -Paae B-10 ,
<br />The Commission anticipates that Tax Increment will be sufficient to meet the Lease Rental Requirement
<br />on the Taxable 1993 Bonds during the time the Taxable 1993 Bonds are outstanding. In the event the ,
<br />Tax Increment on deposit, or anticipated to be on deposit, in the Principal and Interest Account is
<br />estimated to be insufficient to meet the Lease Rental due in a 12 month period following July 1 of the
<br />next calendar year, the Commission must levy a debt service rate sufficient to meet the annual Lease ,
<br />Rental. Based on the current net assessed value of $623,329,408 of the Redevelopment District, the
<br />Commission would need to levy a debt service rate of $0.0016 per $100 assessed value for every $10,000
<br />of annual Lease Rental needed (disregarding the effect of excise tax).
<br />(Continued on next page)
<br />B-3 ,
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