HomeMy WebLinkAboutRES NO 007-2020RESOLUTION NO. 007-2020
A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOTI TO
EXCEED $14,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF CITY OF
BAKERSFIELD, CALIFORNIA WASTEWATER REVENUE REFUNDING
BONDS SERIES 2020A, APPROVING A FIFTH SUPPLEMENTAL TRUST
INDENTURE, PRELIMINARY AND FINAL OFFICIAL STATEMENTS, A
FORWARD - DELIVERY BOND PURCHASE CONTRACT, AN , ESCROW
AGREEMENT, AND A CONTINUING DISCLOSURE CERTIFICATE AND
AUTHORIZING AND DIRECTING ADDITIONAL ACTIONS � IN
CONNECTION WITH THE ISSUANCE OF THE REVENUE REFUNDING
BONDS.
(Wastewater Revenue Refunding Bonds Series 2020A)
WHEREAS, the City of Bakersfield (the "City") is a charter city organized and. existing
under the laws of the State of California (the "State"); and
WHEREAS, the City now owns and operates a municipal sewer system (the
"Enterprise"); and
WHEREAS, the City Council (the "Council") of the City, acting under and pursuant to
the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the
State of California and Section 33.3 of the Charter of the City, has enacted the City of
Bakersfield Enterprise Revenue Bond Law (the "Law"), being Chapter 3.55 of the Municipal
Code of the City, which incorporates, to the extent made applicable by the Law, the Revenue
Bond Law of 1941, being Chapter 6 of Division 2 of Title 5 of the California Government Code,
as enacted and as thereafter amended; and
WHEREAS, the Law authorizes the City to issue enterprise revenue bonds for the
purposes set forth therein; and
WHEREAS, the City has determined that it is necessary and advisable to issue, from time
to time, one or more series of Bonds (as defined in the Master Trust Indenture, dated as of
August 1, 2007 (the "Master Trust Indenture"), by and between the City and U.S. Bank National
Association (the "Trustee")) for the purposes set forth in the Law and the Master Trust Indenture,
and that such Bonds be payable from and secured by Net Revenues (as defined in the Master
Trust Indenture); and
WHEREAS, the City previously issued its City of Bakersfield, California Wastewater
Revenue Refunding Bonds, Series 2015A (the "Series 2015A Bonds") in the initial aggregate
principal amount of $145,500,000; and
WHEREAS, the City has determined that it is in its best interest to issue one or more
series of Bonds in an aggregate principal amount not to exceed $14,000,000 for the purpose of
refunding a portion of the outstanding Series 2015A Bonds (the "Series 2015A Refunded
Bonds"), which the City expects will result in debt service savings to the City; and
4830-5389-3294.2
>- m
JORIG NAL
WHEREAS, the City has determined that the bonds issued to refund the
Refunded Bonds shall be designated as the City of Bakersfield, California Waste
Refunding Bonds, Series 2020A (the "Series 2020A Bonds"); and
WHEREAS, the City has determined that it is in its best interest to also
available funds on hand to refund the Series 2015A Refunded Bonds; and
WHEREAS, the City has previously entered into the State Revolving
Program Contract No. 7-806-550-0, dated as of September 3, 1997 (the "State Lc
between the City, and the State, acting through the State Water Resources Contr(
"State Water Board") whereby the City borrowed $14,954,054 from the State Rei
Loan Program to pay a portion of the costs and expenses of an upgrade and exp;
Enterprise's Wastewater Treatment Plant 2; and
WHEREAS, pursuant to the State Loan, the City has granted to the State a
not necessarily an exclusive lien) on and pledge of the Net Revenues; and
WHEREAS, under the terms of the State Loan, the City may create a ch,
the Net Revenues on a parity with or subordinated to the charge or lien of the State
WHEREAS, the Series 2020A Bonds will be issued on a parity with the
the Series 2015A Bonds (that remain outstanding after the issuance of the Series
and
;s 2015A
Revenue
legally
Fund Loan
n"), by and
Board (the
)lving Fund
ision to the
lien (but
or lien on
n: and
Loan and
� Bonds);
WHEREAS, the Series 2020A Bonds will be issued pursuant to the Law, certain other
provisions of the laws of the State (including Section 53580 et seq. of the California Government
Code), the Master Trust Indenture and the Fifth Supplemental Indenture (as hereinafter defined);
and
WHEREAS, the Series 2020A Bonds will be issued so that the interest aid on the
Series 2020A Bonds will be excludable from the gross income of the recipients thereof under the
varying provisions of the Internal Revenue Code of 1986, as amended, and the regulations
promulgated thereunder or related thereto (collectively, the "Code"); and
