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HomeMy WebLinkAbout[05] 2008 Bond Issue CITY OF ST. JOS~:PH Council Agenda Item ..5...- MEETING DATE: February 7,2008 AGENDA ITEM: 2008 Bond Issue, Monte Eastvold SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: In reviewing the City debt, Monte Eastvold has determined that the City has an opportunity to refinance two bond issues and save significant resources. Monte will bring the detailed analysis with him on Thursday night. Since the City will be issuing bonds for the refinance, we can save issuance expenses by issuing the equipment certificate at the same meeting. The Council considered the Capital Equipment on January 31,2008 and identified which equipment would be purchased in 2008 as part of the equipment Certificate. The equipment certificate list illustrates that the City is funding 100% the salt sand shed for the Public Works Department while there is currently $ 65,000 budgeted from previous years. The funds budgeted prior will be transferred to the Debt Service for the Maintenance Facility Bond Issue. The Debt Service Fund is currently in the deficit over $ 100,000. Applying the $ 65,000 to the fund will reduce the deficit and we will work on the remaining balance. BACKGROUND INFORMATION: The City has established the use of equipment certificates to purchase equipment. The certificates are only issued as one expires so that the levy can remain constant. BUDGET/FISCAL IMPACT: ATTACHMENTS: Equipment Certificate List REQUESTED COUNCIL ACTION: Authorize the issuance of the 2008 Bond Equipment Certificate - Capital Purchases Administration Public Works Copy Machine/Fax Computer Replacement LaserFiche - Web Link LaserFiche - Workload Receipting Station Salt Sand Shed Dump Truck Police Department Taser Simuition Suits/Guns Binoculars/Digital Camera .223 Cal rifle SUV 800 mhz radio 15,000.00 12,000.00 7,000.00 15,000.00 3,000.00 100,000.00 35,000.00 5,600.00 1,750.00 1,700.00 1,600.00 35,000.00 35,000.00 52,000.00 135,000.00 80,650.00 267,650.00 I- 0:: ill o o ill o f'- N co o o N U. o en en w z c <cW ....1- offi enc Wz z zu. 20 _en J:W a..... w<C enU OU: -, - .1- 1-0::: enw u.U oz >-0 ....- -.... u<C (!) ::i m o ..J <C 0::: W Z W (!) o o 0 o 1.0 :::::: ~ I.rf N.. _C\1 C\I ~~.c~ ....... '(3 (I) ctl 1:: 0 0.. ..... ctl 0 ctl 0 :::::. ~ :;.. (.) ~ ::J!l: - 1.0 >< ......- :~:€~~~ :::~ ~ Q) .:<.;;;0< i... 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Refunding Bonds of 2008 (Assumes Insured) 2001/2002 Project Summary Dated 04/01/20081 Delivered 04/03/2008 Sources Of Funds Par Amount of Bonds Accrued Interest from 04/01/2008 to 04/03/2008 Total Sources Uses Of Funds Deposit to Crossover Escrow Fund Total Underwriter's Discount (1.300%) Costs of Issuance Gross Bond Insurance Premium Rounding Amount Total Uses Flow of Funds Detail State and Local Government Series (SLGS) rates for Date of OMP Candidates Primary Purpose Fund Solution Method Total Cost of Investments Interest Eamings @ 2.525% Total Draws PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 3.100%(Bond Yield) Contingency or Rounding Amount Net Present Value Benefrt Net PV Benefit / $2,360,000 Refunded Principal Net PV Benefrt / $2,445,000 Refunding Principal Bond Statistics Average Life Average Coupon Net Interest Cost (NIC) Bond Yield for Arbitrage Purposes True Interest Cost (TIC) All Inclusive Cost (AIC) Ref 1 I Issue Summary I 2/612008 I 2;25 PM Northland Securities Public Finance 2001 Sew 2002 Imp Issue Summary $430,000.00 $2,015,000.00 $2,445,000.00 74.07 322.03 396.10 $430,074.07 $2,015,322.03 $2,445,396.10 414,873.28 1,964,350.77 2,379,224.05 5,590.00 26,195.00 31,785.00 6,550.00 11,350.00 17,900.00 3,052.56 13,422.60 16,475.16 8.23 3.66 11.89 $430,074.07 $2,015,322.03 $2,445,396.10 Net Funded $414,873.28 17,347.55 $432,220.83 Net Funded $1,964,350.77 82,257.56 $2,046,608.33 Net Funded $2,379,224.05 99,605.11 $2,478,829.16 24,846.07 48,014.56 72,860.63 8.23 3.66 11.89 $24,854.30 $48,018.22 $72,872.52 6.062% 2.462% 3.088% 5.780% 2.383% 2.980% 8.911 Years 7.178 Years 7.483 Years 3.2625706% 2.9417377% 3.0089323% 3.4084601 % 3.1228509% 3.1826683% 3.1004441% 3.1004441% 3.1004441% 3.4167366% 3.1397035% 3.1961927% 3.7201532% 3.3362112% 3.4139130% Page 1 . ~ Preliminary City of Saint Joseph, Minnesota G.O. Refunding Bonds of 2008 (Assumes Insured) 2001/2002 Debt Service Comparison Date 12/01/2008 12/01/2009 12/01/2010 12/01/2011 12/01/2012 12/01/2013 12/01/2014 12/01/2015 12/01/2016 12/01/2017 12/01/2018 12/01/2019 12/01/2020 12/01/2021 Total Total P+I 47,531.66 71,297.50 91,297.50 120,857.50 414,682.50 416,057.50 411,650.00 411,570.00 410,655.00 408,875.00 46,200.00 49,860.00 48,285.00 46,665.00 $2,995,484.16 PCF (47,531.66) (2,431,297.50) (2,478,829.16) PV Analysis Summary (Net to Net) Gross PV Debt Service Savings..................... Net PV Cashflow Savings @ 3.1 OO%(Bond Yield)..... Contingency or Rounding Amount.................... Net Present Value Benefit Net PV Benefit / $2,386,936.58 PV Refunded Debt Service Net PV Benefit / $2,360,000 Refunded Principal... Net PV Benefit / $2,445,000 Refunding Principal.. Refunding Bond Information Refunding Dated Date Refunding Delivery Date Ref 1 I Issue Summary I 21612008 I 2:25 PM Northland Securities Public Finance Existing DIS 414,305.00 2,775,467.50 320,980.00 290,150.00 $3,800,902.50 Net New DIS 414,293.11 415,467.50 412,277.50 411,007.50 414,682.50 416,057.50 411,650.00 411,570.00 410,655.00 408,875.00 46,200.00 49,860.00 48,285.00 46,665.00 $4,317,545.61 Old Net DIS 414,305.00 415,467.50 420,667.50 419,837.50 423,307.50 425,865.00 422,085.00 422,770.00 422,442.50 421,237.50 49,012.50 51,952.50 49,635.00 47,317.50 $4,405,902.50 Savings 11.89 8,390.00 8,830.00 8,625.00 9,807.50 10,435.00 11,200.00 11,787.50 12,362.50 2,812.50 2,092.50 1,350.00 652.50 $88,356.89 72,860.63 . 72,860.63 11.89 $72,872.52 3.053% 3.088% 2.980% 4/01/2008 4/03/2008 Page 2 Preliminary City of Saint Joseph, Minnesota G.O. Refunding Bonds of 2008 (Assumes Insured) 2001 12002 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 04/03/2008 12/01/2008 47,531.66 47,531.66 47,531.66 06/01/2009 35,648.75 35,648.75 12/01/2009 35,648.75 35,648.75 71,297.50 06/01/2010 35,648.75 35,648.75 12/01/2010 20,000.00 2.200% 35,648.75 55,648.75 91,297.50 06/01/2011 35,428.75 35,428.75 12/01/2011 50,000.00 2.350% 35,428.75 85,428.75 120,857.50 06/01/2012 34,841.25 34,841.25 12/01/2012 345,000.00 2.500% 34,841.25 379,841.25 414,682.50 06/01/2013 30,528.75 30,528.75 12/01/2013 355,000.00 2.650% 30,528.75 385,528.75 416,057.50 06/01/2014 25,825.00 25,825.00 12/01/2014 360,000.00 2.800% 25,825.00 385,825.00 411,650.00 06/01/2015 20,785.00 20,785.00 12/01/2015 370,000.00 2.950% 20,785.00 390,785.00 411,570.00 06/01/2016 15,327.50 15,327.50 12/01/2016 380,000.00 3.100% 15,327.50 395,327.50 410,655.00 06/01/2017 9,437.50 9,437.50 12/01/2017 390,000.00 3.250% 9,437.50 399,437.50 408,875.00 06/01/2018 3,100.00 3,100.00 12/01/2018 40,000.00 3.350% 3,100.00 43,100.00 46,200.00 06/01/2019 2,430.00 2,430.00 12/01/2019 45,000.00 3.500% 2,430.00 47,430.00 49,860.00 06/01/2020 1,642.50 1,642.50 12/01/2020 45,000.00 3.600% 1,642.50 46,642.50 48,285.00 06/01/2021 832.50 832.50 12/01/2021 45,000.00 3.700% 832.50 45,832.50 46,665.00 Total $2,445,000.00 $550,484.16 $2,995,484.16 Dated 4/01/2008 Delivery Date 4/03/2008 First Coupon Date 12/01/2008 First available call date Call Price Accrued Interest from 04/01/2008 to 04/03/2008 396.10 Bond Year Dollars $18,295.00 Average Life 7.483 Years Average Coupon 3.0089323% Net Interest Cost (NIC) 3.1826683% True Interest Cost (TIC) 3.1961927% Bond Yield for Arbitrage Purposes 3.1004441% Net Interest Cost 3.0090013% Weighted Average Maturity 7.477 Years Ref 1 I Issue Summary I 2J 612008 I 2;25 PM .. Northland Securities Public Finance Page 3