Loading...
10 - Capital FinanceExisting Debt WeiiIZai 0 0 City of Federal Way - Debt Summary - All Funds $25,000,000 $20,000,000 0 $15,000,000 $10,000,000 0 $5,000, aoo �0 2;� 2�� Q�5 'p. p `L° 'b° ,° tip 'L, 4 ® 2013 Refund Ltd/Community Center ❑ 2019A LTG O Band (SCORE) 0 2019B LT GO Tax Bond (PAEC) ■ 2019-A Section 109 HUD CP3 Why Do We Have Debt? Can We pay Down Debt? 1. What debt is callable? 2. Debt vs. investing 3. What cash is available? 4. What do other cities do? 5. Credit agency perspective 6. Taxpayer fairness (generational equity) 7. Investor Concerns What Debt Can Paid Down? "Callable" means the issuer (us) can buy back the debt, investors get their principal back. Non -callable debt means investors can depend on that interest income. Why is debt called? Issuer re -issues at lower rates Investors then have to re -invest at prevailing lower rates. as of 12/31 /23 Dated O rig. Remaining Pmts Balance Next Call Ah Community Center 2013 GO Mar 05, 2013 L2,415,000 8,378,670 7,125, 000 Dec. 1, 2022 '�lT�IZ�i1IZ�i LTGO Bond (SCORE) 2019A Dec 11, 2019 10, 945, 000 12, 645, 200 9,335,000 Dec. 1, 2029 LTGO Bond (PAEC 2019B Dec 11, 2019 4,840,000 3,308,305 3,035,000 Non -callable Sect. 108 Conversion 2019-A Mar 28, 2019 2,712,000 2,324, 247 1,917,000 Non -callable 2023 822,123 2.375% 851,925 5.000% 549,295 2.150% 223,026 3.080% 2024 827,873 2.375% 1 850,425 5.000% 549,298 2.200% 218,863 3.120% 2025 828,148 2.500% 847,925 5.000% 553,848 2.300% 214,621 3.160% 2026 827,273 2.500% 849,425 5.000% 552,578 2.400% 210,267 3.210% 2027 836,023 3.000% 844,675 5.000% 550,578 2.500% 206,720 3.240% 2028 835,773 3.000% 843,925 5.000% 552,828 2.600% 202,128 197,352 192,256 3.290% 3.340% 3.360% 2029 834,923 3.000% 846,925 5.000% 4.000% 549,178 2.650" 2030 843,473 3.000% 843,425 2031 846,123 3.100% 844,625 4.000% 187,080 3.390% 2032 847,253 3.200% 839,825 4.000% 181,824 3.410% 2033 851,813 3.250°/ 844,225 4.000% 176,488 3.440% 2035 2036 2037 2038 839,625 4.000% 838,625 4.000% 835,875 2.75%/3.50% 833,250 2.75%/3.50% 165.576 1 3.490% = Non callable DTM 5 Fund Name 001/101 GeneraUStreetFund"� 102 Arterial Street 103 Utility Tax(*) 104 Affordable & Supportive Housinc 106 Solid Waste & Recycling 107 Special Contracts/Studies Fund 109 Hotel/Motel Lodging Tax 111 Federal Way Community Center 112 Traffic Safety Fund 113 Real Estate Excise Tax Fund 114 Prop 1 Utility Tax 115 Performing Arts & Event Ctr Ope 116 Solid Waste 10% Utility Tax 119 CDBG 120 Path & Trails 121 Technology 122 Jail Fund 188 Strategic Reserve Fund 189 Parks Reserve Fund Subtotal Special Revenue Funds 301 Downtown Redevelopment 302 Municipal Facilities 303 Parks 304 Surface Water Management 306 Transportation 307 Capital Project Reserve Fund Subtotal Capital Project Funds 401 Surface Water Management 402 Dumas Bay Centre Fund Subtotal Enterprise Funds 501 Risk Management 502 Information Systems 503 Mail & Duplication 504 Fleet & Equipment 505 Buildings & Furnishings 506 Health Self Insurance Fund 507 Unemployment Insurance Fund Subtotal Internal Service Funds 201 Debt Service Fund Total All Funds