WHEREAS, City staff has recommended the selection of U.S. Bank National Association
to act as escrow agent (the "Escrow Agent") under the Escrow Agreement (as hereinafter
defined); and
WHEREAS, City staff has recommended the selection of Raymond James & Associates,
Inc. to act as the underwriter of the Series 2020A Bonds (the "Underwriter"); and
WHEREAS, there have been prepared and submitted to the City Clerk for
of this Council forms of the following documents:
(a) a form of the Fifth Supplemental Trust Indenture (the "Fifth Supplemental
Indenture"), to be entered into by and between the City and the Trustee;
. 2
4830-5389-3294.2
JOR GENAL
(b) a form of the Preliminary Official Statement (the "Prelim
Statement") relating to the issuance of the Series 2020A Bonds;
Official
(c) a form of the Forward Delivery Bond Purchase Contract (the "Forward
Delivery Bond Purchase Contract"), to be entered into by and between the Underwriter
and the City with respect to the purchase and sale of the Series 2020A Bonds;
(d) a form of the Escrow Agreement (the "Escrow Agreement"), by and
between the City and U.S. Bank National Association, as Trustee and Escrow Agent, to
be entered into with respect to the Series 2015A Bonds; and
(e) a form of a Continuing Disclosure Certificate (the
Disclosure Certificate"), to be entered into by the City; and
WHEREAS, said documents will be modified and amended to reflect the various details
applicable to the Series 2020A Bonds and said documents are subject to completion ti reflect the
results of the sale of the Series 2020A Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
as follows:
Section 1. Issuance of Series 2020A Bonds; Terms of Series 2020A Bonds. For
the purposes set forth in the foregoing recitals, the City hereby authorizes the issuance of its
Series 2020A Bonds in an aggregate principal amount not to exceed $14,000,000, plus the
amount of any original issue premium (subject to the limitations set forth in this Resolution) at
which the Series 2020A Bonds may be sold. The proceeds from the sale of the Series 2020A
Bonds, and any other moneys made available in connection with the refunding of the Series
2015A Bonds, shall be used to pay the costs of issuance and to fund an escrow fund to pay the
principal and interest on the Series 2015A Refunded Bonds on the applicable redemption date.
In addition to the above use of the Series 2020A Bonds proceeds, the proceeds from the Series
2020A Bonds may be used to fund a reserve fund for the Series 2020A Bonds and/or purchase a
reserve fund surety policy, and pay for a municipal bond insurance policy relating to the Series
2020A Bonds, if it is determined by the Finance Director of the City that bond insurance results
in savings to the City.
The Series 2020A Bonds shall be in fully registered form and may be issued as Book
Entry Bonds as provided for in the Master Trust Indenture and the Fifth Supplemental Indenture.
Payment of principal of and interest on the Series 2020A Bonds shall be made at the place or
places and in the manner provided in the Master Trust Indenture and the Fifth Supplemental
Indenture.
The Series 2020A Bonds shall be issued as current interest bonds and shall) be initially
available in denominations of $5,000 and integral multiples thereof. The Series 2020A Bonds
shall, when issued, be in the aggregate principal amounts and shall be dated as shall Abe provided
in the final form of the Fifth Supplemental Indenture. The Series 2020A Bonds may be issued as
serial bonds and/or term bonds or as both serial bonds and term bonds, all as set forth in the
Master Trust Indenture and the Fifth Supplemental Indenture. Except as otherwise permitted
under this Resolution, the maximum true interest cost calculation on the Series 2020A Bonds
3 ��AKF9�
4830-5389-3294.2 O P
m
r-
_ c7 b
ORiGiNAL
shall not exceed 3.50% per annum. Interest on the Series 2020A Bonds shall be I
dates set forth in the Master Trust Indenture and the Fifth Supplemental Indenture.
2020A Bonds shall mature no later than September 15, 2032. The Series 2020A Boi
sold in a manner by which the interest thereon is excludable from gross income unde.
The Series 2020A Bonds shall be subject to optional redemption at the option of the C
terms and conditions as shall be set forth in the Master Trust Indenture and
Supplemental Indenture. The Series 2020A Bonds which are term bonds shall also b
mandatory sinking fund redemption as shall be set forth in the Master Trust Indenti�
Fifth Supplemental Indenture.
