2021 REFINANCING & RESTRUCTURING

To address $450 million of the budget gap in FY2020 and $500 million in FY2021 caused by
revenue loss due to the pandemic, the City will refinance and restructure its outstanding debt

What is a Refinancing for Savings?

• The City’s refinancing for savings will Debt Refinancing

generate approximately $74 million in
savings1, which will pay for the cost of 1%
the debt restructuring
5%
4%
• The refinancing will replace the interest
rate on outstanding City bonds from 5%
to 4% Current Interest New Interest Savings from
Rate Rate Refinancing
(Expensive Debt) (Cheaper Debt)

What is a Restructuring?

• A restructuring borrows to pay for near

term debt and repays that debt over Debt Restructuring
time

• The restructuring costs $43 million1 on a

net present value basis Restructuring
$100 $105
• Combined with the $74 million of
refinancing for savings, the overall 0%
transaction will generate $31 million of FY2020 & FY2021 FY2022-2050
net present value savings1

• If federal funding becomes available, the City will not issue the debt restructuring

What is the Total Proposed Financing Package?

• The total transaction will be net present value neutral – in the current market, it
generates $31 million in net present value savings

• The transaction will result in budgetary relief of $450 million for FY2020 and $500 million
for FY2021

1 Based on current municipal bond market rates

 What Will the New Debt Profile Look Like?

$1,200 Overall Debt Service Profile

Savings in 2020 and 2021 Added Debt Service
$1,000 Current Debt Service
Projected New Debt Service Payments

$800 Added Debt Service

$600
$500M

$926M
$923M
$885M

$871M

$862M
$450M

$861M
$860M
$860M
$860M

$859M
$857M
$852M
$840M

$835M

$728M
$400

$602M

$550M
$550M

$550M
$381M
$381M
$200

$233M
$233M
$233M
$233M
$233M
$227M
$206M

$0

Fiscal Year

$300
Transaction Debt Service Impact (Future Value)
$200

$90M
$88M
$88M
$80M
$80M
$80M
$80M
$80M
$80M
$80M
$71M
$70M
$68M
$61M
$55M

$207M
$207M
$207M
$40M
$40M

$40M
$40M
$40M

$40M
$36M
$10M

$100
$1M
Debt Service Payments

-
($22M)
($25M)

($100)
($450M)

($200)
($500M)

($300)
The refunding results in upfront
($400) savings of nearly $1 billion

($500)

($600)

Fiscal Year

$300
Transaction Debt Service Impact (Present Value)
$200
$66M
$64M
$61M
$43M
$40M
$39M
$37M
$37M
$36M

$35M
$34M
$34M

$34M
$33M

$33M
$32M
$32M

$31M
$30M

$30M
$29M
$28M

$28M
$27M
$26M
$10M

$100
$1M
Present Value Debt Service Payments

-
($15M)
($16M)

($100)
($450M)
($480M)

($200)

($300)
The refunding results in upfront - $1 today is worth more than $1 tomorrow
($400) savings of nearly $1 billion - $1 of costs in 30 years is only 29¢ today
- Because of this, the transaction overall has
($500)
present value savings of $31M
($600)

Fiscal Year