Sales Tax ons Ending Balance Required Fund 12/31/2022* Balance $ 27,846,27 $ 9,500,000 1,149,15 4,634,613 1,500,000 148,035 - 384,332 - 987,471 - 1,868,337 200,000 1,623,700 1,500,000 2,498,365 1,200,000 3,218,182 2,000,000 1,612,395 1,000,000 874,882 - 1,632,265 - 25,107 - 1,888,983 - aan nu7 - 3 27,306,085 $11,625,000 4,497,406 173,810 2,032,377 4,571,510 15,933,725 370,405 1- 27,579,232 4,373,256 690,000 1,640,165 1,500,000 8,550,123 - 2 000 000 3,460,762 252,107 250 000 20,409,385 1 $ 2,850.000 $ 107,788,55514 26,165,000 Do Other Pay Down Debt? Other well -managed cities seem to do the same. (2022) (2021) (2021) (2021) (2021) (2020) (2021) Federal Wayi, Bellevue LEverett MRenton Cash $ 61, 000, 000 $ 7,000,000 $ 218, 000, 000 $ 84, 000, 000 $ 116, 000, 000 $ 71, 000, 000 598, 000, 000 Investments 50,000,000 318, 000, 000 94, 000, 000 217, 000, 000 121, 000, 000 47, 000, 000 Total Cash & Investments 111,000,000 1 598,000,000 325,000,000 312,000,000 301,000,000 237,000,000 118,000,000 LT Debt - current portion (7,000,000) (23,000,000) (33,000,000) (11,000,000) (3,000,000) (5,000,000) (7,000,000) LT Debt - longterm portion 16,000,000 (320,000,000) (208,000,000) (104,000,000) (70,000,000) (73,000,000) (62,000,000) Tota I LT Debt 1 (23, 000, 000) 1 (343, 000, 000) (241, 000, 000) (115, 000, 000) (73, 000, 000) (78, 000, 000) (69, 000, 000) Net 1 88, 000, 000 1 255, 000, 000 84, 000, 000 197, 000, 000 228, 000, 000 159, 000, 000 49, 000, 000 Credit Agencl INVESTORS SERVICE Protect / build: • Cash • Fund Balances a�tac�u����t�i■z� I n: i Pr 2 �h2 a �hg $$$$$$$$$$$$$$$$$$$$$$ erspyhe $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $, X ay s out) t: �a p ser��oe ho w for X avers � ,we up to spend laterb ei In: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Out: S In: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Out: Why Do We Have Debt? 1. Purpose of debt comes from capital planning • Debt is not used for operations (credit card -type) • Debt is used for facilities (mortgage -type) 2. Cities are perpetual • Unlike personal finances, there is no saving for retirement, no paying off the mortgage • At the end of the useful life of an asset, it may need to be replaced — with no ability to save up for Computation of Limitation of Indebtedness General Debt Capacity - (Limited) Councilmanic Total AV 1.5% AV @ 100% Add Cash reserve Less outstanding December 31, 2021 1 December 31, 2022 $ 14, 210, 298, 330 213,154, 475 3,192, 943 (29, 686, 656) $ 186, 660, 762 (est.) $ 17,142, 528, 580 257,137, 929 363,121 (27, 983, 000) $ 229,518,050 Summary of Oustanding Debt Description Bal $ 2019 SCORE 9,785,000 2013 Community Center 7,750,000 Interfund Loan (Target) 4,862,000 2019 PAEC 3,510,000 2019 HUD Sec. 108 (PAEC) 2,076,000 27,9833.000 12% 229, 580, 050 Real Debt Limit 1 1 Due to generational equity, mortgage -type debt may be perpetual for cities May have to budget debt service— 1/20t" of the cost — every year Watch the Capital Plan to see what's on the horizon, 5+ years or more Investor Concerns 1. Principal can be prepaid on most residential mortgages without penalty 2. Investors who buy single issuer debt rely on future interest income. 