Item 6b June 10, 2019 Finance & Insurance Committee Item 6b - - PowerPoint PPT Presentation

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May 27, 2023 144 likes •244 views

Finance & Insurance Committee Item 6b June 10, 2019 Finance & Insurance Committee Item 6b Slide 1 June 10, 2019 $4.1 Billion As of June 1, 2019 Fixed 69% $2.82 billion 12% 19% Synthetic Fixed $494 million Variable $797

SLIDE 1

Finance & Insurance Committee Item 6b Slide 1 June 10, 2019

Finance & Insurance Committee Item 6b June 10, 2019

SLIDE 2

Finance & Insurance Committee Item 6b Slide 2 June 10, 2019

Fixed $2.82 billion Variable $797 million Synthetic Fixed $494 million

$4.1 Billion As of June 1, 2019

69% 12% 19%

SLIDE 3

Finance & Insurance Committee Item 6b Slide 3 June 10, 2019

Lower costs than bond financing Refunding debt for savings greater than could be achieved in the tax-exempt municipal bond market Took advantage of a large, liquid swap market Multi trillion dollar market Assurance of low cost, competitive, market rates

SLIDE 4

Finance & Insurance Committee Item 6b Slide 4 June 10, 2019

Floating to Fixed Rate Swap (Fixed Payer Swap)

MWD

Counterparty

Variable Rate Index

Fixed Rate

Tax-Exempt Variable Rate

Variable Rate Bondholder

Swap rates are less than Fixed Rate Municipal Bonds

SLIDE 5

Finance & Insurance Committee Item 6b Slide 5 June 10, 2019

Historical Notional Amount Outstanding Fiscal Year End

$0 $500 $1,000 $1,500 $2,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $ in Millions

$652M $1.94B

Jan. 2007

$494M Swaps Maturing and Swap Terminations

SLIDE 6

Finance & Insurance Committee Item 6b Slide 6 June 10, 2019

Projected Notional Amount Outstanding Fiscal Year End

$0 $200 $400 $600 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $ in Millions

$494M $30M

SLIDE 7

Finance & Insurance Committee Item 6b Slide 7 June 10, 2019

As of March 31, 2019

Counterparty Swaps Outstanding; Ratings; and Swap Market Values: JPMorgan Chase Bank

$216 million; Aa2/A+/AA; ($23.7) million

Wells Fargo Bank, N.A.

$158.6 million; Aa2/A+/AA-; ($17.9) million

Morgan Stanley Capital Services Inc.

$83.6 million; A3/BBB+/A; ($6.0) million

Citigroup Financial Products Inc.

$35.4 million; A3/BBB+/A; ($4.4) million

Eight swaps from $6.3 million to $158.6 million Swap Contracts Outstanding: $493.6 million Mark-to-Market Value: ($52.0) million Collateral Posting: $0 Savings to date: $118.6 million

SLIDE 8

Finance & Insurance Committee Item 6b Slide 8 June 10, 2019

Swap program has been well managed Swap exposure has been reduced with swap terminations and scheduled amortization Continued reductions based on scheduled swap amortization To date savings have exceeded original projections

SLIDE 9