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Home My WebLink AboutA001 - Memo from Finance Director dated October 17, 2001 - time schedule c Memo Finance Administration I L w Caring People Quality Programs Exceptional Se"ice TO: Steve Schainker, City Manager Dime Voss, City Clerk FROM: Duane"itc—er, Finance Director DATE: October 17, 2001 SUBJECT: Fire Station G. O. Bonds/Refinance 1993 G.O. Bonds Attached is the time schedule for the upcoming bond issue. c: Clint Petersen, Fire Chief Sue Rybolt, Assistant Finance Director Carol Collings, Budget Officer Sherry Meier, City Treasurer Oct-17-01 02:21pm From-EVENSEN DODGE INC +6123387264 T-904 P.01/03 F-925 FAXDate: 10/17/O1 Number of pages including cover sheet. 3 TO: Duanc Pitcher FROM: Heather Casperson Finance Director Evensen Dodge,Inc. City of Ames 650 Third Avenue South 515 Clark Avenue Suite 1800 Ames, Iowa 50010 Minneapolis, Minnesota'55402 Email pitcher4city.ames_ia.us Email hcasperson@evensendodge.com Phone 515-239-5113 Phone 612-371-3753 Fax Phone 515-239-5325 Fax Phone 612-338-7264 CC: Dave Dirks,Evensen Dodge, Inc. Jeane Harrison, Dorsey&Whitney 515-283-1060 FAX REMARKS. Q Urg.n, For your review Reply ASAP Q Please CArm:ent Good afternoon, The following pages present a preliminary schedule of events for the upcoming issue combining the current refunding of the outstanding portion of the City's $8,215,000 General Obligation Refunding Bonds, Series 1993 and new money for the Fire Station. After reviewing the resolution for the 93 GO issue, it appears the Bonds are callable on June 1, 2000 or any date thereafter; therefore, this schedule assumes a call date for the 93 GO issue of January 1, 2002. This would provide time after the sale on November 13 to prepare and disseminate the call notice to registered bondholders as required. As we discussed this morning, this schedule currently does not include an additional refunding of the City's outstanding Electric Revenue Refunding issue. Please let us know if the City would Iike to further pursue refunding that issue or the 1995 General Obligation issue. Please feel free to contact Dave Dir", Chuck t.lperaft or myself to discuss this schedule, or to let us know if the following pages do not transmit clearly or in their entirety. Sincerely, EVENSEN DODGE,INC. q6tw &Awxn--- Heather Casperson Associate Jct-17-01 02:21pm From-EVENSEN DODGE INC +6123387264 T-904 P.03/03 F-925 October 17 2001 Page Two Date Task Qesc�l Pion ResPwrsibi/I November 13 Bond Sale • Take bids and check for accuracy ED • Prepare sale analysis ED • Complete bond resolution BC • Adopt resolution awarding sale C November 13 Council Meeting + Public Hearing C, 13C • Council adopts Bond Resolution November 14 - December 4 Closing Preparations • Prepare closing documents BC • Confirm closing date and funds tronsfer ED • Closing letter to all parties ED December 1 Call Notice • bast day to send call notice via certified C mail (see note below)for January 1, 2002 coil date December 5 Closing . Purchaser pays for the Bonds C, BC. ED Note- Ames City Treasyrer is listed as Bond Registrar and Paying Agent for the refunding issue and therefore is responsible to mail by certified mail the call notice to the registered Bondholders at the addresses on the City's registration books not less than 30 days, nor more than 45 days prior to call date, per the Bond Resolution, Financing Team Members: C z City of Ames, Iowa BC= Dorsey 4 Whitney LLP (bond counsel) ED = Evensen Dodge, Inc. (financial advisor) RA = Moody's Investors Service and Standard and Poor's (rating agencies) EVENSEN QOPCE INC Page 2 0371(034) Jct-17-01 02:21Ofn F.rom-EVENSEN DODGE INC +6123387264 T-904 P.02/03 F-925 PROPOSED TIME SCHEDULE CITY OF AMES, IOWA $3,895,000 General Obligation Refunding Bonds, Series 2001 $1,310,0W General Obligation Fire Station Bonds, Series 2001 Octaber 2001 November 2001 December 2001 