3. Issuers (us) guard reputation (credit rating) Why Do We Have Debt? Can We pay Down Debt? 1. Most isn't callable 2. We're investing at higher rates 3. Very little cash is actually available 4. Other cities do the same 5. Credit rating rewards cash balance 6. Generational equity 7. Investors watch our fiscal strength M&O Facility Debt M&O Facility Funding Funding sources: 1. Surface Water fees 2. Real Estate Excise Tax (REET) 3. Fuel and Repair cost savings 4. General Fund City of Federal Way Maintenance and Operations Shop Financing Scenario 1 Interest Rates GO AA Muni BVAL + 50 bps as of 802023 True Interest Cost 4.51 % Sources Par Amount $ 44,535,000 Premium 2,415,150 Total $ 46,950,150 Uses Project Funds $ 46,610,000 Costs of Issuance 339,274 Contingency 876 Total $ 46,950,150 Fiind Cllnentinnc Surface Water REET FuellMaintenance Savings Parks/Streets Project Funds $ 13,084,583 Project Funds $ 26,848,162 Project Funds $ 4,228,658 Project Funds $ 1,548,597 % of Project Funds 30% % of Project Funds 58% %of Proect Funds 9% % of Project Funds 3% rune r]BD1 Service 2026 1,000,000 42% 1,000,000 42% 300,250 12% 102,500 4% 2,402,750 2027 1,000,000 42% 1,000,000 42% 302,500 13% 106,000 4% 2,408,500 2028 1,000,000 42% 1,000,000 42% 304,250 13% 104,250 4% 2,408,500 2029 1,000,000 42% 1,000,000 42% 300'fiw 12% 107,500 4% 2,408,000 2030 1,000,000 34% 1,549,000 52% 302,500 10% 105,500 4% 2,957,000 2031 1,000,000 34% 1,549,000 52% 300,500 10% 103,500 4% 2,953,000 2032 1.000,000 34% 1.549,000 52% 301.750 10% 106,500 4% 2,957.250 2033 1.000,000 34% 1.549,000 52% 301.000 10% 104,250 4% 2,954.250 2034 1,000,000 27% 2,300,000 62% 302,250 8% 107,000 3% 3,709,250 2035 1,000,000 27% 2,300,000 62% 304,750 8% 104,500 3% 3,709,250 2036 1,000,000 27% 2,300,000 62% 303,000 8% 107,000 3% 3,710,000 2037 1,000,000 27% 2,300,000 62% 302,(100 8% 104,250 3% 3,706,250 2038 1,000,000 27% 2,900,000 62% 301,500 8% 106,501) 3% 3,708,000 2039 1,000,000 27% 2,200,000 62% 301,250 8% 103,500 3% 3,704,750 2040 1,000,000 27% 2,200,000 62% 301,000 8% 105,500 3% 3,706,500 2041 1,000,000 27% 2,300,000 62% 300,500 8% 107,250 3% 3,707,750 2042 1,000,000 27% 2,300,000 62% 304,500 8% 103,750 3% 3,708,250 2043 1,000,000 27% 2,300,000 62% 302,500 8% 105,250 3% 3,707,750 2044 1.000,000 27% 2,300,000 62% 304,500 8% 106,500 3% 3,711.000 2045 1,000,000 27% 2,300,000 62% 305,000 8% 102,500 3% 3,707,500 2046 1,000,000 27% 2,300,000 62% 303,750 8% 103,500 3% 3,707,250 2047 1,000,000 27% 2,300,000 62% 300,500 8% 104,250 3% 3704750 2048 1,000,000 27% 2,300,000 62% 305,000 8% 104,750 3% 3:709:750 2049 1.000.000 27% 2.300.000 62% 301.500 8% 105.000 3% 3.706.500 Prepared by PFM Financial Advisors LLC 81712023 City of Federal Way Maintenance and Operations Shop Financing Scenario 2 Interest Rates GO AA Muni BVAL + 50 bps as of 8/312023 True Interest Cost 4.44% Sources Par Amount $ 44,210,000 Premium 2,736,030 Total $ 46,948,030 Uses Project Funds $ 46,610,000 Costs of Issuance 337,893 Contingency 138 