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Home My WebLink AboutA019 - Council Action Form dated June 13, 1995IXOPIR011111LIT" I M HiNOT : ITEM # 30 DATE June 13,1995 BACKGROUND: The City's outstanding bonds include two Sewer Revenue Bonds initially issued in 1987 with total outstanding principal equal to $4,275,000. The financial consulting firm of Evensen-Dodge has prepared an advance refunding analysis that indicates savings of 4.7455% if the City were to issue refunding bonds to pay the remaining principal on those outstanding bonds. A Sources and Uses of Funds report is attached showing a total estimated bond issue of $3,960,000. Issuance costs are included in the total. The balance of the amount issued plus the balance in the City's existing Sewer Reserve Fund will equal the outstanding principal of $4,275,000. The refunding issue would be an advance refunding, with both issues being called on December 1, 1995. In a savings report prepared June 5, 1995, cumulative interests savings are projected to be $255,713.56 over the remaining eight years of the bonds. The present value savings equals $220,554.87. A copy of that report is attached. The resolution before the City Council is to authorize the City Manager and the City Finance Director to set the terms and the date of sale and arrange for the advertisement of the bonds. This action allows staff and Evensen-Dodge to monitor the market, proceed with the preparation and issuance of an Official Statement, and set the date of sale. The actual results of the sale will be presented to the City Council for acceptance. ALTERNATIVES: 1. Adopt the resolution authorizing the City Manager and the City Finance Director to set the terms and the date for the sale of not to exceed $4,500,000 Sewer Revenue Refunding Bonds, series 1995. 2. Deny approval of the issuance of refunding bonds for the Sewer Revenue Bonds. 3. Request staff to return to the City Council and propose a specific date for the sale of refunding bonds to be approved by the City Council. MANAGER'S RECOMMENDED ACTION: It is the recommendation of the City Manager that the City Council adopt Alternative #1, Adopt the resolution authorizing the City Manager and the City Finance Director to set the terms and the date for the sale of not to exceed $4,500,000 Sewer Revenue Refunding Bonds, series 1995. COUNCIL ACTION: City of Ames, Iowa Sewer Revenue Refunding Bonds, Series 1995 Scenario: Advance Refunding Sources and Uses Funds Sources of Funds Par Amount of Bonds Accrued Interest Total Sources of Funds ,Uses of Funds Cost of Escrow Beginning Cash Cost of SLGS Cost of Issuance Underwriter's Discount ($5.00/$1,000) Accrued Interest Misc. (Rounding) Total Uses of Funds Prepared by Evensen Dodge, Inc. � � » ` ` City of Ames, Iowa ~ Sewer Revenue Refunding Bonds, series 1995 Scenario: ======= Advance Refunding sxvIwG» nsPOmr ======= o»Ts ----'' - - ' ' ' - - pn,wcIpxL ----'----- - pxo,omso msor noupow ----- oExv/cs - ' /wTsncar - - - - ' TOTAL px/on u/s sxv/waa cuwuLxnms axv/mus 12/ 1/95 u/ 1/96 --'---''--- ---'-----'- 76'005-21 76.805.21 -------'--' 127,03.75 ---'----''-' --'-------'-- 507�8 54 ' ' 5V 7�B 54 ' ' 12/ 1/98 465,000,00 4.200000 92'166.25 92,166.25 649,332.50 680,087.50 30755 0O ' ' 81 4f� 54 ` a/ 1/97 82,401'25 ' 12/ 1/97 a/ 1/98 510,000'00 4.450000 82.401'25 674,802'50 708,662.50 28��n 0o ' ' 110 �� 54 ' ' 71,053'75 12/ 1/98 535.000.00 4.550000 71.053.75 667'107.50 6e8.287'50 31 1a0 On ' 141 �� 54 a/ 1/9e 59'110,00 ' ' ' lZ/ 1/99 