10, 2020 ON NG NANCI SI VI AUGUST Y DI I F T RE CI RE - PDF document

10, 2020 ON NG NANCI SI VI AUGUST Y DI I F T RE CI

RE VI E W OF L E ASE BONDS Bond Se rie s E xisting De bt 2013 Se rie s A – ta x e xe mpt, c a lla b le in 2023 $245.6 M 2013 Se rie s B – no n-c a lla b le , ze ro c o upo n $64.3 M 2018 F ulto n L o a n – re fina nc ing o f 2013 Se rie s C b o nds – ta xa b le $17.9 M T OT AL $327.8 M • Pha se 1 – 2020 Re fina nc ing : • 51% o f L e a se de b t will b e b a se d o n ne w L e a se a g re e me nt • Se rie s A ta x-e xe mpt b o nds b e c o me ta xa b le (due to ne w tax law re stric tio ns) • Co nve rsio n to ta xa b le b o nds wo rks due to ne a r-histo ric lo w inte re st ra te s • Pha se 2 – 2023 Optio na l Re fina nc ing : • Re ma ining Se rie s A b o nds a re c a lla b le in 2023 • Allo ws re funding a s ta x-e xe mpt b o nds • Assume s b o nd ma rke t / inte re st ra te s re ma in fa vo ra b le

Se ttle a ll o utsta nding dispute s b e twe e n L CA a nd Alle nto wn PURPOSE OF E xte nd the ma turity o f the L CA de b t to a mo re F I NANCI NG ma na g e a b le le ve l (SUMMARY) Re a lize inte re st ra te sa ving s 3

Re fina nc e a portion of the e xisting de bt so 51% of the L CA Bonds outsta nding a re issue d in 2020.  Allo ws c ha ng e s to the Co nc e ssio n L e a se HOW Ag re e me nt to mo ve a he a d  Give n ta x la w c o nstra ints, the pro po se d GOAL S Se rie s o f 2020 will b e issue d with ta xa b le inte re st ra te s WI L L BE E xte nd F ina l Ma turity RE AL I ZE D  Curre nt de b t – 2047  Pro po se d de b t – 2059 Produc e Inte re st Ra te Sa ving s  E xisting ra te o n Se rie s o f 2013 A – 5.45%  Curre nt pro je c te d b o rro wing ra te – 3.39% 4

SUMMARY OF I MPACT S: 2020 RE F I NANCI NG  2020-2030  de b t se rvic e re duc e d $19.8 M  2031-2040  de b t se rvic e re duc e d $51.8 M  2041-2050  de b t se rvic e re duc e d $30.3 M  31- Ye a r De bt Se rvic e Re duc tion = $101.9 M T ota l  2051-2059  de b t se rvic e inc re a se d $147.1 M  T ota l De bt Se rvic e Impa c t = $45.2 M  Ne t Pre se nt Va lue of Diffe re nc e = $13 M S o urc e : Data pro vide d by Co nc o rd Public F inanc e

