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HomeMy WebLinkAbout[11b] 16th Avenue Improvements - Bond Sale • Cfl'VOF ST. JphkPH Council Agenda Item 11(b) MEETING DATE: August 5, 2010 AGENDA ITEM: Informational SUBMITTED BY: Finance BOARD /COMMISSION /COMMITTEE RECOMMENDATION: None PREVIOUS COUNCIL ACTION: Council awarded bids and adopted the assessment rolls for the 16 Avenue improvement project. BACKGROUND INFORMATION: Monte Eastvold, Northland Securities, provided an estimated summary of financing costs for the 16 Avenue improvement project based on the bid results and the adopted assessment rolls. The enclosed bond summary is for public information. It is standard procedures to provide 30 days notice to the public that the Council is considering issuing a debt with the probable revenue sources to pay off the debt. Monte will be present at the September 2, 2010 Council meeting to present the bond issue to the Council. BUDGET /FISCAL IMPACT: The issuance of bonds will create a tax levy for approximately 15 years. ATTACHMENTS: 2010B GO Improvement Bonds Estimated Debt Summary REQUESTED COUNCIL ACTION: Informational only. 11(b):1 16th Ave 15 CITY OF ST. JOSEPH, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS OF 2010, . SERIES B Bond Parents • ♦ venue:S.©urces.'': , .'.cash: Ptbw.,. Est. Total Statutory Storm Special Est. Annual (12 -1) Interest Debt 5.00% Cap. Sewer Assessment Tax Surplus/ Cumulative Year Principal Rate Interest Payment Coverage Interest Revenues Income Levy Deficit Balance 2010 0 0.000% 6,090 6,090 6,090 20,300 0 1,635 0 15,845 15,845 2011 45,000 1.200% 24,360 69,360 72,828 13,254 43,396 12,000 - 4,178 11,667 2012 45,000 1.500% 23,820 68,820 72,261 13,254 42,089 14,000 -2,918 8,749 2013 45,000 1.900% 23,145 68,145 71,552 13,254 40,781 16,000 -1,518 7,231 2014 45,000 2.500% 22,290 67,290 70,655 13,254 39,473 18,000 72 7,304 2015 50,000 2.500% 21,165 71,165 74,723 13,254 38,165 20,000 -3,304 3,999 2016 50,000 2.750% 19,915 69,915 73,411 13,254 36,857 22,000 -1,300 1700 2017 50,000 2.900% 18,540 68,540 71,967 13,254 35,549 24,000 836 3,536 2018 55,000 3.200% 17,090 72,090 75,695 13,254 34,242 26,000 -2,199 1,337 2019 55,000 3.300% 15,330 70,330 73,847 13,254 32,934 28,000 341 1,679 2020 55,000 3.400% 13,515 68,515 71,941 13,254 31,626 29,000 1,939 3,618 2021 60,000 3.500% 11,645 71,645 75,227 13,254 30,318 30,000 -1,655 1,962 2022 60,000 3.600% 9,545 69,545 73,022 13,254 29,010 31,000 242 2,204 2023 60,000 3.750% 7,385 67,385 70,754 13,254 27,702 31,000 1,202 3,406 2024 65,000 3.900% 5,135 70,135 73,642 13,254 26,395 31,500 -2,493 913 2025 65,000 4.000% 2,600 67,600 70,980 13,254 25,087 32,000 -639 274 805,000 241,570 1,046,570 1,098,594 20,300 198,810 515,258 364,500 274 iApplk #iori of Funds 2010 .16tb'Avenue Itrtp`ovement Project (f+% #'; ,: 16th Avenue Improvement Project (A) 753,617 Street, Curb & Gutter Costs 350,141 Less: City Cash Contribution 0 Storm Sewer Improvements 198,811 Total Hard Costs 753,617 Water Service 1,465 Add: Issuance Expenses Geotechnical Investigation 1,000 Est. Underwriter's Discount @1.96% 15,778 Legal/Admin 14,000 Est. Capitalized Interest (10 Months) 20,300 Est. Engineering Fees 133,200 Est. Fairness Opinion 1 ,000 Est. Contingencies 55,000 Est. Misc. Fees 100 Est. Bond Counsel Fee 6,000 Total Improvement Costs: 753,617 Est. Rating Fee 4,200 Est. County Auditor 250 Est. Registrar/Paying st A n F e t ee 74 9 ?Bn i . for`<twioii: .. .. . .. . .. .. . Total 808,665 Less: Investment Income -1,150 Bonds Dated: 9/1/2010 Bonds Mature: 12/1/11 Through 12/1/23 Rounded For Issuance I 805,0001 Interest Payments: 6/1/11 & Semiannually Each 12/1 & 6/1 Thereafter. Call Option: Callable 12/1/2018 @ Par Plus Accrued Interest. Registrar /Pay Agent: Northland Trust Services Est. Purchase Price: $789,222 Assessment it►otne Est. Average Coupon: 3.4114% Est. Net Effective Rate: 3.6342% Par Amount of Bond Issue: $805,000 Est. Bond Sale Date: September 2, 2010. Percentage of Project Assessed: 45.76% Est. Bond Closing Date September 28, 2010. Interest Rate on Assessments: 5.50% Bond Counsel: Briggs & Morgann First Installment Collection: 2011 Bid Opening: July 8, 2010. Number of Annual Installments: 15 Assessment Hearing: July 12, 2010. Start Date of Assessments: 11/30/2010 Construction Begins: August 30, 2010. Monte Eastvold, V.P., Northland Securities, Inc. Dated: 7/19/2010 11(b):3 16th Ave 15 CITY OF ST. JOSEPH, MINNESOTA ASSESSMENT INCOME 46th: Avenue : • Average :Assessments; . `:: Assessmt e f/t_ot' . Estimated Estimated Assessment Interest Assessment Assessment Interest Assessment Year Principal 5.50% Income Principal 5.50% Income 2010 0 1,635 1,635 0 54 54 2011 23,778.85 19,618 43,396 781.40 645 1,426 2012 23,778.85 18,310 42,089 781.40 602 1,383 2013 23,778.85 17,002 40,781 781.40 559 1,340 2014 23,778..85 15,694 39,473 781.40 516 1,297 _ 2015 23,778.85 14,386 38,165 781.40 473 1,254 2016 23,778.85 13,078 36,857 781.40 430 1,211 2017 23,778.85 11,771 35,549 781.40 387 1,168 2018 23,778.85 10,463 34,242 781.40 344 1,125 2019 23,778.85 9,155 32,934 781.40 301 1,082 2020 23,778.85 7,847 31,626 781.40 258 1,039 2021 23,778.85 6,539 30,318 781.40 215 996 2022 23,778.85 5,231 29,010 781.40 172 953 2023 23,778.85 3,924 27,702 781.40 129 910 2024 23,778.85 2,616 26,395 781.40 86 867 2025 23,778.85 1,308 25,087 781.40 43 824 356,682.75 158,575 515,258 11,721.00 5,211 16,932 rax:#nipact ArtalysIs ::•.`.,. . Annual Tax Residential Market Value Est. Tax Capacity Capacity $100,000 $150,000 $200,000 Tax Value Incr. Rate Net Tax Capacity Year Levy 1.00% Increase $1,000 $1,500 $2,000 2010 0 3,664,663 2011 12,000 3,701,310 0.32% 3.24 4.86 6.48 2012 14,000 3,738,323 0.37% 3.74 5.62 7.49 2013 16,000 3,775,706 0.42% 4.24 6.36 8.48 2014 18,000 3,813,463 0.47% 4.72 7.08 9.44 2015 20,000 3,851,598 0.52% 5.19 7.79 10.39 2016 22,000 3,890,114 0.57% 5.66 8.48 11.31 2017 24,000 3,929,015 0.61% 6.11 9.16 12.22 2018 26,000 3,968,305 0.66% 6.55 9.83 13.10 2019 28,000 4,007,988 0.70% 6.99 10.48 13.97 2020 29,000 4,048,068 0.72% 7.16 10.75 14.33 2021 30,000 4,088,549 0.73% 7.34 11.01 14.68 2022 31,000 4,129,434 0.75% 7.51 11.26 15.01 2023 31,000 4,170, 728 0.74% 7.43 11.15 14.87 2024 31,500 4,212,436 0.75% 7.48 11.22 14.96 2025 32,000 4,254,560 0.75% 7.52 11.28 15.04 364,500, Average Annual Incr: $6.06 $9.09 $12.12 Average Monthly Incr: $0.50 $0.76 $1.01 Monte Eastvold, V.P., Northland Securities, Inc. Dated: 7/19/2010 11(b):4