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55A - RESO - GAS TAX BONDS
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11/05/2019
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55A - RESO - GAS TAX BONDS
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Last modified
10/30/2019 12:55:49 PM
Creation date
10/30/2019 11:40:51 AM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
55A
Date
11/5/2019
Destruction Year
2024
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EXHIBIT A <br />GOOD FAITH ESTIMATES <br />The good faith estimates set forth herein are provided with respect to the Bonds in <br />accordance with California Government Code Section 5852.1. Such good faith estimates <br />have been provided to the City by Urban Futures, Inc. as municipal advisor to the City <br />(the "Municipal Advisor"), each with respect to the Bonds. <br />Principal Amount. The Municipal Advisor has informed the City that, based on <br />the City's financing plan and current market conditions, its good faith estimate of the <br />aggregate principal amount of the Bonds to be sold is $44,125,000 (the "Estimated <br />Principal Amount"). <br />True Interest Cost of the Bonds. The Municipal Advisor has informed the City <br />that, assuming that the Estimated Principal Amount of the Bonds is sold, and based on <br />market interest rates prevailing at the time of preparation of such estimate, its good faith <br />estimate of the true interest cost of the Bonds, which means the rate necessary to <br />discount the amounts payable on the respective principal and interest payment dates to <br />the purchase price received for the Bonds, is 2.74%. <br />Finance Charge of the Bonds. The Municipal Advisor has informed the City that, <br />assuming that the Estimated Principal Amount of the Bonds is sold, and based on market <br />interest rates prevailing at the time of preparation of such estimate, its good faith estimate <br />of the finance charge for the Bonds, which means the sum of all fees and charges paid <br />to third parties (or costs associated with the Bonds), is $878,386. <br />Amount of Proceeds to be Received. The Municipal Advisor has informed the <br />City that, assuming that the Estimated Principal Amount of the Bonds is sold, and based <br />on market interest rates prevailing at the time of preparation of such estimate, its good <br />faith estimate of the amount of proceeds expected to be received by the City for sale of <br />the Bonds, less the finance charge of the Bonds, as estimated above, and any reserve <br />fund funded with proceeds of the Bonds, is $52,918,396. <br />Total Payment Amount. The Municipal Advisor has informed the City that, <br />assuming that the Estimated Principal Amount of the Bonds is sold, and based on market <br />interest rates prevailing at the time of preparation of such estimate, its good faith estimate <br />of the total payment amount, which means the sum total of all payments the City will make <br />to pay debt service on the Bonds, plus the finance charge for the Bonds, as described <br />above, not paid with the proceeds of the Bonds, calculated to the final maturity of the <br />Bonds, is $69,314,590. <br />The foregoing estimates constitute good faith estimates only. The actual principal <br />amount of the Bonds issued and sold, the true interest cost thereof, the finance charges <br />thereof, the amount of proceeds received therefrom and total payment amount with <br />respect thereto may differ from such good faith estimates due to (a) the actual date of the <br />sale of the Bonds being different than the date assumed for purposes of such estimates, <br />55394.00055\32329888.4 55.41-11 <br />
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