Total $ 46,948,030 0 Fund Allncatinns Surface Water REET FuellMaintenance Savings ParkslStreets Project Funds $ 14,716,517 Project Funds $ 21,269,967 Project Funds $ 4,469,308 Project Funds $ 6,154,208 °% of Project Funds 32% % of Project Funds 46°% % of Project Funds 10°% °% of Project Funds 13% rums uem --awme 2025 $ 998,000 37% $ 1,000,000 37% $ 303,500 11°% $ 419,000 15% 13 2,720,500 2026 998,250 37% 1,000.000 37% 304.000 11% 417,750 15°% 2,720,000 2027 997,750 37% 1,000,000 37% 304,250 11°% 416,250 15% 2,718,250 2026 996,500 37% 1,000,000 37% 304,250 11°% 419,500 15°% 2,720,250 2029 999,500 37% 1,000,000 37% 304,000 11% 417,250 15°% 2,720,750 2030 906,500 31% 1,545,000 47% 303,500 9% 410,750 13°% 3,264,750 2031 997,750 31% 1,547,750 47% 302,750 9% 416,750 13°% 3,265,000 2032 998,000 31% 1,549,000 47% 301,750 9% 418,500 13°% 3,267,250 2033 997,250 31% 1,548,750 47% 300,500 9% 414,750 13°% 3,261,250 2034 995,500 25% 2,297,000 57% 304,000 8% 415,750 10°% 4,012,250 2035 997,750 25% 2,296,250 57% 302,000 8% 416,250 10°% 4,012,250 2036 998,750 25% 2,297,000 57% 304,750 9% 416,250 13% 4,016,750 2037 998,500 25% 2,299.000 57% 302.000 8°% 415,750 10°% 4,015,250 2038 997,000 25% 2,297,000 57% 304,000 9% 414,750 13% 4,012,750 2039 999,250 25% 2,296,000 57% 300,500 7°% 418,250 10°% 4,014,000 2040 995,000 25% 2,295,750 57% 301,750 9% 416,000 13% 4,008,500 2041 999,500 25% 2,296,000 57% 302,500 8°% 418,250 10°% 4,016,250 2042 997,250 25% 2,296,500 57% 302,750 8% 419,750 1n°% 4,016,250 2043 998,500 26% 2,142.000 56% 302.500 8% 415,500 11°% 3,858,500 20" 998,000 58% - 0% 301,750 18% 415,750 24°% 1,715,500 2045 995,750 58% 0% 300,500 19% 415,250 24°% 1,711,500 2046 996,750 58% 0% 303,750 18% 419,000 24°% 1,719,500 2047 995,750 58% 0% 301,250 19% 416,750 24°% 1,713,750 2049 997,750 58% 0% 303,250 18% 418,750 24°% 1,719,750 2049 997,500 58% 0% 304,500 19% 414,750 24°% 1,716,750 Prepared by PFM Financial Advisors LLC 817/2023 •list• City of Federal Way - Sales Tax Revenue Received Current Year Actual vs. Budget and Prior Year $ 22, 000,000 $20,000,000_________________________________________________________ -------------------------------------------------- $18,000,000__________________________________________________ $16,000,000___________________________________________________ -------------------------------------------_-_-- - $14,000,000--------------------------------- __________________________________________ $12,000,000_____________________________________ _ ---------------------------------- - $10,000,000______________________________------------ __ $8,000,000 _ _ _ _ B _____________________ 0 udget Cumulative $6,000,000 ------------------ -----------_-_-- $4,000,000 =— PriorYearCumulative $2,000,000 _ Actual cumulative $0 lac lk 4ai PQi �aa ,gyp ,�� P�� 5yQ 06, 0 Oec. 25,000,000 1 20,000,000 1 15,000,000 1 10, 000, 000 1 5,000,000 Actual and Forecast 2016 Act 2017 Act 2018 Act 2019 Act 2020 Act 2021 Act 2022 Act 2023 Act/Est 2024 fare cast 2025 fore cast 2026 fore cast Sales Tax 14,222,496 14,199,460 14,731,810 15,908,863 16,127,569 17,494,058 