HomeMy WebLinkAbout0034_2_CFD 2006-1 (IA HH) 2019 Bonds - Exhibit A Good Faith EstimateATTACHMENT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the 2019Bonds in
accordance with California Government Code Section 5852.1. Such good faith estimates have
been provided to the District by Urban Futures, Inc., the District’s Municipal Advisor (the
“Municipal Advisor”) in consultation with Stifel, Nicolaus & Company, Incorporated, the
underwriter of the 2019Bonds.
Principal Amount. The Municipal Advisor has informed the District that, based on the District’s
financing plan and current market conditions, its good faith estimate of the aggregate principal
amount of the 2019Bonds to be sold is $5.23 million (the “Estimated Principal Amount”).
True Interest Cost of the 2019Bonds. The Municipal Advisor has informed the District that,
assuming that the Estimated Principal Amount of the 2019Bonds is sold, and based on market
interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the
true interest cost of the 2019Bonds, which means the rate necessary to discount the amounts
payable on the principal and interest payment dates to the purchase price received for the 2019
Bonds, is 3.90%.
Finance Charge of the 2019Bonds. The Municipal Advisor has informed the District that,
assuming that the Estimated Principal Amount of the 2019Bonds is sold, and based on market
interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the
finance charge for the 2019Bonds, which means the sum of all fees and charges paid to third
parties (or costs associated with the 2019Bonds), is $270,364.Additionally, there will be an
annual Trustee fee of approximately $1,800 for as long as the 2019Bonds are outstanding.
Amount of Proceeds to be Received. The Municipal Advisor has informed the District that,
assuming the Estimated Principal Amount of the 2019Bonds is sold, and based on market
interest rates prevailing at the time of preparation of such estimate, its good faith estimate of the
amountof proceeds expected to be received by the District for sale of the 2019Bonds, less the
finance charge of the 2019Bonds, as estimated above, and any reserves or capitalized interest
paid or funded with proceeds of the 2019Bonds, is $5.24 million.
Total Payment Amount. The Municipal Advisor has informed the District that, assuming that
the Estimated Principal Amount of the 2019Bonds is sold, and based on market interest rates
prevailing at the time of preparation of such estimate, its good faith estimate of the total
payment amount, which means the sum total of all payments the District will make to pay debt
service on the 2019Bonds, plus anyfinance charge for the 2019Bonds, as described above,
not paid with the proceeds of the 2019Bonds, calculated to the final maturity of the 2019Bonds,
is $11.13million. Additionally, there will be an annual Trustee fee of $1,800 for as long as the
2019Bonds are outstanding.
The foregoing estimates constitute good faith estimates only and are based on market
conditions prevailing at the time of preparation of such estimates. The actual principal amount of
the 2019Bonds issued and sold, the true interest cost thereof, the finance charges thereof, the
amount of proceeds received therefrom and total payment amount with respect thereto may
differ from such good faith estimates due to (a) the actual date of the sale of the 2019Bonds
being different than the date assumed for purposes of such estimates, (b) the actual principal
amount of 2019Bonds sold being different from the Estimated Principal Amount, (c) the actual
amortization of the 2019Bonds being different than the amortization assumed for purposes of
such estimates, (d) the actual market interest rates at the time of sale of the 2019Bonds being
different than those estimated for purposes of such estimates, (e) other market conditions, or (f)
alterations in the District’s financing plan, or a combination of such factors. The actual date of
sale of the 2019Bonds and the actual principal amount of 2019Bonds sold will be determined
by the District based on various factors. The actual interest rates borne by the 2019Bonds will
depend on market interest rates at the time of sale thereof. The actual amortization of the 2019
Bonds will also depend, in part, on market interest rates at the time of sale thereof. Market
interest rates are affected by economic and other factors beyond the control of the District.