DE BT SE RVI CE AF T E R RE F I NANCE Fiscal Fiscal Existing Existing Resulting Resulting Cumulative Cumulative Year Year Debt Service Debt Service Debt Service Debt Service Difference Difference Difference Difference 2020 2020 15,125,388 15,125,388 12,583,586 12,583,586 2,541,801.33 2,541,801.33 2,541,801.33 2,541,801.33 2021 2021 15,605,025 15,605,025 13,873,768 13,873,768 1,731,257.50 1,731,257.50 4,273,058.83 4,273,058.83 2022 2022 16,107,525 16,107,525 14,376,843 14,376,843 1,730,682.50 1,730,682.50 6,003,741.33 6,003,741.33 2023 2023 16,622,650 16,622,650 14,893,518 14,893,518 1,729,132.50 1,729,132.50 7,732,873.83 7,732,873.83 2024 2024 17,155,400 17,155,400 15,423,793 15,423,793 1,731,607.50 1,731,607.50 9,464,481.33 9,464,481.33 2025 2025 17,705,775 17,705,775 15,972,843 15,972,843 1,732,932.50 1,732,932.50 11,197,413.83 11,197,413.83 2026 2026 18,273,538 18,273,538 16,540,493 16,540,493 1,733,045.00 1,733,045.00 12,930,458.83 12,930,458.83 2027 2027 18,863,688 18,863,688 17,131,743 17,131,743 1,731,945.00 1,731,945.00 14,662,403.83 14,662,403.83 2028 2028 19,475,988 19,475,988 17,746,418 17,746,418 1,729,570.00 1,729,570.00 16,391,973.83 16,391,973.83 2029 2029 20,111,713 20,111,713 18,379,343 18,379,343 1,732,370.00 1,732,370.00 18,124,343.83 18,124,343.83 2030 2030 20,760,913 20,760,913 19,030,693 19,030,693 1,730,220.00 1,730,220.00 19,854,563.83 19,854,563.83 2031 2031 21,439,588 21,439,588 19,705,793 19,705,793 1,733,795.00 1,733,795.00 21,588,358.83 21,588,358.83 2032 2032 22,142,413 22,142,413 20,412,718 20,412,718 1,729,695.00 1,729,695.00 23,318,053.83 23,318,053.83 2033 2033 22,863,738 22,863,738 21,133,468 21,133,468 1,730,270.00 1,730,270.00 25,048,323.83 25,048,323.83 2034 2034 22,448,238 22,448,238 20,883,043 20,883,043 1,565,195.00 1,565,195.00 26,613,518.83 26,613,518.83 2035 2035 27,713,238 27,713,238 23,008,043 23,008,043 4,705,195.00 4,705,195.00 31,318,713.83 31,318,713.83 2036 2036 29,236,238 29,236,238 24,463,043 24,463,043 4,773,195.00 4,773,195.00 36,091,908.83 36,091,908.83 2037 2037 30,797,988 30,797,988 26,013,043 26,013,043 4,784,945.00 4,784,945.00 40,876,853.83 40,876,853.83 2038 2038 32,295,738 32,295,738 27,018,043 27,018,043 5,277,695.00 5,277,695.00 46,154,548.83 46,154,548.83 2039 2039 33,374,988 33,374,988 20,918,043 20,918,043 12,456,945.00 12,456,945.00 58,611,493.83 58,611,493.83 2040 2040 34,525,738 34,525,738 21,454,043 21,454,043 13,071,695.00 13,071,695.00 71,683,188.83 71,683,188.83 2041 2041 35,714,738 35,714,738 22,003,043 22,003,043 13,711,695.00 13,711,695.00 85,394,883.83 85,394,883.83 2042 2042 36,949,488 36,949,488 22,576,793 22,576,793 14,372,695.00 14,372,695.00 99,767,578.83 99,767,578.83 2043 2043 38,221,738 38,221,738 23,171,293 23,171,293 15,050,445.00 15,050,445.00 114,818,023.83 114,818,023.83 2044 2044 27,998,238 27,998,238 18,912,543 18,912,543 9,085,695.00 9,085,695.00 123,903,718.83 123,903,718.83 2045 2045 27,998,331 27,998,331 18,916,129 18,916,129 9,082,202.50 9,082,202.50 132,985,921.33 132,985,921.33 2046 2046 27,998,206 27,998,206 18,916,164 18,916,164 9,082,042.50 9,082,042.50 142,067,963.83 142,067,963.83 2047 2047 27,994,788 27,994,788 18,915,735 18,915,735 9,079,052.50 9,079,052.50 151,147,016.33 151,147,016.33 2048 2048 0 0 16,363,820 16,363,820 (16,363,820.00) (16,363,820.00) 134,783,196.33 134,783,196.33 2049 2049 0 0 16,361,020 16,361,020 (16,361,020.00) (16,361,020.00) 118,422,176.33 118,422,176.33 2050 2050 0 0 16,362,020 16,362,020 (16,362,020.00) (16,362,020.00) 102,060,156.33 102,060,156.33 2051 2051 0 0 16,361,340 16,361,340 (16,361,340.00) (16,361,340.00) 85,698,816.33 85,698,816.33 2052 2052 0 0 16,365,488 16,365,488 (16,365,487.50) (16,365,487.50) 69,333,328.83 69,333,328.83 2053 2053 0 0 16,360,900 16,360,900 (16,360,900.00) (16,360,900.00) 52,972,428.83 52,972,428.83 2054 2054 0 0 16,362,410 16,362,410 (16,362,410.00) (16,362,410.00) 36,610,018.83 36,610,018.83 2055 2055 0 0 16,364,348 16,364,348 (16,364,347.50) (16,364,347.50) 20,245,671.33 20,245,671.33 2056 2056 0 0 16,361,210 16,361,210 (16,361,210.00) (16,361,210.00) 3,884,461.33 3,884,461.33 2057 2057 0 0 16,368,378 16,368,378 (16,368,377.50) (16,368,377.50) (12,483,916.17) (12,483,916.17) 2058 2058 0 0 16,368,295 16,368,295 (16,368,295.00) (16,368,295.00) (28,852,211.17) (28,852,211.17) 2059 2059 0 0 16,360,618 16,360,618 (16,360,617.50) (16,360,617.50) (45,212,828.67) (45,212,828.67) 6 Totals Totals 695,521,025 695,521,025 740,733,854 740,733,854 (45,212,828.7) (45,212,828.7) (45,212,828.7) (45,212,828.7) S o urc e : Data pro vide d by Co nc o rd Public F inanc e Net present value of difference Net present value of difference 12,994,406.41 12,994,406.41