Section 2. Pledge to Secure the Series 2020A Bonds. The City hereby,
pledge of Net Revenues to secure the Series 2020A Bonds in accordance with the l
Indenture and the Fifth Supplemental Indenture. The City hereby agrees that it will
as the Series 2020A Bonds remain outstanding, grant or attempt to grant, any parity
or other interest in the Net Revenues to secure any other obligations of the Enterpri.,
permitted in the Master Trust Indenture.
Section 3. Special Obligations. The Series 202OA Bonds shall
obligations of the City, secured by, and payable from, Net Revenues and from tf
accounts held by the Trustee and the City under the Master Trust Indenture a
Supplemental Indenture, as and to the extent therein described. The Series 2020A
also be secured by and be paid from such other sources as the City may hereafter pro
Section 4. Forms of Series 2020A Bonds. The Series 2020A Boi
Trustee's Certificate of Authentication to appear thereon shall be in substantially
forth in Exhibit A to the Fifth Supplemental Indenture with necessary or appropria
omissions and insertions as permitted or required by the Master Trust Indenture
Supplemental Indenture or as appropriate to adequately reflect the terms of the
Bonds and the obligation represented thereby.
Section 5. Execution of the Series 2020A Bonds. Each of the Series 21
shall be executed by the Mayor or the City Manager of the City (each a "Designat
and attested by the Finance Director or Clerk of the City. Any such signatures
manual or facsimile signature and the seal of the City may be impressed or pri
Series 2020A Bonds. Additionally, each of the Series 2020A Bonds shall be auth
the signature of the Trustee or an agent of the Trustee as required and permitted b,
Trust Indenture and the Fifth Supplemental Indenture. Any facsimile signati
Designated Officer of the City shall be of the same force and effect as if such sig
manually placed on such Series 2020A Bonds.
Section 6. Approval of Bond Documents; Authorization for Exec
forms, terms and provisions of the Fifth Supplemental Indenture, the Escrow Ag
Forward Delivery Bond Purchase Contract and the Continuing Disclosure
(collectively, the "Bond Documents") are in all respects approved and the Mayor of
City Manager, the Finance Director of the City, the City Attorney and such other o1
specified by each of the respective Bond Documents (together with any designee i
any such officer; all references hereinafter in this resolution to any officer of the (
0
4830-5389-3294.2
Id on the
'he Series
Is may be
the Code.
y on such
the Fifth
subject to
-e and the
proves the
ester Trust
ot, so long
ledge, lien
, except as
e special
funds and
the Fifth
onds shall
s and the
e form set
variations,
r the Fifth
•ies 2020A
20A Bonds
d Officer")
may be by
lted on the
nticated by
the Master
re of such
iature were
tion. The
;ement, the
Certificate
he City, the
icers as are
i writing of
ity shall be
ORGNAL
deemed to include any designee in writing of such officer) are hereby authorized, empowered
and directed to execute, acknowledge and deliver each of the Bond Documents including
counterparts thereof, in. the name and on behalf of the City. The Bond Documents, as executed
and delivered, shall be in substantially the forms now before this meeting and hereby approved,
or with such changes therein (including any changes required by a municipal bond insurer or
insurers (if any) in order to obtain a municipal bond insurance policy or policies (ii any) with
respect to the Series 2020A Bonds or a reserve fund surety policy or policies (if any)) as shall be
approved by the officer or officers of the City executing the same; the execution thereof shall
constitute conclusive evidence of the City's approval of any and all changes or revisions therein
from the forms of the Bond Documents now before this meeting; and from and after the
execution and delivery of the Bond Documents, the officers, agents and employees�of the City
are hereby authorized, empowered and directed to do all such acts and things and to'execute all
such documents as may be necessary to carry out and comply with the provisions of the Bond
Documents.
Section 7. Sale of the Series 2020A Bonds. The sale of the Series 2020A Bonds is
hereby approved through a private, negotiated sale to the Underwriter. The Mayor hof the City,
the City Attorney, the City Manager and the Finance Director of the City, or any one of them, are
hereby authorized to approve the final terms of the sale of the Series 2020A Bonds subject to the
terms, conditions and restrictions set forth in this Resolution.
