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
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2
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Preliminary
City of Saint Joseph, Minnesota
G.O. 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