S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 1 7 8 T 10 11 12 13 4 5 6 7 8 9 10 2 3 4 5 6 7 8 14 15 16 17 18 19 20 11 12 13 14 15 16 17 9 10 li 12 13 14 15 21 22 23 24 25 26 27 18 19 20 21 22 23 24 16 17 18 19 20 21 22 28 29 30 31 25 26 27 28 29 30 23 24 25 26 27 28 29 30 31 Oa re Task DesCr/ptlon Res�oas/bl/Ity October 15 - 19 Issue Planning • Time Line distributed ED • Bond sizing and structure ED October 18 Set Sale . Sale memo distributed ED • Presale resolutions and hearings SC October 23 T" Council Meeting • Call for the Public Hearing on November 13 C October 22 - November 2 Document Preparation • Prepare official statemenT FD • Prepare bond resolution and call notice BC Review draft documents C, BC, ED October 25- November 7 Request RoTing • Request rating from Moody's and 5 & P ED, C • Documents to Moody's and 5 & P ED Receive ratings RA October 30-- November 12 Market Bonds • Print and distribute official statement ED • Notify wire services ED • Call potential bidders ED • Monitor market conditions ED • Prepare sale file ED EVENSEN QOpGE INC Page 1 0371(034) Memo 0 Finance Administration Coring People Quality Programs Exceptional Service TO: Steve Schainker, City Manager Diane Voss, City Clerk �'A FROM: Duane Pitcher, Finance Director II CITY �y r',�1rSYiOl'A k DATE: October 16, 2001 - - SUBJECT: Fire Station G. O. Bonds/Refinance 1993 G.O. Bonds have begun the process to issue the Fire Station G. O. bonds and refinance the 1993 G. O. bonds. We are currently planning a November 13, 2001 sale date and an early December close. This will allow for a current call (no call premium) for the 1993 G.O. bonds. Evensen Dodge is working on an issue schedule and the Official Statement, and Dorsey & Whitney is preparing Council proceedings. The 1993 refinance is projected to generate total savings of approximately $115,000 or a net present value savings of 3.10 percent. We have had some improvement in interest rates since this analysis was done and savings should exceed this amount. A general target of three percent is common for refunding. Again, this is a current refunding and the bonds will be called. I am also reviewing the 1993 Electrical Revenue Bond refunding. These bonds are also available for a current call and are projected for total savings of $385,550 or a net present value of 3.6 percent. This analysis was made based on current interest rates. c: Clint Petersen, Fire Chief Sue Rybolt, Assistant Finance Director Carol Collings, Budget Officer Sherry Meier, City Treasurer Duane R Pitcher To: Steve Schainker/COA@COA, Diane R Voss/COA@COA +� 10/17/2001 09:43 AM cc: Subject: Bond Issues Steve and Diane, I wanted to let you know that I have talked to both Evensen Dodge (conference call with Heather and Chuck) and Bob Helmick about better coordination of our upcoming bond issues. I specifically discussed with Bob Helmick some of the difficulties we have had with the performance of his firm related to the past two bond issues. I made sure that Bob was clear that we consider this a serious issue and agreed to communicate more closely between all three parties (City, Dorsey&Whitney, Evensen Dodge) on future issues. Please contact me if you have a problem as we proceed with upcoming bond issues. I would like to act as the primary point of contact,but hope that Diane will continue to directly with Jeane Harrison in finalizing council proceedings. I will notify Bob Helmick of any problems as they occur and expect that he will assure that shortfalls are corrected rather than having our staff becoming frustrated with the performance of his firm. We also discussed the Hallett's Quarry referendum and the fact that close coordination will be required to have the issue done quickly if all contingencies are met after passage of the referendum. Thanks, Duane Duane Pitcher, CPA Director of Finance 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 tiu