Lehigh County Authority (City of Allentown Concession) Comparison of Existing and Resulting Debt Service 40,000,000 37,500,000 35,000,000 32,500,000 30,000,000 27,500,000 25,000,000 22,500,000 20,000,000 17,500,000 15,000,000 12,500,000 10,000,000 7,500,000 5,000,000 2,500,000 0 Existing Debt Service Resulting Debt Service 7 S o urc e : Data pro vide d by Co nc o rd Public F inanc e

 L CA Bo a rd a ppro va l o f Ag re e me nts Appra isa l o f e xisting Co nc e ssio ne d Syste m  E ng ine e r’ s re po rt re vie wing pro po se d c a sh flo ws  Munic ipa l Bo nd Ra ting pro vide d (Aug ust 12, 2020)  MAJOR  Alle nto wn City Co unc il c o nside rs a ppro va l o f Ag re e me nts (Aug ust 12, 2020) MI L E ST ONE S Ob ta in munic ipa l b o nd insura nc e q uo te s – re duc e s  I N PL AN OF L CA’ s c o st o f c a pita l (Aug ust 13, 2020) Distrib ute Pre limina ry Offic ia l Sta te me nt (Aug ust 14, 2020)  F I NANCE  L CA Bo a rd c o nside rs pa ssa g e o f Bo rro wing Pa ra me te rs Re so lutio n (Aug ust 24, 2020) Bo nds Pric e d a nd inte re st ra te s se t (Se pte mb e r 2, 2020)  Se ttle me nt o f F ina nc ing (Se pte mb e r 17, 2020)  L CA o pe ra te s syste m unde r re vise d Ag re e me nts  (Oc to b e r 1, 2020 ra te e ffe c tive da te ; Ja nua ry 1, 2021 o the r te rms o f a g re e me nt) 8

Bo a rd Cha ir, Vic e Cha ir, CE O a nd CF O a utho rize d to sig n the Bo nd Purc ha se Ag re e me nt with Unde rwrite r (sc he dule d fo r BORROWI NG Se pte mb e r 2) so lo ng a s the fo llo wing PARAME T E RS pa ra me te rs a re me t: RE SOL UT I ON Ma ximum b o rro wing a mo unt – no t  g re a te r tha n $225,000,000. (8/ 24/ 2020) Ma ximum o ve ra ll inte re st ra te – no t  g re a te r tha n 3.75%. *I t is a ntic ipa te d the numb e rs will b e lo we r. 9