19,204,963 20,978,165 22,446,000 23,794,000 24,984,000 Tax Increment Financing Debt Issue CITY OF Federal Way Series Description: Project Funds: Rate Assumption: Closing Date: True Interest Cost: City of Federal Way, Washington Tax Increment Area Financing Structures Option 1: Level Debt Service Year F rincipall Interest Total 2025 $ 485,000 1,162,000 $ 1,647,000 2026 510,000 1,137,750 1,647,750 2027 535,000 1,112,250 1,647,250 2028 565,000 1,085,500 1,650,500 2029 590,000 1,057,250 1,647,250 2030 620,000 1,027,750 1,647,750 2031 655,000 996,750 1,651,750 2032 685,000 964,000 1,649,000 2033 720,000 929,750 1,649,750 2034 755,000 893,750 1,648,750 2035 795,000 856,000 1,651,000 2036 835,000 816,250 1,651,250 2037 875,000 774,500 1,649,500 2038 920,000 730,750 1,650,750 2039 965,000 684,750 1,649,750 2040 1.015,000 636,500 1,651,500 2041 1,065,000 585,750 1,650,750 2042 1,115,000 532,500 1,647,500 2043 1,170,000 478,750 1,646,750 2044 1,230,000 418,250 1,648,250 2045 1,290,000 356,750 1,646,750 2046 1,355,000 292,250 1,647,250 2047 1,425,000 224,500 1,649,500 2048 1:495, 000 153,250 1,648,250 2049 1.570.000 78.500 1.648.500 TIA Revenue Excess (Deficit) $ 34,533 $ (1,612,467) 64,839 (1,582,911) 95,901 (1,551,349) 168,039 (1,482,461) 269,522 (1,377,728) 356,808 (1,290,942) 434,672 (1,217,078) 522,608 (1,126,392) 601,321 (1,048,429) 898,476 (750,274) 980,454 (670,546) 1,271,146 (380,104) 2,178,386 528,886 2,873,039 1,222, 289 3,189,718 1,539, 968 3,934,363 2,282,863 4,266,440 2,615,690 4,603,647 2,956,147 4,946,590 3,299,840 5,295,382 3,647,132 5,650,136 4,003,386 6,010,966 4,363,716 6,377,987 4,728,487 6,751,314 5,103,064 7,130,790 5,482,290 $ 68,907,079 $ 27,683,079 *Assumes bonds are issued at a premium Prepared by PFM Financial Advisors LLC 2 6/22/2023 City of Federal Way, Washington Tax Increment Area Financing Structures Option 2: Backloaded Debt Service Series Description: Project Funds: Rate Assumption: Closing Date: True Interest Cost: YearPrincipal* Interest Total 2025 $ $ 1,188,000 $ 1,188,000 2026 1,188,000 1,188,000 2027 1,188,000 1,188,000 2028 1,188, 000 1,1887000 2029 - 1,188,000 1,188,000 2030 1,188,000 1,188,000 2031 - 1,188,000 1,188,000 2032 - 1,188,000 1,188,000 2033 - 1,188,000 1,1887000 2034 - 1,188,000 1,188,000 2035 - 1,188,000 1,1887000 2036 - 1,188,000 1,1887000 2037 - 1,188,000 1,188,000 2038 - 1,188,000 1,1887000 2039 - 1,188,000 1,188,000 2040 470,04 1,188,000 1,658,000 2041 825,00C 1,164, 500 1,989, 500 2042 1,205,00C 1,123,250 2,328,250 2043 1,605,04 1,063,000 2,6687000 2044 2,035,OOC 982,750 3,017,750 2045 2,490,00 881,000 3,3717000 2046 2,975,04 756,500 3,7317500 2047 3,495,00 607,750 4,102,750 2048 4,040,00 433,000 4,4737000 2049 4,620,00 231,000 4,851.000 TIA Revenue Excess (Deficit) $ 34,533 $ (1,153,467) 64,839 (1,123,161) 95,901 (1,092,099) 1687039 (1,0197961) 269,522 (918,478) 356,808 (831,192) 434,672 (753,328) 522,608 (665,392) 6017321 (5867679) 898,476 (289,524) 9807454 (207,546) 1,2717146 837146 2,178,386 990,386 2,8737039 1,6857039 3,1897718 2,001,718 3,9347363 2,276,363 4,2667440 2,2767940 4,603,647 