The Series 2020A Bonds shall be sold with an underwriter's discount and/or underwriting
fee as set forth in the Forward Delivery Bond Purchase Contract, in an amount not to exceed
0.7% of the aggregate principal amount of the Series 2020A Bonds, and subject to the terms and
conditions set forth in the Forward Delivery Bond Purchase Contract. Additionally, the Series
2020A Bonds may be sold to the Underwriter at a discount or a premium.
Section S. Approval of Preliminary Official Statement. The Preliminary Oficial
Statement, substantially in the form presented to this meeting, is in all respects hereby approved
to be used in conneption with the offering and sale of the Series 2020A Bonds to the public. The
Preliminary Official Statement shall be in substantially the form now before this meeting and
hereby approved, or with such changes therein as shall be approved by the Mayor of the City, the
City Manager and the Finance Director of the City, or any one of them.
The Preliminary Official Statement shall be circulated (via printed fo>mat and/or
electronic means) for use in offering and selling the Series 2020A Bonds at such tim
the Mayor of the City, the City Manager, the Finance Director of the City, or any
(after consultation with the City's financial/municipal advisors, bond counsel an
counsel and such other advisors the City believes to be useful), shall determ
Preliminary Official Statement is final within the meaning of Rule 15c2-12 promu
the Securities Exchange Act of 1934, as amended ("Rule 15c2-12"), except for the
certain information described in paragraph (b)(1) of Rule 15c2-12, and any
previously taken is hereby confirmed, ratified and approved. The Underwrite
authorized to distribute (via printed format and/or electronic means) the Prelimir
Statement, in connection with the offering and sale of the Series 2020A Bonds to the
5
4830-5389-3294.2
or times as
ne of them
disclosure
to that the
sated under
mission of
uch action
is hereby
ry Official
ublic.
ORIG;NAL
Section 9. Approval of Official Statement. Prior to the final delivery o
2020A Bonds, the City shall provide for the preparation, publication, execution and
the final Official Statement relating to the Series 2020A Bonds in substantially the
draft Preliminary Official Statement presented to this meeting. _ The Mayor of the Ci
Manager, the Finance Director of the City, or any one of them, are hereby autl
directed to execute and deliver the final Official Statement, and any supplements the
name of and on behalf of the City, and to make any changes or revisions neces
Preliminary Official Statement in order for the final Official Statement relating tc
2020A Bonds to meet the requirements of the City under the Forward Delivery Bor.
Contract. The execution thereof shall constitute conclusive evidence of the City's
any and all changes or revisions therein from the form of the Preliminary Oficial Stai
before this meeting. The Official Statement shall be circulated (via printed for
electronic means) for use in selling the Series 2020A Bonds at such time or times as
of the City, the City Manager, the Finance Director of the City, or any one of
consultation with the City's financial advisor, bond counsel and disclosure couns(
other advisors the City believes to be useful), shall determine that the Official Statem
to the Series 2020A Bonds is each a "final official statement" within the meaning of'I
12. The Underwriter is hereby authorized to distribute (via printed format and/o
means) the Official Statement, in connection with the sale of the Series 2020A B
public.
"the Series
delivery of
orm of the
.y, the City
orized and
reto, in the
,ary to the
the Series
d Purchase
amroval of
ement now
mat and/or
the Mayor
.hem (after
1 and such
mt relating
Rule 15c2 -
electronic
)nds to the
As required by the Forward Delivery Bond Purchase Agreement, prior to the delivery of
the Series 2020A Bonds, the City shall provide, if necessary, for one or more supplements to the
final Official Statement or a revised final Official Statement reflecting updated and revised
information as shall be acceptable to the Underwriter, as well as the Mayor of the City, the City
Manager and the Finance Director of the City, or any one of them. The Mayor of the City, the
City Manager, the Finance Director of the City, or any one of them, are hereby authorized and
directed to execute, if necessary, any supplement to the final Official Statement or revised final
Official Statement in the name and on behalf of the City, and to make any changes or revisions
necessary to the final Official Statement in order for such supplement to the final Official
Statement or revised final Official Statement to meet the requirements of the City under the
Forward Delivery Bond Purchase Agreement. The execution thereof shall constitute conclusive
evidence of the City's approval of any and all changes or revisions therein from the !form of the
final Official Statement.
Section 10. Paying Agent and Registrar. The City hereby appoints U.S. Bank
National Association as paying agent (the "Paying Agent") and as registrar (the "Registrar") for
the Series 2020A Bonds. Such appointments shall be effective upon the issuance of the
Series 2020A Bonds, respectively, and shall.remain in effect until the City shall, by supplemental
agreement or by resolution, name a substitute or successor thereto.
