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2013 Budget Discussions REFINANCING MUNICIPAL CENTER DEBT OPTIONS: <br />Refinancing to cut debt levy by approx $500,000 <br />1. Current Levy at approximately $1.5M <br />2. Refinancing would reduce Levy starting in 2012 by $490,000 (Note 2012 date We used $603,000 one-time funding and $508,215 as levy for 2012 budget) <br />3. Refinancing brings final debt payment date of 12/31 instead of 12/27 <br />4. By extenting refinancing date to 12/31 additional overall cost of $1,865,000 but reduces debt levy to manageable levy first 6 years <br />5. Because of early feature (12/14 first call) are faced with negative arbitrage of $1,153,819 <br />6. If not for the negative arbitrage and with the rates being at 2.9% instead of 4.44 %, city would have needed to spend $711,181 for additional four years to 12/31 <br />( $1,865,000- $1,153,819= $711,181) <br />Refinancing to cut debt levy by approx $300,000 <br />1. Current Levy at approximately $1.5M <br />2. Refinancing would reduce Levy starting in 2012 by $332,000 (Note 2012 date We used $603,000 one-time funding and $508,215 as levy for 2012 budget) <br />3. Refinancing brings final debt payment date of 12/31 instead of 12/27 <br />4. By extenting refinancing date to 12/31 additional overall cost of $1,368,369 <br />5. Because of early call feature (12/14 first call) are faced with negative arbitrage of $1,121,874 <br />6. If not for the negative arbitrage and with the rates being at 2.9% inste of 4.44 %, city would have needed to spend $241,495 for additional four years to 12/31 <br />($1,363,369-$1,121,874=$241,495) <br />