2,275,397 4,9467590 2,2787590 5,295,382 2,277,632 5,6507136 2,2797136 6,0107966 2,2797466 6,377,987 2,275,237 6,7517314 2,2787314 7,1307790 2,2797790 S 68,907,079 S 18,896.329 *Assumes bonds are issued at a premium 530,000,000 $25,000,000 $20,000,000 $is,000,000 $10,000,000 $5,000,000 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 UIM Payment Needed 1,647,000 1,612,467 1,648,000 1,582,911 1,647,000 1,551,349 1,651,000 1,482,461 1,647,000 1,377,728 1,648,000 1,290,942 1,652,000 1,217,078 1,649,000 1,126,392 1,650,000 1,048,429 1,649,000 750,274 1,651,000 670,546 1,651,000 380,104 19,790,000 14,090,681 $o l? ox (sv 4, oyg ono ($s,000,000} ti ti ti ti ti ($10, ($1s, ($20,00o,000) :i71 ------ - --------------------------------- - - - - -- - ----- - - - - -- ------------------------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - •------- -------------------------------------- ------- -------------------------------------- ----- ----------------------------------- ----- ----------------------------------- ----- ----------------------------------- ----- ----------------------------------- ----- ------------------------------- ----- ------------------------------- ----- ------------------- ------------------------- ------------------------- ----- ------------------- ----- ------------------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6,1 o�3 0�� 11)5 o�� o�� �o o°� o�ti o�� o�� o�� oat o�� o�� o�g ti ti� ti ti� ti ti ti ti ti ti ti ti ti ti ti ti $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 2025 2026 2027 2028 2029 203C 2031 2032 2033 2034 2035 $5,000,000 ",Tn re ROFF1 1"I i roym mrm:ro 0 Payment Needed 1,188,000 1,153,467 1,188,000 1,123,161 1,188,000 1,092,099 1,188,000 1,019,961 1,188,000 918478 1,188,000 831:192 1,188,000 753,328 1,188,000 665,392 1,188,000 586,679 1,188,000 289,524 1,188,000 207,546 13,068,000 8,640,827 --- - - ---- f----------- ---------------------------------------------------------- --- ----------------------------------------------------------- ------ ------------------------------------------------------- ------------------------------------------------------- - ---------------- $0 OHO OHO O'�� O'�� O--,5 (: 55 O O'� O�� O'�O OHO Q� QO Q� QP, Q� QO ON O�� OHO ti ti ti ti ti ti ti ti ti ti � ti ti ti� ti ti ti ti ti ti ti ti ti 00 ($15,000,000) ($20,000,000) �JOSS 1 b 91 Fe1■1Mi as of 12/31/23 Community Center LTGO Bond (SCORE) LTGO Bond (PAEC IFL) Sect. 108 Conversion M&O Shop Financing TIF - Parking 2013 GO 2019A 2019E 2019-A "Best Case" "Best Case" Ori . 12,415,000 10,945,000 4,840,000 2,712,000 46,000,000 24,800,000 Remaining Pmts 8,378,670 12,645,200 3,308,305 2,324,247 83,180,500 50,010,750 Balance 7,125,000 9,335,000 3,035,000 1,917,000 estimated estimated Next Call Dec. 1, 2022 Dec. 1, 2029 Non -callable Non -callable estimated estimated Year 2023 Prats 822,123 Coupon 2.375% Prnts 851,925 Coupon 5.000% Prrds 549,295 Coupon 2.150% Prats 223,026 Coupon 3.080% Prnts Coupon PntTts Coup] 2024 827,873 2.375% 850,425 5.000% 549,298 2.200% 218,863 3.120% 2025 828,148 2.500% 847,925 5.000% 