570,000-00 4.650000 59.110.00 688'220.00 715,725.00 27,505.00 169,038.54 a/ 1/ u 45,857,50 1Z/ 1/ O u/ 1/ 1 610'000'00 4.750000 45,257.50 701,715-00 729,125.00 27,410.00 196,448.54 31'370'00 12/ 1/ 1 a/ 1/ 2 620,000'00 4.850000 31.370.00 682.740.00 713,550.00 �n 81D Vn ' ' 2Z7 Z5B 54 ' ' 16,335.00 12/ 1/ Z __66u�0OV,U0 4'950000 __—__________________ 16.335.00 692,670.00 721,125.00 2D,455.nV 255'713.54 �ccousn=55'73'54 3,960,000'00 8B'3Y2.71 4,833,3vZ.71 5,089,106.25 _ ------ 3,980.000'00 873,392-71 4,833,392.71 5,089'106.25 255,713'54 Dated 7/ 1/95 with Delivery of 7/ 1/9e avnn Years 18,380'000 Average Coupon 4.751865 Average Life 4'641414 w I c z 4.859590 z um/ny 99.5000000 Net present Value Savings at: 4.7455% Equals 220'55*.87 or 5'5696x of par of the current Iaavc or s.,znrz of par of the prior zauvr Prepared by s,pnycn ooasc, Inc. nuwuAre: 0*-05-1995 m 08:01:04 FILENAME: xwEynsp xs,: nsp'Aov-30u City of Ames, Iowa ' sewer Revenue Refunding Bonds, Series 1995 Scenario: Advance Refunding usLzvsn, oxrs: ry 1/95 Par Gross ,ic/u Target value o n o s s ,^eLo Prepared by s,enuen Dodge, Inc. nuwoxrc: 06-05-1995 a 08:01:13 3,960,000.00 --------- 3,9ao,00.00 4.74546141 z FILENAME: AMESREF KEY: REF-ADV-30K City of Ames, Iowa ' Sewer Revenue Refunding Bonds, ocrica 1995 Scenario: Advance Refunding pv DATE: 7/ 1/1995 with 2 compnundinys using 30/380 Year Basis pv xsouus: nv TOTAL ~ 3'960'000.00 pv xxrs = 4.7454614062 cAsn ' rLcw uuaroTxL = 4'833.392.71 --'--''-- oxrs xwouwT -----''-''-'--' nxrs pv pxcron pv xmouuT l2/ 1/1995 76.805.21 '---'''--'- 4.7454614 -'-'-----' 0.98064788 '--'-''-''-'-' 75'318.86 6/ 1/1996 92.166.25 4.7454614 0.95791904 88,287'81 12/ 1/1*96 557'166.25 4.7454614 0.93571700 521'349.93 a/ 1/1*97 82'401.25 4.7454614 0'91*02954 75,317.18 12Y 1/1**7 e92.401.25 4.7454614 0.89284473 sZu'vZJ'S^ 6/ 1/1998 71,053.75 4.7454614 0.87215094 61,96*-59 12Y 1/1*98 596,053.75 4.7454614 0.85193678 507,800.11 8/ 1/1999 59,110.00 4.7454614 0.0219112 49,190.82 12/ 1/1999 aZ*,no.Vu 4.7454614 0.81290512 511,405.48 6/ 1/2000 45'857.50 4.7454614 0.79406216 36'413'71 12/ 1/2000 655'857.50 4.7454614 0.7756578* 508.721'04 a/ 1/2001 31'370.00 4.745*614 0.75768018 23'768.43 12/ 1/2001 651'370.00 4.7454614 0.74011915 482.091.41 a/ 1/200e 16.335.00 4.7454614 0.72296513 11'809.64 12/ 1/2002 676'335.00 _-____ 4.74�a14 o.�6zuD7o *77'633.66 SUBTOTAL 4.833'392.71 ------------ 3'960'00'00 Prepared by evenoen undoe' Inc. , City of Ames, Iowa Sewer Revenue Bonds, Series 1987 and 1987a Combined oe+easance Requirements as of 6f15/95 pv oxrs: r/ 1/1995 with z compvunclines using 30/360 Year Basis pv nsauus: pv rnmL = s'vuo,son.00 nv nxrs ~ 4.7447702544 c*ax ' rLow suoromL = 3,977,461.34 oxrs xmouwr ems pv rxcron pv xmouwT -'- -' -- '--'—' --'-' '' -'-'-- ----''-'' ---''-'- ---''' 1z/ 1/1995 3,977,461.34 4.�4rro3 n.9uous�4 3,900,500.00 ______ ------------ SUBTOTAL 3'977,461.34 3,900'500.00 Prepared by svenarn omhc. Inc. City of Ames, Iowa Sewer Revenue eonds. Series 1987 and 1987o Combined oefeaaance Requirements as of 6/15/95 ==================== coyr OF cxwoInmes FOR socnou ponrpoL|o ==================== osLrven, ox/s: 7/ 1/95 MATURITY mm xccoueo TOTAL rYps o A T s «wouw/ COUPON nsm pmce oosT IwrsneoT COST -------- -------- ------------- --------- --------- ---------- ---------------- ---------------- ________ SLca laY 1/95 3'*00'500 4.720000 o.00unnu 1ou.0000no 3,900,500.00 0.00 3,900,500.00 _---__' -------------- -------------- —_—____ msuzww,wc omn 82.41 COST OF asomITzss 3'900'500.00 