Section 11. Escrow Agent. The City hereby appoints U.S. Bank National
Association, as the Escrow Agent, in connection with the current refunding and defeasance of the
Series 2015A Refunded Bonds. Such appointment shall be effective upon the execution and
delivery of the Escrow Agreement and shall remain in effect until the City shall, by resolution,
name a substitute or successor thereto.
6 o�0AKF9�
4830-5389-3294.2
JOaiGNALL
Section 12. Authorization for Provision for Reserve Fund. If determined by the
Finance Director of the City to be necessary or desirable, a portion of the proceeds of the Series
2020A Bonds may be used to fund a reserve fund for the Series 2020A Bonds, or to pay the costs
of a reserve fund surety bond or any other security device for a debt service reserve foind,as may
be provided for in the Fifth Supplemental Indenture.
Section 13. Additional Authorization. The Mayor of the City, the City Mlanager, the
Finance Director of the City, the City Attorney and all officers, agents and employees of the
City, for and on behalf of the City, be and they hereby are authorized and directed to do any and
all things necessary to effect the execution and/or delivery of the Series 2020A Bonds, the Bond
Documents, the Preliminary Official Statement and the final Official Statement and to carry out
the terms thereof. The Mayor of the City, the City Manager, the Finance Director of the City, the
City Attorney and all. other officers, agents and other employees of the City are further
authorized and directed, for and on behalf of the City, to execute all papers, documents,
certificates and other instruments that may be required in order to carry out the authority
conferred by this Resolution and by the Series 2020A Bonds, the Bond Documents, the
Preliminary Official Statement and the final Official Statement or to evidence the same authority
and its exercise. The foregoing authorization includes, but is in no way limited to, (i) authorizing
City staff to pay costs of issuance of the Series 2020A Bonds and the underwriting fees,
(ii) authorizing the Finance Director of the City to direct the investment of the proceeds of the
Series 2020A Bonds in one or more of the permitted investments provided for under,the Master
Trust Indenture and the Fifth Supplemental Indenture (including, but not limited to, i investment
agreements) and to execute any documents relating to such investments, and (iii) authorizing the
execution by the Mayor of the City, the City Manager, the Finance Director of the City, or any of
them, of a tax compliance certificate as required by the Master Trust Indenture and the Fifth
Supplemental Indenture for the purpose of complying with the arbitrage and rebate requirements
of the Code, any documents required by The Depository Trust Company in connection with the
Book -Entry Bonds (as defined in the Fifth Supplemental Indenture), any notices of thecurrent
refunding and defeasance of the Series 2015A Refunded Bonds required pursuant to the Master
Trust Indenture and the Fourth Supplemental Indenture, any documents required by the provider
of a reserve fund surety bond, if any, required to fund a reserve fund for the Series 20120A Bonds
and any documents required to obtain a municipal bond insurance for all or a portion of the
Series 2020A Bonds to the extent such bond insurance shall result in cost savings to the City.
Section 14. Costs of Issuance. The City authorizes funds of the City, together with
the proceeds of the Series 2020A, to be used to pay costs of issuance of the Series 2020A Bonds,
including, but not limited to, costs and expenses of attorneys, accountants, municipal/financial
advisors, underwriting fees, costs associated with rating agencies, the Trustee, the Escrow Agent,
bond insurance and surety bonds (if any), printing, publications and mailing expenses and any
related filing fees thereof.
Section 15. Good Faith Estimates. In accordance with SB 450, good fai h estimates
of the following are set forth in Exhibit A attached hereto: (a) the true interest cost of the Series
2020A Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Series
2020A Bonds, (c) the amount of proceeds of the Series 2020A Bonds expected to be received net
of the fees and charges paid to third parties and any reserves or capitalized interest paid or
funded with proceeds of the Series 2020A Bonds, and (d) the sum total of all debt service
7
_ F�
4830-5389-3294.2 O
Fn
v o
ORIG;NAL
payments on the Series 2020A Bonds calculated to the final maturity of the Series 2020A Bonds
plus the fees and charges paid to third parties not paid with the proceeds of the Series 2020A
Bonds.
Section 16. Severability. The provisions of this Resolution are hereby declared to be
severable and, if any section, phrase or provisions shall for any reason be declared to be invalid,
such declaration shall not affect the validity of the remainder of the sections, phrases and
provisions hereof.
Section 17. Governing Law. This resolution shall be construed and governed in
accordance with the laws of the State of California.