553,848 2.300% 214,621 3.160% 2,406,750 4.500% 2026 827,273 2.500% 849,425 5.000% 552,578 2.400% 210,267 3.210% 2,402,750 4.500% 2027 836,023 3.000% 844,675 5.000% 550,578 2.500% 206,720 3.240% 2,408,500 4.500% 2028 835,773 3.000% 843,925 5.000% 552,828 2.600% 202,128 3.290% 2,408,500 4.500% 1,188,000 4.630% 2029 834,923 3.000% 846,925 5.000% 549,178 2.650% 197,352 3.340% 2,408,000 4.500% 1,188,000 4.630% 2030 843,473 3.000% 843,425 4.000% 192,256 3.360% 2,957,000 4.500% 1,188,000 4.630% 2031 846,123 3.100% 844,625 4.000% 187,080 3.390% 2,953,000 4.500% 1,188,000 4.630% 2032 847,253 3.200% 839,825 4.000% 181,824 3.410% 2,957,250 4.500% 1,188,000 4.630% 2033 851,813 3.250% 844,225 4.000% 176,488 3.440% 2,954,250 4.500% 1,188,000 4.630% 2034 842,425 4.000% 171,072 3.460% 3,709,250 4.500% 1,188,000 4.630% 2035 839,625 4.000% 165,576 3.490% 3,709,250 4.500% 1,188,000 4.630% 2036 838,625 4.000% 3,710,000 4.500% 1,188,000 4.630% 2037 835,875 2.75%/3.50% 3,706,250 4.500% 1,188,000 4.630% 2038 833,250 2.75%/3.50% 3,708,000 4.500% 1,188,000 4.630% 2039 3,704,750 4.500% 1,188,000 4.630% 2040 = Non callable 3,706,500 4.500% 1,188,000 4.630% 2041 3,707,750 4.500% 1,188,000 4.630% 2042 3,708,250 4.500% 1,188,000 4.630% 2043 3,707,750 4.500% 1,658,000 4.630% 2044 3,711,000 4.500% 1,989,500 4.630% 2045 3,707,500 4.500% 2,328,250 4.630% 2046 3,707,250 4.500% 2,668,000 4.630% 2047 3,704,750 4.500% 3,017,750 4.630% 2048 3,709,750 4.500% 3,371,000 4.630% 2049 3,706,500 4.500% 3,731,500 4.630% 2050 4,102,750 4.630% 2051 4,473,000 4.630% 2052 4,851,000 4.630% 0 1aoTa►� - IMi Hvaothetical Amortization Principal 10,000,000 Term 25 Interest rate 5.0000% 5.00% 10.000.000 1 10.000.000 1 5.00%1 10,000,000 709,525 209,525 500,000 9,790,475 • 2 5.00% 9,790,475 709,525 220,001 489,524 9,570,475 3 5.00% 9,570,475 709,525 231,001 478,524 9,339,474 4 5.00% 9,339,474 (709,525) 242,551 466,974 9096,923 5 5.00% 9,096,923 709,525 254,678 454,846 8,842,244 6 5.00% 8,842,244 709,525 267,412 442,112 8,574,832 7 5.00% 8,574,832 709,525 280,783 428,742 8,294,049 ----8,294,049 709,525 294,822 414,702 8 5.00% ------- 7,999,227 -------- 9 5.00%1 7,999,227 709,525 309,563 399,961 7,689,664 10 5.00% 7,689,664 709,525 325,041 384,483 7,364,622' 11 5.00% 7,364,622 709,525 341,293 368,231 7,023,329 12 5.00% 7,023,329 709,525 358,358 351,166 6,664,971 13 5.00% 6,664,971 709,525 376,276 333,249 6,288,695 14 5.00% 6,288,695 709,525 395,090 314,435 5,893,605 15 5.00% 5,893,605 709,525 414,844 294,680 5,478,761 16 5.00%1 5,478,761 709,525 435,587 273,938 5,043,174 17 5.00% 5,043,174 709,525 457,366 252,159 4,585,808 18 _ 5_00%0 ________4,585,808 _ �709,525 ________(480,2341 ______(229,2901 ____ 4,105,574 19 5.00% 4,105,574 709,525 504,246 205,279 3,601,328 20 5.00% 3,601,328 709,525 529,458M125,"797 3,071,870 21 5.00% 3,071,870 709,525 555,931 2,515,939 22 5.00% 2,515,939 709,525 583,728 1,932,211 23 5.00% 1,932,211 709,525 612,914 1,319,297 24 5.00% 1,319,297 709,525 643,560 675,738 25 5.00% 675,738 709,525 675,738 33,787 0 17,738,114) (10,000,000) (7,738,114 LG 047.27792 - F 100 LG 04TZ7792 100