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Briggs: <br /> <br />Sisk: <br /> <br />Briggs: <br /> <br />The City has six leases outstanding, <br />which are completely different <br />transactions. One is a floating <br />interest rate, not fixed, that has a <br />floor of 6% and a cap of 10% with a <br />maturity of 1996. The others are <br />all at fixed rates. One of the <br />rates is at 8.68%, another is at <br />13.1%, another at 9.7%, when you <br />take into consideration certain <br />other payments that the City is <br />required to make under the lease, <br />and another at 8%. The total value <br />of those leases is less than <br />$500,000.00. The one that counts is <br />the Certificates of Participation <br />for the construction of the Golf <br />Course. It has an outstanding <br />principal as of this date of $4.34 <br />million. The interest rate on that <br />is 9.67%. We need to compare that <br />rate with the current rate, which <br />would be available to the City for <br />financing. We believe that in the <br />current market the City would be <br />able to issue its General Obligation <br />Debt at an interest rate of <br />approximately 7%. There is about <br />2.75% savings available to the City <br />for the refinancing of that lease. <br />That provides very significant <br />budget savings and net present value <br />savings to the City. On a budgetary <br />basis if the transaction were <br />completed at the current market <br />rates, we could provide total <br />budgetary savings to the City in <br />excess of $300,000.00. The net <br />present value of the savings exceeds <br />$200,000.00. Those are very <br />significant savings. <br /> <br />I'm interested in the loan that has <br />a floor of 6% and a ceiling of 10%. <br />What is the benchmark for that <br />interest rate? <br /> <br />It floats at 85% of the First <br />Interstate Bank of Denver's prime <br />rate. If the 85% of the prime rate <br />is below 6%, then it is at 6%. <br /> <br />6 <br /> <br /> <br />