Section 18. Repeal of Inconsistent Resolutions. All other resolutions of the City, or
parts of resolutions, inconsistent with this Resolution, are hereby repealed to the extent of such
inconsistency.
I
Section 19. Effective Date of Resolution. This Resolution shall take effect
immediately upon its passage.
8
4830-5389-3294.2
ORII&NAL
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted
Council of the City of Bakersfield at a regular meeting thereof held on January 22, 2
following vote:
COUNCILMEMBERS: RIVERA, GONZALES, WEIR, SMITH, Fes; SULLIVAN, PAR
AYES
COUNC
NOES:
COUNC
ABSTAIN:
COUNC
COUNC
r
City Clerk and Ex Officio Clerk
of the Council of the City of Bakersfield
APPROVED this 22nd day of January, 2020.
KAREN GOH
Mayor of the City of Bakersfield
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
VIRGINIAA-GENNARO
City Attorney
by the City
020, by the
9
4830-5389-3294.2 i
j ORIG;NAL�
EXHIBIT A
GOOD FAITH ESTIMATES
The following information was obtained from Fieldman, Rolapp & Associates;, Inc. (the
"Municipal Advisor") with respect- to the bonds (the "Series 2020A Bonds") approved in the
attached Resolution, and is provided in compliance with Senate Bill 450 (Chapter 625 of the
2017-2018 Session of the California Legislature) with respect to the Series 2020A Bonds:
Section 1. True Interest Cost of the Series 2020A Bonds. Based on market interest rates
prevailing at the time of preparation of this information (January 6, 2020), a good faith estimate
of the true interest cost of the Series 2020A Bonds, which means the rate necessary to discount
the amounts payable on the respective principal and interest payment dates to the purchase price
received for the Series 2020A Bonds, is 2.85%.
Section 2. Finance Charge of the Series 2020A Bonds. Based on market interest rates
prevailing at the time of preparation of this information, a good faith estimate of ;the finance
charge of the Series 2020A Bonds, which means the sum of all fees and charges paid to third
parties (or costs associated with the Series 2020A Bonds), is $361,694.20, as follows:
(a) Underwriter's Discount $75,643.75
(b) Bond Counsel and Disbursements 105,000.00
(c) Disclosure Counsel and Disbursements 50,000.00
(d) Municipal Advisor and Disbursements 43,000.00
(e) Rating Agencies- 22,000.00
(f) Other 66,050.45
Total $ 361,694.20
Section 3. Amount of Proceeds to be Received. Based on market interest rates prevailing at
the time of preparation of this information (January 6, 2020), a good faith estimate of the amount
of proceeds expected to be received by the City of Bakersfield for sale of the Series 2020A
Bonds less the finance charge of the Series 2020A Bonds described in Section 2 above and any
reserves or capitalized interest paid or funded with proceeds of the Series 2020A Bonds, is
$13,528,516.
Section 4. Total Payment Amount. Based on market interest rates prevailing at the time of
preparation of this information (January 6, 2020), a good faith estimate of the total payment
amount, which means the sum total of all payments the City of Bakersfield will make to pay debt
service on the Series 2020A Bonds plus the finance charge of the Series 2020A Bonds described
in Section 2 above not paid with the proceeds of the Series 2020A Bonds, calculated to the final
maturity of the Series 2020A Bonds, is $18,118,198.
Attention is directed to the fact that the foregoing information constitutes good faith estimates
only. The actual interest cost, finance charges, amount of proceeds and total payment amount
o� bAK49
4830-5389-3294.2 .n
ORIGINAL
may vary from the estimates above due to variations from these estimates in the timing of Series
2020A Bonds sale, the amount of Series 2020A Bonds sold, the amortization of the Series
2020A Bonds sold and market interest rates at the time of each sale. The date of sale and the
amount of Series 2020A Bonds sold will be determined by the City of Bakersfield based on need
to provided funds for the Financing and other factors. The actual interest rates at which the
Series 2020A Bonds will be sold will depend on the bond market at the time of each sale. The
actual amortization of the Series 2020A Bonds will also depend, in part, on market interest rates
at the time of sale. Market interest rates are affected by economic and other factors beyond the
City of Bakersfield's control. The City of Bakersfield has approved the issuance of the Series
2020A Bonds with a maximum true interest cost of 3.50% per annum.
]1
4830-5389-3294.2
T
m
v U
ORiGNAL