rcnxL COST OF secnou 3.900.582.41 Prepared by Evensen Dodge, Inc. RUNDATs: 06-05'1995 m 08'01:24 puENAME:mMESREp KEY;CBD-ADvCOM City of Ames, Iowa ` Sewer Revenue Bonds, Series 1987 and 1987E Combined Defeasance Requirements as of 6/15/95 ESCROW CASH BALANCING REPORT DELIVERY DATE: 7/ 1/95 E S C R O W CANDIDATE PURCHASE T 0 T A L C A S H DATE REQUIREMENT RECEIPTS RECEIPTS RECEIPTS BALANCE ---------- -------------- -------------- -------------- -------------- -------------- 7/ 1/95 82.41 12/ 1/95 3,977,543.75 3,977,461.34 3,977,461.34 3,977,543.75 3,977,461.34 3,977,461.34 Prepared by Evensen Dodge, Inc. RUNDATE: 06-05-1995 @ 08:01:28 FILENAME: AMESREF KEY: CBD-ADVCOM v o/tv of Ames, Iowa Sewer Revenue Bonds, Series 1987o outstanding oe|/au[e Debt Service =~============= uco/ ssxvzcs AND cxu asmmT oriyimaL nrioinaL orioivaL primcipaI Cal L Interest Debt Service Date -------- principa/ -------------- Coupon ---------- -------------- Interest Debt Service To Escrow Premium To Escrow To Escrow 12/ 1/95 -------------- 49.92e.00 49,925.00 -------------- -------------- 1,400,00.00 -------------- _______ 49,925.00 1'449,925.00 6/1/96 49,*25.00 49,925.00 12/ 1/96 150,000'00 6.800000 49,92e.00 199'925.00 6/ 1/97 44,825.00 44'825.00 12/ 1/97 175,000.00 6.900000 44,825.00 219.825.00 a/ 1/98 38,787.50 38,787.50 |z/ 1/98 175,000'00 7.000000 38,787.50 213,7e7.50 6/ 1/9* 32,662'50 32,662.50 12/ 1/99 200,000.00 7.100000 32,e62.50 232,662.50 6/ 1/ n 25,562.50 25.562.50 12/ 1/ u 225,000'00 7,200000 25,562'50 250.562.50 6/ 1/ 1 17,462.50 17,462.50 12/ l/ l zzs,00u.00 r.]u000n 17,462.50 242,462'50 e/ 1/ z 9,250.00 9,250.00 12y 1/ Z 250,000'00 _-_____ 7.4oVnOV -------------- 9,250.00 259,250'00 1,400,000.00 -------------- 486,875.00 -------------- 1,886,875.00 -------------- 1,400,000.00 -------------- __-_-__ 49,925.00 1,449,925.00 Dated 6/ 1/95 with oe//very of 6/ 1/95 CALLS PERFORMED FIRST LAST CALL uvu wmTun,ry wxnmzT, pnzwcIpxL cxu cxu NO. ows cxuso oAuen cxuso pnIcs pncwImw 1> 12/ 1/95 12/ 1/96 12/ 1/ Z 1'400'000.00 mo.000 _______ 0.00 _______ 1.400.000.mo 0.00 Prepared by evcnsen oouyc, Inc. City o/ Ames, Iowa ' sewer Revenue uvnua, Series 1987 outstanding Callable Debt Service neer nsnvzcs AND cxu neponT original Original Original Principal call Interest Debt Service Date ---`—` Principal -`-`--`----` cvvpmn —`--`-`- Interest Debt Service To Escrow premium To Escrow To Escrow 12/ 1/95 -`-----``-`` 77,618.75 `'`````---`` 77,678.75 -----``---` '----```-`--`- `-`-`------`` 2,450,000.00 ``--------`- 77,618.75 2,527,618.75 6/ 1/96 77,618'75 77,618.75 12/ 1/96 275,000.00 5.900000 77,618.75 3e2,618.75 6/1m7 *9,506.25 69,506.25 121 1/*7 300,000.00 6.100000 *p,smy'as 369,506.25 6/ 1y98 60,35*.25 60,356.25 12/ 1/98 32e,000'00 6.250000 60'356.25 385,356.25 u/ 1/99 50,200.00 50,200.00 le/ 1/99 350,000.00 6.400000 50,200.00 400,200.00 a/ 1/ n 39,000.00 39,000.00 12/ 1/ o 375'000'00 6.500000 39,000.00 414.000.00 a/ V 1 26,812.50 26,812.50 121 n 1 400,000.00 6.500000 26.812.50 426'812.50 u/ 1/ a 8,812.50 13,812.50 12/ 1/ Z 425'000.00 ____—_— 8'5nVO0D -------------- 13,812'50 438'812.50 2,450,000'00 752,231.25 -------------- 3,208,231.25 -------------- -------------- -------------- 2,450,000.00 _—_—___ 77,618.75 2,527,618.75 Dated 6/ 1/95 with Delivery of 6/ 1/95 CALLS PERFORMED rmsr LAST cnu cxu umun|r, yxrunxT, NO. uxrs cxusu cxuco Prepared by eveneo, Dodge, Inc. pxzwczmu cxu cxu cxueo pxos pxsm/uw 2.450.000.00 1no'000 _______ 0.00 _______ 2'45o'00@.nu 0.00 FILENAME: AMESREF KEY: 87ADV